The tract, known as the Guffy property, is owned in-fee and neighbours the Tygart Valley reserves that make up the Leer operation in West Virginia.

Arch officials said the coal was of comparable quality to Leer's high-volatile A metallurgical coal reserves, and would allow the producer to recover another incremental 8 million short tons of metallurgical coal at Leer – a three-year extension of the mine’s lifespan.

No further details of the deal were released.

“The Guffy acquisition represents a valuable, synergistic, bolt-on opportunity for Arch that extends the reserves and mine life at Leer, one of our premier, metallurgical coal operations in Appalachia," president and CEO John Eaves said.

The Missouri-based company announced in late July that it would push back the longwall start-up at Leer until final quarter of the year due to met market dynamics.

Along with the addition, Arch also confirmed the resolution of all pending and potential legal claims that it had with Patriot from Arch's sale of coal companies to ArcLight Capital Partners’ Magnum Coal. Patriot, itself a spin-off of Peabody Energy, ultimately purchased Magnum.

Under the settlement, Arch will pay $5 million in cash to Patriot upon its exit from bankruptcy, and will also release a $16 million letter of credit posted by Patriot in Arch's favor for surety bonds.

Patriot will replace the bonds in its own name or repost an $8 million letter of credit in Arch's favor by the end of the year, the two said.

“This comprehensive settlement with Patriot relieves Arch of costly legal expenses, resolves the distraction of litigation claims, and allows Arch's management team to remain focused on steering the business through current market conditions and preparing for a recovery,” Eaves said.

The company is still in discussions with the United Mine Workers of America regarding outstanding litigation, though the US District Court has dismissed the group’s Employee Retirement Income Security Aact claim against Arch.

“In the wake of the US District Court decision in favor of Arch, we have put forth a good faith offer to the UMWA for a settlement that would resolve all pending and potential legal claims brought by the UMWA, and we are in discussions with them on a potential resolution,” Arch senior vice president for law, general counsel and secretary Robert Jones said.