Arco Coal in Utah
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This page was last updated on March 16, 2025.
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Overview
Arco Coal came to Utah in January 1980 when General Exploration Company sold its Utah coal reserves and operations, including Swisher Coal Company, to Anaconda Minerals , a subsidiary of Atlantic Richfield Company, for a reported $38 million.
Swisher continued to operate its Gordon Creek mines until the mines were closed in 1990. Swisher had loaded its Gordon Creek coal at Wildcat on Utah Railway from 1967 until 1987. To expand its coal preparation and loading capacity, in 1977 Swisher began construction of a coal preparation plant and unit train loadout at C. V. Spur, south of Price, and served by D&RGW. Construction was completed in 1979. In 1994 Swisher (by this time known as Mountain Coal) sold its site at C. V. Spur to Savage Industries.
To make up for the declining production from the Gordon Creek mines, in 1987 Arco purchased the Trail Mountain mine in Cottonwood Canyon west of Castle Dale. The Trail Mountain mine was sold to Utah Power & Light in 1992, after which Arco's coal production, using its newly created Mountain Coal Company name, came from its West Elk mine in Colorado. After the sale of the Trail Mountain mine in 1992, the Arco Coal preparation plant and loadout at C. V. Spur was inactive, and as mentioned above, was sold in 1994 to Savage.
In 1996 Arco entered into a joint venture with Itochu of Japan. The new joint venture, called Canyon Fuel, was the merger of four coal mines in Utah controlled by Coastal States Energy, including Soldier Creek Coal Company (controlled by Coastal States since 1993); Sage Point Coal Company (controlled by Coastal States since 1993); Southern Utah Fuel Company (controlled by Coastal States since 1973); and Skyline Coal Company (controlled by Coastal States since 1978).
(Read more about Coastal States Energy)
In 1998, Arco Coal left Utah when it sold its interest in the Canyon Fuel joint venture to Arch Minerals, which created Arch Coal as a new subsidiary. Arch Coal's only presence in Utah was as part of the Canyon Fuel joint venture. Arch Coal became 100 per cent owner of Canyon Fuel in 1998 and sold Canyon Fuel to Bowie Resources in 2013.
(Read more about Arch Mineral and Arch Coal in Utah as part of the Canyon Fuel story)
Swisher Coal and Beaver Creek Coal (1980-1991)
January 3, 1980
General Exploration Company sold its Utah coal reserves and operations, including Swisher Coal Company, to Anaconda Minerals , a subsidiary of Atlantic Richfield Company, for a reported $38 million.
Also in January 1980, the Swisher loading site at C. V. Spur was changed to become the newly renamed Beaver Creek Coal Company, a subsidiary of Arco Coal Company. Arco Coal (formerly Anaconda Minerals, as a subsidiary of Atlantic Richfield Company) had purchased Swisher Coal Company in January 1980, managing Swisher under its new Beaver Creek subsidiary.
Atlantic Richfield created created Beaver Creek Coal Company as a new subsidiary of Arco Coal to operate the former Swisher properties that included the Gordon Creek No. 2, No. 7 and No. 8 mines.
(Arco Coal had been created when Atlantic Richfield Company renamed its Synthetic Crude and Minerals Division as Arco Coal Company in 1979. -- Coal Age magazine, May 1980)
(The Beaver Creek name came from a creek in a canyon over the ridge north from the Swisher coal mine in Gordon Creek Canyon. From the point nearest the Swisher mine, Beaver Creek flows north and empties into the Price River near Kyune.)
Swisher Coal company had opened its original mine in Gordon Creek Canyon in 1967. The mine was sold to General Exploration in 1975, with Swisher remaining as the operating company. Swisher opened its coal preparation plant and unit train loadout at C. V. Spur in 1979.
(Read more about Swisher Coal and its mine in Gordon Creek Canyon)
(Read more about the Swisher loadout at C. V. Spur)
(In 1985, Anaconda sold the last of its copper and molybdenum operations and became solely a coal mining company, as Arco Coal. Beaver Creek Coal Co,. was shown as its only operation in Utah. -- Coal Age magazine, June 1985, page 24)
Beaver Creek's mines in Gordon Creek Canyon were closed in November 1990. Reclamation began the fall of 1995, and was completed in November 1998.
The Beaver Creek Coal Co. was changed to Mountain Coal Co. in 1991, with operations being focused at the C.V. Spur loadout. Beaver Creek's loadout at Wildcat, opened by Swisher Coal, had been closed in 1987.
(Read more about the loadouts at C. V. Spur)
(Read more about the loadouts at Wildcat)
Mountain Coal (1991-1994)
In May 1991 Beaver Creek transferred ownership of its Trail Mountain mine in Huntington canyon to another Arco subsidiary, Mountain Coal Company, which also operated the West Elk mine in Somerset, Colorado. Arco had purchased the Trail Mountain mine in 1987. Mountain Coal sold the Trail Mountain mine to Utah Power & Light in 1992.
(Read more about the Trail Mountain mine)
Arco Coal sold the coal preparation plant and unit train loadout at C. V. Spur to Savage Industries in September 1994.
Canyon Fuel (1996-1998)
Arco Coal returned to Utah two years later with the creation of the Canyon Fuel joint venture that purchased the Coastal States properties.
December 20, 1996
Canyon Fuel Company, a new company owned jointly by Arco Coal (65%) and Itochu of Japan (35%), was the result of the merger of Coastal States Energy Company with four coal mining companies in Utah, including Soldier Creek Coal Company; Sage Point Coal Company; Southern Utah Fuel Company; Skyline Coal Company; along with Coastal Development Company, and Utah Fuel Company. (Utah Division of Oil Gas and Mining, Permit C0070039; Dugout Canyon Mine)
"Effective December 20, 1996, Canyon Fuel Company, LLC was formed as a joint venture between Arco Uinta Coal Company (65% ownership) and Itochu Coal International Inc. (35% ownership) for the purpose of acquiring certain Utah coal operations and an approximate 9% interest in Los Angeles Export Terminal, Inc. from Coastal Coal, Inc. and The Coastal Corporation." (Arch Coal, Inc., SEC Form 10K, dated March 2, 1999)
(Read more about Canyon Fuel Company, and its several mines in Utah)
(Read more about the Soldier Creek mine)
(Read more about the Skyline mine)
Arco Sold To Arch Coal
March 23, 1998
Atlantic Richfield announced that it would sell its coal mining operations in Utah and Colorado to Arch Coal, Inc., for a reported $1.14 billion, making Arch the second largest coal mine operator in the nation, selling 110 million tons of coal per year, about 10 percent of the nation's total. (Deseret News, March 23, 1998)
April 23, 1998
Utah state regulators were informed of the intended change of ownership of 65 percent interest in the Dugout Canyon mine, from Arco Coal, as a subsidiary of Atlantic Richfield, to Arch Coal, as a subsidiary of Arch Minerals. Canyon Fuel company would remain as the active mining company. (Utah Division of Oil Gas and Mining, Permit C0070039; Dugout Canyon Mine)
June 1, 1998
Effective June 1, 1998, Arco Coal company sold its 65 percent interest in Canyon Fuel to Arch Western Resources, LLC." (Arch Coal, Inc., SEC Form 10K, dated March 2, 1999)
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