ST. LOUIS, Aug. 3 (UPI) -- Arch Coal Inc., the No. 2 U.S. coal company, has bought a one-third stake in Knight Hawk Coal, a growing coal producer in the Illinois Basin.
The $15 million deal gives Arch about 30 million tons of coal reserves, the St. Louis company said Wednesday.
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Following the transaction, Knight Hawk will control some 70 million tons of coal reserves in southern Illinois. The company expects to ship approximately 3 million tons of coal from its mining operations during 2006, and to expand production to nearly 5 million tons by 2008, assuming market conditions warrant.
In addition to its interest in Knight Hawk, Arch controls about 230 million tons of coal reserves in southern Illinois.
