Walter Energy a US producer and exporter of hard coking coal for the global steel industry has reported income from continuing operations of USD 116.1 million for the second quarter of 2010 as compared to USD 11.3 million in the second quarter of 2009.

Total coking coal production of Walter Energy in the given period was 1.54 million tonnes, rising by 30.51% YoY. The increased production was due to a 54.8% improvement in tons produced at Mine No 7, primarily related to the expansion at Mine No 7 East. Production costs for the period averaged USD 65.94 per tonne or USD 10.54 per tonne lower YoY primarily as a result of the higher production volumes.

Walter Energy’s coking coal sales totaled 1.63 million tonnes in the second quarter, up by 62% over the same quarter in the previous year, at an average selling price of USD 212.22 per tonne FOB port, compared to an average selling price of USD 125.26 per tonne in the corresponding quarter of the previous year.

Meanwhile, metallurgical coke sales of Walter Energy in the second quarter of 2010 totaled 87,174 tonnes at an average price of USD 458.45 per tonne. In the second quarter of the previous year, Walter Coke sold 25,625 tonnes at an average price of USD 406.83 per tonne. Volume and pricing improvements were primarily the result of a strengthening domestic steel market.

In the third quarter of 2010, Walter Energy’s coking coal production is expected to total 1.72 million to 1.91 million tonnes with production costs expected to average between USD 55 to USD 60 per tonne.

(Sourced from SteelOrbis.com)