Western Canadian Coal Corp. in Chetwynd will shut down.

The company has announced it will lay off 85 employees and suspend operations at the end of the month. Western Canadian Coal says the main reason is the fading demand during global economic turmoil.

10 of the 85 layed off workers are directly employeed by Western Canadian Coal, the rest are contract miners.

The company continued by saying they need to spend more on capital to bring the Willow Creek mine back into production and at this time that doesn’t make sense since they don’t have contracts to sell coal past March 31, 2009.

Western Canadian also operates the Wolverine and Brule mines in north east B.C., which together will produce 2.9 million tonnes of coal this year.