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September 24, 2026 - Clinch Resources Ltd. has moved its Lanes Branch operation in southern West Virginia from mine development into commercial metallurgical coal production and is now working to significantly increase output through the end of the year.
The Lanes Branch property is part of Clinch Resources’ approximately 54,000-acre ARI project, which spans Logan, Mingo and Wyoming counties in West Virginia.
Clinch announced in May that commercial-grade coal production had begun at Lanes Branch. In July, the company sold its first 11,000-ton train of metallurgical coal and said it was targeting shipment of its first 65,000-ton seaborne vessel in September.
Lanes Branch Production Ramping Up
The company is now focused on increasing production at Lanes Branch through additional mining equipment and highwall mining capacity.
Clinch said its Caterpillar HW 300 Highwall Miner was expected to help increase production to more than 40,000 clean tons per month. With the addition of a second surface equipment spread, the company is targeting more than 80,000 clean tons per month by the end of 2026.
The second equipment spread was acquired during the summer, with Clinch expecting it to be fully deployed and in production in September.
“Our focus is on increasing production systematically while maintaining safety, quality, and operating reliability,” said Cesar Canali, co-CEO of Aster Resources, Clinch’s wholly owned global trading arm and commercial platform, and executive vice president of Clinch Resources.
Existing Infrastructure Supports Expansion
Clinch already has much of the infrastructure required to support increased production.
The company’s ARI project includes an operational 600-ton-per-hour coal preparation plant and a Norfolk Southern rail loadout at Gilbert, West Virginia. The rail infrastructure provides access to major U.S. coal export facilities.
Lanes Branch coal is processed before being delivered to customers, with quality monitored through sampling and laboratory analysis.
Clinch is also working to establish its sales book for 2027. The company is targeting approximately 70% of its total 2027 production to be placed under contract, while retaining about 30% for spot and other market opportunities.
Approximately 80% of production is expected to serve the traditional blast-furnace metallurgical coal market, with the remaining 20% directed toward specialty coal markets.
“Our objective is to have approximately 70% of total 2027 production under contract, providing greater visibility on volumes, cash flow, and logistics, while retaining approximately 30% with the flexibility to participate in spot and opportunistic markets,” Canali said.
Building a Reliable Met Coal Supply Chain
Clinch says its strategy extends beyond simply increasing mine production. The company is attempting to control more of the operating chain, including mining, coal preparation, quality control, rail transportation and customer scheduling.
Canali said steelmakers are becoming increasingly focused on coal quality and supply reliability as uncertainty continues to affect global supply chains.
“Our objective is to build a track record of predictable production, consistent specifications, and on-time delivery as we move through the ramp-up,” Canali said.
Aster Resources serves as Clinch’s commercial platform and supplies high-volatility A, medium-volatility and specialty carbon grades while providing technical support related to coal chemistry, downstream integration and supply.
Large West Virginia Resource Base
Clinch’s plans extend well beyond the current Lanes Branch operation.
The company’s ARI project contains approximately 111 million tons of measured and indicated coal resources, including approximately 22 million tons of proven and probable reserves.
Clinch also has three additional underground permits available for future development outside of Underground Mines 3 and 8.
The company holds a 39% interest in J.J. Resources Inc., which owns additional coal properties in central West Virginia. Historical estimates for those properties identified approximately 51.12 million tons of measured and indicated in-situ coal resources and approximately 16.36 million tons of proven and probable reserves.
Clinch’s longer-term development plan calls for production across the ARI project to eventually reach approximately 200,000 clean tons per month as additional mining operations are brought online.
Underground Mines Next in Development
Along with the Lanes Branch ramp-up, Clinch is advancing Underground Mine 8, with initial production expected in the near term and additional mining sections planned as the operation expands.
Underground Mine 3 is expected to follow Mine 8 in the company’s development schedule.
For now, the company’s immediate priorities remain increasing production at Lanes Branch, maintaining coal quality specifications, establishing contracted sales and demonstrating reliable deliveries to customers.
Clinch says it believes its existing infrastructure, permitted resource base and available production position it to expand as demand for high-quality metallurgical coal continues from domestic and international steelmakers. |
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