Bowie Resource Partners, LLC, a joint venture between Bowie Resources, LLC and the Galena Private Equity Resource Fund, a subsidiary of Trafigura Beheer BV, on Aug. 19 completed the purchase of Canyon Fuel Company, LLC from Arch Coal, Inc. for $423 million in cash.
The new joint venture combines Bowie and Canyon Fuel mining assets to create a highly competitive coal producing company serving the western U.S. power generation industry and export markets via the West Coast.
Based in Louisville, Ky., with a regional office in Grand Junction, Bowie Resource Partners will have over 1,100 employees and an annual productive capacity of 17 million tons of high grade thermal coal.
Locally, Dewey Tanner of Bowie Mine said, "We see it as a very positive development for us to have some sibling miners in Utah, a growth opportunity and a chance to share resources and ideas."
Arch Coal, Inc. said the $423 million in cash is inclusive of working capital adjustments. The sale includes the Sufco and Skyline longwall mines, the Dugout Canyon continuous miner operation and approximately 105 million tons of bituminous coal reserves, all located in Utah. Arch is retaining the West Elk mine in Colorado and approximately 300 million tons of bituminous coal reserves in the Western Bituminous Region. Included in that total are the Saddleback Hills and Elk Mountain reserves in southeastern Wyoming.blog comments powered by Disqus