April production was mainly comprised of high value metallurgical coal, which accounted for 87% or 7,450 tons of total production.
The remaining 13% or 1,068 tons was thermal coal (also called steam coal), which is mainly sold into the local power market. Average April gross sales price of $110 per ton was slightly higher than the $105 per ton received in March. The company anticipates the strong pricing environment to continue for the next 12 months.
RAC’s contract miner Job Land & Mineral has completed additional infrastructure work at the Powhatan mine and obtained approval from the Alabama Surface Mining Commission (ASMC) on a pond that was constructed on additional lands, which were permitted and bonded in the last couple of months.
According to Radar Acquisitions, the approval from ASMC was the last hurdle in allowing the start-up of mining operations on this site. As a result of this approval, the company is now operating on 3 pits concurrently at the Powhatan mine.
Tim Bergen, CEO, president and director of Radar Acquisitions, said: “Since January 2010, we have almost doubled production, from 4,537 tons to 8,518 tons in April and our investment in additional equipment is starting to pay of. We believe we will be able to sustain this momentum and expect production to continue to grow through the remainder of 2010.”
