Walter Energy Inc. (NYSE: WLT) (TSX: WLT), a major metallurgical coal producer in the U.S. and western Canada, said Oct. 11 that it expects met coal production to be 3.3 million metric tons (tonnes) for the third quarter of 2012, up 14% from 2.9 million tonnes in the second quarter 2012.
Third quarter 2012 met coal sales volume is expected to be about 2.6 million tonnes, down from 2.8 million tonnes in second quarter 2012. Reflecting current trends in global coal markets, Walter Energy said that its met coal prices for the third quarter 2012 are expected to average about $198 per tonne for hard coking coal (which includes low-vol, mid-vol and a small proportion of high-vol). That is compared with $201/tonne in the second quarter 2012, inclusive of the impact of previously priced carryover tons.
The third quarter price for low-vol pulverized coal injection (PCI) product is expected to be $163/tonne, inclusive of the impact of previously priced carryover tons, as compared with $164/tonne in the second quarter 2012.
Walter Energy will release its full third quarter 2012 earnings results after the market closes on Nov. 5 and will conduct a conference call with analysts to be broadcast live via the Internet on Nov. 6.
The company is a major producer of met coal in Alabama, mainly through two big longwall mines. It also has steam and met coal mining operations in Nicholas and Fayette counties, W.Va., and met coal mining operations in western Canada.