ST. LOUIS, MO (October 11, 2005) --
Arch Coal, Inc. and affiliates of ArcLight Capital Partners, LLC today announced that the two companies have signed a definitive agreement to contribute certain mining operations and properties to a new company to be called Magnum Coal Company that would mine and market low-sulfur coal in the Central Appalachian region. Affiliates of ArcLight Capital will receive approximately 62.5% of the ownership interests in the new company, and Arch Coal will receive approximately 37.5%.
St. Louis-based Arch Coal is the nation’s second largest coal producer, with subsidiary operations in West Virginia, Kentucky, Virginia, Wyoming, Colorado and Utah. Through these operations, Arch Coal provides the fuel for approximately 7% of the electricity generated in the United States.
ArcLight Capital Partners, LLC is one of the world’s leading energy infrastructure investing firms with more than $2.5 billion under management. ArcLight invests throughout the energy industry value chain in hard assets that produce high current income and capital appreciation. More information about ArcLight can be found at www.arclightcapital.com.