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Atlantic Coal boosted by increased productivity and demand - Fox-Davies

Last updated: 21:41 10 Nov 2010 AEDT, First published: 22:41 10 Nov 2010 AEDT

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Atlantic Coal’s (LON:ATC) new excavator at the Stockton mine in Pennsylvania has enabled it to increase the amount of raw coal mined in each quarter this year, and this is expected to continue into the fourth quarter, according to Fox-Davies analyst Peter Rose.

Rose noted that the new excavator is performing well and it is meeting expectations. Consequently productivity has increased significantly since its introduction.

The analyst highlighted that this piece of good news is backed up by improving demand for coal in Pennsylvania.

“The other piece of very positive news is that due to the closure of a neighboring mine, the market for anthracite in Pennsylvania has tightened up considerably and Atlantic Coal are now struggling to meet demand,” Rose said. 

“This situation is expected to continue for at least 18 months, and this is placing upward pressure on anthracite prices.”

The new excavator was deployed in April as part of a new mine plan.

Atlantic Coal’s Stockton mine currently has a reserve of 4.2 million tons of run-of-mine (ROM) coal, equating to approximately 2.1 million tons of washed anthracite.

 

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