https://www.miningweekly.com

Peabody eliminates 235 jobs in Powder River basin

1st April 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Struggling US coal producer Peabody Energy will lay off 235 permanent and contract workers from its flagship North Antelope Rochelle mine, in the Powder River basin (PRB), to better align the workforce with subdued customer needs, it said on Thursday.

The company, the world's largest private-sector coal company, earlier this month warned that it was on the brink of bankruptcy, as falling global demand for the fossil fuel had affected its ability to service its substantial debt load. As a result, about 15% of the workforce at the North Antelope Rochelle mine would be affected.

"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,” stated Peabody president for the Americas Kemal Williamson.

Peabody advised that it was taking steps to ease the transition through severance and outplacement support. The company's PRB operations employed about 1 500 workers with about 1 150 employed at the North Antelope Rochelle mine following the reductions.

US coal industry conditions had remained challenged, impacted by an oversupply of natural gas and mild winter weather. The US coal industry had also seen unprecedented shipment declines this year. Heating degree days, a measurement designed to reflect the demand for energy needed to heat a building, were 17% lower year-to-date than last year, with March heating degree days down nearly 30% over the ten-year average.

While all basins had been impacted, the latest Energy Information Administration production estimates showed that the PRB was faring better than other regions, given its cost advantages.

Peabody advised that it believed the decrease in shipments was leading to stockpile reductions in excess of previous expectations.

Edited by Samantha Herbst
Creamer Media Deputy Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.048 1.063s - 128pq - 2rq
Subscribe Now