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WV problems cut into Arch outlook

ARCH Coal is citing ongoing geological issues at its Mountain Laurel operation in West Virginia f...

Donna Schmidt
WV problems cut into Arch outlook

The company said Friday that it expects $US1 to $1.40 per share of earnings in 2011, down from a range of $1.75 and $2.15. Adjusted earnings before interest, taxes, depreciation, depletion and amortization are now projected to be between $900 million and $1 billion, down from an estimate the company provided in late July.

Arch’s Mountain Laurel metallurgical mine suffered a roof fall in August, after which production was idled for 45 days. Longwall production recommenced last month.

“The longwall … is currently operating in the final panel of the Alma coal seam before it transitions to the Cedar Grove seam,” officials said.

Production was also idled for most of 2011’s first quarter following geological challenges last December.

Arch, which noted that its final annual results will depend largely on price accounting for its acquisition of International Coal Group, will report on its third quarter earnings October 28. The ICG takeover was completed in June.

Mountain Laurel, located in Logan County, sold 5.1 million tons of coal in 2010. It operates a longwall, which began in October 2007, as well as continuous miner units.

Output from the mine is processed by the Cardinal Plant.

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