Bowie Resource Partners LLC, a joint venture between Bowie Resources, LLC and the Galena Private Equity Resource Fund managed by Galena Asset Management, has today completed the purchase of Canyon Fuel Company LLC from Arch Coal, Inc. for USD423 million in cash.
The new joint venture combines Bowie and Canyon Fuel mining assets to create a highly competitive coal producing company serving the Western US power generation industry and export markets via the US West Coast. Based in Louisville, Kentucky, with a regional office in Grand Junction, Colorado, Bowie Resource Partners will employ over 1,100 staff and have an annual productive capacity of 15-17 million tons of thermal coal.
"We're delighted to have completed the purchase of Canyon Fuel Company and formed a significant new coal producer in a strategically advantageous location," said John J. Siegel, Chairman of Bowie Resource Partners. "Even as our industry is faced with certain domestic consumptive challenges, we believe we have a niche opportunity to grow our business significantly over the long-term, and we are excited about those prospects."
