|
2 August 2006 -- Arch Coal, Inc. announced that it has acquired a one-third interest in Knight Hawk Coal, a growing coal producer in the Illinois Basin, in exchange for approximately $15 million in cash and 30 million tons of coal reserves.
The transaction is expected to be accretive to earnings, effective immediately.
Following the transaction, Knight Hawk controls approximately 70 million tons of coal reserves in southern Illinois. The company expects to ship approximately 3 million tons of coal from its mining operations during 2006, and to expand production to nearly 5 million tons by 2008, assuming market conditions warrant.
In addition to its interest in Knight Hawk, Arch controls approximately 230 million tons of coal reserves in southern Illinois.
St. Louis-based Arch Coal is the nation's second largest coal producer. According to the company, Arch Coal and its subsidiary operations in Wyoming, Utah, Colorado, West Virginia, Kentucky and Virginia provide the fuel for approximately six percent of the electricity generated in the United States.
| 
Articles 
| View all PennWell sites | View all PennWell events
Add RSS Feed
