Contura Energy revised its 2018 production outlook downward for the Cumberland longwall mine in southwestern Pennsylvania. Over the last several weeks, the mine has been experiencing unforeseen geologic conditions due to reduced coal seam thickness and localized soft clay influences within the coal seam, the company said. As a result, both production and processing have slowed. The mine was temporarily idled for several days in mid-June to more effectively manage raw stockpile levels. Production has since resumed, though the company expects reduced tonnage levels for the next several weeks as production works through the localized clay issues.
These challenging conditions are not currently expected to extend past early to mid-August.
“While these tough conditions were not anticipated, we believe they are temporary, and we will continue to work through them in the most safe and efficient manner possible,” said Kevin Crutchfield, CEO, Contura Energy. “I am confident in our operations team to get the mine back to peak efficiency in the coming weeks.”
The company now expects its total 2018 Northern Appalachian (NAPP) shipments to be reduced by approximately 1 million tons below the previously announced guidance of 7.1 million tons to 7.5 million tons. NAPP costs are now expected to be between $35/ton and $38/ton for the full-year 2018.