Peabody Energy reported its biggest loss ever after writing down more than half the value of its North Antelope Rochelle mine in Wyoming.
The largest US coal producer took a $1.42-billion impairment charge on the sprawling surface operation, leading to a second-quarter net loss of $1.54-billion, according to a statement Wednesday.
North Antelope is the biggest coal mine in the US, accounting for about 12% of US production last year. It has about 19 years of reserves, but with utilities increasingly shifting away from coal, the company may now be recognizing that its supply will outlive demand, according to Andrew Cosgrove, mining analyst with Bloomberg Intelligence. He estimates the facility is worth between $750-million and $1-billion, after the writedown.