Coal miner Consol Energy Inc. (NYSE: CNX) announced this morning that it would close its Virginia Buchanan longwall coal-mining operation and reduce its operations to five days a week. The company expects a production decrease of 295,000 tons/month as a result of the closure and reduced schedule.
The company joins Alpha Natural Resources Inc. (NYSE: ANR) and Patriot Coal Corp. (NYSE: PCX), which have already shuttered some mines. Peabody Energy Corp. (NYSE: BTU) has not closed any mines yet, but has cut production in the face of lower demand and lower prices.
Consol also note that it would not layoff any staff as a result of the cutback in production. The 778 workers at the Buchanan mine will work on safety and compliance issues while production is being curtailed. The company said it would monitor demand and “respond accordingly.”
Consol shares are down more than -2% today at $32.63 in a 52-week range of $30.56-$56.32. The Market Vectors Coal ETF (NYSE: KOL) is down nearly -3% at $32.64 in a 52-week range of $27.42-$51.87.
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