According to Mining News Pro - It will also reduce current and future capital expenditure, he said, because Sunrise will be utilsing the parts and equipment, worth about US$23 million, from the mine at its Oaktown sister mine.

"As we reduce coal and parts inventories, we will generate significant cash to be utilised for debt reduction," Bilsland added.

Carlisle had already entered a temporary shutdown in January. About 90 workers were furloughed at that time. Hallador did not provide a specific date for closure, or timeline for the infrastructure to be moved.

Hallador subsidiary Sunrise Coal sells its coal mainly to utilities in the regional area.

Carlisle, a slope mine, produced about 3 million short tons (2.7 million tonnes) annually.