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Arch Coal

Arch Coal, Inc.
Traded as NYSE: ACI
Industry Coal mining
Founded 1969 (founded)
1997 (current corporation)
Headquarters St. Louis, Missouri
Key people
John W. Eaves, President/CEO
Paul A. Lang, Executive Vice President/COO
Products Coal

Decrease $ 4.2 billion (FY 2012)

Decrease $ (682) million (FY 2012)[1]
Decrease $ (684) million (FY 2012)[1]
Total assets Decrease $ 10 billion (FY 2012)[1]
Total equity Decrease $ 2.9 billion (FY 2012)[1]
Number of employees
Slogan N/A
Website .com.archcoalwww

Arch Coal is an American coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Coal is the second largest supplier of coal in the U.S. behind Peabody Energy. The company supplies 15% of the domestic market.[2] Demand comes mainly from generators of electricity.[3]

Arch Coal operates 32 active mines and controls approximately 5.5 billion tons of proven and probable coal reserves, located in Central Appalachia, the Powder River Basin, Illinois basin and the Western Bituminous regions. The company operates mines in Colorado, Kentucky, Utah, Virginia, West Virginia and Wyoming, and is headquartered in St. Louis, Missouri. The company sells a substantial amount of its coal to producers of electric power, steel producers and industrial facilities.[1]


  • Key Facts 1
  • History 2
  • Politics 3
  • Colorado Mining Controversy 4
  • Competitive Status 5
  • Environmental impact 6
    • Mountaintop removal in Appalachia 6.1
    • Environmental awareness 6.2
  • References 7
  • External links 8

Key Facts

  • Produces low-sulfur thermal coal for power generation and metallurgical coal for steelmaking [4]
  • Supplies coal to customers on five continents [1]
  • Holds the most diversified position among U.S. coal producers with operations in every major domestic coal basin [1]
  • Controls more than 5 billion tons of thermal coal reserves and more than 400 million tons of metallurgical coal reserves [1]
  • Established the Arch Coal Foundation in 2005, which emphasizes education and teaching excellence in communities with scholarships, grants and the signature Teacher Achievement Award [3][5]
  • Earns national awards for responsible practices, including five U.S. Department of Interior Good Neighbor awards and six MSHA Sentinels of Safety awards [6][7]


Arch Coal was formed in July 1997 through the merger of publicly traded Ashland Coal, Inc. and privately held Arch Mineral Corporation. Arch Mineral had its origins in 1969, when it was formed as a partnership between Ashland Oil (now Ashland Inc.) and the H.L.Hunt family of Dallas, Texas; Ashland Coal was formed in 1975 as a wholly owned subsidiary of Ashland Oil. With the completion of the merger, Arch became the leading producer of low-sulfur coal in the eastern United States.[8]

In June 1998, Arch Coal expanded into the western United States with the acquisition of the coal assets of Atlantic Richfield. Included in this transaction were the Black Thunder Coal Mine and Coal Creek mines in the Powder River Basin of Wyoming; the West Elk longwall mine in Gunnison County, Colorado; and a 65% interest in Canyon Fuel Company, which operates three longwall mines in Utah.[9]

In October 1998, Arch added to its Powder River Basin reserves when it was the winning bidder on Thundercloud, a 412-million-ton federal reserve tract adjacent to the Black Thunder mine.[10]

In July 2004, Arch Coal solidified its position as a leading producer of high-Btu, low-sulfur western bituminous coal with the acquisition of the remaining 35% interest in Canyon Fuel Company and its 161-million-ton reserves.[11]

In August 2004, Arch again expanded its position in the Powder River Basin with the acquisition of Triton's North Rochelle mine adjacent to Arch's existing Black Thunder operation. By integrating the North Rochelle mine with Black Thunder, Arch created the premier mine in the nation's fastest growing coal supply region.[12]

In September 2004, Arch again added to its Powder River Basin reserves when it was the winning bidder on Little Thunder, a 719-million-ton federal reserve tract adjacent to the Black Thunder Coal Mine.[13]

In December 2005, Arch Coal sold select eastern assets to Magnum Coal Company to unlock the value of some of its Central Appalachian holdings, sharpened its focus in that region, and strengthened its balance sheet in preparation for future growth.[14]

In August 2006, Arch acquired a one-third interest in Knight Hawk Coal, a growing coal producer in the Illinois Basin.[15]

In October 2009, Arch acquired Rio Tinto's Jacobs Ranch mine and blended it with Black Thunder Coal Mine in the southern Powder River Basin of Wyoming, creating the single largest coal mining complex in the world.[16]

In November 2009, Arch acquired the rights to mine 731 million tons of Otter Creek coal reserves in the northern Powder River Basin of Montana.[17]

On June 15, 2011, Arch acquired International Coal Group (ICG) and cemented its place as a top five global coal supplier and a top 10 metallurgical coal producer and marketer.[18]

In December 2011, Arch Coal became the successful bidder for a 222 million ton federal coal lease known as the South Hilight tract in the southern Powder River Basin.[19]

