ST. LOUIS, Oct. 11 /PRNewswire-FirstCall/ -- Arch Coal, Inc. and
affiliates of ArcLight Capital Partners, LLC today announced that the two
companies have signed a definitive agreement to contribute certain mining
operations and properties to a new company to be called Magnum Coal Company
that would mine and market low-sulfur coal in the Central Appalachian region.
Affiliates of ArcLight Capital will receive approximately 62.5% of the
ownership interests in the new company, and Arch Coal will receive
approximately 37.5%.
St. Louis-based Arch Coal (NYSE: ACI) is the nation's second largest coal
producer, with subsidiary operations in West Virginia, Kentucky, Virginia,
Wyoming, Colorado and Utah. Through these operations, Arch Coal provides the
fuel for approximately 7% of the electricity generated in the United States.
ArcLight Capital Partners, LLC is one of the world's leading energy
infrastructure investing firms with more than $2.5 billion under management.
ArcLight invests throughout the energy industry value chain in hard assets
that produce high current income and capital appreciation. More information
about ArcLight can be found at http://www.arclightcapital.com .
Forward-Looking Statements: Statements in this press release that are not
statements of historical fact are forward-looking statements within the "safe
harbor" provision of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on information currently available
to, and expectations and assumptions deemed reasonable by, the company.
Because these forward-looking statements are subject to various risks and
uncertainties, actual results may differ materially from those projected in
the statements. These expectations, assumptions and uncertainties include: the
company's expectation of continued growth in the demand for electricity;
belief that legislation and regulations relating to the Clean Air Act and the
relatively higher costs of competing fuels will increase demand for its
compliance and low-sulfur coal; expectation of continued improved market
conditions for the price of coal; expectation that the company will continue
to have adequate liquidity from its cash flow from operations, together with
available borrowings under its credit facilities, to finance the company's
working capital needs; a variety of operational, geologic, permitting, labor
and weather related factors; and the other risks and uncertainties which are
described from time to time in the company's reports filed with the Securities
and Exchange Commission.
SOURCE Arch Coal, Inc.
 back to top
Related links:
http://www.archcoal.com
http://www.arclightcapital.com
CONTACT:
Kim Link of Arch Coal, +1-314-994-2936, or
Heidi Milne of ArcLight, +1-617-531-6304
|
