Lighthouse Resources Inc. on May 26 announced its intent to secure 100% ownership of Millennium Bulk Terminals-Longview in Longview, Wash, by purchasing a stake in the project from Arch Coal, which is currently in Chapter 11 bankruptcy protection.
Lighthouse is acquiring Arch Coal’s 38% interest in the project. In exchange, Arch will receive long-term throughput rights and remain closely involved in the ongoing development of the project. Arch will nominate a representative to serve on an advisory board to provide strategic counsel and ongoing support to Millennium.
“Lighthouse is pleased with the progress Millennium is making – both at the site and in the permitting process,” said Everett King, president and CEO of Lighthouse Resources. “Millennium recently reached a major regulatory milestone with the release of its draft environmental impact study. This announcement underscores our strong ongoing commitment to the project and our growing confidence in Millennium’s future prospects. As we carry the project forward to completion, we are pleased to work with Arch in its new role as customer and strategic adviser.”
Lighthouse Resources said it provides a trade route for U.S. coal from the Rocky Mountain region that is an important source of energy for Japan, Korea and Taiwan, key U.S. trading partners.
“We view this transaction as a logical next step in Arch’s involvement in Millennium,” said Deck S. Slone, Arch Coal senior vice president and Millennium board member. “From the beginning, our objective was to work with our partner to kick start the development of a West Coast port, and to ensure future throughput rights that would provide access to growing Pacific Rim markets for our mining operations. Given the momentum Millennium has achieved and Arch’s sharp focus on capital conservation at present, this is the right time for us to transition away from the role of co-developer and towards the long-envisioned role of future user.”
For over four years, Millennium has been working on the required permitting to develop a world-class export facility at a brownfield location in Longview, a port community on the Columbia River. The facility, when completed, will provide Lighthouse, Arch and other U.S. coal producers with a new higher-capacity port to enable the export of coal from U.S. operations to meet the import needs of key Asian trade allies.
Lighthouse Resources is an integrated supply chain company. Millennium Bulk Terminals-Longview is an operating bulk materials port on the Columbia River that was initially home to an aluminum smelter. Millennium is committed to the environmental cleanup and redevelopment of this 1940s era industrial site.