Two major US-based metallurgical and thermal coal producers, Alpha Natural Resources and Walter Energy, have both lowered their expectations for earnings and coal shipments for the balance of 2011.
For the Abingdon, Virginia-based Alpha Natural Resources, reduced metallurgical coal export shipments to Asia due to unexpectedly curtailed customer activity levels, a force majeure notice from an export metallurgical customer, lower than expected production from the Emerald longwall mine and lower than expected production volumes from certain legacy Massey mines in Central Appalachia were the foremost reasons for a decline in anticipated shipment levels. For the full year 2011, Alpha now expects to ship between 102.5 to 109.5 million tons of coal compared to the previously anticipated 104-112 million tons.
As for Walter Energy, Walt Scheller, Walter Energy's CEO said that "Walter Energy is making solid operational progress despite a slower than expected recovery from the 100-year record rainfall experienced in Northeast British Columbia during the second quarter as well as recovery from the difficult geology at Mine No. 7 in Alabama. These events will cause a delay in the Company's anticipated growth in production and associated improvement in costs." Walter Energy expects to sell slightly over 5.2 million metric tons of metallurgical coal in the second half of 2011, compared to the previously anticipated sales levels of 5.9 million metric tons.