Contura Updates Cumberland Outlook for 2018
BRISTOL, Tenn., July 2, 2018 – Contura Energy, Inc., a leading U.S. coal supplier, today updated its 2018 production outlook for the Cumberland mine, its longwall thermal coal mine located in Northern Appalachia (NAPP).
Over the last several weeks, the mine has been experiencing unforeseen geologic conditions due to reduced coal seam thickness and localized soft clay influences within the coal seam. As a result, both production and processing have slowed. The mine was temporarily idled for several days in mid-June to more effectively manage raw stockpile levels. Production has since resumed, though the company expects reduced tonnage levels for the next several weeks as production works through the localized clay issues. These challenging conditions are not currently expected to extend past early to mid-August.
“While these tough conditions were not anticipated, we believe they are temporary, and we will continue to work through them in the most safe and efficient manner possible,” said Kevin Crutchfield, chief executive officer. “I am confident in our operations team to get the mine back to peak efficiency in the coming weeks.”
The company now expects its total 2018 NAPP shipments to be reduced by approximately one million tons below the previously announced guidance of 7.1 million tons to 7.5 million tons. NAPP costs are now expected to be between $35 per ton and $38 per ton for the full-year 2018.
For additional financial information about Contura, please visit www.conturaenergy.com/financials.
ABOUT CONTURA ENERGY
Contura Energy is a private, Tennessee-based coal supplier with affiliate mining operations across major coal basins in Pennsylvania, Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power. For more information, visit www.conturaenergy.com.
This news release includes forward-looking statements. These forward-looking statements are based on Contura’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Contura’s control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Contura to predict these events or how they may affect Contura. Except as required by law, Contura has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur.