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Arch Coal CEO on The Reliability, Cost of Coal

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    Arch Coal CEO Steven Leer on the reliability and low-cost of coal-powered energy.

  • Duration 6:15
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Well look -- is is certainly valued in in many parts of the country but it I found this very interesting I was sitting here watching.

-- story about Mayor Bloomberg just yesterday there's a controversial gas pipeline that's supposed to stretch from Staten Island to New Jersey to Manhattan.

And in defense of that he ripped what you do.

He said -- kills.

More than thirteen thousand people a year -- In fact let's listen to what he said in response about that and then you can comment.

And alternatives loss.

You know who -- the most -- -- It's not absolutely consolidated.

-- the moment it is.

Natural gas.

So tell me what you think about that commented especially considering he says the coal was killing people.

Well obviously I disagree.

When you look at the use of coal in the United States you know the -- welcome -- his own opinion.

But we've triple -- used to cold since 1970.

Criteria admissions are down about 60% of what they were in 1970.

That when you look around the US to 45% of the nation's electricity.

And those states that have low cost coal fired power predominately -- Low cost coal fired power.

You know the electric rates are anywhere from six to eight per cents per kilowatt hour where in New York you have some of the highest cost.

Electricity in the nation in.

And when I look at it when you look at heat waves or cold wave coming through the United States have in the availability -- reliability.

And really the the cost structure that allows all Americans to use that low cost power where -- you're on the lower end of the economic wrong.

Manufacturing plant creating jobs here in the midwest or elsewhere in the United States.

Low cost power and reliable powers key talent -- -- you also backbone of that.

You'll also predicted right here on the show nearly exactly a year ago October 20 -- you said cold demand would grow.

-- billion tons per year but in very much in part because of the developing Asia with this great desire to utilize more coal.

Has your prediction -- come true has it been about that a billion parts per year.

Well it's how how I think we said billion times over the next.

2015.

-- I have is on course to occur in fact it looks like it'll be more than that.

How to put in perspective just China by itself.

Grew to 3.5 billion tons of consumption last year from say two point eight and 2008.

Projections are that over the next few years will add another billion -- And China you're also seeing dramatic growth in India and Korea all of developing Asia.

And you know we're even seeing growth in the European countries so.

You know and the fastest growing fuel in the world in terms of total BP's -- supplied is coal over the last that.

BTU British thermal units at you know you're making up much of predictions -- your -- telling you warned that QE2 would not create new jobs.

You were right we're still -- unemployment at about nine point 1% he also said that this last year that the regulatory.

-- -- -- would create a very negative tsunami of regulatory tsunami.

How do you feel a year later do you think that that's still the case or are you at least optimistic I mean you're looking at a -- stock price move today you're looking at -- an ability to continue to do business.

Do you still feel that way.

You know they're regulatory -- very difficult for our creation of jobs in him for creation of businesses.

But the great thing about American businesses including the coal industry and Arch Coal is is that.

We have the ability to adjust and then we're creative -- and -- certainly a dynamic people and we're.

He also as the government puts roadblock felt there or excessive regulation.

You know we try to deal with that in you're seeing some of the political environment pushed back to the well.

Button on the -- You know it is await that all of us dragged forward and -- you know this is a classic case there's -- Smart good regulations and and then there's excessive regulation.

Williams saying you have you seen the administration.

Push the EPA to back down on certain environmental -- restrictions that you've seen.

Have you worked with the president at all or anybody in his administration.

Well we've we've actually -- not personally have had conversations with the administrator Lisa Jackson of the EPA and has certainly have our people and then.

You know we have people in through association -- work in both with the administration and congress.

Solved usually we come of the data may be at a different -- -- sometimes sometimes we find some common ground sometimes we don't but.

Clearly the topics or.

Our front senator and you know -- I have it can be robust debate.

-- I saved but the world shaking hands at the end of it.

Quick mention as we -- this year yet but TRC capital making a mini tender offer.

I believe at the time.

For five million shares sixteen dollars and ten cents per share you've obviously said no way you're above that right now with the share price.

But you're not open to anything like that at all.

Well -- they were making the tender offer for something less and then current stock price from the stock prices gone up.

And certainly our recommendations to our shareholders were.

-- why would you do this why would you sell your shares -- under that tender that left and you could in the open market and obviously we want our shareholders to do what they think it's best for them but.

It doesn't seem like taken a discount under that scenario was what the Smart thing to do and and we said so.

Well yeah I mean I'm just looking right now we have Arch Coal at the moment to twenty dollars and nineteen cents.

Up about 72 thirds percent you know during this interview went up another percent so you know it's called the Fox Business affects the good thing -- OK let's come back tomorrow.

Exactly -- trading day here and Stephen where is the Arch -- chairman and CEO thank you very much for joining us.

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