ST. LOUIS (AP) -- Arch Coal Inc. said Monday that it completed the sale of its Canyon Fuel Co. subsidiary in Utah for about $423 million in cash, part of its strategy to sell off assets amid a coal slump.
The buyer was coal miner Bowie Resources LLC.
The sale includes two mines and about 105 million tons of bituminous coal reserves, Arch Coal said.
Like other coal companies, St. Louis-based Arch has struggled amid lower demand for both coal used in steelmaking and coal used to generate power. The company has sold off assets and aggressively cut its capital spending.
Arch said it expects to record a third-quarter pre-tax gain of about $120 million related to the sale.
The company also expects to save more than $200 million from 2014 through 2017 as it gets rid of its Utah assets. Further streamlining of the company's operations is expected to result in an additional $10 million in annual administrative cost reductions, Arch said.
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