U.S. Arch Coal to invest up to $390 mln in development of new mine

U.S.-based Arch Coal Inc., a coal mining and processing company, has started the development of a new longwall mine in Barbour County, West Virginia, that will produce an estimated 3 million tons of premium, High-Vol A coking coal annually.

Leer South, the new mine, will be similar in virtually every aspect to Arch Coal’s existing Leer longwall mine and will operate in the same 200 million-ton reserve base as the Leer operation.

The company expects to infuse about $360 million to $390 million over the next three years to develop the mine with the longwall anticipated to begin in late 2021. When fully operational, the mine will employ close to 600 highly skilled and highly trained employees.

Arch has further decreased Leer South’s projected capital needs through plans to extend and utilize the preparation plant and select other facilities at its Sentinel Mine, which is also situated in Barbour County.