March 30 (Reuters) - Coronado Global Resources said on Monday it will temporarily halt metallurgical coal output from its U.S. operations due the global economic fallout of the coronavirus pandemic but will meet its current commitments.
Operations at its other mine in Australia, Curragh, which accounts for 65% of its output and earnings, will continue as normal to meet demand from customers in Asia Pacific and India.
The coronavirus outbreak is forcing virtual shutdowns across many countries around the world, and the economic impact is expected to be substantial as demand falters and supply chains are severely disrupted.
The Brisbane-based miner said existing inventories of 750,000 tonnes of metallurgical coal will be used to meet current commitments to customers, and shipments will continue to Europe, Brazil and the United States.
"Given the challenging and unprecedented macro environment, these are prudent measures designed to ensure that Coronado remains in a solid financial position," Chief Executive Officer Gerald Spindler said in a statement.
With production continuing at Curragh and its available U.S. stockpiles, Coronado expects its operating cash flows to stay positive, but the company will also be looking to reduce non-essential capital spending.
Coronado also said its production forecast of 19.7 million tonnes to 20.2 million tonnes for 2020 will likely be hit, but given the uncertainty in the market, it did not say by how much.
Costs per tonne sold will also likely be higher given lower production in the United States, it said.
Staff paid hourly at the miner's operations in the Central Appalachian region of the United States will be put on leave, while salaried employees will stay on, Coronado said. (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Tom Hogue)