Peabody Energy, Wyoming's biggest coal producer, announced Wednesday it plans to trim its Powder River Basin coal production by 10 million tons this year because of the recession and weakening global demand.

Peabody does not expect any significant reduction in jobs, however. The company employs more than 1,700 miners in Wyoming.

"We are taking prompt market-driven actions to make adjustments to our production platform and respond to the global economic downturn," Peabody chairman and CEO Gregory H. Boyce said in a prepared statement.

Peabody's three Wyoming coal mines - North Antelope Rochelle Complex, Caballo and Rawhide - together produced about 143.5 million tons in 2008, according a Casper Star-Tribune estimate. North Antelope Rochelle accounted for about 94.2 million tons of that total.

Peabody announced that its Powder River Basin reductions will be concentrated in "lower-quality, lower margin coal products." Equipment from those operations would be relocated to other mining operations, according to the company.

The reduction should not result in significant job loss because some equipment and personnel will be moved from the Rawhide and Caballo mines to the North Antelope Rochelle mine, according to Peabody spokeswoman Beth Sutton.

"We expect employment to remain relatively consistent," Sutton said, adding that there could be some cuts in contractors and temporary workers.

"We do expect growth in production at (North Antelope Rochelle)," Sutton said.

Federal officials estimate that Wyoming mined a record volume of coal in 2008 - in excess of 465 million tons, or up more than 3 percent, according to an estimate by the U.S. Energy Information Administration.

The outlook for Wyoming coal this year is steady production. The downturn in the global economy isn't expected to reduce customer demand at the utilities that burn Powder River Basin coal. Instead, the recession has dimmed prospects of U.S. coal exports, which might have resulted in gains for Powder River Basin coal.

Big gains for Powder River Basin coal won't come until there's a new wave of coal-fired power plant construction, according to Tom Johns, a coal analyst with Sithe Global. Johns said that, for now, Powder River Basin coal producers should expect continued, modest inroads among Midwestern and Eastern utilities over Eastern coal.

"I would not expect to see coal demand for existing plants to change much over the next year," Johns said.

By all accounts, 2008 was a stellar year for Peabody coal. Peabody reported record volumes, operating profit and a record quarterly income of $377.1 million for the third quarter, according the company's investor report. Its third-quarter pricing for premium Powder River Basin coal was 49 percent higher than 2007 pricing.

"We remain confident in the mid- and long-term outlook for coal demand and expect Peabody to prosper in this environment as we await an economic rebound," Boyce said in a prepared statement.

In addition to cutbacks in the Powder River Basin, Peabody announced that its 2009 metallurgical coal production from Australia operations also will be reduced - up to 2 million tons - because of the decline in worldwide demand for steel.

The company also noted that most all of its 2009 coal production is already priced, which means the company would be protected in the event of a major downturn in coal prices.

Contact energy reporter Dustin Bleizeffer at (307) 577-6069 or dustin.bleizeffer@trib.com.