By Greg Johnson

May 25, 2018 - In a cost-saving measure, Cloud Peak Energy Corp. announced Friday morning it will close its Gillette, Wyoming office and move operations to the Cordero Rojo mine about 25 miles south of Gillette.

The announcement comes on the heels of the company’s 2018 first quarter financial performance report that showed the company lost $7.7 million in the first three months of the year.

Overall, coal shipments were down about 12 percent for the quarter, driven by lower demand from Cloud Peak’s Antelope and Cordero Rojo mines in Campbell County. That was partially offset by increased sales from its Spring Creek mine in Montana to meet higher export demand.

The move does not include layoffs, Cloud Peak President and CEO Colin Marshall said in a press release.

“As the next step in our ongoing work to reduce our operating costs, we are evaluating some changes that will impact many of us,” he said. “I wanted to make sure you are aware of the most significant of these.”

Along with closing the Gillette office, the company also continues to reduce its administrative overhead at its office in Broomfield, Colorado, through attrition, Marshall said.

“As you are aware, the coal industry continues to be very challenging with reduced domestic demand, overcapacity and associated low prices, making it hard to make a decent financial return,” he said.

The Gillette administrative move will coincide with an effort to consolidate operations of the Antelope and Cordero Rojo mines, Marshall said.

“The Antelope and Cordero Rojo mines will increasingly be run as one operation with many support staff covering both mines,” he said. “Spring Creek (mine in Montana) will also be supported by resources throughout the organization as appropriate.”

Marshall said the changes will happen over the course of several months “to minimize disruption” and reassured employees who may be uneasy about the company’s financial future.

“I appreciate that this news will create some level of uncertainty for many employees but would ask for your understanding as these are moves that are necessary to make to keep our company viable,” he said.

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