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Issue link: https://coal.epubxp.com/i/130908
news continued TOP 10 COAL-PRODUCING STATES W O R L D (in Thousand Short Tons) Week Ending (4/27/13) YTD '13 Wyoming 118,954 West Virginia 40,263 Kentucky 30,620 Pennsylvania 18,132 Illinois 14,597 Texas 13,505 Indiana 11,870 Montana 10,869 Ohio 9,161 North Dakota 9,077 YTD '12 130,764 42,213 33,364 19,385 15,293 13,021 12,433 11,677 9,315 9,217 % Change -9.0 -4.6 -8.2 -6.5 -4.5 3.7 -4.5 -6.9 -1.7 -1.5 U.S. Total 338,285 -7.6 Australia Surpassed Mongolia in Coking Coal Exports to China The latest monthly statistics released by the Chinese Customs Office indicate that in February, Australia surpassed Mongolia's coking coal exports to China. China, the world's largest consumer of coal, imported 5.4 million metric tons (mt) of coking coal in February 2013, an increase of around 116% from the same period in 2012. In 2012, Mongolia was the top supplier of coking coal to China, with Australia trailing far behind. But by February 2013, Australia was exporting more coking coal to China than Mongolia. Australia's coking coal exports to China reached 2.58 million mt in February 2013. Canada ranked next with 1.21 million mt of coal exports to China, followed by Russia with 527,300 mt, and the United States with 408,700 mt. Mongolia's exports to China dropped to 336,000 mt in February 2013, a decrease of 76% from January and 80.7% lower than the corresponding period of 2012. The drop in Mongolia's coal exports is largely due to the halt in coal shipments to China earlier this year from Mongolia's largest coal mine, Tavan Tolgoi, which is operated by state-owned Erdenes Tavan Tolgoi. The halt in shipments was reportedly due to financial troubles experienced by the company. 312,712 have started already looking at more sales—or adding those sales into 2014 and beyond. So that's the extent that we've been penetrating, which for us is substantial, 6.5 million tons of our Northern App coal going down to the Southeast is a large percentage of our tons." Alliance Resource Partners LP's Tunnel Ridge longwall mine in northern West Virginia had the largest output increase among Northern Appalachia coal mines in the first quarter. Production rose to 796,260 tons from 126,400 tons a year ago. Longwall production at the mine began in May 2012. Alliance Resource Partners' general partner is Alliance Holdings GP LP. At full capacity, Tunnel Ridge is expected to produce 6.5 million to 6.8 million tons of coal annually, up from 2 million tons produced in 2012. Also showing production increases among mines in the region were Murray Energy Corp.'s Century mine in Ohio and Rosebud Mining Co.'s No. 78 mine in Pennsylvania. Alliance Comes Out of the Gate Strong After posting higher production, revenue and net income during the first quarter of 2013, Alliance Resource Partners said in late April it is on track for a 13th consecutive record year of operating and financial performance. Perhaps the biggest downside for the Tulsa, Okla.-based company in the first three months of 2013 was a geological issue at the company's newest coal mine, the Tunnel Ridge longwall operation in Ohio County, W.Va., and Washington County, Pa., that will scale back the mine's output for the remainder of this year. Alliance produced about 9.8 million tons of coal in the first quarter, up 15.4% from a year ago. Revenue was $548 million compared with $443 million in the first quarter of 2012, a 24% increase. Net income, meanwhile, was $102.9 million, versus $83.9 million a year earlier. Total average coal sales price in the first quarter climbed slightly to $55.12/ton sold. It was $54.99/ton sold a year ago. Alliance plans to produce only steam coal this year, no metallurgical coal. The company, through its subsidiaries, operates mines in Kentucky, Indiana, Illinois, Maryland and West Virginia. "Compared to this time last year, favorable weather patterns and higher natural gas prices have contributed to increased coal demand and slowly improving market fundamentals for domestic steam coal," Joseph Craft, Alliance president and CEO, told ana- May 2013 N E W S ¸ ˛ ˝ ¸ Pike River Coal Found Guilty on Health & Safety Charges New Zealand's Pike River Coal, the failed operator of the West Coast coal mine where two explosions killed 29 underground miners in 2010, has been convicted of nine health and safety charges. In the Greymouth District Court, Judge Jane Farish found the company, which is in receivership, guilty of the charges under the Health and Safety in Employment Act, receivers John Fisk, David Bridgman and Malcolm Hollis of PricewaterhouseCoopers said in a statement. The receivers told the court last year that they wouldn't seek to defend the charges. A sentencing hearing has been set for July 4 and 5, and the receivers will provide the court and prosecution with information about the company's financial position to assist. The mine was sold to state-owned Solid Energy, which is itself in a precarious financial position, for $7.5 million, with earn-outs up to $25 million if it's commercially re-opened. According to the receivers' report published in February, Pike River Coal's remaining asset was an insurance claim relating to events before the November 2010 explosions. UK Coal Considers its Options after Daw Mill Blaze Hundreds of miners could lose their jobs and benefits if UK Coal applies for bankruptcy in the wake of the worst British coal mine fire in 30 years. UK Coal officials said their business remains viable, despite an admission that the Daw Mill fire has heavily impacted cash flow. The 650 staff at the Warwickshire colliery will be laid off by the end of Q2 2013, according to the company. The union representing the miners worries they may lose their benefits should the company seek insolvency protection. UK Coal officials, however, said all options are being considered in a restructuring strategy, according to CEO Kevin McCullough. "Daw Mill represented a significant part of the business and discussions have been under way for the rest of the business," said McCullough. "Remaining deep mines in Kellingley in North Continued on pg 8... www.coalage.com 7