The company’s stock price began the year at a relative low of $US33.19, but in early December reached an high of $US81.34.
Key personnel, new business ventures, the re-evaluation of existing operations – it seemed coupled with a buoyant market every move Arch made during the year turned out to be the right one.
In October Arch finalised a deal to join associate company ArcLight Capital Partners in the establishment of a new company, Magnum Coal.
Magnum, for which Arch will hold 37.5% ownership, will produce and market Central Appalachian low-sulfur coal. Arch contributed some of its operations to the venture, including Samples, Hobet 21 and Arch West Virginia.
Understanding that an organisation is as good as its leaders, Arch named Robert Shanks president of its eastern operations in March. Shanks had been with the company since 1976. In June, 20-plus-year Arch veteran Paul Lang was named president of Arch Western Resources, handling all of its western US mining operations.
What was old became new again in November when the company announced it planned to reopen its Skyline mine in Helper, Utah, next year after being idle since 2003. The company is investing $US40 million to recommence operations, which at full production will have an estimated output of 3 million tons.
The icing on the cake, so to speak, for Arch’s year came in October, when its West Elk mine in Colorado was nationally recognised with a Certificate of Honor from the Joseph A. Holmes Safety Association and Mine Safety and Health Administration (MSHA) for its five-year safety record.
West Elk, known as one of the safest mines in the US, logged more than four million employee-hours while keeping a safety performance 80% better than the industry average. Earlier in the year, the mine was also given the Rocky Mountain Institute’s “Safest Underground Mine Award” for its 2004 performance.
