TORONTO (miningweekly.com) – Eastern US-focused diversified carbon fuel producer Consol Energy on Friday reported lower coal production during 2012, while gas production was marginally higher than in 2011.

The NYSE-listed company’s coal division produced 9.6% less coal year-on-year at 56-million tons, including 3.5-million tons from its Buchanan and 100 000 t from Amonate operations, compared with the 62-million tons of coal it produced in 2011.

During the fourth quarter ended December 31, the company produced 14.3-million tons, including 700 000 t of low-volatile coking coal from the company's Buchanan mine. This was almost 6% lower than the 15.2-million tons, including 1.4-million tons from Buchanan, produced in the fourth quarter of 2011.

Consol said the reduction in coal production was mostly owing to its efforts to control inventory. Several mines were idled during 2012, as the company sought to match production and sales.

During the fourth quarter, Consol’s total coal inventory decreased by 300 000 t to 1.4-million tons as of December 31. However, the thermal coal inventory decreased to 1.1-million tons during the quarter, as sales exceeded production. The low-volatility Buchanan and Amonate inventory decreased from September 30, by 200 000 t, to 200 000 t.

At Buchanan mine, the first of two phases of the $24-million Horn Mountain portal project were completed. This portal is strategically located at the mouth of the company’s future 5 North reserves.

In the meantime, it is 1.5 miles closer to the current mining face, enabling miners to get to and from the work site more quickly. Phase 2 involves converting a vent shaft to a supply hoist. Once this phase is completed in June, seven miles – each way − of supply haulage would be eliminated, which would help to better control costs at the mine.

At the company’s Loveridge mine, a significant sealing project was completed, which had increased safety and reduced risk by reducing the active footprint of the mine by about three square miles. As a result of this project, one bleeder fan was eliminated.

Consol said it expected to produce between 55.5-million and 57.5-million tons of coal this year, including between 13.7-million and 14.1-million tons in the first quarter.

Consol said its gas division produced 156.3-billion cubic feet (Bcfe) attributable to the company, almost a 2% increase on the 153.5 Bcfe it produced in 2011. It expected 2013 gas production attributable to the company to total about 170 Bcfe to 180 Bcfe.

On Monday the company said it planned to reduce its 2013 capital expenditure budget by about 11.5% to between $1.29-billion and $1.5-billion, the bulk of which would be spent on its natural gas division.