In response to an economic downturn in Europe, Brazil and the United States, Coronado Global Resources is temporarily idling its U.S. operations. The company will continue shipments to these regions from existing inventories of approximately 750,000 metric tons (mt).
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 U.S. hourly employees. Salaried employees in the U.S. 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 said it will continue the company-paid portion of heath care insurance premiums for all furloughed employees at this time.
“Given the challenging and unprecedented macro environment, these are prudent measures designed to ensure that Coronado remains in a solid financial position,” said Garold R. Spindler, managing director and CEO, Coronado Global Resources. “We will continue to deliver on our commitments to our global customers and actively monitor the situation to respond in the best interests of our employees and shareholders.”
The company said the temporary halt at the U.S. mines may impact the previously announced saleable production guidance for fiscal year 2020 of 19.7 million to 20.2 million mt, but how much is unknown. Cost per ton sold will likely be higher than forecast resulting from the anticipated lower production volumes in the U.S., the company said. Curragh, which accounts for 65% of the company’s production and earnings, is expected to continue to operate.