January 8, 2024 - Metallurgical coal miner Bens Creek Group PLC (AIM:BEN, OTC:BENCF) increased production in West Virginia by more than 50% in its latest quarter to 31 December 2023.

Clean coal output totalled 112,342 tons against 73,655 tons, up 52% on the same period a year ago.

Costs per ton have also been falling from June 2023 onwards while the metallurgical coal price has recovered from its lows of $191 in August 2023 to $250 at the current time, said Adam Wilson, Bens Creek chief executive.

Output over the quarter was equivalent to 41% of the clean coal produced by the company in the entire financial year to 31 March 2023, he added, though transportation issues hampered the amount of coal shipped.

"We were restricted in production in November and December because of a slowdown in the availability of trains in the quarter, particularly in December, which saw a build-up in inventory to circa 90,000 tons,” he said.

“This was subsequently reduced to less than 60,000 tons following some deliveries being made.  

“The reduced availability of trains was due to coal handling capacity issues at the Port of Norfolk. To partially address this the company has been trucking some coal to its customers."

Metallurgical or met coal is primarily used in steel production.