The combined entity will have coal reserves estimating to 5.5 billion ounces and will also have a balanced split of 50% of earnings generated from eastern operations western operations each.
ICG has 13 active mining complexes and is currently developing another major mining complex.
ICG’s Tygart Valley No. 1 met mine, which is currently under development, is expected to be operational by early 2014.
Arch Coal President and CEO John Eaves said the acquisition will optimize the met product slate and to create new synthetic blends of mid-volatile met coals which command a premium in the global market.
In the next three years, Arch expects met coal volumes from the combined operations to expand to over 14 million tons annually.
