Arch Resources (ARCH) 10-Q 2009 Q2 Quarterly report

Exhibit 12.1

Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends

	Six Months Ended June 30
	2009			2008
Earnings:
Pretax income excluding income or loss from equity investments	$	9,873		$	247,619
Adjustments:
Fixed charges		46,962			50,072
Distributed income from equity investments		2,578			930
Capitalized interest, net of amortization		1,589			(3,183	)
Arch Western Resources, LLC dividends on preferred membership interest		(38	)		(61	)
Total earnings	$	60,964		$	295,377
Fixed charges:
Interest expense		40,675		$	39,209
Capitalized interest		422			5,048
Arch Western Resources, LLC dividends on preferred membership interest		38			61
Portions of rent which represent an interest factor		5,827			5,754
Total fixed charges	$	46,962		$	50,072
Preferred stock dividends		—			18
Total fixed charges and preferred stock dividends	$	46,962		$	50,090
Ratio of earnings to combined fixed charges and preference dividends		1.30x			5.90x

Earnings consist of income from operations before income taxes and are adjusted to include only distributed income from affiliates accounted for on the equity method and fixed charges (excluding capitalized interest). Fixed charges consist of interest incurred on indebtedness, the portion of operating lease rentals deemed representative of the interest factor and the amortization of debt expense.