BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR PRIVACY & COOKIE NOTICE
X


US miner Contura expects to supply up to 9.1 mil st of metallurgical coal in 2018

London (Platts)--13 Feb 2018 740 am EST/1240 GMT


US coking coal miner Contura Energy said it expects to supply as much as 9.1 million st of metallurgical coals in 2018 through its own mines and third-party traded coal.

Contura expects to sell 3.7 million-4.1 million st of met coal form its Central Appalachia mines, and 4.2 million-5 million st of met coal through Contura's Trading and Logistics business, the private Tennessee-based company said in a statement Monday.

Contura sells Alpha Natural Resources' met coals into export markets and is active in supplying its own and third-party coals to steel markets in the Atlantic, India and Asia.

Northern Appalachia shipments will be sold primarily into thermal markets and may total 7.1 million-7.7 million st, it said.

Article continues below...


Request a free trial of: Steel Markets Daily

Platts Steel Markets Daily is a leading source for steel raw materials news and prices. It is the only publication that provides global metallurgical coal spot prices on a daily basis, two iron ore benchmark assessments in one report (Platts IODEX and TSI 62% iron ore) and information on steel scrap and ferro-alloys. Use the request a free trial link to receive of it for a short period of time.

Request a trialMore Information


Contura said 16% of the midpoint of anticipated 2018 CAPP met coal production shipments -- or around 624,000 st based on Platts calculations -- were committed and priced at an average per-ton realization of $113.53/st FOB Mine, as of February 6.

An additional 33% of met coal guidance, or 1.29 million st of CAPP production as calculated by S&P Global Platts, was committed but either unpriced or priced based on various indices, it said.

Contura said it expects 2018 CAPP cost of coal sales per ton to range from $68-$73 st.

Costs related to the company's idle operations are expected to be between $10 million and $12 million for full-year 2018.

Contura's Trading and Logistics platform is expected to average a $9-$15/st margin for full-year 2018, excluding consideration of any remaining shipments relating to the divested Powder River Basin assets.

Contura's capital expenditures for 2018 are expected to be in the range of $64 million to $74 million.

On January 16, private producer Alpha issued 2018 full-year sales guidance of 6.8 million-7.8 million st of met coal, with the majority of sales from Alpha's Low-Vol, Mid-Vol, and High-Vol A products, it said.

Contura and Alpha's assets were held by the former New York Stock Exchange-listed Alpha Natural Resources, which was restructured, leading to the asset split.

--Hector Forster, hector.forster@spglobal.com
--Edited by Alisdair Bowles, alisdair.bowles@spglobal.com




Copyright © 2018 S&P Global Platts, a division of S&P Global. All rights reserved.