VANCOUVER (miningweekly.com) – Despite steelmaking metallurgical coal prices correcting sharply since the start of the year, US miner Corsa Coal expects to double met coal sales in 2017, bolstered by the strong price rally for the bulk commodity over the past six months.
Metallurgical coal-focused Corsa said Wednesday it expected sales to range from 1.33-million tons to 1.48-million tons, strategically positioning the company to significantly increase metallurgical coal sales volumes.
For the current quarter, Corsa's metallurgical coal sales are expected to range between 275 000 t and 350 000 t, and are 90% committed at an average realised price of $166/t – an increase of 66% over the fourth quarter.
“With the low levels of capacity utilisation at our coal preparation infrastructure, a portfolio of low-mining-cost permitted and permit-in-process mines, and an emerging sales and trading platform, the building blocks are in place for strong growth in the years ahead,” CEO George Dethlefsen stated.
Corsa noted that the increased metallurgical coal output would come from the development of the Acosta Deep mine, in Pennsylvania, increased work hours at the Casselman (in Maryland) and Quecreek mines (Pennsylvania), and increased purchased coal activities. Corsa added that it was also evaluating other permitted mines within its portfolio to increase capacity utilisation at its preparation plants.