With continued weak prices for coal, one of Wyoming’s largest coal companies is planning to reduce production.
During a meeting with investors to discuss third quarter results, Cloud Peak CEO Colin Marshall said the company is looking to cut 10 million tons at the Cordero Rojo mine near Gillette in 2015. That’s roughly 10 percent of the company’s overall production in the Powder River Basin.
Marshall said the plan won’t change unless prices rebound significantly.
“We're going down until things change enough to make it worthwhile going up.”
Coal production and coal prices are down and stakeholders are offering up lots of reasons as the cause, from weather to new policies and competing fuels. Wyoming Public Radio’s Irina Zhorov reports that it’s a combination of all these factors.
Irina Zhorov: There is no doubt coal is struggling right now. Karim Rahemtulla is the Senior Correspondent for investment blog Wall St. Daily.
Rahemtulla: The predominant trend that’s in the market right now is a slowdown in consumption, directly related to coal, not necessarily other energy sources.