Coking coal miner Arch Resources has adjusted its volume and cost expectations due to ongoing challenges faced in mining the first longwall district at its Leer South mine in West Virginia. The company has revised its 2023 guidance, now projecting between 8.6 million and 8.9 million tons and an average metallurgical cash cost ranging from $88 to $91 per ton.

CEO Paul Lang explained that while they remain optimistic about Leer South's long-term prospects, challenges in the initial longwall district have limited advance rates. Despite this, the South Leer mine is benefiting from a stronger coking coal price environment. Despite falling short of initial expectations, Leer South has generated approximately $470 million in segment-level adjusted earnings before tax, interest, depreciation, and amortization (EBITDA) since its startup, compared to an initial capital investment of $400 million.

Arch also anticipates that its adjusted EBITDA for the third quarter will be approximately 10% lower than the total reported in the second quarter. The company will release its results for the September quarter on October 26.

In September 2021, Arch Resources commenced production at the four-million-ton-per-year premium-quality, high-vol A metallurgical coal mine.