Arch Resources and Consol Energy have announced an agreement to merge to create Core Natural Resources, a North American natural resource company that focuses on global markets.
Core Natural Resources aims to become a top producer and exporter of high-quality and low-cost coals, offering a variety of options from metallurgical to high-energy thermal coals.
The all-stock merger will combine the companies’ mining activities across six states, forming a portfolio of 11 mines, including various North American coal operations.
It will also own interests in two export terminals – US Eastern seaboard and West Coast along with Gulf of Mexico, providing access to global markets.
The deal is expected to generate annual cost savings of $110 million to $140 million within 18 months, primarily from optimizing logistics and improving procurement efficiencies.
The merger is set to form a varied coal producer with an extensive range of thermal coals targeted at seaborne markets with a strong emphasis on contracted business.
A portfolio of longwall operations at Consol’s Pennsylvania Mining Complex will generate over 35 Mtpa of coal.
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In 2023, Arch and Consol collectively sold approximately 101 million tons of coal to steelmaking, industrial, and power-generation customers.
Jimmy Brock, Chairman and Chief Executive Officer of Consol, said, “We are excited to bring our companies together to create a new industry leader that is ideally positioned to meet the rising demand for critical resources and energy around the world. Our assets are highly complementary, resulting in increased diversification across coal types, end uses, and geographies.
He added, “We look forward to working closely together to continue meeting the world’s steel, infrastructure, and energy needs that are so critical to our everyday lives and to capture the significant benefits and long-term value we believe this merger will create for our stockholders, employees, customers, and the communities in which we live and operate.”
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The company’s headquarters will be in Canonsburg, Pennsylvania, with additional offices in St. Louis.
The merger is anticipated to close in early 2025, pending regulatory approval and standard closing conditions.
