Peabody Energy to cut 235 jobs from North Antelope Rochelle coal mine in US

31 March 2016 (Last Updated March 31st, 2016 18:30)

Peabody Energy has announced its decision to cut 235 jobs from its North Antelope Rochelle mine in the Powder River Basin, US, due to weak market conditions.

Peabody Energy has announced its decision to cut 235 jobs from its North Antelope Rochelle mine in the Powder River Basin, US, due to weak market conditions.

The reductions will affect about 15% of the workforce at the coal mine.

The North Antelope mine began operations in late 1983 and the Rochelle Mine in late 1985. In 1999, these two mines were combined to become a single coal mining operation.

“While our asset position and contracting strategies give us relative strength, we are taking these actions to match production with customer demand.”

Peabody Energy president Americas Kemal Williamson said: "While our asset position and contracting strategies give us relative strength, we are taking these actions to match production with customer demand.

"We regret the impact of these actions on our employees, their families, and the surrounding communities in the Campbell and Converse county areas."

Williamson said the company adjusted staffing resources and managing contractors and temporary employees to reduce job impacts.

Information provided by the Energy Information Administration revealed that Powder River Basin is faring better than other regions.

Peabody believes that the plunge in shipments is leading to stockpile reductions in excess of prior expectations.

The Powder River Basin operations employ around 1,500 workers and approximately 1,150 of them are employed at the North Antelope Rochelle Mine following these reductions.

In 2015, the operations injected $5.5bn in direct and indirect economic benefits into the region.

Coal is mined from three pits and is hauled by truck to one of four hoppers at the complex, where it is crushed, conveyed to silos and later on to the loadouts.