In September, Pennsylvania-based met coal producer, Corsa Coal Corp. learned that an overseas third-party sales agent had been charged in connection with allegedly unlawful benefits given to a representative of an overseas customer in relation to a coal sale. A Special Committee of the Board of Directors of the company was promptly constituted and engaged outside legal counsel to conduct an investigation as to whether any employees of the company or any of its subsidiaries were aware of, or involved in, the alleged conduct and whether any such knowledge or involvement may have given rise to a violation of anti-corruption laws by the company or any of its subsidiaries.
On the basis of preliminary findings resulting from such investigation, which is ongoing, the company said it has taken corrective action to minimize risk. At this time, no charges have been brought against the company or any of its subsidiaries in any jurisdiction.
In other news, Corsa said it sold 288,000 tons during the third quarter compared to 465,000 tons in the third quarter of 2019. Year-to-date, Corsa has sold 1.18 million tons compared to 1.32 million tons during the same period last year.
Citing deteriorating market conditions, the company implemented operational changes in early August, which included, among other things, a reduction in the operating shifts, which reduced coal production and resulted in layoffs of a significant number of employees.
“The reduced production schedule implemented during the third quarter was a difficult decision because it resulted in the layoff of dedicated and hard-working employees, however, it was necessary to balance our production with our contractual commitments while allowing us to maintain our strategic inventory and to quickly and efficiently increase production in response to positive market opportunities,” said Peter Merritts, CEO, Corsa Coal. “We are continuously monitoring the market for profitable opportunities and have the strategy, facilities and, most importantly, the personnel to increase our production to serve those orders. The Corsa team is ready to respond when the metallurgical coal market strengthens and the price environment recovers.”