Consol Energy Inc. said Wednesday it will close one of its idled Western Pennsylvania coal mines to focus on more profitable coal and Marcellus shale gas operations.
Consol will take a pre-tax charge of $116 million, including about $111 million of non-cash impacts, to close Mine 84 near Washington, Pa. It expects pre-tax cash savings to reach about $18 million a year.
Consol said it will later re-assess opportunities to access Mine 84′s reserves of metallurgical coal, a more profitable kind of coal used in steelmaking. The company stopped production at the mine in the first quarter of 2009.
The company said it will offer work at nearby locations to 32 hourly employees and 13 salaried employees after they finish recovering equipment from Mine 84 and preparing it for final sealing.
Shares rose 7 cents to $48.02 Wednesday and were inactive after-hours. The stock has gained 40% over the past 12 months.
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