Atlantic Coal plc said Oct. 4 that it saw a third quarter production boost at its Stockton anthracite strip mining operation in Pennsylvania, with a 130% increase in clean coal production year on year and record production of 44,633 tons against 19,424 tons in the year-ago quarter.
There was also a 38% increase in clean coal sold year on year to 33,336 tons, against 24,111 tons in the year-ago quarter. The amount of run-of-mine coal washed more than doubled year on year to 107,625 tons, against 50,816 tons in the third quarter of 2011. There was also a significant improvement in strip ratio of overburden to clean coal to 21.0, compared 42.9 a year ago.
There is a strong stockpile of run-of-mine (42,416 tons) and clean coal (23,435 tons) targeted for sale during the lucrative winter home heating season, Atlantic Coal noted. The average sales price in the third quarter was US$148.49 excluding by product #5 (Q3 2011: US$146.98). There was a continued strong national demand for high quality anthracite but a slight quarter on quarter price drop experienced due to cyclical slower summer period, the company said.
Atlantic Coal Managing Director Steve Best said: “This is an exciting time for Atlantic as production at Stockton continues to build upon the record figures reported in Q2 2012. Stockton’s production profile has been transformed since the successful completion of the railroad diversion in April 2012, as evidenced by the 130% increase in production and the 38% increase in sales of clean coal year on year.” The diversion moved a rail track aside so the company could get at the coal underneath.
“These results strengthen our position in the region, and with options currently held over a number of larger anthracite sites, further details of which were contained in our recent interim statement, and each with the potential to enlarge our portfolio substantially, we look forward to the coming months with optimism,” Best added. “We will update shareholders on the status of these transactions at the appropriate time. In addition, Atlantic has completed reclamation work on nearly 1,000 acres of the former Gowen Mine. This is further good news for the Company, producing environmental improvements and representing the completion of a major programme of expenditure.”