Alpha Natural Resources says it's planning to increase metallurgical coal production next year to meet demand from the recovering steel industry.

The Abingdon, Va.-based company said Tuesday it expects to produce between 10 million and 12 million tons of metallurgical coal in 2010, compared with an earlier plan of 9 million to 11 million.

Metallurgical coal is used to make coke, a key ingredient in steel, and Alpha says buyers placed more orders in the third quarter.

Despite increasing interest in met coal, Alpha lost $19.5 million, or 19 cents per share, during the period, which included $42.4 million in pretax expenses from its July acquisition of Foundation Coal. In third-quarter 2008, Alpha earned $67.4 million, or 93 cents per share.