Hanrahan stepped down as chief executive of the Virginia-based power company AES and will serve on Arch’s audit and nominating and corporate governance committees.

Arch Coal president and chief executive John Eaves lauded Hanrahan’s international credentials

“We are very pleased to welcome Paul to our board,” Eaves said.

“Paul is a highly respected leader in the global power sector, and brings tremendous business acumen and a great depth of knowledge about world and domestic energy markets.

“He will be an invaluable asset as we chart Arch’s future course.”

During his nine years at AES, Hanrahan filled the role of executive vice president, chief operating officer and president and chief executive of AES China Generating.

Arch notes that early in his career he served in the US Navy on the USS Parch nuclear submarine.

Arch claims status as a top-five global coal producer and marketer with 157 million tons of coal sold in 2011 and more than 20 active mining complexes across every major US coal supply basin.

Last month, Arch secured a $US1.4 billion to enhance liquidity, simplify capital structure and extend debt maturities.