AK Steel’s production costs likely to rise due to Massey Energy Co. explosion

Wednesday, 28 April 2010 02:20:43 (GMT+3)   |  
AK Steel Tuesday announced it may have to increase spending for metallurgical coal this year as a result of the recent explosion at Massey Energy Company's West Virginia mine.  Massey Energy, headquartered in Richmond, Virginia, is the largest coal producer in Central Appalachia.

Massey may no longer be able to make a previously agreed upon equipment to AK Steel, commented the steelmaker.   And while other metallurgical coal options are being considered, operating expenses related to coal purchasing may need to increase by as much as 25 percent.

Shares for AK Steel fell by more than six percent after Tuesday's announcement.


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