St. Louis, Missouri –Peabody Energy today said it has ceased production at the Air Quality Mine in Vincennes, Ind., and will permanently close the mine based on soft market conditions that make operations uneconomic.
Worker Adjustment and Retraining Notification (WARN) letters were provided to approximately 230 employees, signaling a 60-day period to plan for a job transition.
Peabody is working with employees regarding placement opportunities at other Peabody operations. Air Quality produced 1.2 million tons in 2011.
Peabody expects to incur a one-time, non-cash charge estimated at $75 million after tax in the quarter ending Sept. 30, 2012, primarily related to the writedown of assets, which will be recorded within discontinued operations. Peabody’s prior third quarter 2012 targets remain unchanged, as they exclude discontinued operations.
Peabody is the leading coal producer and reserve holder in the Midwest with 11 operations in Indiana and Illinois.
Peabody Energy is the world’s largest private-sector coal company and a global leader in sustainable mining and clean coal solutions. The company serves metallurgical and thermal coal customers in more than 25 countries on six continents. For further information, go to PeabodyEnergy.com and CoalCanDoThat.com.
Source: Peabody Energy