CanAm sales on the rise

CANADA-based CanAm Coal said the momentum of its 49%-owned Alabama coal company RAC Mining is continuing, with the company reporting a 24% jump in second quarter coal sales.
CanAm sales on the rise CanAm sales on the rise CanAm sales on the rise CanAm sales on the rise CanAm sales on the rise

CanAm Coal's Powhatan operation. Courtesy CanAm Coal.

Donna Schmidt

For the period ended July 31, RAC’s coal seals were 25,131 tons, versus 20,305t in the first quarter ended April 30. Monthly averages for the quarter were 8377t, compared to 6769t in the first quarter, and the company marked record production of 9874t in June.

Metallurgical coal sales made up 81% of the total in the second quarter, versus 84% in the first period. Thermal product made up the remaining 19%, compared to 16% in the prior quarter.

For the first six months of the year also ended July 31, RAC reported total tonnage sold of 45,437t, or 7573t monthly on average, at a rate of 82% met and 18% steam.

"We continued our momentum during the quarter and have now more than doubled our sales since start-up of RAC Mining [in November 2009] and we are on our way to attaining our goal of 12,000 tons per month from the Powhatan surface mine," CanAm chief executive officer Tim Bergen said.

While CanAm holds 49% of RAC, it signed a binding letter of intent on June 25 to acquire another 49% ownership.

Due diligence for that transaction is in process, and the producer anticipates the transaction will close this month pending required regulatory requirements.

CanAm Coal, with interests in Alabama and Colorado, changed its name from Radar Acquisitions in May. Board director Linden Swensen, a 30-year coal industry veteran, was appointed its new president in August.

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