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SunCoke mulls $30M outlay for prep plant

Keywords: Tags  SunCoke Energy, coal, capital investment, new plant, coke, Stacy Irish

NEW YORK — SunCoke Energy Partners LP is evaluating plans to invest $30 million in a new coke plant in the United States, the company said in its 2014 earnings guidance report Dec. 16.

The Lisle, Ill.-based company plans to invest an additional $30 million to $60 million on a new coal preparation plant. It declined to reveal the potential locations of the facilities.

SunCoke also plans to explore opportunities in coke, coal logistics and/or iron ore processing acquisitions.

The company estimates capital expenditures will amount to $110 million in 2014, down from $144 million in this year.

The company expects its domestic coke production to equate to 4.3 million tons in 2014, supported by the upgrade of its Indiana Harbor plant in East Chicago, Ind.

"We expect the second half of 2014 to be stronger due to (the) completion of (the blast furnace) refurbishment at Indiana Harbor," SunCoke said.

The company expects its domestic coke production business to generate earnings before interest, taxes, depreciation and amortization (Ebtida) of $60 to $65 per ton in 2014, up from $57 per ton this year.

A version of this article was first published by AMM sister publication Steel First.

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