AMERICAN PBS COALS IN PART TO STOP PRODUCTION
U.S. coal company PBS Coals, a member of the mining division of Severstal `` intends to stop five of its 12 businesses and reduce the more than two hundred employees. The company explains its decision to rising costs and a significant decline in the coal market. However, according to analysts, on its own steel production holding Alexei Mordashov, it should not affect - more than 50% of coal with PBS goes on sale.
PBS Coals, a member of the `` Severstal Resources (the mining division of the holding), stops production at its four sections (Friedens, Berwind Lohr, Rhodes II and Hart) and the mine Horning, said yesterday the coal company. Even at the two mines - Quecreek and Roytown - PBS reduces the volume of production. As a result of these measures will cut 225 employees.
In the most `` Severstal confirmed this information, but declined to comment further.
His decision to stop production capacity PBS Coals associated with increasing costs and a decline in the coal market. Domestic and world coal markets remain weak due to a slowdown in economic growth, says CEO Lynn Shanks (his words are reported PBS). Increase in cost, and increased pressure from environmental agencies have created uncomfortable climate for doing business in the entire coal industry, he adds.
Cost of coal PBS has always been high mainly due to transport costs, says Alexei Morozov of UBS. As follows from the presentation of #39;Severstal#39; the Day of the investor, in 2010 it amounted to $ 77 per ton. And since the costs of the company rose to $ 100 per tonne, and forced her to cut capacity, explains the analyst.
Closures - a temporary measure, say in PBS. Bring them back into service the company promises an improvement in the coal market. Theoretically, PBS may soon appear possible, says Oleg Peter and Paul from the BCS.
At least thermal coal has a good chance to grow in the third quarter of this year, says analyst.
PBS is engaged in mining of coking and thermal coal in Somerset County, Pennsylvania. The company has five mines, five sections and two processing plants. PBS Coal reserves are 133.5 million tons, resources - 228.3 million tons According to the report `` Severstal, in 2011, the company produced 2.46 million tons of coking coal and 725 million tons of thermal coal.
In 2015, PBS planned to increase coking coal production to 4.2 million tons, and coal production decreased to 600 thousand tons How will the closing of capacity on the volume of its production is unknown - PBS and Severstal `` This does not comment.
Coking coal with PBS, processed into coke by Mountain State Carbon (partly owned by Severstal ``), used for steel production at enterprises of the American division of the company - Severstal North America. However, I#39;m sure Oleg Peter and Paul, on the volume of steel production capacity closures will not affect PBS. According to analysts, the lost capacity will amount to only 1-2% of the entire coal #39;Severstal#39;. In addition, more than 50% of the coal PBS traditionally was for sale, adds the analyst, so that the remaining power in any case be able to meet the needs of
