TORONTO (miningweekly.com) – Diversified eastern US fuel producer Consol Energy coal production has surged during the first quarter ended March 31 to supply stronger-than-expected export markets.

The Pittsburgh-based company on Friday said its coal division had produced 14.8-million tons during the quarter, including 1.3-million tons of low-volatile coking coal from the company's Buchanan mine. However, despite Buchanan's strong first-quarter production, realised prices weakened as the quarter progressed.

The company’s total coal inventory had decreased by 414 000 t to 964 000 t as of the end of the quarter, which was the lowest total coal inventory levels in 15 years. The thermal coal inventory decreased to 875 000 t during the quarter.

Low-volatile Buchanan and Amonate inventory also decreased during the quarter by 153 000 t, to 89 000 t.

"Our coal sales exceeded guidance in the first quarter for two reasons: first, domestic generators took all contracted volumes as they responded to cold weather. This was the reverse of what happened in the 2012 first quarter, when record warm temperatures caused domestic generators to push back or defer some five- to six-million tons.

“Additionally, the 2013 first quarter sales were helped by stronger-than-expected export markets. Consol’s mines were able to respond effectively and efficiently to meet these incremental sales,” chairperson and CEO Brett Harvey said.

The company’s gas division produced 39.2 Bcfe for the first quarter, which was 4% more than the 37.7 Bcfe produced in the same quarter last year.

Production was down 6% quarter-on-quarter, owing to frac schedules and other seasonal factors that limited wells turned into line.

The company said it expected several once-off items, totalling $62.5-million, to impact the quarter’s financials.

Among these expenses counted an expected $15.2-million impact from the Blacksville No 2 mine fire in March. It was still not known when operations would resume.

Consol said it expected to produce between 13.25-million and 13.75-million tons of coal in the second quarter, and between 55.5-million and 57.5-million tons for the full year.

Second-quarter gas production was expected to range between 38 Bcfe to 40 Bcfe, relatively flat compared with first-quarter production. The company expected to produce between 170 Bcfe and 180 Bcfe of attributable natural gas this year.