Walter Industries, Inc. Announces Closure of United Lands Kodiak Mine
Walter Industries, Inc. announced the permanent closure of the Kodiak Mine in Shelby County, Ala., as a result of high operational costs, difficult operating conditions and a challenging pricing environment for Kodiak’s product. The Company estimates that a resulting pre-tax charge of approximately $20 million will be recognized in the fourth quarter 2008, nearly all of which is related to the non-cash impairment of mining facilities and equipment.
The Company said only Kodiak’s underground mining operations would be closed. United Land, the Company’s subsidiary that holds a controlling interest in the Kodiak mine, will continue to operate Kodiak’s surface facilities, which include a prep plant and rail load-out facilities.
Approximately 90 contract miners at the Kodiak mine are expected to be affected by the closure, many of whom will be offered positions at Walter Industries’ other mining operations.
“Despite our best efforts, we simply do not see a positive, long-term outlook for our Kodiak mine,” said Walter Industries’ George R. Richmond. “Closing this mine will allow us to redirect additional miners, assets and attention to our more profitable underground operations.”
