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Peabody to close Indiana mine with 230 workers

 IBJ Staff and Bloomberg News
September 5, 2012
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Peabody Energy Corp. will permanently close its Air Quality Mine in southwest Indiana because of “soft” conditions that make operations "uneconomic," the company said Wednesday in a prepared statement.

The closure of the Vincennes mine will affect 230 workers, the St. Louis-based company said.

“Peabody is working with employees regarding placement opportunities at other Peabody operations,” the company said. The company has 10 other mining operations in Illinois and Indiana.

Peabody said it expects to incur a one-time charge of $75 million in the third quarter related to the writedown of assets.

The mine produced 1.2 million tons of low-sulfur coal in 2011, according to the statement. The mine supplies power plants and industrial customers in Indiana and Illinois, according to the company’s website.
 

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  • The need to learn business and profits
    @reddogq Thank you Obama? Time to learn a little about capitalism, worldwide demands for coal, and reading 10Qs and Ks. It's not just regulation on coal and the power providers. U.S. demand is down due to lower demand because of adverse weather conditions, large stock of coal not burned last winter, and increasing competition from natural gas as an alternate fuel. U.S. power plant operators are retiring coal-generation capacity from their production portfolios because of cheap natural gas. BTU is reacting by redirecting capital to their Australian mines because of Asian demand. BTU is "permanently" closing the mine because the operations are uneconomical, but they are not selling off the asset. When it becomes economical again, they will probably open it up again.
  • I agree
    Thanks Lisa Jackson. We are all breathing easier now.
  • Peabody
    Thank you Mr Obama sir....may I have one more?

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