Rio Tinto’s Debt Gamble, BHP Builds

Coal Investing News reports Rio Tinto has more asset sales since February 2008.

Arch Coal has completed the acquisition of Rio Tinto’s Jacobs Ranch coal mine for a purchase price of approximately $764 million, which includes an estimate for working capital adjustments.

In 2008, Jacobs Ranch produced 42.1 million tons of sub-bituminous coal for sale to the US power generators.  The acquisition includes 381 million tons of low-sulfur coal reserves (as of December 31, 2008) that are contiguous to Arch’s Black Thunder mine (NYSE:ACI).

Additionally, Jacobs Ranch has 35 million tons of production committed and priced in 2010 and 21 million tons of production committed and priced in 2011 under existing sales contracts.

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