NEW YORK The
refurbishment of Arch Coal Inc.s longwall system at its
Leer underground mine in West Virginia will start by the end of
this year, the company said.
The mine will supply
metallurgical and pulverized coal injection (PCI) coal to the
"Arch has a strong
position in U.S. met markets that will be enhanced further with
the start-up of the Leer longwall mine later this year," Arch
Coal communications director Kim Link told AMM sister
publication Steel First. "We have a significant,
high-quality met reserve position and would anticipate our met
output increasing over the course of the next several years,
given our expectations for continued growth in global steel and
metallurgical coal demand."
St. Louis, Mo.-based
Arch Coal expects capital spending in 2013 to be at or below
$350 million, including $100 million for the completion of the
Leer Mine in Appalachia and $80 million for reserve
The company is
targeting metallurgical coal sales of 8 million to 9 million
tons this year, and expects to see a pickup in sales supported
by improving coal supply and demand trends.
Meanwhile, Arch Coal
said it plans to sell its thermal coal assets in Utah to
Louisville, Ky.-based Bowie Resources LLC for $435 million in a
move to focus on metallurgical coal. The transaction is
expected to close in the third quarter.
"The divestiture of
(the Utah operations) will streamline Archs mine
portfolio and allow us to focus on the most value-enhancing
parts of our business, such as building out and upgrading our
Appalachian metallurgical coal platform and optimizing our
low-cost thermal coal franchise to serve the domestic and
export coal markets," Arch Coal president and chief executive
officer John Eaves said in a statement.
Singapore, contributed to this story.
A version of this article was first published by AMM sister
publication Steel First.