Arch Resources (ARCH) 10-K 2011 FY Annual report

Exhibit 12.1

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

	Year Ended December 31,
	2011			2010			2009			2008			2007
	(Dollars in thousands, except ratios)
Earnings:
Pretax income, excluding income or loss from equity investments	$	123,339		$	165,534		$	23,020		$	395,977		$	157,224
Adjustments:
Fixed charges	293,106			153,467			118,075			99,562			103,251
Distributed income from equity investments	19,360			9,917			5,164			2,167			1,672
Capitalized interest, net of amortization	2,113			4,417			3,143			(8,351		)	(16,849		)
Arch Western Resources, LLC dividends on preferred membership interest	(91		)	(107		)	(58		)	(107		)	(85		)
Total earnings	$	437,827		$	333,228		$	149,344		$	489,248		$	245,213
Fixed charges:
Interest expense	$	230,186		$	142,549		$	105,932		$	76,139		$	74,865
Capitalized interest	1,937			—			824			11,703			17,967
Bridge financing costs related to ICG	49,490			—			—			—			—
Arch Western Resources, LLC dividends on preferred membership interest	91			107			58			107			85
Portions of rent which represent an interest factor	11,402			10,811			11,261			11,613			10,334
Total fixed charges	293,106			153,467			118,075			99,562			103,251
Preferred stock dividends	¾			¾			¾			12			219
Total fixed charges and preferred stock dividends	$	293,106		$	153,467		$	118,075		$	99,574		$	103,470
Ratio of earnings to combined fixed charges and preference dividends	1.49x			2.17x			1.26x			4.91x			2.37x