Arch Coal, KFx team up to build new coal plant
Thursday October 6, 11:06 am ET
biz.yahoo.com
Arch Coal and KFx Inc. agreed to build and operate an 8 million ton per year plant to delivery cleaner-burning coal, the companies said Thursday.
Denver, Colo.-based KFx will be responsible for financing, constructing and operating the plant, which is located next to to Arch's Coal Creek Mine pit in the Powder River Basin in Wyoming. The companies expect the plant to be in operation by the end of 2008, and Arch is also evaluating a potential re-start of the Coal Creek mine, which has been idle since 2000.
As part of the agreement, Arch entered a stock purchase and warrant agreement to increase its interest in KFx. Under the terms, Arch will purchase an additional $3 million worth of KFx's common stock with the right to purchase an additional $7 million.
The companies also completed a surface access and use agreement that gives KFx the right to access certain land at Arch's Coal Creek Mine.
KFx Inc. (AMEX: KFX - News) provides solutions to help coal-burning facilities economically increase energy production while meeting emissions standards.
St. Louis-based Arch Coal Inc. (NYSE: ACI - News) is one of the largest coal producers in the country, providing the fuel for about 7 percent of the electricity generated in the United States.
Published October 6, 2005 by the St. Louis Business Journal |
