Hallador Energy, the parent of Indiana coal producer Sunrise Coal LLC, said Nov. 18 that in May of this year, one of its customers asked to defer 571,000 tons from 2015 to 2016.
As an incentive to modify the agreement with this unnamed customer, that customer offered to award Sunrise Coal additional tons in 2016-2020. So Hallador included the additional tons as agreed to in its second and third quarter filings. On Nov. 16, the customer notified the compaqny that it wished to substantially modify the agreement. Negotiations are still ongoing. Until a contract is finalized, Hallador said it is prudent to revise its contracted sales position.
It offered new figures for the next few years. For example, the minimum priced tons for 2016 sale are now 5.518 million, and 5.874 million tons maximum. The old figures for 2016 were 5.568 million tons minimum priced and 6.424 million tons maximum. The company is still estimating total coal sales in 2016 at 6.5 million tons.
Hallador is headquartered in Denver, Colorado and through its wholly owned subsidiary, Sunrise Coal, produces coal in the Illinois Basin for the electric power generation industry.