Luminant Mining Company to idle 1 mine, cut more than 100 jobs

Published: Sep. 15, 2016 at 9:29 PM CDT|Updated: Sep. 15, 2016 at 9:30 PM CDT
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EAST TEXAS (KLTV) - An East Texas mining company has announced plans to idle an active mine in Rusk County, a decision the company says will impact more than 100 employees.

Luminant Mining Company said Thursday afternoon that the company would idle the Oak Hill Mine by the end of the year. The mine is among three that serve Martin Lake Power Plant. Operations are expected to continue at the Tatum and Liberty Mines.

"Surface mining is a capital-intensive investment with significant costs for land acquisition, equipment, regulatory compliance and reclamation. Although this decision is not a reflection on the efforts by the employees impacted, a long range review concluded active mining at Oak Hill is not currently cost effective," the company says in a statement.

The company will shift staffing at all three sites, which will result in a decreased workforce of more than 100 employees. Those employees will be offered severance benefits, Luminant says.

The company says the change is necessary because of sustained low wholesale power prices.

"Operations at Martin Lake Power Plant are not affected by this announcement and the plant will continue to use lignite from the two remaining mines and Powder River Basin coal that's been shipped by rail for several years.Land where there's been active mining will be reclaimed, which typically takes several years," the statement reads.