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An Investor’s Guide to Arch Coal

PART:
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Part 6
An Investor’s Guide to Arch Coal PART 6 OF 12

A Look at Arch Coal’s Other Thermal Segment

Other Thermal segment

Arch Coal (ARCH) has a third segment that contains supplementary thermal operations. The operations are spread across the Illinois Basin, Appalachia region, and the Western Bituminous region.

A Look at Arch Coal’s Other Thermal Segment

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West Elk

An underground mining complex located in Colorado in the Western Bituminous region, West Elk has ~56.2 million tons of coal reserves. The mine uses longwall mining and continuous miner units. Raw coal is transported to customers via the Union Pacific railroad.

Viper Mining Complex

According to Arch Coal’s 2016 annual report, “The Viper mining complex consists of one underground coal mine and a preparation plant located on ~ 46,100 acres in central Illinois.”

The coal mined from Viper Mining Complex is processed through an 800-ton-per-hour preparation plant and transported to customers by on-highway trucks. On December 31, 2016, the complex had ~38.3 million tons of coal reserves.

Coal‑Mac

Coal-Mac is a 46,000-acre surface mining complex located in West Virginia’s Appalachia region. According to ARCH’s 2016 annual report, “The Coal‑Mac mining complex extracts thermal coal primarily from the Coalburg and Stockton seams. The Coal‑Mac mining complex had ~23.0 million tons of proven and probable reserves at December 31, 2016. The complex currently consists of one captive surface mine, a preparation plant, and two loadout facilities.”

Coal processed at these mines is transported to its customers through the CSX and Norfolk Southern railroads. Coal (KOL) companies like CNX Coal Resources (CNXC) and Peabody Energy (BTU) have mining operation in the Appalachia region.

Next, let’s look at Arch Coal’s revenue trends.

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