Peabody Energy and Arch Coal plan to cut 15% of the workforces at the US' two largest coal mines, both of which are located in the Powder River Basin, the companies announced separately on Thursday.
Peabody eliminated 235 positions at the world's largest mine -- North Antelope Rochelle -- and Arch cut 230 positions at Black Thunder. The mines produced 109.3 million st and 99.5 million st in 2015, respectively, according to US Mine Safety & Health Administration data.
Together, North Antelope Rochelle and Black Thunder comprise roughly half of the 405 million st produced in 2015 by PRB mines, which makes up roughly 50% of the US market for thermal coal. Both mines are located in Campbell County, Wyoming,
Weak customer demand ultimately led both companies to cut staff.
"While our asset position and contracting strategies give us relative strength, we are taking these actions to match production with customer demand," said Kemal Williamson, president of St. Louis-based Peabody's Americas division.
In Arch's Thursday announcement, Keith Williams, president of the St. Louis-based company's Western operations, said that all steps had been taken to "streamline operations, reduce costs and improve efficiencies."
But "current market realities" forced the company's hand, Williams said.
Arch attributed the current weakness in coal demand to mild weather, persistently low natural gas prices and high utility inventory levels, as well as recent coal plant retirements stemming from the implementation of the Mercury and Air Toxics Standards rule.
