Switzerland-based commodities group Glencore Xstrata's total coal production in 2013 rose 4% year on year to 138.1 million mt due to increases at its Colombian Prodeco and Australian thermal coal operations.

Despite the year-on-year increase, Glencore Xstrata said in its 2013 production report published Tuesday that its coal output was "affected by a number of decisions to cut back production at lower return operations/areas in response to the low coal price environment."

Australian thermal coal production in 2013 totaled 53.2 million mt, a 9% rise on the year, which it attributed to operational ramp-ups at its Ravensworth North, Rolleston and Ulan projects.

Of the total, 48.1 million mt was used for the export market, up 10%, and the remaining 5.1 million mt for the domestic market, steady from 2012.

Glencore Xstrata's 2013 coking coal production was 7.3 million mt, up 6% from 2012, while its semi-soft coal output was 4.5 million mt, 5% higher.

The company attributed the increase in coking coal output to productivity improvements at Oaky Creek and the resolution of operational issues encountered in 2012.

It also said production growth was affected by decisions to counter the low coal price environment, which included moving from a dual to a single longwall operation at Oaky North and its Collinsville operations being placed on "care and maintenance," after being unable to achieve "an appropriate enterprise agreement with the union", the miner said.

Glencore Xstrata's Australian 2013 thermal coal average realized export price was $83/mt, down 19% on the year, while its domestic price was $40/mt, 2% lower.

Its Australian 2013 average, realized, coking-coal export price was $146/mt, down 26% year on year, while its average realized semi-soft-coal export price was $111/mt, 30% less than in 2012.

The miner's wholly owned Prodeco thermal coal operations in Colombia produced 18.6 million mt, a 26% rise from 2012, following an expansion project to increase production to 21 million mt/year to match the capacity of its new coal export terminal Puerto Nuevo, which started in April.

Output from Cerrejon operations in Colombia, of which Glencore Xstrata has an attributable share of 33.3%, totaled 11 million mt of thermal coal in 2013, 5% less than in the previous year, due to a month-long strike in early 2013.

Glencore Xstrata said Prodeco's average realized export price was $83/mt in 2013, down from 2012's $85/mt, while Cerrejon's average realized export price was $73/mt, down 18% year on year.

South African 2013 thermal coal output was 43.5 million mt, down 5% on the year, due to production cuts.

It said these included the decision to reduce yields at its Tweefontein operations to produce higher quality coal and to not reclaim dump material at Impunzi. Of the total thermal coal production, 20.6 million mt was for the export market, a 2% decrease on-year, and 22.9 million mt was allocated to the domestic market, down 7% from 2012.

The South African average, realized thermal-coal export price was $76/mt, down 21% from 2012's $96/mt, while its average domestic price was $86/mt, 2% lower year on year.

Source: Platts