Consol Energy to close coal mine near Washington, Pennsylvania; mine hasn't produced coal since early 2009; closure will cause one-time expenses of US$116M

Mathew Kearney

PITTSBURGH , June 30, 2011 (Associated Press) – Consol Energy Inc. says that it will close a mine near Washington, Pa., which hasn't produced coal since early 2009.

Consol said late Wednesday the closure will save it about $18 million per year before taxes.

Closing the mine will cause one-time expenses of $116 million before taxes, including $111 million in non-cash accounting charges and $5 million in cash expenses, the company said.

About 260 miners worked at the mine about 25 miles south of Pittsburgh when it stopped producing in 2009 due to falling coal prices and the recession. On Wednesday, the company said 45 workers were still there, recovering equipment and preparing the mine for final sealing. It said they had all been offered jobs at other nearby locations.

Consol shares had closed at $48.02 on Wednesday before the announcement.

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