MARKETS

Massey nets $US22.5m despite underground doldrums

DESPITE a lacklustre performance from its underground operations, Virginia-based Massey Energy increased its coal revenues by 14% compared with last year and reported improved net income of $US22.5 million for the September quarter.

Angie Tomlinson
Massey nets $US22.5m despite underground doldrums

Massey said low production from its underground mines, about 4.7 million tonnes compared with 6Mt in the last quarter, impacted negatively on results.

Longwall operations produced 900,000t and continuous miners operations 3.8Mt. Surface operations were the biggest producers, kicking in 4.7Mt for a total of 10.1Mt for the September quarter.

Massey said productivity continued to be negatively affected by the difficulty of recruiting and retaining experienced miners, but it expects steady improvement in labour productivity over the next year.

Increased production projections for 2006 include improvement in underground mining productivity and improved surface mine ratios.

Massey chief Don Blankenship remained positive on his future projections, seeing supply as likely to be hindered by infrastructure and shipping constraints, a shortage of labor and higher costs.

“Favourable marketplace conditions continue to support our 2006 and 2007 projections. Coal pricing remains strong in all markets and the outlook for Central Appalachia's high quality coal is exceptional,” Blankenship said.

The company said it would ship 42.5-43Mt in 2005 and would raise shipments to 48-50Mt in 2006.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.