In the middle of a disagreement with a British investor who is calling for the replacement of majority of the board members, Walter Energy Inc mentioned plans of shutting down mines that are not generating income. Company is also considering the sake of the company's secondary assets. No details were given on where the production cuts will be made.
Production has been reduced to less than a million metric tons at the low yield mines. In 2012, it has produced 11.7 million metric tons of high-grade coal but prices went down by fifty percent which caused other miners like Walter Energy to shut down production.
Walter Energy board consists of ten members, namely the chief executive and nine independent directors. Last month, Audley Capital Advisors LLP who holds one percent shareholdings said that investors have lost its confidence with the present board and is planning to nominate five candidates to replace them in the board. They are encouraging the shareholders not to vote for the nominees of the company with the assurance that members can be better served by their own line-up.
The next annual stockholder meeting would be held on April 25.
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