Massey Energy, the owner of the West Virginia coal mine where 29 people were killed in a mine blast this month, said the accident will cost the company about $212m, more than twice its 2009 earnings.
The costs for compensation for the families of miners, rescue efforts and legal contingencies will be between $80m to $150m, while another $62m will go towards the damaged equipment, development and mineral rights, the company said in its first-quarter report.
Operations at Massey’s Upper Big Branch mine have been shut down indefinitely due to on-going investigations following the 5 April accident, the worst US mining disaster in 40 years.
The company expected to produce 1.6 million tons of metallurgical coal from the mine this year.
Massey posted a 23% drop in first-quarter profit attributed to lower production due to inclement weather and higher costs.
The company’s net income for the quarter dropped to $33.6m from $43.4m a year earlier, while revenue fell 10% to $688.6m from $768.1m.