Lisle, Illinois-based SunCoke Energy, Inc., the largest independent producer of metallurgical coke in the Americas, was bullish on the state of the metallurgical coal market in its 2012 outlook, released Tuesday, despite cutting overall spending targets.
In 2012, SunCoke plans a total of $150 million in capital expenditures, including investments, below the estimated $280 million in 2011, although the drop is a direct result of the recent completion of the company's Middletown, Ohio plant. SunCoke Chairman and CEO Frederick Henderson said the company plans to continue to grow the company's global coke-making business, and will focus on expanding into the Indian market--SunCoke anticipates a potential $30 million investment in India next year. Additionally, the company will focus on obtaining new permits in order to build a new coke-making plant in the US "in anticipation of an eventual market recovery."
US domestic coke production is expected to increase to 4-4.2 million tons in 2012, primarily due to the start-up of the Middletown facility, and coal production is projected to increase by 400,000 tons to 1.8 million tons in 2012.