Thursday, Arch Coal Inc. (ACI) announced the completion of the acquisition of Rio Tinto's Jacobs Ranch mine for a purchase price of about $764 million, including an estimate for working capital adjustments. Arch Coal stated that this transaction further expands its size, scale and strategic position in the Powder River Basin. Arch plans to integrate Jacobs Ranch into its existing Black Thunder mine.
The acquisition included 381 million tons of low-cost, low-sulfur coal reserves, that are contiguous to Arch's Black Thunder mine, the company noted. Other assets acquired in the transaction consist of a high-speed rail loadout, an overland conveyor and near-pit crushing system, a 120-cubic-yard dragline, 8 large electric shovels, more than 40 large haul trucks and a dedicated and experienced workforce, Arch added.
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