Arch Coal expands share in Virginia coal export terminal

Arch Coal, Inc. today announced that it has expanded its equity share in Dominion Terminal Associates (DTA), a coal export terminal in Newport News, Virginia. The transaction will increase Arch's percentage interest in the storage-to-vessel coal transloading facility from 22 percent to 35 percent and augment its throughput capacity from 4.8 million tons to 7.7 million tons. The terminal has an estimated 22-million-ton annual throughput capacity.

"This transaction represents a strategic investment in export infrastructure that will further enhance Arch's leadership position as a supplier of high-quality metallurgical coal to the global steel industry," said Paul A. Lang, Arch's president and chief operating officer. "We expect US metallurgical coals to remain a cornerstone of international coke blends well into the future, and see significant seaborne market opportunities for US thermal coals as well."

Arch purchased the additional capacity for approximately $7.2 million through an auction process held by existing owner Peabody Energy. Existing, third-party transloading agreements will be transferred to DTA upon closing of the transaction.

The final sale is subject to court approval, and a hearing to approve the results of the auction is scheduled for March 9.