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In an operations update on its coal arm as well as its gas business, the Pittsburgh, Pennsylvania-based miner said it produced 13.8 million tons for the quarter ended June 30. Included in that was 1.2Mt of coking coal from its Buchanan operation in Virginia.
Both totals beat its previous guidance.
Consol did note that, while second quarter sales at Buchanan were higher than expected, low-vol prices at the complex weakened as the quarter progressed.
A bright spot for the producer was Consol’s total coal inventory decreasing by 47,000 tons to 917,000t by the end of the second quarter, a 15-year low inventory level.
Its thermal coal inventory also was down during the period, by 102,000t to 773,000t with all contracted tonnage delivered. Low-vol coal inventory did rise by 55,000t to 144,000t during the period.
“Our operations performed in line this quarter," chairman and chief executive officer Brett Harvey said in the update, in which he and other officials outlined 13.4 to 13.9Mt of total production in the third quarter and 55.5Mt to 57.5Mt whole-year.
At Buchanan third quarter production is expected to be between 700,000t and 900,000t. Consol has held tight to its annual production guidance from the Virginia complex of 4Mt to 4.2Mt.
Work at the company’s mines continued during the second period, particularly at the Bailey complex in Pennsylvania.
The Bailey preparation plant successfully upgraded its control room with computers, operator screens, and the required software and hardware to support the increased plant capacity from 6300 tons per hour to 8200tph, and a clean coal handling system was also put online.
The facility also received a dual batch loadout facility to increase loading unit train capacity to 9000tph, a 50% increase from its previous 6000tph capacity unit.
All of the improvements, Consol said, had been completed in anticipation of the start of its BMX mine next April 1.