Lighthouse Resources shut down its Powder River Basin coal mine

Mining at Lighthouse Resources Inc.'s Decker coal mine in Montana ceased operations, the company wrote in a Jan. 29 bankruptcy court filing.

When the company filed for Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court for the District of Delaware, it noted that it planned to close the mine and begin reclamation at the site. The company is in a dispute with its union workforce over a request to the court allowing the company to reject its collective bargaining agreement with the union.

In previous fillings, Lighthouse wrote that it could not afford its obligations to a pension plan with an estimated unfunded liability of approximately $2.7 million. Lighthouse previously said it employs 28 active union employees and 18 nonunion employees at its Decker mine. In the Jan. 29 document, the company wrote that all but four union employees have been furloughed as of Jan. 22.

While mine closures have been common across the United States in recent years, the Decker mine is the first to close in the Powder River Basin in recent history. The region primarily produces coal used in power generation from large surface mines.

Lighthouse previously noted that it would not have any coal buyers remaining for its Decker mine once its contracts with DTE Electric Co. ends in early 2021.