Tuesday, May 4, 2010

Arch Coal (NYSE:ACI) Shuts Down Utah Mine

Arch Coal (NYSE:ACI) received a closure order from the Federal Mine Safety and Health Administration (MSHA) to shut down the Dugout Canyon mine in Utah on Sunday, after last Thursday night elevated levels of carbon monoxide gas, or what is called a "hot spot," were discovered.

At this time efforts are being made to prepare to flood the area in order to extinguish the hot spot after a mine rescue team wasn't able to do it after being sent to the area.

Since the closure order carbon monoxide is leveled off and methane levels remain low.

Normally it takes about a month to seal off a hot spot and extinguish it.

The closure won't affect Arch Coal customers as they'll provide coal to meet their contracts from their inventory.

Arch coal subsidiary Canyon Fuels operates the mine.

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