ALBERTA — The global downturn in steel production and an uncertain outlook for metallurgical coal have forced Grande Cache Coal Corp. of Calgary to cut production by 25% for the next six months. The move will result in the layoffs of 100 employees and contractors.
Grande Cache intends to preserve its cash balance of $88 million (and no debt) at the end of 2008. The company says it will concentrate of reducing costs at existing mines and curtail non-essential expenditures. The company has deferred the delivery dates of new mining equipment intended to increase production and for the development of the No.8 surface mine.
The company’s website is at www.GCCoal.com.