Arch Coal, Inc'

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Serious About Safety Utah Mining
Associations Annual Convention Steven F.
Leer Chairman and CEO Arch Coal, Inc. August
24, 2006 Park City, Utah
Progressive. Responsible. Vital. Growing.
Arch Coal, Inc.
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Forward-looking information
This presentation contains forward-looking
statements that is, statements related to
future, not past, events. In this context,
forward-looking statements often address our
expected future business and financial
performance, and often contain words such as
expects, anticipates, intends, plans,
believes, seeks, or will. Forward-looking
statements by their nature address matters that
are, to different degrees, uncertain. For us,
particular uncertainties arise from changes in
the demand for our coal by the domestic electric
generation industry from legislation and
regulations relating to the Clean Air Act and
other environmental initiatives from
operational, geological, permit, labor and
weather-related factors from fluctuations in the
amount of cash we generate from operations from
future integration of acquired businesses and
from numerous other matters of national, regional
and global scale, including those of a political,
economic, business, competitive or regulatory
nature. These uncertainties may cause our actual
future results to be materially different than
those expressed in our forward-looking
statements. We do not undertake to update our
forward-looking statements, whether as a result
of new information, future events or otherwise,
except as may be required by law. For a
description of some of the risks and
uncertainties that may affect our future results,
you should see the risk factors described from
time to time in the reports we file with the
Securities and Exchange Commission.
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Arch Coal believes long-term success hinges on
three crucial areas of performance

• Employing industry leading safety practices
• Acting as highly responsible stewards of the land
  and good corporate citizens
• Achieving superior financial results

Source ACI
4
These values are highly complementary and
interdependent

• Safe mines are
• Productive mines
• Responsible mines
• Profitable mines

Skyline Mine earned the 2005 Sentinels of Safety
Award
Source ACI
5
Arch Coal Overview

• Second largest U.S. coal producer
• Largest Utah coal producer
• Leading position in all three major low-sulfur
  basins
• Reserve base totaling 3.1 billion tons
• Supplies roughly 12 of U.S. coal needs
• Provides source fuel for roughly 6 of U.S.
  electricity
• Operates large, geographically diverse, modern
  mines
• Recognized leader in safety and environmental
  performance

Source ACI
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Economic growth around the world is putting
pressure on energy markets
Source BP Statistical Review of World Energy,
Respective Census Bureaus, Stifel Nicolaus,
Marc Faber Limited, Raymond James
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Competing fuels in the U.S. face
significant obstacles to growth
Source Industry data
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The outlook for coal is extraordinarily bright
(Net generation by fuel type in billion
megawatt-hours)
(market share)
2005
2,041
50
Coal
57
2030
3,381
2005
774
19
Nuclear
2030
15
871
2005
752
19
Natural Gas
2030
17
993
267
2005
7
Hydro
2030
5
303
116
2
2005
Renewables
4
2030
264
3
115
2005
Crude Oil
2
2030
115
Source EIA
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Safe mines are responsible, productive and
profitable mines

• Arch believes the only way the coal industry can
  meet the projected product demand is to
  continuously improve its safety performance
• Strong safety performance is the right thing to
  do and it creates a competitive advantage

Source ACI
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How serious is Arch Coal about safety?

• Archs companywide performance in 2005 was the
  best in the history of the company, and the best
  among the largest public companies, but we can do
  better
• Our safety principle is simple Everyone returns
  home in the same condition they reported to work
  Injury Free
• We know that our commitment to operate safely
  must be communicated at all levels to be effective

Source ACI
11
Arch is continually focused on operating the
industrys safest mines
Accident Rates Ranked by Lost-Time Incidents Per
200,000 employee-hours worked

Industry 5-Year Average 4.31
Arch Coal 5-Year Average 1.60
MSHA Mine Injury and Worktime Quarterly
Statistics
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Weve made strong improvements in our internal
safety performance
Arch Coals Total Incident Rate Per 200,000
employee-hours worked
Arch Coals Lost-Time Incident Rate Per 200,000
employee-hours worked
Source ACI
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Arch Coals Canyon Fuel subsidiary has an
embedded safety culture
2005 Total Reportable Rate (Average of all U.S.
deep coal mines)
2005 Lost-Time Incident Rate (Average of all U.S.
deep coal mines)
Average
Dugout
Skyline
SUFCO
Average
Dugout
Skyline
SUFCO
Skyline
Dugout
SUFCO
Sources ACI MSHA
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The idea of coming home means focusing on the
Four Cs of Safety

• Integrating the Concept of safety into all work
  processes
• Nurturing a safety Culture that supports doing
  the right thing
• Promoting safety as a Competitive strategy
• Advancing Arch Coal as a safety Community

Source ACI
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Our operations are trained to focus on
eliminating behaviors that often cause injury
Safe, Productive Mines
Effective Training
Employee Involvement
Management Support
Source ACI
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Arch promotes safety in many ways

• Cross-Operational Audits
• Share best practices
• Indicate companys commitment
• Custom Safety Posters
• Spread the safety message Safety is a Value
  Keep the Promise
• Highlight a safe employee at each mine
• Custom Videos
• Hazard training
• Electrical safety
• Safety Improvement Plans
• Mine-specific
• Process-oriented
• Presidents Awards

Source ACI
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We believe Utah coal has a promising future

• Utah mines are strategically located in one of
  the nations fastest growing regions
• Power demand is growing at a higher rate than
  U.S. average
• Arch estimates that 7,000 megawatts of announced
  new capacity could utilize Utah coal
• Demand for clean-burning Western coal should grow
• Such demand could make new reserve areas economic
  over time
• Currently restricted areas may create future
  opportunities over time
• Success in Utah will continue to depend on safe,
  low cost and environmentally sensitive mines

Source ACI