Company officials said January 9 that, as it continues to integrate PBS Coals assets into its Northern Appalachian division portfolio, it has idled the Kimberly Run and Barbara mines and placed them under management review for closure. It also cited global met market weakness for the move.
Corsa will transfer some personnel and equipment from the mines to its active, lower-cost Casselman and Quecreek complexes; the additional personnel and equipment are expected to allow for an increase in production and operational efficiency at both mines.
“We regret the need to take today’s actions, however, we anticipate these moves will improve the overall cost structure of the NAPP division while still maintaining premium quality metallurgical coal specifications,” Chief Executive Officer George Dethlefsen said. “The acquisition of PBS last August provided the company with a large portfolio of active and development mines [and] today’s moves are part of the ongoing integration of PBS as well as an effort to rationalize production in response to market conditions.
“The company will shift its near-term metallurgical coal production to its lowest cost operations while preserving other reserves for future development at a time when the market is stronger.”