Westar Mining had a 6-month loss of $3.5 million compared to $3.1 million for the same period in 1986. The company’s second quarter loss of $8.1 million was almost identical to the previous year’s.
According to L. Jack Smith, chairman, “lower coal prices and reduced shipments of metallurgical coal from the Balmer mine weighed heavily in the quarterly results this year.” They included second quarter losses from North Sea oil and gas operations of $8.4 million and $12.8 million for the first half. These operations were sold in 1986, he noted.
Total coal shipments in the quarter were 1.8 million tonnes of which 1.1 million tonnes came from Balmer. Shipments from this operation were adversely affected by reduced consumption by Japanese steel mills. Demand for Greenhills coal has been strong, however, and the mine is working at full capacity. During the quarter, Ontario Hydro purchased 180,000 tons of thermal coal from the Balmer mine. Efforts are under way at both operations to reduce costs and improve efficiencies.
Westar has suspended dividend payments on its $2.56 cumulative redeemable class A preferred shares series 1 through the July 15 quarterly dividend. The company is negotiating with its bankers on a long-term restructuring of its debt obligations.
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