Sept 5 Coal miner Peabody Energy Corp
said it would close a mine in Indiana as the availability of
cheap natural gas depresses demand for coal used in power
Soft market conditions have made operations uneconomical,
The company expects to incur a non-cash after-tax charge of
$75 million in the current quarter due to a writedown of assets,
The Air Quality mine in Vincennes, Indiana, which has 230
employees, produced 1.2 million tons in 2011. Peabody's total
production was 228.9 million tons in 2011.
The miner said it was working with employees regarding
placement opportunities at its other operations.
Weak prices have forced many coal companies, including Alpha
Natural Resources Inc, Walter Energy Inc and
Consol Energy Inc, to cut production.
Patriot Coal, which was spun off from Peabody in
2007, filed for bankruptcy protection in July.