Arch Resources and CONSOL Energy have entered into a definitive agreement to combine in an all-stock merger of equals to create Core Natural Resources, a new entity which will focus on producing and exporting both metallurgical and thermal coal from 11 mines in the United States. In 2023, Arch Resources sold 66 Mt of thermal coal and 9 Mt of metallurgical coal, while CONSOL Energy produced 26 Mt of coal. In addition, the combined company will have an ownership interest in approximately 25 Mt/year of export coal capacity across two marine export terminals on the US Eastern seaboard.
The new group is expected to have a combined market capitalisation of US$5.2bn at the price of 19 August 2024, with 2023 revenues of around US$5.7bn and an adjusted EBITDA of US$1.8bn, excluding synergies. The merger is expected to close by the end of the first quarter of 2025, subject to approval by both companies' stockholders, regulatory approvals, and the satisfaction of other customary closing conditions. Since 2008, coal and lignite production in the United States has halved, reaching 528 Mt in 2023.