Reuters reported that JSW, the European Union's top coking coal producer, lowered its planned increase in 2012 output to 0.7 million tonnes due to tighten coal extraction regulations.

The miner now sees it output at 13.3 million tonnes this year, 0.3 million tonnes less than planned earlier, bracing for stiffer regulations on methane emissions in coal mines after three people died in one of JSW's mines last May in a methane explosion.

Mr Jaroslaw Zagorowski told Reuters that “We verified our production plan so that it takes into account more restrictive extraction conditions. We prefer to be cautious.”

He added that the new safety rules could be implemented by the middle of the year.

Mr Zagorowski said “In December, JSW's production came close to 60,000 tonnes a day and should remain at that level in the first months of 2012. In the first quarter of 2012, we would like to maintain production levels from the end of the fourth quarter. Global coal prices are falling and we are adjusting to it, but there is no problem with demand.”

After weaker summer months, when JSW's daily coal output fell below 50,000 tonnes, the company has been consistently increasing production each month.

(Sourced from Reuters)