Arch leases 9,600 acres of coal reserves

November 13, 2009 8:59 AM ET

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Arch Coal Inc. said late Thursday that it is leasing 9,600 acres in southeastern Montana that contains 731 million tons of coal reserves from Great Northern Properties Ltd. Partnership.

GNP will receive 10 cents per ton, or $73.1 million, which will be payable in equal annual installments over a five-year period.

"The lease of GNP's Otter Creek reserves provides an attractive future growth opportunity for Arch to build a significant position in the Northern Powder River Basin coal region," said Steven Leer, Arch’s chairman and chief executive officer.

Chairman and CEO Corbin Robertson Jr. leads Houston-based GNP.

St. Louis-based Arch Coal (NYSE:ACI) is the second-largest U.S. coal producer, with revenue of $3 billion in 2008. Arch supplies 16 percent of the nation’s coal — enough coal to fuel roughly 8 percent of the nation’s electricity.

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