Walter Energy, a US producer and exporter of hard coking coal for the global steel industry, announced on September 2 that it is modifying its full-year 2010 coking coal sales expectations. The company now expects to sell between 7.2 and 7.5 million mt for the full-year 2010, compared to a previously expected range of between 7.7 and 7.9 million mt, primarily driven by lower expected coking coal production volumes.
"Since moving to a new longwall panel at Mine No. 4 early in the quarter, we have experienced and continue to see difficult mining conditions in the panel, significantly slowing down longwall production," said Joe Leonard, interim chief executive officer of Walter Energy.
Coking coal production volumes are now expected to total approximately 1.8 million mt in the third quarter at a cost of approximately $60/mt. The company is maintaining coking coal sales volume expectations of 1.8-2.0 million mt for the quarter. However, the higher cost per metric ton is expected to lead to lower operating income margins, with operating income now expected to average in the range of $107-110/mt, compared to the previously expected range of $110-115/mt.