Coal news and updates

US miner Arch says higher Q2 met coal sales lifted Appalachia pricing

US miner Arch Coal saw a higher percentage of metallurgical coal in its Appalachian sales over the second quarter lifting average prices, while costs for the region increased due to longwall moves at two operations.

Arch sold 3.1 million st in Q2 from Appalachia at an operating loss of $10.63/st, compared with 3 million st in Q1 sales at an operating loss of $3.32/st and 3.7 million st in Q2 2014 at an operating loss of $6.89/mt, the St Louis-based company said in a statement.

Arch's average regional sales prices in Q2 was $65.83/st FOB Mine, up from $65.23/st FOB in Q1.

"Average selling price per ton increased slightly due to an increase in the percentage of metallurgical tons in the regional sales mix," Arch said. "The expected increase in cash cost per ton reflects the lower output at the two low-cost longwall operations due to the previously discussed second-quarter longwall moves and the start of the annual miners' vacation period."

The company maintained its met coal sales guidance for 2015 at 6 million-6.8 million st.

Arch has longwall mining systems installed at the West Virginia-based Leer and Mountain Laurel met coal mines producing high-vol coking coals.

Arch said the international seaborne coal market "remains challenging." "The Australian dollar weakened appreciably against the US dollar and Australia's coking coal benchmark recently settled at $93/mt, the lowest since 2004. Thermal prices remain under considerable pressure as well," it said.

source: http://www.platts.com