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Alpha Natural Lifts Guidance On Shipments, Costs

LONDON -- Coal supplier Alpha Natural Resources Inc. on Friday lifted its forecast for metallurgical coal shipments in 2011 as it also said the cost of coal sales in the east will be higher than previously expected. The company said the recent flooding in Queensland, Australia has significantly strengthened the market for metallurgical coal and that it now expects 2011 shipments will be in the range of 13 million tons to 14.5 million tons, compared to the previous forecast of 11.5 million tons to 13.5 million tons. However, it also said that the cost of coal sales in the east for 2010 is now expected to be between $60.50 and $61.50 a ton, due to factors including poor rail service, severe weather and delayed export shipments at the ports. Its previous guidance had been for costs to be between $57 and $58.50 a ton.
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