8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 1, 2007

Arch Coal, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

Delaware	1-13105	43-0921172
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
One CityPlace Drive, Suite 300, St. Louis, Missouri		63141
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: (314) 994-2725

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On October 1, 2007, Arch Coal, Inc. issued a press release announcing the acquisition of certain coal reserves and surface property in the Illinois Basin from International Coal Group. A copy of the press release is attached hereto as exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

99.1 Press release dated October 1, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Arch Coal, Inc.
October 1, 2007	By:	Robert G. Jones
		Name: Robert G. Jones
		Title: Vice President - Law, General Counsel and Secretary

Exhibit Index

Exhibit No.	Description
99.1	Press release dated October 1, 2007.

EX-99.1

News from
Arch Coal, Inc.

FOR FURTHER INFORMATION:
Media – Kim Link (314) 994-2936

FOR IMMEDIATE RELEASE

Arch Coal Acquires Coal Reserves in Illinois

ST. LOUIS (October 1, 2007) – Arch Coal, Inc. (NYSE:ACI) today announced that on September 28, 2007 it acquired approximately 157 million tons of recoverable coal reserves and significant surface acreage in the Illinois Basin from International Coal Group, Inc. for approximately $38.9 million. Located in Perry and Washington counties, the acquired coal reserves are adjacent to some of Arch’s existing reserves in the region – creating a nearly 300-million-ton contiguous reserve block of high-quality, low-chlorine bituminous coal suitable for units equipped with scrubbers. With this addition, the company now controls more than 375 million tons of coal reserves in Illinois.

“This strategic acquisition further enhances Arch’s substantial reserve position in Illinois, a market where Arch has a long and successful history,” said Steven F. Leer, Arch Coal’s chairman and chief executive officer. “Additionally, this transaction provides a synergistic opportunity with existing reserves that will allow Arch to build a low-cost platform for future growth in the Illinois Basin.”

More than 80 percent of the acquired underground coal reserves are owned in fee, with the remainder controlled under long-term leases. This transaction also includes extensive ownership rights to overlying surface acreage capable of supporting mine-mouth facilities. Furthermore, the coal reserves are located in close proximity to the Mississippi River to accommodate barge traffic, and are advantageously served by two railroads.

“We expect the Illinois Basin to play a more significant role in U.S. energy markets over the next decade, and envision Arch’s expanded position in the region eventually supporting a mine development for either the domestic utility market or as a stand-alone coal-to-liquids facility, depending on future market conditions,” said Leer.

In addition to company-controlled coal reserves in Illinois, Arch owns an equity interest in Knight Hawk Holdings, LLC, a top 10 coal producer in the Illinois Basin based on 2006 production.

St. Louis-based Arch Coal is one of the nation’s largest coal producers. The company’s core business is providing U.S. power generators with clean-burning, low-sulfur coal for electric generation. Through its national network of mines, Arch supplies the fuel for approximately 6 percent of the electricity generated in the United States.

# # #

Forward-Looking Statements: This press release contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from changes in the demand for our coal by the domestic electric generation industry; from legislation and regulations relating to the Clean Air Act and other environmental initiatives; from operational, geological, permit, labor and weather-related factors; from fluctuations in the amount of cash we generate from operations; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. For a description of some of the risks and uncertainties that may affect our future results, you should see the risk factors described from time to time in the reports we file with the Securities and Exchange Commission.