The Toronto-listed producer announced to the market yesterday it would temporarily suspend mining operations and capital expenditures at Willow Creek at the end of the month.

“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 in its announcement.

WCC president and chief executive John Hogg said that, apart from capital spending required to sustain operations at its Wolverine and Brule mines, the producer had begun a plan to suspend all capital expenditures.

“We are also reviewing all non-discretionary spending to contain our mining cash costs,” Hogg said.

“We believe these difficult actions are required to help the company weather the short-term market uncertainties to protect the company’s growth for the long term.”

In June, WCC posted a $C106 million net loss for the financial year following a $13 million loss the previous year.

WCC’s Perry Creek mine is currently producing around 1.45 million tonnes per year of hard coking coal.