US miner Contura expects to supply up to 9.1 mil st of metallurgical coal in 2018
http://www.chemnet.com Feb 14,2018 plattsUS coking coal miner Contura Energy said it expects to supply as much as 9.1 million st of metallurgical coals in 2018 through its own mines and third-party traded coal.
Contura expects to sell 3.7 million-4.1 million st of met coal form its Central Appalachia mines, and 4.2 million-5 million st of met coal through Contura's Trading and Logistics business, the private Tennessee-based company said in a statement Monday.
Contura sells Alpha Natural Resources' met coals into export markets and is active in supplying its own and third-party coals to steel markets in the Atlantic, India and Asia.
Northern Appalachia shipments will be sold primarily into thermal markets and may total 7.1 million-7.7 million st, it said.
Contura said 16% of the midpoint of anticipated 2018 CAPP met coal production shipments -- or around 624,000 st based on Platts calculations -- were committed and priced at an average per-ton realization of $113.53/st FOB Mine, as of February 6.
An additional 33% of met coal guidance, or 1.29 million st of CAPP production as calculated by S&P Global Platts, was committed but either unpriced or priced based on various indices, it said.
Contura said it expects 2018 CAPP cost of coal sales per ton to range from $68-$73 st.
Costs related to the company's idle operations are expected to be between $10 million and $12 million for full-year 2018.
Contura's Trading and Logistics platform is expected to average a $9-$15/st margin for full-year 2018, excluding consideration of any remaining shipments relating to the divested Powder River Basin assets.
Contura's capital expenditures for 2018 are expected to be in the range of $64 million to $74 million.
On January 16, private producer Alpha issued 2018 full-year sales guidance of 6.8 million-7.8 million st of met coal, with the majority of sales from Alpha's Low-Vol, Mid-Vol, and High-Vol A products, it said.
Contura and Alpha's assets were held by the former New York Stock Exchange-listed Alpha Natural Resources, which was restructured, leading to the asset split.