SunCoke Energy said on Monday it will cut 175 positions, which is about 13% of its workforce, as it looks to reduce coal production by more than 50% a year because of a challenging coal price environment. The company expects to mine about 500,000 tons of mid-vol coal a year in the short term while it pursues a sale or other alternative, such as retaining contractors to mine on its behalf. SunCoke anticipates taking a one-time cash charge of $25 million to $35 million as it downsizes its coal operations. The stock, which is still inactive in premarket trade, as lost 18% this year through Friday, compared with an 8.3% rise in the S&P 500.
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