Arch Coal, Inc. announced Monday that Tygart Valley's Leer mine in northern West Virginia has begun operating its longwall mining system, representing a major milestone in the development of the overall mining complex. The Leer mine is expected to ramp up production during the first quarter of 2014, and to produce more than 3 million tons of coal on an annualized basis thereafter. The majority of the output will be sold into domestic and international metallurgical coal markets for use in the production of steel.
Arch has invested more than $400 million to develop the Leer mine, which produces a high-quality, high-volatile "A" coking coal product that is attracting significant interest in world metallurgical markets. With its talented 400-person workforce and highly efficient longwall system, the mine will benefit from a very competitive cost structure once it scales up to full production.
Arch now operates six metallurgical and PCI-grade mines in Appalachia, including four in West Virginia. Arch also has significant undeveloped metallurgical coal reserves in the region that can support additional mine development in the years ahead.