CARLISLE, Ind. (WTWO/WAWV) — Sunrise Coal Mine in Carlisle is now scheduled to close permanently.
A press release from Hallador Energy Co. announcing the closure includes the following quote from President and CEO Brett Bilsland:
After experiencing negative free cash flow at Carlisle over the past 18 months, we have decided to permanently close Carlisle which will further reduce our overall cost structure, maximize per ton margins and, reduce current and future capex by utilizing Carlisle equipment and parts at Oaktown. As we reduce coal and parts inventories, we will generate significant cash to be utilized for debt reduction.Brett Bilsland, President/CEO of Hallador Energy Co.
Citing weak market conditions, the mine had idled production temporarily in January, laying off 90 workers.
The release said $23 million in equipment and infrastructure will transfer to the Oaktown mine.
There was no date of official closure included in the release; however a conference call with investors will be held at 2 p.m. Tuesday.
For the full press release from Hallador, click here.