The transaction, for $US25 million plus additional consideration when project milestones are met, gives the Missouri-based operator a direct stake in US coal exports off the coast.

"With our superior operating position in the Powder River Basin and Western Bituminous region, we have the capability to service growing coal demand in Asia, the world's largest and fastest-growing coal market,” Arch chairman and chief executive officer Steven Leer said.

“We believe this first project – along with others in the pipeline – will provide Arch with more exposure to the seaborne thermal market and will further unlock the value inherent in our western coal assets."

Under the deal, Arch will control 38% of throughput and export storage capacity at MBT’s terminal in Longview, Washington, on the Columbia River.

The facility can manage Panama-sized vessels, on which the majority of seaborne thermal coal destined for the Asia-Pacific market is carried. The terminal is also served by both the Union Pacific and Burlington Northern Santa Fe railroads, aiding Arch’s capability to export coal from the PRB and Western Bituminous regions.

MBT, currently operated as a bulk commodity facility, is working to obtain the necessary approvals and permits for upgrades that will enable processing of coal, alumina and cementitious material shipments.

Arch said coal shipments could begin from the terminal in 2012. Under a current plan, the facility will utilize its existing infrastructure with minor modifications to handle 5 million tons of coal annually in addition to other commodities.

MBT estimated 120 temporary positions and 70 permanent jobs would be created by the development of the facility.

The 400-acre site also has the potential to be expanded as market conditions warrant.

MBT recently purchased a marine terminal from Chinook Ventures; Australia-based mining and technology company Ambre Energy owns the remaining 62% interest.