Arch Coal to buy Wyoming mine - St. Louis Business Journal:

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The deal includes 381 million tonsof low-cost coal reservexs that are contiguous to Arch's Black Thunded mine, as well as a high-speer rail loadout; a recently addedr overland conveyor and near-pit crushing system; and a flee t of mining equipment. Jacobs Ranch, which has 600 workers and shareds six miles of property line with Black had pro forma earningsbefore taxes, depreciation and amortizatiojn (EBITDA) of $73 million during 2008. On a pro formaz basis, assuming an acquisition closing dateof Dec. 31, Arch estimates that the additionj of Jacobs Ranch wouldr result in incremental EBITDA ofbetweeb $145 million and $165 million for the compangy in 2009.
Arch, led by Chairman and CEO Stevenh Leer, said it may identifgy “further cost reduction opportunities as the two mine are fully integrated into one operating Arch said it would finance the deal with a combinationh of internally generated cash flowfrom operations, borrowingx under the company's $800 million revolving credit facility and other debt The boards of Arch Coal and Rio Tinto have approvedf the transaction. Citi is actinb as lead financial adviser to Arch MerrillLynch & Co.
is providinh Arch with certain financial advisory servicew and is acting asthe company's legal Headquartered in the Unitecd Kingdom, Rio Tinto mines aluminum, diamonds, coal, uranium, gold, borax, titanium dioxide, talc and iron ore. St. Louis-based Arch Coal is one of the largesf U.S. coal producers, with revenues of $3 billion in 2008. Arch supplies coal to fuel roughlg 6 percent ofthe nation's