Company's Carnegie 2 mine is in addition to its production at its recently restarted Carnegie 1 mine in one of the strongest metallurgical carbon markets since 2006/2007
Carnegie 2 mine produces a high volatile metallurgical carbon used in the steel making industry for infrastructure needs worldwide
FISHERS, IN / ACCESSWIRE / October 15, 2021 / American Resources Corporation (NASDAQ:AREC) ('American Resources' or the 'Company'), a next generation and socially responsible supplier of raw materials to the new infrastructure and electrification marketplace, today announced that it has engaged a contract mining company to operate its Carnegie 2 mine. The Company's Carnegie 2 mine is the second of a series of metallurgical carbon mines located in Pike County, Kentucky accessing high-quality carbon from the Alma seam specific and an essential ingredient to the production of new steel.
Mark Jensen, CEO of American Resources Corporation commented, 'Now that we have restarted our McCoy Elkhorn processing and logistics complex as well as our Carnegie 1 mine, it is important for us to rapidly scale our production of high-quality metallurgical carbon to meet the growing demands of the infrastructure market and our customer base. With so many constrained supply chains worldwide, we are expecting a longer-term tightening in the metallurgical carbon market when combined with a lack of invested capital throughout the industry. We find ourselves in an exciting position to be a long-term supplier given the unique growth platform of assets we have built over the past six years and the restructuring efforts we have made to cut costs and streamline efficient operations. We're excited to have come to terms with a proven producer that has access to strong and dependable talent in the industry.'
The Company's Carnegie 2 mine accesses the same boundary of premium High Vol A/B carbon as its Carnegie 1 mine. The Carnegie 2 mine will utilize one continuous miner under a single-section mining plan. The Company expects production at Carnegie 2 to begin before the end of the fourth quarter of 2021. Once fully ramped, the production rate is expected to be approximately 8,000 to 12,000 clean tons per month to enhance and compliment the production of the Carnegie 1 mine. All production from the Company's Carnegie mines will be processed at its nearby McCoy Elkhorn facility and shipped into both the domestic and international markets.
The Carnegie 2 mine will be operated by a contract mining company for a fixed fee per clean ton of approximately $50 USD per ton, plus the cost of power and infrastructure. The engaged contract mining company comes with decades of mining experience throughout the region and brings a team of highly skilled miners which allows the company to better navigate a tighter labor market since the onset of the global COVID-19 pandemic and the subsequent, expanded unemployment benefit programs.
American Resources continues to focus on running efficient streamlined operations in being a new-aged supplier of raw materials to the infrastructure and electrification marketplace in the most sustainable of ways, while also helping the world achieve its goals of carbon neutrality. By operating with low or no legacy costs and having one of the largest and most innovative growth pipelines in the industry, American Resources Corporation works to maximize value for its investors by positioning its large asset base to best fit a new-aged economy, while being able to scale its operations to meet the growth of the markets it serves.
About American Resources Corporation
American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words 'believes', 'may', 'will', 'should', 'would', 'could', 'continue', 'seeks', 'anticipates', 'plans', 'expects', 'intends', 'estimates', or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
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SOURCE: American Resources Corporation
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