By AP/KWMU
CHARLESTON, W.Va. – St. Louis-based Arch Coal said Tuesday it will form a new company by spinning off more than half of its Central Appalachian coal production.
Arch plans to combine four of its mines with four others run by a company called Trout Coal Holdings.
Under the agreement, Arch will have more than a third ownership stake in the new company.
And a senior vice president at Arch, Paul Vining, has been named Trout's new president and CEO.
ArcLight Capital Partners LLC of Boston is the majority owner of Trout.
The eight southern West Virginia mines sold about 22 million tons of low-sulfur coal last year and have recoverable reserves of about 600 million tons. Under the agreement, Arch will receive a 37.5% ownership stake in the new company.
Paul Vining, Arch's senior vice president of marketing and trading, has been named Trout's president and CEO.