Rio Tinto’s Debt Gamble, BHP Builds

- October 2nd, 2009

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 … Continued

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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