GILLETTE, Wyo. (AP) - Arch Coal plans to invest $50 million in a coal mine to get it reopened sometime this summer or early fall.

The Coal Creek mine, idle since 2000, is where Denver-based KFx Inc. has proposed a coal-enhancement plant similar to a plant that began operating in Campbell County in December.

"We view Coal Creek as one of the most strategic expansions opportunities in the entire U.S. coal industry," said John Eaves, Arch chief operating officer, in an earnings report this week.

"Demand for Powder River Basin coal is outstripping the industry's ability to produce it."

The announcement coincides with record-high coal production and prices in the Powder River Basin. Last year, the basin produced about 390 million tons of coal, or about a third of the nation's coal.

Arch hopes the Coal Creek mine will produce at an annual rate of 15 million tons early next year, with capacity for another 5 million tons if demand warrants.

The mine is permitted to produce 25 million tons per year. Arch officials have said that the reopened mine could employ more than 100 people.

Information from: News-Record, http://www.gillettenewsrecord.com