We have been saying for some time that 2009 would be a tougher year for coal producers than 2008 was. The struggling economy just doesn’t need more energy. CONSOL Energy Inc. (NYSE: CNX) put some verification into our predictions yesterday, when it announced that it would halt coal production for at least a month at its Buchanan mine in Virginia.
The company said the stoppage was “primarily due to market conditions.” Expected 2009 metallurgical coal production from Buchanan was already pegged at less than its full capacity.
The mine also suffers from a recent court ruling that it may not pump out naturally accumulating water into nearby space in another CONSOL mine. If that ruling stands, the company “may be forced to further idle the Buchanan Mine.”
CONSOL shares are up nearly 7% on news of the shutdown.
Paul Ausick
March 3, 2009
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