Northern Appalachia coal output falls by 4pc

Spanish Market: Coal
28/05/13

Washington, 28 May (Argus) — Northern Appalachia coal production slipped by 4pc on the year in the first quarter as miners trimmed output in light of high domestic utility inventories, even as coal burns rose in the basin's main US markets.

Production in the region totaled nearly 32.5mn short tons (29.5mn metric tonnes) for the first three months of this year, compared with 33.9mn st in the first quarter of 2012, according to Mine Safety and Health Administration data.

The top five producing mines kept output steady with a year ago, at 12.5mn st in the quarter versus 12.53mn st a year earlier. Consol Energy operated the top three producing mines, just as last year. Murray Energy and Alpha Natural Resources mines rounded out the top five.

In first place was Consol's Bailey mine in Greene County, Pennsylvania, which produced 2.75mn st of coal in the first quarter, which fell from last year's 2.89mn st. In second place was Consol's McElroy mine in Marshall County, West Virginia, which produced 2.69mn st compared with 2.74mn st in first-quarter 2012.

Production rose at Consol's Enlow Fork mine in Washington County, Pennsylvania, which mined 2.64mn st in the first quarter, compared with 2.61mn st in the prior year. The Enlow Fork mine was in third place this year and last year.

All three Consol mines extract from the Pittsburgh 8 seam to produce thermal and high-volatile metallurgical coal.

In fourth place was Murray Energy's Century mine in Monroe County, Ohio, which produced 2.47mn st in the first quarter versus 2.31mn st a year ago.

Holding fifth place was Alpha Natural Resources' Cumberland mine in Greene County, Pennsylvania. Despite being idled for several days in April because elevated methane levels were detected, Cumberland's output was nearly flat at 1.97mn st in the first quarter.

Other key mines in the basin experienced difficulties in the first quarter but managed to increase output year over year. Production from Consol's Blacksville mine was up at 915,490st in the first quarter versus 618,808st last year despite being idled from 10 March to 20 May because of smoke detected on site.

Alliance Resource Partners' Tunnel Ridge mine produced 796,260st in the first quarter, soaring above 126,400st in the prior-year period even though a planned ramp-up in production was hampered by geologic conditions, company officials said last month. Alliance expects to alter its mine plan to minimize longwall mining at a split coal zone at Tunnel Ridge, although sales from the mine are forecast to rise over the next two quarters. Alliance estimates Tunnel Ridge's annualized run rate at 6mn st in 2014, with 2013 coal sales guidance at 4.9mm st.

Although total Northern Appalachian production slipped on the year in the first quarter, the percentage decline was smaller than for many other US coal-producing regions. Higher natural gas prices caused utility coal demand to jump in the northeast, mid-Atlantic and east-north-central US states, which are the primary domestic markets for Northern Appalachian steam coal. But the production response lagged the demand increase, with generator coal inventories high at the start of 2013.

Exports from the basin appeared steady in the first quarter, with seaborne loadings at the Port of Baltimore about flat on the year.

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07/10/26

Australia’s high court blocks NSW coal mine expansion

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US Supreme Court hears oil sector climate case

05/10/26

US Supreme Court hears oil sector climate case

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Australia, Turkey urged to commit to coal phase-out

05/10/26

Australia, Turkey urged to commit to coal phase-out

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Fossil fuels key in SE Asia despite renewables plans

02/10/26

Fossil fuels key in SE Asia despite renewables plans

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EEX to auction 293mn EU ETS 2 permits in 2027

30/09/26

EEX to auction 293mn EU ETS 2 permits in 2027

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