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Coronado Global Resources Idles US Coal Mines

Coal News - Published on Tue, 31 Mar 2020

Image Source: Coronado Global Resources Coal Mining Coronavirus Lockdown
Coronado Global Resources Idles US Coal Mines
Coronado Global Resources Inc announces that, in response to the COVID-19 induced economic downturn in Europe, Brazil and the United States, it is temporarily idling its US operations effective immediately. The Company will continue shipments to these regions from existing inventories of approximately 750,000 tonnes, which we expect will meet all current customer contractual commitments as well as deliver on potential sales opportunities. In Australia, the Curragh mine will continue to operate to accommodate metallurgical coal export requirements of its key customers in India and the Asia Pacific. Curragh also supplies coal under a long-term contract to the Stanwell Power Station, a Queensland government owned entity.

Coronado will furlough all US hourly employees. Salaried employees in the US will continue to maintain the integrity of each operation for rapid resumption of operations, comply with all regulatory obligations, handle shipments and day-to-day administrative and management responsibilities. Coronado will continue the Company-paid portion of heath care insurance premiums for all furloughed employees at this time.

The temporary halt to production at the U.S. mines may impact the previously announced saleable production guidance for fiscal year 2020 of 19.7 to 20.2 Mt, the extent of which cannot be estimated at this time due to the uncertain market conditions. Cost per tonne sold will likely be higher than forecast resulting from the anticipated lower production volumes in the U.S. Curragh, which accounts for 65% of the Company’s production and earnings, is expected to continue to operate to service its customers.

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Posted By : Yogender Pancholi on Tue, 31 Mar 2020
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