Arch Coal Idles Cumberland River Coal Complex
APPALACHIA, Va., July 21, 2014
APPALACHIA, Va., July 21, 2014 /PRNewswire/ --Arch Coal, Inc. (NYSE:ACI)
today announced that it is idling the Cumberland River Coal Company complex
("Cumberland River"), located in Wise County, Va., and Letcher County, Ky.
Cumberland River comprises two underground operations and related facilities.
The mining complex previously shuttered two contract mines during the second
quarter of 2013.
Arch Coal, Inc. logo
"With this move, we are actively responding to currently challenged
metallurgical coal markets while striving to enhance our overall competitive
cost position in Appalachia," said John W. Eaves, Arch's president and chief
executive officer. "Our strategy is to increasingly shift our portfolio toward
higher-margin, lower-cost metallurgical coal operations, while retaining our
valuable reserves for when market conditions strengthen in the future. We will
continue to serve our customers here and abroad with the high level of quality
they have come to expect from Arch."
In total, 213 full-time positions will be eliminated by idling Cumberland
River, and the company is taking steps to provide opportunities at other Arch
subsidiaries where available.
"We deeply regret the need to take this action," said Eaves. "We thank the men
and women at Cumberland River for their dedication, hard work and strong
commitment to operating in a safe and responsible manner."
Cumberland River sold approximately 290,000 tons in the first half of 2014,
consisting primarily of higher-cost metallurgical grade coal. The decision to
idle operations at Cumberland River will reduce Arch's annual 2014
metallurgical coal sales volumes by approximately 200,000 tons. As such, the
company now expects to ship between 6.3 million and 6.9 million tons of
metallurgical coal for 2014. Arch plans to provide an update regarding its
full year 2014 expectations in its second quarter 2014 earnings release on
July 29, 2014.
Cumberland River Coal Company is a subsidiary of Arch Coal, Inc.'s Catenary
Coal Holdings, Inc.
U.S.-based Arch Coal, Inc. is one of the world's top coal producers for the
global steel and power generation industries, serving customers on five
continents. Its network of mining complexes is the most diversified in the
United States, spanning every major coal basin in the nation. The company
controls more than 5 billion tons of high-quality metallurgical and thermal
coal reserves, with access to all major railroads, inland waterways and a
growing number of seaborne trade channels. For more information, visit
Forward-Looking Statements: This press release contains "forward-looking
statements" – that is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected future business
and financial performance, and often contain words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," or "will."
Forward-looking statements by their nature address matters that are, to
different degrees, uncertain. For us, particular uncertainties arise from
changes in the demand for our coal by the domestic electric generation
industry; from legislation and regulations relating to the Clean Air Act and
other environmental initiatives; from operational, geological, permit, labor
and weather-related factors; from fluctuations in the amount of cash we
generate from operations; from future integration of acquired businesses; and
from numerous other matters of national, regional and global scale, including
those of a political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be materially
different than those expressed in our forward-looking statements. We do not
undertake to update our forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by law. For
a description of some of the risks and uncertainties that may affect our
future results, you should see the risk factors described from time to time in
the reports we file with the Securities and Exchange Commission.
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SOURCE Arch Coal, Inc.
Contact: Media: Kim Link 314/994.2936; Jennifer Beatty 314/994.2781
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