THURSDAY: As per press releases, Peabody Energy Corp. after citing fears to get bankrupt, had announced to cut approx. 235 jobs at a mine in Powder River basin.
UPDATE: Approx. 480 coal mine employers have been laid off in northeast Wyoming.
The company said the job cuts would be impacting 15% workforce at the North Antelope Rochelle mine in the basin straddling Montana and Wyoming. After reduction, Peabody would consider employment rate of 1500 workers – of which some would be 1150 from North Antelope.
On a similar note, Creve Coeur-based Arch Coal, which is currently organizing in bankruptcy court, announced to be terminating approx. 243 workers at its Black Thursday mine – an entire representation of worth 15% in case if its 1600 workers at the mine.
“While our asset position and contracting strategies give us relative strength, we are taking these actions to match production with customer demand. We regret the impact of these actions on our employees, their families, and the surrounding communities in the Campbell and Converse county areas.” – Peabody President, Americas Kemal Williamson.
U.S. coal industry conditions have remained challenged, impacted by an oversupply of natural gas and mild winter weather. The U.S. coal industry has seen unprecedented shipment declines this year.
INSIGHT: Just for knowledge: both the mines are situated in coal rich Powder River Basin in Campbell Country. In collaboration, both produce approximately 200 million tons of coal over annual scale.
During its regular filing session, Peabody confessed to have thought to sell three mines to Bowie Resource Holdings; an agreement made by both the companies to waive their termination rights in evaluating mode of payment conduct.
LAST MONTH: According to an anonymous source, Bowie’s US$ 650 million loan for Peabody’s acquisition in New Mexico and Colorado was temporarily halt.
Exclusive from Market Watch: Peabody skipped US$ 71.1 million in interest payments during March.