Arch Coal buys stake in terminal

Arch Coal buys stake in terminal    Arch Coal said Wednesday that it had acquired a 38 percent interest in Millennium Bulk Terminals-Longview, a bulk commodity terminal on the Columbia River near Longview, Wash., in exchange for $25 million plus additional consideration upon the completion of certain project milestones.
   The deal will “provide Arch with more exposure to the seaborne thermal market and will further unlock the value inherent in our western coal assets,” said Steven F. Leer, Arch’s chairman and chief executive officer.
   Work is continuing on developing the terminal at a former aluminum smelter site, and shipments of coal are expected to begin next year.
   The facility will be capable of handling Panamax-sized vessels, which Arch said accounts for the vast majority of the seaborne thermal coal trade for the Asia-Pacific market. The terminal is served by the Union Pacific and Burlington Northern Santa Fe railroads, which Arch said would provide it with flexibility to export both southern Powder River Basin and western bituminous coals, and eventually coal from its recently acquired Montana reserves.
   Australia-based Ambre Energy owns the remaining 62 percent of the terminal.