Kennecott, a subsidiary of
Arch received more than US$12 million in exchange for 35 million tons of in situ coal, which the company had not planned to mine for many years. The reserves are in the Thundercloud federal coal lease, which is estimated to contain 412 million tons. As part of the deal, both companies have reached an agreement on overstripping rights for the adjoining mines. The transaction is subject to regulatory approval.
Kennecott acquired the Jacobs Ranch mine from
Arch is the second-largest coal producer in the U.S., providing fuel for 6% of that country’s electricity. In January, it hammered out a long-term contract with the Los Angeles Department of Water and Power.