Cline extends New Elk idling

CLINE Mining has extended the suspension of operations at its flagship New Elk coal mine in Colorado “pending improved market conditions”.
Cline extends New Elk idling Cline extends New Elk idling Cline extends New Elk idling Cline extends New Elk idling Cline extends New Elk idling

 

Justin Niessner

The miner said it could not project an exact personnel return date with certainty due to the variability of market conditions.

In July, Cline confirmed it would temporarily shutter New Elk and furlough 78% of its staff just days after announcing a major lift in the mine’s resource.

New Elk currently counts 619 million tons of measured and indicated coal and 105Mt of inferred coal.

Cline chief executive and director Ken Bates said he anticipated a return to production at New Elk but issued a statement to assuage investor fears during the prolonged idling.

“We are focused on, and committed to, navigating this challenging environment,” he said.

“We have taken all the necessary actions so that we preserve our capital position and conserve our working capital.

“The implementation of the marketing strategy is also key and we are firmly committed to this process and to achieving a financially viable and economic rate of return for our coal product.

“The New Elk mine is an asset with long-term potential as markets recover.”

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