Help Desk -
9958816305, 9810335381
Email
Password

Peabody to Idle Shoal Creek Coking Coal Mine in Alabama

Coal News - Published on Wed, 07 Oct 2020

Image Source: Peabody Shoal Creek Coking Coal Mine
Peabody Energy Corporation is continuing to advance its cost repositioning program. On October 5, 2020, following the completion of its recent H-3 panel longwall move, the Company is temporarily idling the Shoal Creek mine. Peabody said “While metallurgical coal prices have recently appreciated, steelmaking fundamentals, particularly in traditional markets, are in the early stages of recovery from the COVID-19 pandemic. As a result, customer demand this year has been and continues to be severely impacted. Year-to-date through September 30, Shoal Creek has shipped approximately 600,000 tons. These market factors, combined with a currently elevated cost structure at the mine, have led to the decision to temporarily suspend production.”

Over the next several months, Peabody will take the opportunity to reset the mine. Steps being taken will include focusing on ways to improve efficiencies and productivity. 2020 costs per ton have been elevated due to a combination of weak demand, lower productivity rates, and poor geological conditions in the close-out of the H-panel.

The United Mine Workers Association says 350 workers will be laid off. The district vice president for the union representing the miners said Shoal Creek Mine is set to close for six months.

Peabody acquired the Shoal Creek Mine from the previous owner the Drummond Company in 2018 and sold 2.1 million tons of Seaborne Hard Coking (High Vol A) in 2019

Source :

Posted By : Yogender Pancholi on Wed, 07 Oct 2020
Related News from Coal segment