TORONTO, Sept 11 (Reuters) - Anglo American Plc will stop production at its Peace River coal mine in the Pacific Coast Canadian province of British Columbia at the end of 2014 due to declining prices for metallurgical coal, the global miner said on Thursday.
The diversified miner said it remains committed to the Peace River mine over the long term and will ensure operations can be quickly restarted when the market improves.
“Significant reductions in operating costs and reduced mining activity have failed to offset the impact of a weakening metallurgical coal price,” Anglo American Chief Executive Seamus French said in a statement.
“As a result, we have been forced to take further action in response to the weak market conditions, so that we can preserve the long-term future of the operations.”
All preparation work for the new Roman mine, adjacent to the Peace River mine, will be completed before the operations are placed under care and maintenance.
In 2013, Peace River produced 1.7 million tonnes of metallurgical coal, an increase of 22 percent from the previous year. The Roman expansion project had been expected to produce between 2 million and 4 million tonnes of metallurgical coal annually. (Reporting by Susan Taylor; Editing by Peter Galloway)