Cline Mining halts New Elk coal mine production in US
Cline Mining has announced plans to temporarily halt production at its New Elk coal mine near Trinidad in Colorado, US to manage costs.
The company will maximize its short-term production values and develop the net present value growth by selling its present coal inventory and preserve its financial condition.
Cline Mining will lay off 78% of its workforce for 60 days as a result of the production suspension at the Elk coal mine.
New Elk Coal Company chief operating officer David Stone said the company acknowledges it is extremely regrettable that the workforce is being temporarily laid-off, but Cline believes it is in the Company's best interests to manage its cash position during the mine optimization period.
"The combination of cash conservation from the temporary suspension of operations and reduction of our workforce will enable both the plan to be properly developed and implemented efficiently and effectively," Stone added.
"During this time, the Company has a significant stockpile of quality coal product and a workforce capable of loading the coal should a sales agreement be made."
Cline Mining has 70,000 tons of saleable coal stockpiled at New Elk at present and it intends to retain personnel only on the as-needed basis to load the stockpile product and maintain the asset during the period.
Canada based Cline Mining acquires, explores, and develops mine mineral resource properties.