|Exchange:||New York Stock Exchange|
|Stock:||Arch Coal Inc|
|Arch Coal, Inc., a Delaware corporation was organized in 1969. The Company is a coal producer in the United States. It has three reportable business segments, which are based on the major coal producing basins in which the Company operates. Its operating segments include the Powder River Basin segment, the Western Bituminous segment and the Appalachia segment. These geographically distinct areas are characterized by geology, coal transportation routes to consumers, regulatory environments and coal quality. The Powder River Basin is located in northeastern Wyoming and southeastern Montana. The coal from surface operations in this region has very low sulfur content and a low heat value compared to the other regions in which it operates. The price of Powder River Basin coal is generally less than that of coal produced in other regions because Powder River Basin coal exists in greater abundance is easier to mine and thus has a lower cost of production. In addition, Powder River Basin coal is generally lower in heat value, which requires some electric power generation facilities to blend it with higher Btu coal or retrofit some existing coal plants to accommodate lower Btu coal. The Western Bituminous region includes western Colorado, eastern Utah and southern Wyoming. Central Appalachia includes eastern Kentucky, Tennessee, Virginia and southern West Virginia. Coal it mines from both surface and underground mines in this region generally has a high heat value and low sulfur content. In addition, the Company might sell a portion of the coal it produces in the Central Appalachia region as metallurgical coal, which has high heat content, low expansion pressure, low sulfur content and various other chemical attributes. It operates approximately 32 active mines located in each of the major low-sulfur coal-producing regions of the United States. It uses two methods of mining coal: surface mining and underground mining. It uses surface mining when coal is found close to the surface and uses underground mining methods when coal is located deep beneath the surface. The Company's underground mines are typically operated using one or both of two different techniques: longwall mining and room-and-pillar mining. Longwall mining involves using mechanical shearers to extract coal from long rectangular blocks of medium to thick seams. Room-and-pillar mining is effective for small blocks of thin coal seams. It generally crushes the coal mined from its Powder River Basin mining complexes and ships it directly from its mines to the customer. It sells all of its coal to power plants, steel mills and industrial facilities. The Company's sales, marketing and trading force is mainly based in St. Louis, Missouri and consists of sales and trading personnel, transportation and distribution personnel, quality control personnel and contract administration personnel. The most important factors on which the Company competes are coal quality, delivered costs to the customer and the reliability of supply. Its main domestic competitors include Alpha Natural Resources, Inc., Cloud Peak Energy, CONSOL Energy Inc., Patriot Coal Corporation, Peabody Energy Corp. and Walter Energy, Inc. Federal, state and local authorities regulate the U.S. coal mining industry with respect to matters such as employee health and safety and the environment, including protection of air quality, water quality, wetlands, special status species of plants and animals, land uses, cultural and historic properties and other environmental resources identified during the permitting process.|
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