While coal may be having a renewed uptick in some regions, the Illinois Basin may be an exception – at least from appearances as of late.
In late February, energy producer and miner Hallador Energy announced a restructuring of its Sunrise Coal division, a group of Illinois Basin mines it owns in Indiana.
The decision, which is said will strengthen its financial and operational efficiency and create significant operational savings and higher margins, will take with it 110 jobs.
Hallador said it is transitioning from coal production company to a vertically integrated independent power producer. To be idled as a result: the higher-cost Freelandville and Prosperity mines.
Officials said the decision will reduce its production capital reinvestment whole-year will drop by $10 million, and focus its seven units of underground equipment on four units of its lowest cost production.
“We will further improve the cost structure of these units by increasing their run time from five-and-a-half days per week to seven days per week. We expect our coal production to generate 4.5 million tons annually,” added CEO Brent Bilsland.
The Sunrise job losses will be based on job category and personal performance ratings, with its employees seeing the most impact.
Despite the reduction, Bilsland said the future of Hallador, especially the Hallador Power division, looks positive.
“We continue to see strong demand for capacity and energy in future years and a growing interest from our customers to secure longer-term opportunities,” he noted.
Other Hallador mines include Oaktown 1 and Oaktown 2 in Knox County, Ind., both underground room and pillar mines with high-sulfur product.
Just days later, local media outlets in western Kentucky reported that American Consolidated Natural Resources had opted to close the Pride mine in Central City, Muhlenburg County, part of its Muhlenburg County Coal Resources subsidiary.
Employees told a local news station they were informed the operation would idle and around 200 employees will be jobless in 60 days, or approximately May.
At press time, it had not been disclosed why the Pride mine is closing. It was the last coal mine in Muhlenberg County.
“We’re actually negotiating a potential deal right now to come close to replacing that number of jobs, but you never really can replace those jobs, especially if you’re one of those people effected, so our hearts go out to them certainly for that,” said Muhlenberg Economic Growth Alliance Executive Director Ray Hagerman.
Hagerman noted to 14 News that some employees will likely stay on after May 1 to help close down the operation, but he hasn’t seen anything in writing yet.