The idling of the Carlisle coal mine will result in the immediate loss of 90 full-time roles


Sunrise Coal to idle its Carlisle coal mine in Indiana. (Credit: Pixabay)

Hallador Energy’s fully-owned subsidiary Sunrise Coal will temporarily halt production at its Carlisle coal mine in Sullivan County, Indiana, US owing to unfavourable market conditions.

The idling of the underground coal mine will result in the immediate loss of 90 full-time employees.

According to Sunrise Coal, the Carlisle coal mine employs 290 people for operating four underground mining units using the room and pillar method.

Sunrise Coal is engaged in extracting coal in the Illinois Basin which it supplies to the electric power generation industry.

The Carlisle coal mine had an annual production of three million tons of coal

The coal operation in Sullivan County is said to yield three million tons of bituminous coal annually. Nearly 90% of the coal is sold to utilities within Indiana.

Hallador Energy chief financial officer Larry Martin said: “Unfortunately, weak market conditions have resulted in an over-supply of domestic coal, which necessitates that we reduce our production.

“The employees who are affected by this action are a part of the Sunrise family, and we regret the impact this will have on their families and the community. We thank them for their dedication and service.”

Hallador Energy said that it will be moving its production to the Oaktown coal mining complex in Oaktown, Indiana where it has lower cost operations compared to the Carlisle coal mine. The Indiana-based energy company will reduce its sales guidance to 7.0 million tons for this year owing to the decision.

The Oaktown coal mining complex comprises the Oaktown I and Oaktown II underground mines, which were added to Sunrise Coal’s portfolio in 2014 through the acquisition of Vectren Fuels.

The coal complex is located between the Carlisle mine and the developing War Eagle reserve, which was also part of the deal with Vectren Fuels. The War Eagle reserve will be mined by Sunrise Coal through the Oaktown II mine.

Apart from the Carlisle coal mine and the Oaktown coal mining complex, Sunrise Coal owns the Ace in the Hole Mine and the Bulldog Mine, both located in Illinois.