In its newest guidance estimate, Walter Energy, the new owner of former Canadian producer Western Coal and controller of the Jim Walter Resources subsidiary, said 2012 met coal production will be between 11.5 and 13 million metric tonnes.

“Walter is resetting the range of expected met coal production in 2012 for a number of reasons, including the inherent risks of the mining business and slightly lower expectations from some of the start-up developmental projects like the Aberpergwm mine in Wales,” chief executive officer Walt Scheller said.

“The new projected growth … compares with prior expectations for 2012 of 13 to 14 million metric tonnes of met coal.”

The estimate is up versus 2011, when Walter produced 8.7 million metric tonnes of met coal. Nine months of that included production from the operations of Western Coal. Walter completed its Western takeover last April.

While the number does not take into account 1 million tons of met coal production Western Coal had during the initial quarter of 2011 pre-acquisition, Walter's expected 2012 production represent an increase in the range of 19% to 34%.

"Our production outlook for 2012 represents very robust growth compared with 2011, which was a year of solid gains for met coal production," Scheller said.

"This change reflects my evaluation during the first three months as CEO of our global operations, strategy and timing of major projects.”

As it works to finish up the final quarter of its fiscal year, Walter reflected on its performance and reported met coal sales and production for the fourth quarter of about 2.4 million metric tonnes. Whole year sales met the 8.7 million metric tonne actual production rate.

Fourth-quarter consolidated results revealed a 400,000 metric tonne shortfall over previous guidance for production and a 130,000 million metric tonne shortage versus the prior sales volume.

Officials said production missed the mark because of equipment issues on the second longwall at its No. 7 operation as well as “unanticipated ventilation issues” at its third longwall, which is starting up now.

Inventory and sales helped to offset fourth-quarter sales, officials said, allowing for the smaller shortfall.

Sales volumes in Canada were on the upper end of Walter’s guidance range, coming in at more than 1 million metric tonnes met. That also helped to offset the Alabama sales shortfall of 280,000 tonnes, though that arm logs lower margins.

“Additionally, the average selling price for Walter's met coal was near the low end of previous guidance and, due principally to lower production volumes in the US, the average cash cost per tonne was near the high end of previous guidance,” the company said.

“Given this combination of factors, Walter estimates that fourth quarter 2011 financial results were below the low end of its prior guidance.”

Walter said its financial results are slated for release at the end of next month.

New leadership for Walter

The producer made a trio of new appointments to its executive staff on Friday, including the selection of Dan Cartwright as president of Canadian operations. Cartwright, who has been with Walter since last June, is a 37-year mining veteran who gained much of his experienced at Walter’s Canadian surface mines.

Prior to his Walter tenure, he was vice president of operations support for the Powder River Basin and Southwest regions for Peabody Energy. He was also operations director of Peabody’s flagship North Antelope Rochelle operations unit, and spent 15 years working for Shell Mining.

Another appointment, which is effective immediately, is that of Rich Donnelly as president of Jim Walter Resources.

Donnelly, who has 34 years in the industry, was most recently the vice-president of engineering for JWR. He has served in numerous deputy mine manager positions, and also in various mine manager seats at Walter operations.

He was previously JWR’s vice president of operations.

Finally, 30-year legal industry veteran Earl Doppelt has been promoted to senior vice-president general counsel and secretary for the company. Doppelt most recently served as executive vice-president general counsel and secretary of Information Services Group. Keenan Hohol, who had been filling the seat on an interim basis, will remain vice-president of legal for the Canadian and European operations.