Arch also estimates that 16.5 giga-watts of new coal-fueled capacity are now under construction in the United States, and will be phased in during the next four years. This build-out will require nearly 59 million tons of new annual coal supply, with 75% of the forecasted supply needed before the end of 2010.

Another 8 giga-watts of new coal-fueled plants are estimated to be in advanced stages of development, equating to roughly 25 million tons of additional incremental annual coal demand. Arch expects the majority of these plants to be built within the next five years.

Arch expected 2008 guidance sales volumes from company controlled operations are to remain in the 135 million to 140 million ton range, excluding purchased coal from third parties.

Earnings per fully diluted share are expected to be in the $2.40 to $2.80 range. EBITDA is expected to be in the $745 million to $845 million.

Arch Coal, Inc. (ACI: chart) shares rose $3.05, or 5.2%, to $61.42.