Canadian Manufacturing

Toronto’s Corsa Coal cutting 130 jobs, idling pair of Pa. mines

Two of Corsa's Pennsylvania mines facing permanent closure as company deals with global market weakness

TORONTO—Canadian mining firm Corsa Coal Corp. is eliminating 130 jobs and idling two of its mining operations in Pennsylvania, which are under review for potential closure.

Corsa said weakness in the global coal market combined with the “ongoing integration” of recently acquired PBS Coal Ltd. are behind a decision to eliminate 130 full-time jobs, or about 25 per cent of its Northern Appalachian division, where it runs eight mines and three coal plants in Pennsylvania and Maryland.

The company said it has idled its Kimberly Run and Barbara mines, about 100 kilometres southeast of Pittsburgh near Somerset, Pa., which are both under management review for permanent closure.

“We regret the need to take (these) actions, however, we anticipate these moves will improve the overall cost structure of the (North Appalachian) division while still maintaining premium quality metallurgical coal specifications,” Corsa chief executive George Dethlefsen said in a statement.

According to Corsa, “certain personnel and equipment” will be transferred to its Quecreek mine, just north of the two idled operations, or Casselman mine about 50 kilometres south in northwestern Maryland.

“The acquisition of PBS last August provided the company with a large portfolio of active and development mines,” Dethlefsen sadi. “(These) moves are part of the ongoing integration of PBS as well as an effort to rationalize production in response to market conditions.

“The company will shift its near term metallurgical coal production to its lowest cost operations while preserving other reserves for future development at a time when the market is stronger.”

Corsa also operates a Central Appalachia, with three mines and a plant in Tennessee.

No changes were announced for that division.

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