Alliance’s net income was up 14% to $US46.2 million from $40.6 million reported during the same period last year. Revenue was also on the upswing period for period, increasing to $263.31 million from $221.3 million in last year’s second quarter.

The figures were just as positive for the year’s first half overall. Net income for the first fiscal six months was $91.8 million over $88.8 million in the same period last year, while revenues for the same time were up to $520.4 million over $459.62 million in the year prior.

Alliance also quickly noted that its results were affected by an insurance settlement received for claims stemming from its Excel No. 3 mine fire in December 2004 that were reconciled during the quarter.

“This benefit was partially offset by increased compliance costs and reduced productivity associated with the interpretation and enforcement of recently enacted federal and state mine safety regulations,” officials added.

Company president Joseph Craft commended the operator’s performance during the first six months of 2007, saying that “several significant milestones” were achieved by the company.

“While we delivered record operating and financial performance, our mines continued to be among the safest in the industry as we again posted the best safety results in the history of ARLP,” Craft said.

“In addition, the Providence reserve acquisition further strengthened our position in the growing Illinois Basin market.”

Craft noted that the results and milestones were marked even with a noted reduced utilisation of production capacity.

“ARLP’s coal production was lower than anticipated as we exercised discipline in an oversupplied market and experienced production interruptions due to compliance efforts in response to extensive changes in federal regulatory safety standards,” he said.

“Looking ahead, improved market conditions have recently resulted in additional sales commitments of approximately 500,000 tons for 2007 and we do not anticipate our safety compliance efforts to result in continuing production interruptions. As a result, we expect to return to full production capacity for the remainder of 2007.”

Last month, Alliance announced it would extend underground mining beyond its current Dotiki and Warrior mining leases after obtaining Illinois Basin reserves from Consol Energy for $53.3 million.

The reserves in western Kentucky encompass an estimated 78.4 million tons of coal from the Kentucky No. 9, No. 1 and No. 13 coal seams from a 13,500-acre parcel of leased and fee reserves and resources in Webster and Hopkins counties, according to a statement from Consol.

Alliance said at the time of the transaction, which is now closed, it would reclassify 8.4Mt of deposits as reserves, a move that would up its reserve holdings by 14% to 710Mt.