Bloomberg News

Raspadskaya Cuts Coking Coal Output Forecast by 20% for 2011

October 13, 2011

OAO Raspadskaya, a Russian coking coal producer, lowered its output forecast for this year by “about 20 percent” after third-quarter volumes dropped because of delays restoring its flagship mine.

Third-quarter coal production declined 28 percent to 1.21 million metric tons from the previous three-month period, Raspadskaya said today in an e-mailed statement. The initial 2011 forecast had been 8.5 million tons of coal, which would make the revised target about 6.8 million tons.

Raspadskaya may resume some coal exports this month after talks with foreign buyers, some of whom are previous customers, and with seaports in Russia’s Far East, the company said.

The average price of coking coal concentrate fell 4 percent to $167.30 a metric ton in the third quarter from the previous three months, according to the statement. Domestic prices slid about 3.6 percent in rubles terms to 4,750 rubles ($151.90) a ton this month and will remain at that level until the end of January 2012, Raspadskaya said.

Raspadskaya’s plans to restore operations at its flagship mine, which suffered deadly blasts in May 2010, fell behind schedule as the company sought regulatory permission and dealt with remaining pockets of underground fire.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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