Southern Coal plans to produce an additional 900,000 st of steam and metallurgical coal this year from two surface mines in eastern Kentucky that have been reopened and/or expanded, according to a senior company official.
The Beech Creek mine, which produces high-vol met coal and had been shut down, is targeted for 2014 output of 600,000 short tons, said Jay Justice, the company's executive vice president, in an email interview concluded Wednesday.
The Bevins Branch mine, meanwhile, will see production increase to 700,000 st of steam coal annually from the previous 400,000 st a year, he added.
Both mines are located in Pike County, for years the largest coal-producing county in eastern Kentucky's Central Appalachian region.
Southern Coal recently confirmed the expansion and reopening of several met and steam coal mines in eastern Kentucky, although it has no plans, at least for now, to reopen the two idled Liggett Nos. 8 and 9 steam coal underground mines in Harlan County, Kentucky.
Much of the company's steam coal is being supplied to American Electric Power under a multi-year, 2.5 million st/year contract. Columbus, Ohio-based AEP is a longtime customer of Southern Coal, headquartered in Virginia.
A few years ago, Southern Coal was producing at the rate of 7 million st annually with plans to go to 8.5 million a year or more. In 2011, for instance, it produced 7.2 million st and operated 33 mines. But downturns in the met and steam coal markets forestalled those expansion plans and led to mine idlings and other cutbacks.
In 2013, the company produced about 5 million st. Now, however, Justice anticipates 2014 production of approximately 6 million st, including 3.5 million st of met coal and 2.5 million st of steam coal.
