Three new shots for Magnum Coal

ST. LOUIS-based Arch Coal has sold 100% of its stock, operations and reserves for three of its subsidiaries to Magnum Coal.

Donna Schmidt

The agreement, which was made in exchange for Arch’s minority ownership in Magnum, included Hobet Mining, Apogee Coal and Catenary Coal, which are made up of the Hobet 21, Arch of West Virginia, Samples and Campbells Creek operations.

 

Arch said in late 2005 it would contribute the facilities to the deal, with the sale of the properties effective December 31.

 

The company, however, will keep its Central Appalachia assets, including Mingo Logan, Lone Mountain, Cumberland River and Coal-Mac as well as Mountaineer II, Mountain Laurel and Spruce, all of which total about 372Mt of reserves.

 

Arch Coal president Steven Leer said the move was made in the best interest of all involved parties. “The direct sale of these subsidiaries enables both companies to achieve their ultimate objectives in an accelerated fashion, while providing greater clarity for the employees at the affected operations.”

 

“Through this transaction, Arch has unlocked the value of some of its Central Appalachian holdings, sharpened its focus in that region, and strengthened its balance sheet in preparation for future growth,” he said.

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