Arch's third quarter results included a non-cash impairment of
'During the third quarter, Arch's core metallurgical segment maintained its strong, consistent track record of operational excellence and first-quartile cost performance,' said
During the third quarter, the Arch team continued to prioritize reducing COVID-19-related risks within the workplace and the broader community. While the virus continues to represent a serious concern, Arch's intensive protocols have helped limit direct employee impacts so far, with 37 positive tests among our more than 3,400 employees and no extended hospital stays as of quarter-end. While Arch estimates that it incurred additional costs of
Leadership on Key ESG Metrics
In October, Arch again showcased its industry leadership in mine safety and environmental stewardship as its subsidiary operations claimed two Sentinels of Safety awards, the nation's highest distinction for mine safety, as well as the
The Leer mine captured the Sentinels of Safety award in the large underground mine category, having worked all of 2019 - and a total of more than two million employee-hours - without a single lost time incident, while Black Thunder won the Sentinels of Safety Award for small plants, which is based on employee hours worked. Leer South captured the Good Neighbor Award for its ongoing work in engaging with local leaders and advancing critical infrastructure projects benefiting the community. Notably, 2020 marked the second year in a row that an Arch subsidiary has won the Good Neighbor Award, following on the heels of the Leer mine's receipt of the award in 2019.
'While we set exceptionally high internal standards for our operations across the full range of ESG metrics and drive progress in those areas via a well-established, rigorous and disciplined approach to continuous improvement it is still highly gratifying to receive external recognition highlighting the Arch team's dedication and hard work,' Lang said. 'With the exceptional, ongoing accomplishments of our two cornerstone operations, Leer and Leer South, we are establishing a strong foundation for continued excellence in this crucial area of performance in the years ahead.'
Strategic Plan for Legacy Thermal Assets
'In keeping with our rapid pivot towards steel and coking coal markets, we are driving forward with a plan to optimize the value of our legacy thermal assets,' Lang said. 'As previously announced, we have launched an accelerated effort to evaluate strategic alternatives for our thermal operations, including possible divestiture. Simultaneously, we are finalizing plans to shrink the operational footprint at these operations, with a particular emphasis on our
'We view this systematic winding down of our thermal operations in a way that allows us to continue to harvest cash and to fund long-term closure costs with ongoing operating cash flows as the right business solution in the event we are unable to find an appropriate buyer,' Lang said. 'Just as importantly, we believe that a careful and well-communicated exit strategy is the most responsible way forward for a range of essential stakeholders, including our employees, the communities in which we operate, our longstanding customer base, and the many consumers who continue to rely on coal-based electricity.'
'We are very proud of the accomplishments and contributions of our thermal operations, which have managed exceptionally well over the last decade in a declining demand environment,' Lang added. 'We expect that exceptional execution to continue as we adjust the footprint of these assets and continue to address the realities of the marketplace.'
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 'should,' 'appears,' '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 the COVID-19 pandemic, including its adverse effects on businesses, economies, and financial markets worldwide; from changes in the demand for our coal by the global electric generation and steel industries; from our ability to access the capital markets on acceptable terms and conditions; from legislation and regulations relating to the Clean Air Act and other environmental initiatives; from competition within our industry and with producers of competing energy sources; from our ability to successfully acquire or develop coal reserves; from operational, geological, permit, labor and weather-related factors; from the Tax Cuts and Jobs Act and other tax reforms; from the effects of foreign and domestic trade policies, actions or disputes; from fluctuations in the amount of cash we generate from operations, which could impact, among other things, our ability to pay dividends or repurchase shares in accordance with our announced capital allocation plan; from our ability to successfully integrate the operations that we acquire; from impacts related to the termination of the proposed joint venture with
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