* Sees metallurgical coal price at $215-$230/tonne in 2013
* Consol CEO sees shakeout of uncompetitive companies
* Stock rises slightly
Sept 6 Demand for steelmaking coal should
increase next year and send prices higher than their current low
levels, the head of U.S. coal miner Consol Energy said
Chairman and Chief Executive Officer Brett Harvey said
current low metallurgical coal prices, driven down by weak
demand in China and elsewhere, could result in some
uncompetitive companies in the high-cost Appalachian coalfields
falling by the wayside.
"Demand for met (metallurgical coal) has dropped off, that's
why Buchanan is shut down," Harvey said, referring to Consol's
mine in Virginia that the company has temporarily idled.
"(But) we see a shift, the marginal players must be shaken
out," he told analysts at a Barclays energy conference in New
York. At current prices, "mines in the U.S. are absolutely
"I think in 2013 there will be a shakeout and we expect
prices for high-quality met coal to be back up at $215 to $230
(per tonne) compared to $168 now," Harvey said.
Consol stock rose 14 cents to $29.07 in morning trading on
the New York Stock Exchange.