NEW YORK Arch Coal Inc. expects metallurgical coal sales to rise to 8 million to 9 million tons in 2013, supported by improving coal supply and demand trends.
"We have strong commitments from our North America customer base, and we have some of our higher-quality coals still available to capture potential upside in an improving seaborne market," president and chief executive officer John Eaves said.
The St. Louis-based company expects capital spending to be at or below $350 million in 2013, including $100 million for the completion of the Leer metallurgical coal mine in Appalachia and $80 million for reserve additions.
The remaining capital expenditures will be used for maintenance and efficiency projects.
"We expect 2013 to be a rebalancing year for global and domestic coal markets, and our current guidance range reflects this assumption," Eaves said.
"Coal price increases are likely to follow what we expect will be improving coal supply and demand trends," he added. "We believe our performance in the second half of 2013 is likely to be stronger than in the first half."
A version of this article was first published by AMM sister publication Steel First.