On September 14, Cleveland, Ohio, US-based metallurgical coal and iron ore pellet producer Cliffs Natural Resources Inc. announced changes in its full-year output and sales outlook for North American coal operations.
The company said that the year's outlook was changed to include the company's recent acquisition of INR Energy's coal operations and the adjustment in the production outlook for its legacy coal operations in West Virginia and Alabama.
Cliffs indicated it now expects a total full-year 2010 North American coal sales volume of 3.9 million mt, with an approximate sales mix of 3.4 million mt of metallurgical coal and 500,000 mt of thermal coal.
Incremental tons related to the acquisition of INR Energy's coal operations are anticipated to be approximately 500,000 mt of metallurgical coal and 500,000 mt of thermal coal. Cliffs has reduced its 2010 sales volume expectation from its legacy coal operations in West Virginia and Alabama to 2.8 million mt, from a previous expectation of 3.4 million mt, due to tough production conditions. The company said that the company's margins have decreased for the year as INR Energy's coal selling price is lower.
Joseph A. Carrabba, Cliffs' chairman, president and chief executive officer, said, "Fortunately, this adjustment represents a small impact to our full-year 2010 EBITDA expectations and does not alter our positive outlook for North American Coal in 2011."