Millennium Bulk Terminals

Arch Coal acquires Interest in Millennium Bulk Terminals

13.01.2011 | Editor: Marcel Dröttboom

Arch Coal has acquired a 38 per cent interest in Millennium Bulk Terminals.

St. Louis (MO), USA – Arch Coal announced that it has acquired a 38 per cent interest in Millennium Bulk Terminals-Longview, the owner of a bulk commodity terminal on the Columbia River near Longview, Washington, in exchange for USD25 million plus additional consideration upon the completion of certain project milestones.

Under terms of the agreement, Arch will control 38 per cent of the terminal‘s throughput and storage capacity to facilitate export shipments of coal off the west coast of the United States. The facility will be capable of handling panamax-sized vessels, which account for the vast majority of the seaborne thermal coal trade for the Asia-Pacific market. The terminal also is dual served by the Union Pacific and Burlington Northern Santa Fe railroads, which will provide Arch with the flexibility to export its southern Powder River Basin and Western Bituminous coals, and eventually coal from its recently-acquired Montana reserves.

The terminal, a former aluminum smelter site, is currently operated as a bulk commodity facility. Millennium Bulk Terminals (MBT) continues to work on obtaining the required approvals and necessary permits to complete dredging and other upgrades to enable coal, alumina and cementitious material shipments through the brownfield terminal. Once completed, coal shipments could begin in 2012. As currently planned, the MBT facility will utilize existing infrastructure with some minor modifications to handle loading 5 million tonnes of coal per year in addition to other types of bulk commodities.

Encompassing more than 400 acres (1.6 million square metres), the industrial site offers the potential for terminal expansion should market demand warrant. Should MBT elect to expand the facility, necessary regulatory approvals would be sought and additional infrastructure investment would be required.

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