Consol strikes first big metallurgical coal deal in years

Paul J. Gough
Pittsburgh Business Times

Consol Coal Resources LP announced Thursday it had struck its first substantial metallurgical coal agreement since 2013 as the Canonsburg mining company seeks to take advantage of the hottest sector of the market.

Consol (NYSE: CCR) said a strong half of the year led to record production at its Pennsylvania mining complex underneath Greene and Washington counties, which have been open for about 25 years.

"In the long term, we believe that this domestic market development will allow us to maximize our revenue potential and expand into the domestic metallurgical coal market," Consol said in a statement.

There weren't many details about the deal, other than that it was a coal supply contract with a domestic coke producer. CEO Jimmy Brock had told the Business Times earlier this year that Consol was exploring the idea of expanding its metallurgical coal market. Metallurgical coal is used in the production of steel, which has grown over the past two years due to a higher amount of activity in the metals industry.