Arch Coal (ACI) Announces Licensing of ADA-ES (ADES) Coal Enhancement Technology

June 29, 2010 4:08 PM EDT

Arch Coal, Inc. (NYSE: ACI) and ADA-ES, Inc. (Nasdaq: ADES) today announced that the two companies have finalized the previously announced exclusive development and licensing agreement for a promising ADA-ES technology aimed at reducing combustion-related emissions of mercury and other metals from PRB coal. In consideration for certain ADA development work and the exclusive license to Arch, ADA-ES will receive an upfront payment of $2 million and royalty payments that could amount to as much as $1 per ton of coal sold by Arch, depending upon the successful implementation of the technology and Arch’s future sales of the resulting enhanced coal product.

Arch has been a significant shareholder of ADA since 2003 when the Company spun-out as a separate public entity. Arch currently produces more than 100 million tons of PRB coal per year.

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