The spreading coronavirus pandemic may too heavy of a burden for the already struggling coal miners in the United States, with three companies announcing operations halts due to measures to contain the spread of the disease.
Australia’s Coronado Global Resources (ASX: CRN) announced on Sunday it had idled its US thermal and metallurgical coal mines due to covid-19-induced global economic downturn.
The company, which operates the Buchanan, Logan and Greenbrier mine complexes in Virginia and West Virginia, will keep its Curragh mine in Australia open.
The operation, which accounts for 65% of Coronado’s output and earnings, will accommodate metallurgical coal export requirements of the miner’s key customers in India and the Asia Pacific, as well as to the Stanwell Power Station, a Queensland government owned entity
Given the significant stockpile of US inventories and continued production from Curragh, operating cash flows are expected to remain positive, Coronado said. The miner also noted that its US operations will be maintained for immediate restart when market conditions improve and that shipments to Europe, Brazil and the US itself will continue.
For the rest of this article: https://www.mining.com/pandemic-may-be-final-nail-in-us-coal-industrys-coffin/