While the company has not released a public statement, local newspaper the Pueblo Chieftain reported that New Elk responded to a February 1 lawsuit filed by some laid-off miners and denied it short-changed crews on the required 60-day advance layoff notice.

The suit, the specific plaintiffs in which are unknown, is demanding 60 days of wages as well as fringe benefits for at least 225 of workers formally employed at the mine near Trinidad, Las Animas County.

The 60-day advance notice is required under the Worker Adjustment and Retraining Act, though the Chieftain reported that Cline said that did not apply to these layoffs.

New Elk confirmed last July it would temporarily suspend mining at the operation in a cost management move to help the operation’s long-term growth plans.

The company said the priorities of preserving its financial condition, along with maintaining cost efficiency and achieving sustainable sales contracts, were at the heart of the decision.

While it did not release the exact number of furloughs, and still has not confirmed figures, officials said it would reduce staff numbers by 78%.

Cline president and chief executive officer Ken Bates echoed the words of many others saying it was market conditions that left it with what it called a prudent decision.

“[It] preserves the company's financial condition as we move toward completing the mine review and optimization process which we believe will make certain the long-term viability and [net present value] of the New Elk coal mine," Bates said.

Despite an initial plan that would leave it idled for a short period, the mine is still closed. One official reportedly said in November that the complex could come back online in 2013 pending new coal contracts.

New Elk’s inferred coal resources total is 104.5Mt; it comprises the Green, Loco, Blue, Bing Canyon Upper, Red, Maxwell, Apache and Allen coal seams in a total plan area of 34,060 acres.

The complex’s seams are classified as low-sulfur, high-volatile B bituminous coal and can be marketed as a high-ash metallurgical-grade coal, a pulverized coal injection coal or a thermal coal.

Cline Mining holds significant metallurgical coal property interests in British Columbia and Colorado.