Arch Coal Closes On $764M Wyoming Mine Purchase

ST. LOUIS (AP) — Arch Coal Inc. said Thursday it has completed a $764 million purchase of a Wyoming coal mine from Rio Tinto Ltd.

Steven F. Leer, Arch Coal's chairman and CEO, said the purchase expands the mining company's "size, scale and strategic position" in Wyoming's Powder River Basin. He said it is the largest, fastest growing and most cost-competitive coal supply region in the United States.

The Jacobs Ranch mine produced 42.1 million tons of sub-bituminous coal in 2008 for sale to U.S. power generators.

Arch, based in St. Louis, said it plans to integrate Jacobs Ranch into its Black Thunder mine. The acquisition includes 381 million tons of low-sulfur coal reserves as of Dec. 31, 2008, that are contiguous to Arch's Black Thunder

Also purchased were a high-speed rail loadout, an overland conveyor and near-pit crushing system, a 120-cubic-yard dragline, eight electric shovels, more than 40 large haul trucks and the mine's work force.

Rio Tinto Ltd. is a global mining company with offices in Australia, England and elsewhere.

Arch Coal said in August it received antitrust clearance from the Federal Trade Commission.

Shares fell 90 cents, or 4 percent, to $21.23 in afternoon trading.