Coal International blamed the unseasonally mild weather on the US east coast predominantly for its loss.

At the company’s Gauley Eagle property in Nicholas County, West Virginia, Coal International took over all operating responsibility and dismissed all contractors in the latter half of 2006.

This resulted in significant improvements to operating performance and productivity at both the Crooked Run surface mine and the Silo Mains underground mine. Silo Mains recorded 5698 feet of advance (51,095 tons) per month for the five-month period since the company took control.

During January, Coal International began rehabilitation of Maple Coal’s first underground operation, the Eagle No. 1 underground mine and expects first production for the second calendar quarter of 2007.

The mine is designed to produce about 700,000 marketable tons annually with two continuous miner units. The first unit is budgeted to begin production in April and the second will commence in July.

The company has also contracted Sedgman to rehabilitate the coal preparation plant at the Maple property. The plant is expected to be able to take 400 tons per hour from May.

In less positive news, Coal International has placed its Deepgreen operation under care and maintenance, retaining minimal staff. It said reopening will depend on market conditions.