Arch Coal +2%, sells Hazard thermal mining complex to Blackhawk for $26M

|About: Arch Coal Inc (ARCH)|By:, SA News Editor

Arch Coal (ACI) +2% premarket on news it is selling the Hazard thermal coal mining complex and related infrastructure, as well as ~38M tons of thermal coal reserves in eastern Kentucky, to Blackhawk Mining for $26.3M.

As part of the sale, ACI also is selling $15.6M of reclamation liabilities to Blackhawk, and expects to be released from $43.8M of reclamation surety bonding.

ACI says it has the potential to receive total future royalty payments of up to $35M during the next five years resulting from its retention of select coal reserves at Hazard.