In June 2013, Arch Coal announced the plan sale of its Canyon Fuel Company LLC subsidiary to Bowie Resources, LLC. Canyon Fuel includes the Sufco, Skyline and Dugout Canyon mines in Utah.[20][21]


Arch Coal PAC is named, along with other major coal producers, as a donor to the 2004 election campaign in West Virginia. 2004 was a record-setting year for donations made by the coal industry.[22]

Colorado Mining Controversy

On April 6, 2015, according to the environmental watchdog group Earth Justice, "The [United States] Forest Service announced it was paving the way for the second-largest coal company in the United States to bulldoze across thousands acres of pristine roadless forests [in western Colorado] in order to mine up to 350 million tons of coal. When final, this deal will allow Arch Coal to reap huge profits while adding hundreds of millions of tons of climate pollution to our atmosphere—all at the expense of thousands of acres of beautiful, wild and public roadless forest.".[23]

Public interest groups including Earth Justice, the Sierra Club, the Center for Biological Diversity and others announced a public campaign to protect the public lands, located in the Sunset Road Area of Gunnison National Forest, for public use, rather than coal mining.[24]

Competitive Status

Arch is number 564 in the 2013 Fortune 1000 list.[3] They are the second largest coal producer in the United States.[2]

Their top competitors include:[3]

Environmental impact

Mountaintop removal in Appalachia

Arch Coal practices mountaintop removal mining, which is controversial because it reduces the height of mountaintops [25]

Their West Virginia mining operations in the Appalachian Mountains were the subject of a critical documentary in 2002 on Now with Bill Moyers on PBS.[26] Arch's Dal-Tex mining operations above the town of Blair, West Virginia were the subject of a 1998 U.S. News & World Report story "Shear Madness" by Penny Loeb.[27] The story documented the impacts of mountaintop removal on communities close to the mines and their subsequent depopulation. A 1999 lawsuit brought by the West Virginia Highlands Conservancy, Bragg v. Robertson was the first successful citizen lawsuit to stop Arch's proposed mountaintop removal valley fill. The fill would have buried several miles of stream at Pigeon Roost Hollow near Blair, West Virginia.[28]

In his ruling for the plaintiffs, Judge Charles H. Haden stated that "If there is any life form that cannot acclimate to life deep in a rubble pile, it is eliminated. No effect on related environmental values is more adverse than obliteration...Under a valley fill the water quality of the stream becomes zero. Because there is no stream, there is no water quality."[29]

As of 2012, the company reported that surface mining in Appalachian mountains accounted for roughly 4 percent of their annual coal production.[1]

Environmental awareness

Arch Coal’s subsidiary operations reported a water compliance rate of 99.9 percent over a 10-year period between 2002 and 2012.[30]

In 2012, Arch Coal became the first energy company to earn the Conservation Legacy Award from the National Museum of Forest Service History. The Museum of Forest Service History awarded this honor “in recognition of [Arch Coal’s] commitment to the protection of natural resources, wildlife and water quality values during mining and restoration operations.” [31]


  1. ^ a b c d e f g h i j k
  2. ^ a b
  3. ^ a b c d Arch Coal, Inc. | Company profile from Hoover's
  4. ^ Past Three Annual Reports
  5. ^ - Arch Coal Foundation
  6. ^ Arch Coal Awards Page
  7. ^
  8. ^ Ashland Coal and Arch Mineral Are Set to Link
  9. ^ Chicago Tribune - Arch Coal Expands: Atlantic Richfield Agrees to Sell
  10. ^ Arch Coal Buys Coal Tract in Wyoming
  11. ^ News Release - Arch Acquires Remaining 35% Interest in Canyon Fuel Company
  12. ^ News Release - Arch Coal Completes Acquisition of Triton Coal Company
  13. ^ News Release - Arch Coal, Inc. Successful Bidder for Federal Coal Lease in Powder River Basin
  14. ^ News Release - Arch Coal Sells Select Assets in Central Appalachia to Magnum Coal Company
  15. ^ News Release - Arch Coal Acquires Interest in Knight Hawk Coal
  16. ^ News Release - Arch Coal Completes Acquisition of Jacobs Ranch
  17. ^ News Release - Arch Coal and Great Northern Properties Enter into Montana Coal Lease on Otter Creek Reserves
  18. ^ News Release - Arch Coal Completes Acquisition of International Coal Group
  19. ^ News Release - Arch Coal Winning Bidder for South Hilight Coal Lease
  20. ^ Mining Weekly - Arch Coal sells Utah thermal coal mines
  21. ^ News Release - Arch Coal to Divest Non-Core Utah Operations to Bowie Resources for $435 Million in Cash
  22. ^ Coal companies are big political donors
  23. ^ [1]
  24. ^ [2]
  25. ^ EPA Environmental Impact Statement
  26. ^ Now with Bill Moyers, "The Cost of Coal"
  27. ^ Shear Madness - US News and World Report
  28. ^
  29. ^
  30. ^ Arch Coal - Social Responsibility
  31. ^ National Museum of Forest Service History salutes Arch Coal - Conservation Legacy Award

External links

  • Official website
  • 2009-2010 Social Responsibility Report
  • Arch Coal's Official YouTube Channel
  • [3]
  • [4]
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