Consol to idle one longwall operation at Bailey Mine
Unseasonably warm weather this winter impacted the demand for coal, prompting Consol Energy to temporarily idle one of five longwall mining machines at its Bailey mining complex near Enon in Greene County. However, since summer all five longwall machines have been in full operation five days a week, according to a Consol spokesman. (Photo courtesy of Consol Energy)
A Consol mine in Greene County. (Photo courtesy of Consol Energy)
A Consol mine in Greene County. (Photo courtesy of Consol Energy)
submitted photo
This file photo shows the longwall mining operation at the Bailey mining complex near Enon in Greene County. (Photo courtesy of Consol Energy)
WAYNESBURG — Unseasonably warm weather this winter has impacted the demand for coal, prompting CONSOL Energy to temporarily idle one of five longwall mining machines at its Bailey mining complex near Enon in Greene County.
CONSOL spokesman Brian Aiello said the shutdown, scheduled to take place on Monday, will affect about 200 workers, but none will be laid off. Instead, they’ll be given the chance to take other jobs within the mining complex. The employees were notified Wednesday afternoon, he said.
In a statement emailed Friday, Aiello emphasized that this action is “simply a temporary measure due to the warm winter so far.” He said the decision was “designed to optimize the company’s operating schedule, better sync up customer deliver schedules with inventories and operate more efficiently.”
Aiello also noted the company has contracted about 93 percent of what it expects to produce this year.
In announcing its updated 2016 capital budget and operational forecast on Jan. 6, the company said in response to ongoing coal market uncertainty, CONSOL’s total coal division is reducing 2016 expected sales to 27.0 to 32.0 million tons, compared to previous guidance of 30.6 to 33.4 million tons.
The reduction reflects further coal market weakness due to unusually warm winter weather and low natural gas prices impacting customer’s coal burn. CONSOL is working with customers to help with their inventory levels by adjusting delivery schedules in order to improve operational consistency. These adjustments to delivery schedules intensified toward the end of December 2015 and negatively impacted the timing of coal shipments.
As a result, and due to the current visibility for the first quarter of 2016, the company believes that it is prudent to lower the total coal sales guidance for 2016.