Hallador to idle two coal mines, cut 110 jobs
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Terre Haute-based Hallador Energy Co. is planning to idle production at two of its coal mines and cut 110 jobs. The company said the move is part of a restructuring of its Sunrise Coal Division meant to “strengthen its financial and operational efficiency.”
The affected mines are the Freelandville Center Pit in Knox County and the Prosperity Mine in Pike County. CEO Brent Bilsland said in a news release said the two surface mines are among the “higher cost” mines in the company’s portfolio.
Bilsland said Hallador will reduce its capital reinvestment for coal production in 2024 by about $10 million. Additionally, he said the company will focus its seven units of underground equipment on four units of its lowest-cost coal production.
“We will further improve the cost structure of these units by increasing their run time from five and a half days per week to seven days per week,” Bilsland said in the release. “We expect our coal production to generate 4.5 million tons annually.”
The closure of the Freelandville and Prosperity mines leaves Hallador with just two underground mining operations, Oaktown Mines 1 & 2 in Knox County, in the Sunrise Coal Division.
Hallador said the employees being laid off as a result of the restructuring are being determined by job category and personal performance ratings, primarily affecting Sunrise Coal employees.
“We value the contribution of all of our employees and recognize that these actions, while the right thing to do for the company, are also very hard for many of our employees and their families,” Bilsland said.
Despite the move, Bilsland said the company is excited about the future, as it continues to see strong demand for energy in future years.
The company did not provide a timeline for the mine closures or layoffs. Multiple requests from Inside INdiana Business for more information on the restructuring were not returned at deadline Monday.
Hallador Energy produces coal in the Illinois Basin for the electric power generation industry through its Sunrise Coal Division. The company’s Hallador Power Co. subsidiary also produces electricity at the Merom Generating Station in Sullivan County, which it acquired in 2022.