Arch Coal Files for Chapter 11 Bankruptcy

Jan 11, 2016

Arch Coal, the second largest coal mining company in the U.S., filed for Chapter 11 bankruptcy due to a sharp drop in the price of coal, government environmental regulations, falling demand from China, and increasing competition from natural gas.

Last year, for the first time ever, natural gas became the largest source of electricity in the U.S.

Last year, Patriot Coal Corp., Walter Energy Inc., and Alpha Natural Resources Inc. (competing coal producers) all filed for bankruptcy.

Peabody Energy is the largest coal mining company in the U.S.

Arch Coal owns the Black Thunder coal mine in Wyoming's Powder River Basin (the second largest coal mine in the U.S). The Powder River Basin Resource Council, an environmental group in Wyoming, expressed concern over Arch Coal's $458 million reclamation liability for the companies 90 square miles of coal mines in the area, stating that Arch Coal, not taxpayers, should be held accountable.

Source:

Rucinski, Tracy. (January 11, 2016). "Arch Coal files for bankruptcy, hit by mining downturn". Reuters. Retrieved 2016-01-13.

Kary, Tiffany; Al-Rikabi, Ramsey; Sharples, Ben. (January 11, 2016). "Arch Coal Files for Bankruptcy in Latest Blow to U.S. Miners". Bloomberg News. Retrieved 2016-01-13.

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