By JIM MUIR

The Southern Illinois economy and mining industry took a direct hit Tuesday with the announcement that the Willow Lake Mine near Harrisburg will close permanently.

Below is a press release issued by Peabody Energy:

Big Ridge, Inc. today announced it will permanently close the Willow Lake Mine near Harrisburg, Ill. The mine has failed to meet acceptable standards for safety, compliance and operating performance, and these ongoing issues make the operations unsustainable.

Worker Adjustment and Retraining Notification (WARN) letters are being provided to approximately 400 employees. Willow Lake sold 2.2 million tons in 2011.

Peabody expects to incur a largely non-cash, one-time charge estimated at $40 to $60 million ($0.10 to $0.15 per share after tax) in the fourth quarter primarily to write off assets, increase asset retirement obligations and accrue severance. The company expects little effect on ongoing earnings from the closing.