(Reuters) - Cline Mining Corp CMK.TO said it is halting production at its New Elk metallurgical coal mine in Colorado and will temporarily lay off 78 percent of its workforce, as it reviews strategic alternatives.
The company’s shares fell as much as 30 percent to a low of 30 Canadian cents in early trade on the Toronto Stock Exchange.
Most of the workers at the mine will be laid off for about 60 days, during which the company will explore strategic alternatives and potential financing, and complete the sale of the coal in inventory, it said in a statement.
The mine had been expected to produce 2.5 million tons of saleable coal in 2012.
Reporting by Maneesha Tiwari in Bangalore