Canadian Pacific Plans to Write-Down Option on Powder River Basin

Canadian Pacific (TSX:CP, NYSE:CP) announced that it plans to take a  fourth quarter pre-tax non-cash charge of approximately $180 million ($107 million after tax) on its option to build into the Powder River Basin.

As quoted in the press release:

It is CP’s intention to defer indefinitely plans to extend its rail network into the PRB coal mines based on continued deterioration in the market for domestic thermal coal, including a sharp deterioration in 2012.

To view the whole press release, click here.