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Consol's second fiddle

CONSOL Energy, recently described as the coal miner that is trying hard not to be a coal miner, lifted its year-on-year output 7.5% and its gas production 16% in the December quarter.

Blair Price

For comparison purposes, the coal production figures did not include tonnages from the five longwall mines in West Virginia that Consol sold to Murray Energy under a $US3.5 billion deal finalised in early December.

Consol said its coal division produced 7.1 million tons for the recent quarter – up from the 6.6Mt produced by those mines in same period of 2012.

Meanwhile, the gas division, consisting of operations in the Marcellus, Burkett and Utica shale regions, produced 38.5 billion cubic feet of gas for the December quarter compared to 41.8Bcfe in the previous corresponding period.

Total gas production for 2013 was 172.3Bcfe, net to Consol, with a much higher range of 215-235Bcfe forecast for 2014.

In terms of projects, Consol expects the 5Mt per annum-targeting BMX longwall mine in Pennsylvania to be complete in mid-March.

The overland conveyor-belt project for the nearby Enlow Fork mine is expected to be finished within days.

“This will allow the mine to continue sealing the abandoned areas of the mine, which will improve unit costs, productivity, and reduce risk for employees associated with the maintenance of those areas of the mine,” Consol said.

The $24 million, Buchanan Mine Contrary Service Hoist project is also expected to start operations by late January too.

“This project upgraded the former entrance to the mine to transport equipment and supplies closer to the face, which increases efficiency by cutting down approximately 15 miles, round-trip, of haulage track,” Consol said.

Consol’s full-year financial results are due on Friday.

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