The company reported earnings for the period ending June 30 of $US153 million, compared quarter-to-quarter with $111 million last year. Net operating cash for the Pennsylvania-based producer jumped to $272 million from $197 million in 2006.

“Coal operations met or exceeded our internal forecasts," company president J Brett Harvey said.

“In addition, we drew down coal inventories at the mines as we said we would do and are on track to end the year with inventories below where they were at the start of the year.”

Harvey added that just 1.7 million tons of inventory exists.

He also noted Consol’s purchase of AMVEST as both a notable milestone for the operator and the role it plays in the company’s growing foothold in Central Appalachia.

“The key to long-term success in Central Appalachia is to have an operational platform that allows for growth but with costs at the lower end of the cost curve,” Harvey said.

“The AMVEST operations, when combined with our low-cost operations such as the Buchanan Mine in Virginia, position us for margin expansion in Central Appalachia in both steam and metallurgical coal production.”

That move, along with a sale of reserves, was a strategic move to “shift Consol’s coal portfolio to areas of highest strategic value to the company” going forward.

“Our focus on margins drives us to seek a 'high-Btu/low cost' leadership position in the basins in which we choose to operate," said Harvey.

“We have that in Northern Appalachia, and we believe we will establish that position in Central Appalachia with the AMVEST acquisition."

As part of its operation review, Consol provided an update on its currently idled Buchanan mine in Virginia, which stopped production July 9 following a series of roof falls.

“Air monitoring continues to show an overall improvement in the underground mine atmosphere, with declines in carbon monoxide levels in some monitoring stations of as much as 89 percent from the highest level recorded,” Harvey said.

“There are now 68 established monitoring stations that are measuring gas levels in the mine every two hours.”

He added that overall carbon monoxide readings are continuing to drop.

“Once all monitoring stations show acceptable levels of the gases being monitored, and agency approval is secured, teams can re-enter the mine to repair areas where the ventilation controls have been disrupted,” he noted.

With regards to the company’s shipments, which continue to be satisfied from existing surface stockpiles, Harvey said: “Customers who purchase coal from Buchanan have been notified that a force majeure condition exists that may result in a reduction in deliveries under their sales agreement with the mine.”

No injuries were reported in the Buchanan incidents.