The unidentified customer had previously requested a deferral for part of its contracted shipments, but will now take the originally contracted volumes for the balance of the year.

Patriot was also promised an undisclosed cash payment for shortfalls in the first half of the year, primarily within the second quarter.

The company said the payment, due to arrive this month, will be a large driver to Patriot’s EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter.

"Coal producers continue to deal with customer requests to defer shipments, especially customers in the steel industry,” Patriot chief executive officer Richard Whiting said.

“We have successfully restructured a coal supply agreement that is integral to our financial results, solidifying Patriot's earnings relative to this contract, while addressing our customer's needs,” he said.

“As changing circumstances warrant, we will continue to work toward mutually beneficial arrangements with our customers that maintain the full value of our contracts."

In a separate matter, Patriot also announced it has filed a demand for arbitration against a metallurgical customer to enforce its rights within the contract as well as obtain damages.

Officials said the customer’s failure to execute two legacy-priced supply agreements this year had resulted in shipping and operational disruptions.

The Appalachian-focused producer updated its production guidance as of June 15, noting it has “substantially committed” its 2009 output.

For the full year, the company anticipated sales of around 33.5-35.0 million tons.

Looking at the second half of the year, Patriot’s Appalachian thermal production is anticipated to be 11.1Mt at an average price per ton of $US58.

Appalachian metallurgical coal product will total about 2.5Mt at $105/t, and the Illinois Basin thermal coal product will average 3.8Mt at $37/t.

In total, Patriot controls 14 mining complexes and about 1.8Bt of reserves.