Higher global coal prices have changed Arch’s fortunes, with international shipments increasing 40% year-on-year to reach 1.6 million tons in the recent quarter.

“Our per-ton cash margins in the Powder River Basin and Western Bituminous Region approached all-time records, while our cash margins in Central Appalachia nearly matched levels achieved in the bull market of 2008,” Arch chairman and chief executive officer Steven F. Leer said.

The thermal and metallurgical coal producer sold 36.2Mt in the March quarter, compared to 37.5Mt sold in this period of 2010.

But the average cash margin per ton was up 41% year-on-year to $6.05 for the recent quarter.

More metallurgical coal exports are on the horizon as Arch revived the Mountain Laurel longwall, which has been idled since encountering geotechnical difficulties in December.

“With the restart of longwall production at Mountain Laurel in mid-April, we would expect our metallurgical coal sales to increase as the year progresses, allowing us to ship 7.5 million tons into coking and pulverized coal injection markets during 2011,” Leer said.

The quarterly results also build on the growth made in the last three months of 2010.

“Even with lower sales volumes, we are off to a good start in 2011 – delivering significant margin expansion in all operating regions versus the fourth quarter of 2010,” Arch president John W. Eaves said.