Arch said it had signed an agreement in late January to sell Triton Coal Company's Buckskin mine to Kiewit Mining Acquisition Company for a purchase price of $US82 million, contingent upon the completion of Arch's acquisition of Vulcan Coal Holdings, which owns all of the equity of Triton Coal Company.
In May last year Arch Coal agreed to acquire Vulcan Coal for $US364 million. That transaction is currently under review by the Federal Trade Commission. Triton is the nation's seventh largest coal producer and the operator of the North Rochelle and Buckskin mines in Wyoming's Powder River Basin.
North Rochelle mine borders Arch Coal's Black Thunder mine, and Arch Coal said the integration of those two sites could lead to tremendous opportunities for cost savings and synergies.
The Federal Trade Commission was informed in early December 2003 that Arch was contemplating the sale of the Buckskin mine to Kiewit Mining, and was subsequently notified in late January 2004 that an agreement had been signed.
Reuters reported that Arch Coal apparently agreed to sell the Buckskin mine to satisfy the Federal Trade Commission, which is reviewing the Vulcan transaction.