CORSA COAL’s stockpiles at its Wilson Creek coal washing plant in Somerset County, Pennsylvania. The company is backed by Lukas Lundin and the founders of PBS Coals, sold to Severstal in 2008 for $1.3bn.

CORSA COAL’s stockpiles at its Wilson Creek coal washing plant in Somerset County, Pennsylvania. The company is backed by Lukas Lundin and the founders of PBS Coals, sold to Severstal in 2008 for $1.3bn.

Corsa Resumes Production at Casselman

Issue 21, November 2012

Just four weeks after it was idled, Corsa Coal has resumed production at its Casselman mine in Maryland. “The quality of our coal is being tested and accepted by more customers all of the time,” finance director Paul Caldwell told Global Mining Observer. “We’ve been doing a lot of marketing with the coals we produce and we’re getting traction with new customers.”

Corsa is led by the founders of PBS Coals, sold to Russian steelmaker Severstal in August 2008 for $1.3bn. Since joining Corsa in May 2009, they have built a portfolio of deposits centered on Somerset County, Pennsylvania, where PBS is planted. A total resource of 58m tonnes is due for revision later this year.

The company, listed in Toronto and valued at C$45m ($45m), is also backed by Swedish mining magnate Lukas Lundin, whose family trust owns 17.8 per cent of the shares. President Don Charter and chairman Colin Benner both sit on Lundin Mining’s board.

“We’re a relatively new producer and it takes a while to get your coal known,” says Caldwell. “It takes a long time to work with a potential customer to test the coal and run it through their plant. It’s a six to nine month process before an order may firm up.”

Last year, Corsa built a $21m coal washing plant that feeds directly into the railway network and which acts as a hub for the company’s four operating mines. Pending sales, Corsa aims to rapidly increase production to fill the plant’s annual capacity of 2m tonnes.

Much like PBS, which had annual capacity of 4m tonnes at the time of its sale, but which has since part-idled production citing higher costs, laying off 225 miners, Corsa is overwhelmingly focused on metallurgical coal, used for steelmaking.

“The big integrated producers in the States are thermal coal producers with a little met on the side,” says Caldwell. “We’ve taken the opposite tack because that’s where the margins are.”

Metallurgical coal is also exempt from legislative changes sweeping the US coal industry, which target thermal coal, used for electricity generation.

The quality of Corsa’s output has therefore insulated the company from both weakening prices and a hostile political backdrop: “If you have a lower ranking coal, you’re going to have a tougher time.”

“That’s where the margins are.”
Subscribe

Subscribe

RELATED NEWS

Lundin Strikes
$240m Gold Deal
in Ecuador

Lukas Lundin strikes second major deal of the month; double sucker punch for Kinross

............................................

Conveyer Co's
Buck Retrenched Spending Levels

Fenner, Semperit & Bridgestone investing to expand capacity to meet strong sales

............................................

Julian Treger:
Cornering Walter Energy's Board

Treger positioned for the
long game in proxy bid for
coking coal miner

............................................

Loeb-Aron-&-Co..jpeg
Hallgarten-&-Co..png

............................................

Atrum Coal: Margins
Beat Tonnage But
Atrum Has Both

Making money is not rocket science, says executive director Russell Moran

Lucara Looks
to Cream Sales
Forecast

Company set to make light
work of debt repayments to chairman Lukas Lundin