ST. LOUIS (AP) -- A Peabody Energy Corp. subsidiary said Tuesday that it will permanently close an Illinois mine because it has failed to meet acceptable standards for safety, compliance and performance.
Bay Ridge Inc. said that the ongoing issues at the Willow Lake Mine near Harrisburg, Ill., make operations there "unsustainable." About 400 workers are expected to be affected.
The St. Louis-based coal company said it expects to incur a largely non-cash, one-time charge of about $40 million to $60 million, or 10 cents to 25 cents per share after tax, in the fourth quarter, mainly to write off assets, increase asset retirement obligations and accrue severance.
But Peabody added that it doesn't expect the closure to significantly affect its ongoing earnings.
Peabody shares fell 23 cents to $24.38 in afternoon trading.
- Investment & Company Information