Tuesday, July 2, 2013

Arch Coal to Sell Utah Assets for $435 Million

Arch Coal, Inc. and Bowie Resources, LLC announced today that they have entered into a definitive agreement under which Arch will sell to Bowie its wholly-owned subsidiary, Canyon Fuel Company, LLC, for $435 million. Both companies have approved the transaction, which is expected to close in the third quarter of 2013.

Canyon Fuel includes the Sufco and Skyline longwall mines and the Dugout Canyon continuous miner operation. In addition to these active operations and related support facilities, Bowie will receive approximately 105 million tons of bituminous coal reserves in Utah. After the transaction is completed, Bowie plans to keep the existing 725-person workforce in place at the Canyon Fuel operations. Castle Country Radio