Colowyo Coal Co. to cut jobs by 10 percent
December 5, 2009
Because of lower anticipated coal production, Colowyo Coal Co. will cut 10 percent of its employment by the second quarter of 2010.
In a news release issued Friday, Colowyo officials said the pending cuts will be reached by a combination of "attrition and voluntary separations."
If necessary, the company will lay off employees to reach the levels they need to achieve, according to the news release.
By the second quarter, the company will employ 270 to 280 people.
The cutbacks come as a result of declining coal sales this year, the company reported. In the first nine months of 2009, the company produced 2.7 million tons of coal.
In 2010 and beyond, Colowyo anticipates selling only 2.5 million tons per year.
From 1994 to 2008, Colowyo sold between 4.5 million and 6.4 million tons of coal.
Colowyo Coal Co. operates a coal mine on Colorado Highway 13 south of Craig. The mine has been continuously producing coal since 1977.
"Colowyo has large, high-quality coal resources, but it does not currently have adequate customer commitments to make the significant investments needed to convert such resources to reserves and to access these resources," the news release said.