Downstate environmentalists that have been opposing Illinois' coal production for the past several years have to be celebrating bad news from one of the world's largest private-sector coal producers. Peabody Energy filed for bankruptcy Wednesday in a U.S. court, citing "unprecedented" industry pressures and a sharp decline in the price of coal.
The company said it will continue to operate while in bankruptcy, while working to reduce debt and improve cash flow.
"Peabody has a new management team, outstanding workforce, unmatched asset base and strong underlying operational performance that represent a key driver in the company's future success," CEO Glenn Kellow said in a statement announcing the Chapter 11 filing.
Peabody's operations in the Midwest ships about 20 million tons of coal annually from Illinois and Indiana mines to electricity generators and industrial customers throughout the region.
The company operates multiple underground and surface mines throughout the Illinois Basin, the fastest-growing coal-producing region in the United States.
In Illinois, Peabody operates the underground Gateway Mine and Wildcat Hills Mine, as well as the surface Cottage Grove Mine.
Opened in 2010, Peabody’s Bear Run Mine in Sullivan County, Ind., is the largest surface mine in the eastern United States, with an 8 million-ton annual production capacity.
Also in Indiana is Wild Boar Mine, the underground Francisco Mine and theSomerville Mine Complex located in Gibson County. The Somerville Mine Complex consists of three surface mines: Somerville North, Somerville South and Somerville Central.
