The spot prices for coking coal are at their lowest since 2007, which makes coal production at Bluestone unprofitable.
Work will cease at the West Virginia mines immediately although some washing facilities will remain active due to contractual obligations.
Mechel said the decision to resume operations would depend on the future market outlook.
The company's financial situation has seen better days.
Mechel’s maturity profile remains tight with 2015 and 2016 maturities of $2.5 billion and $2.5 billion respectively as of December 6, 2013.
Analysts say if Mechel fails to repay any of the upcoming loan maturities, it may lead to cross-default provisions on the company's loans with other banks.
