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GRAND JUNCTION, Colo.—Arch Coal Inc. says it will build a plant at a western Colorado mine to remove impurities that have contributed to a production slowdown and layoffs.
Arch says it hopes to have the $25 million to $30 million plant operating at its West Elk Mine in Somerset by the middle of next year.
Arch spokeswoman Kim Link says there are uses for coal with impurities, but demand is weaker because of the recession.
She says once the plant is operating, the company can choose whether to clean its coal based on market conditions.
Arch laid off about 60 employee miners and 40 contract miners at West Elk this year amid decreased demand.
