On May 1, Arch Coal Inc. announced it is changing its name to Arch Resources Inc., effective May 15. The company said the name change underscores its ongoing transition to a premier producer of metallurgical products for the global steel industry.
“The name change we are announcing today reinforces Arch’s strong and sustained pivot toward metallurgical markets and the global steel value chain, which we believe offer superior long-term return opportunities for our shareholders,” Arch Executive Chair John W. Eaves said. “We have made tremendous progress in executing a fundamental shift in the company’s strategic focus, and the new name will better reflect the value proposition and growth potential of our business going forward.”
CEO and President Paul A. Lang said the startup of the Leer South metallurgical mine in 2021 will deliver another step-change advance in its shift toward metallurgical markets.
Arch currently derives 70% of its normalized operating cash flow from its metallurgical segment, and expects that percentage to grow appreciably over time. The company is directing more than 90% of its capital budget to its metallurgical portfolio in 2020.
“In combination with iron ore, our metallurgical products are indispensable in the primary production of steel,” Lang said. “We expect primary steel to play an essential role in the revitalization of the global economy as it recovers from the current disruption — and an equally critical role in the construction of a new economy supported by mass transit systems, wind turbines and electric vehicles.”
At the time of the name change on May 15, Arch plans to launch a new corporate website highlighting its steel-focused value proposition. The new website will include a discussion of the company’s commitment to environmental, social and governance principles. The company’s NYSE ticker symbol will remain ARCH.