UPDATE 2-Arch Coal looks to Asia with terminal stake buy

* Buys 38 percent stake in Millennium Bulk Terminals

* Paying $25 million plus additional considerations

* News comes day after Arch cut its 2010 profit target

* Arch shares down 5.4 percent
(Adds terminal details, analyst comment, stock move)

By Ernest Scheyder

NEW YORK, Jan 12 (BestGrowthStock) – Arch Coal Inc (ACI.N: ) said it
bought a stake in a U.S. West Coast storage terminal, a move
that will give the No. 2 U.S. coal producer better access to
Asian markets.

Demand for coal-generated electricity continues to jump
around the world, especially in rapidly growing China and

Arch’s stake in the storage facility will make it easier
for the company to ship its coal from the U.S. Powder River
Basin and Western Bituminous Region in large Panamax-size
vessels across the Pacific Ocean.

The news comes one day after Arch slashed its 2010 earnings
target and warned that first-quarter results would be harmed by
the forced idling of one of its mines. [ID:nN11160596]

The lower earnings forecast sent Arch shares down 5.3
percent in Wednesday morning trading.


St. Louis-based Arch paid $25 million to control 38 percent
of the storage capacity at Millennium Bulk Terminals-Longview
LLC’s bulk commodity terminal on the Columbia River near
Longview, Washington.

Australia-based miner Ambre Energy owns the remaining
capacity at the terminal.

The terminal is expected to handle 5 million tons of coal
per year once certain permits are acquired and construction to
upgrade the facility is complete, expected by 2012.

Arch said it may end up paying more than $25 million for
its stake once certain project milestones are reached.