MARKETS

Met coal a hard sell for Southern

SOUTHERN Coal has reported a spike in demand for its high-quality steam coal, but says demand for metallurgical coal is weaker than expected.

Sadie Davidson
Met coal a hard sell for Southern

The lack of demand for met coal resulted in the company temporarily closing its Tams No 1 mine in Raleigh County, West Virginia.

Southern’s Bevins Branch mine is on target to churn out about 800,000 short tons of steam coal this year, while Beech Creek, a high-volume met mine, is likely produce around 500,000t.

Due to the weak market for met coal, the company has decided to temporarily close its low-volume mine in Beckley, West Virginia. However, its high-volume mines in Virginia and West Virginia remain up and running.

As soon as the market improves, the company says it intends to reopen the idled mines.

Southern's output for 2013 totalled 5 million short tons, but the company anticipates total production this year of about 6Mt.

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