Low-vol PCI coal operation Brule will be dropped to an annual production rate of 750,000 tonnes effective the end of January, from a prior run rate of 1.3 million tonnes per annum.

Hard coking product-producing Wolverine already informed its crews that output could be curtailed May 18 of this year pending market conditions. The 1.6Mtpa complex has already sent notice to terminate the mine’s operations contract, as any resumption of production will be done by WCC.

Western Canadian blamed increases in inventory paired with deferred shipment plans by customers over the next few months.

“With the current production curtailments taken by some customers, along with the uncertainty of the coal markets beyond April 2009, the company has made these prudent decisions … [and] expects to operate at these rates until the current economic uncertainty improves and the demand for coal becomes clearer,” officials said.

“When the markets do improve, the company has the flexibility to quickly increase operating rates and also pursue its growth plans.”

WCC president John Hogg highlighted the company’s plans are dependent on metallurgical coal demand over its next coal year.

“Whether we reduce operations and to what levels will depend on the demand for our coal,” Hogg said.

“We hope this will become clearer in the coming months. Until then, we continue to focus on working safely, increasing productivity and lowering costs to remain competitive through these difficult times."

In late November, WCC announced it had suspended operations at its Willow Creek mine just one month after starting up production, citing that economic uncertainty was having an impact on metallurgical coal demand.

“Future decisions on restarting mining operations and expansion plans at the mine and plant will resume once clarity on next year’s coal prices and commitments becomes more visible,” WCC said at the time.

Its Perry Creek mine is currently producing around 1.45Mtpa of hard coking coal.