On Wednesday, Alpha Natural Resources Inc. (ANR) reported that it has signed a pact with Arch Coal Inc., pursuant to which the company would purchase the Mingo Logan Ben Creek complex of Arch for $40 million. The company intends to launch a new division called Cobra Natural Resources LLC, to process the asset purchase and its subsequent management. The transaction is expected to generate in excess of $25 million of EBITDA and a large positive free cash flow in fiscal 2008. The company expects the deal to finalize towards the end of June 2007, pending customary closing conditions. Also, on completion of the acquisition, Alpha would retain nearly 150 jobs at Mingo Logan facilities, said the company.The Abingdon, Virginia based Alpha will take possession of around nine to ten million tons of surface and deep mine reserves, which are suitable for the metallurgical steel and electric utility markets. Nearly 70% of the total annual coal run rate of Cobra Natural Resources is estimated to be sold as metallurgical coal to foundries and steel mills, added the company.As part of the transaction, Alpha will be acquiring the Mountaineer Deep Mine and the Hernshaw B-1 Contract Deep Mine from Arch. In addition, Alpha will acquire the Black Bear coal preparation plant and rail loading facility from Arch. As per the agreement, Arch will buy more than 0.50 million tons of production in 2007 and in excess of 0.65 million tons in 2008 from Cobra. The company stated that the current throughput fee, being paid to Arch for processing and loading coal from Callaway's Premium Energy surface mine, would no longer be incurred.Shares of ANR are currently trading at $19.70, up $0.40 or 2.07%, on 1.16 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.