Corsa Coal Corp. has announced substantial job losses.
The company cited weak metallurgical coal prices, combined with the ongoing integration of the recently acquired PBS Coals Ltd into the company’s Northern Appalachian Division (NAPP Division), would lead to 130 full-time positions being “eliminated”.
The 130 job losses represent approximately 25% of the NAPP Division’s workforce.
As a result of the decision, the Kimberly Run and Barbara coal mines have been idled and placed under management review for closure. Certain personnel and equipment from these mines will be transferred to the Casselman and Quecreek mines, which are the company’s lowest-cost metallurgical coal operations.
The addition of personnel and equipment to the Casselman and Quecreek mines is expected to allow for an increase in production and operational efficiency at the coal mines.
George Dethlefsen, Corsa’s CEO, said the company regretted “the need to take today’s actions”, but said the moves will “improve the overall cost structure of the NAPP Division, while still maintaining premium quality metallurgical coal specifications”.
Those employees now facing redundancy, however, are unlikely to agree that the pockets of company shareholders needed to be lined further at the expense of their livelihoods.
Dethlefsen continued: “The acquisition of PBD last August provided the company with a large portfolio of active and development mines. Today’s moves are part of the ongoing integration of PBS, as well as an effort to rationalise production in response to market condictions.”
Corsa will now “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,” Dethlefsen said.
The company expects to provide an updated outlook for 2015 as sales commitments and production decisions are finalised.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/12012015/corsa-coal-announces-job-losses-1736/