In the final 2011 quarter, the company’s coal division produced 15.3 million tons, 1.4Mt of which was low-vol metallurgical coal from the Buchanan operation in Virginia.
Whole year 2011, Consol produced 62.6Mt, up from 62.4Mt in 2010.
“Once again, Consol's mines and gas operations ran well during the quarter,” chairman and chief executive officer J Brett Harvey said Tuesday.
“In fact, we closed the year with our best December safety performance in recent years. We're looking to carry that momentum into 2012."
Looking ahead into 2012, officials said first quarter production will follow its regular seasonal pattern and total between 15.5 and 15.9Mt portfolio-wide.
It held fast on its whole-year guidance, leaving the range of 59.5-61.5Mt unchanged.
At the Buchanan operation, it is expecting 1-1.2Mt in the first quarter and 4.5-5Mt for all of 2012. The whole-year outlook also remains unchanged.
Buchanan, Consol’s only complex in Virginia, had a record 5.7Mt of production last year, 1.4Mt of which was achieved in the final quarter. A second large operation, the Shoemaker operation in Vest Virginia, also set an annual production record of 5.1Mt.
Total coal inventory rose by 100,000t during the quarter, totaling 1.8Mt at the end of December. Thermal coal was unchanged at 1.6Mt because its sales matched its production, though low-vol Buchanan inventory went up from September 30, 2011 by 100,000t to 200,000t.
The company reserved the remainder of its operational and financial details for its fourth-quarter earnings announcement, set for late next week.
Consol released its capital budget for the year last week, which included not only a notable increase in planned expenditures across its coal, gas and liquids divisions but also significant earmark for work at its two largest coal mines.
The producer said its board of directors approved a total capital budget of $US1.7 billion, up from $1.4 billion. Of that, $720 million has been earmarked for coal, while $755 million will go towards its gas arm, $135 million is sectioned off for water and the remaining $110 million will be for other projects.
Within its coal business, Consol said it expects to invest $205 million for projects such as the BMX mine, which is on track with an ongoing expansion effort that will add 5 million tons of production of the Pittsburgh 8 seam coal annually for the high-vol and thermal markets.
Another $155 million will be used for efficiency improvements, including an overland belt project at the Enlow Fork operation. Health and safety items will take $50 million of the budget and the largest portion, $310 million, has been earmarked for maintenance-of-production projects.
One portfolio item to be scaled back this year is Consol’s coalbed methane program, which will include just 86 wells this year with total capital estimated to be $65 million.
