Sandstone intrusions in the previous panel in August prompted the decision the following month because of its effect on production levels.
Because of the slowdown and move, Cliffs amended its production outlook for the remainder of 2007. The 2 million tons initially estimated from Pinnacle, Green Ridge and Oak Grove has been cut by nearly half to 1.1Mt.
The Ohio-based company took over 140Mt of reserves, including the trio of operations in West Virginia and Alabama, in a deal that closed July 31. Pinnacle is the only plow longwall system in the US.
"The acquisition of PinnOak is the latest in a series of transactions designed to further Cliffs' position as an international mining entity," chairman Joseph Carrabba said last month when the deal was closed.
About 80% of PinnOak's 2007 sales, he said, will be going to international customers.
The transaction, initially announced in June, was inked for $US450 million in cash and about $160 million in assumed debt. Cliffs said it will detail the news in its third-quarter results conference next week.
Keep watching International Longwall News for more information on the Pinnacle complex.
