The Kayenta Mine, operated by the Peabody-Southwest Coal Company.
Credit: Doc Searls/Flickr

Peabody Energy, the world’s largest coal producer, filed for Chapter 11 bankruptcy Wednesday, the latest casualty in an industry that has been shaken by the recent shale gas boom, climate change policy and economics that greatly disfavor coal production. (emphasis added)

In a statement, Peabody Energy said that it will operate as usual as it reorganizes and sells its Colorado and New Mexico mining operations. The bankruptcy filing does not affect the company’s Australian mines.

The St. Louis-based company said it is optimistic that coal demand will rebound as natural gas prices rise and “scores” of new coal-fired power plants are built across the globe, mainly in developing countries.

Burning coal for electrical power is the most significant single source of greenhouse gases driving climate change. Industry observers say the future is likely to bring a less rosy scenario for coal and possibly for Peabody Energy as climate policies clamping down on emissions take hold.

Several […]