Reuters reported that mine workers are suing Peabody Energy Corp and Arch Coal Inc. The suit centres on the workers' belief that the companies are obliged to pay pension and health care benefits that were transferred to Patriot Coal in a 2007 spinoff.
Arch Coal, Inc. (NYSE: ACI) ranked in the top 250 Business Technology Innovators of the 2012 InformationWeek 500, marking the 7th consecutive year of recognition for the company.
CNBC reported that the Montana Land Board approved the lease of the Otter Creek coal tracts to St. Louis-based Arch Coal Inc. for $86 million, despite protests from environmentalists calling to reject the development of the area as it will cause irrevocable environmental harm.
Reuters reported BMO Capital Markets downgraded Appalachian coal producers Alpha Natural Resources Inc and Arch Coal Inc, one week after Patriot Coal filed for bankruptcy, causing their share prices to drop to $1.23/share and $5.00/share respectively.
Record low gas prices are pushing coal out of the US energy mix, resulting in rising US thermal exports and falling global prices.
Sliding demand is forcing US coal producers to reassess their future after several American miners shut down capacity and shifted focus abroad.
The years-long effort to develop a coal mine in the Otter Creek Valley has come to naught. Queensland billionaire Clive Palmer has also backtracked on his $60 b coal contract with a Chinese group. What seems to be happening here?
Coal is the best commodity to get into right now. The recent global economic downturn has led to a slump in coal demand and production cuts, however serious investors are not shying away from what they see as a most opportune time.
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