FISHERS, IN / ACCESSWIRE / March 14, 2019 / American Resources Corporation (NASDAQ: AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and selling of metallurgical coal to the steel industry, announced that the second continuous miner is being picked up today with a goal of installing proximity detection safety technology over the next two weeks and commencing production in early April at the Carnegie 1 mine located in Pike County, Kentucky. The Carnegie 1 mine is the first in a series of underground metallurgical coal mines American Resources is bringing into production within a large contiguous boundary of High Vol A/B metallurgical coal in the Lower Alma coal seam.
As part of the Company's previously announced expansion plan of its Carnegie 1 mine, the Company expects to restart production with two Joy 14CM10aa continuous miners. American Resources recently acquired the second Joy 14CM10aa continuous miner, which will be brought to the Carnegie 1 mine site to finalize preparation for coal production. Previously, American Resources operated one continuous miner at Carnegie 1, but due to high demand for the metallurgical coal produced by this mine, the Company recently instituted and announced an expansion plan to increase the coal production at this mine. The acquisition of the second continuous miner is the last piece of equipment needed to achieve this expanded production.
The two continuous miners will initially be operated as a "walking" super section during two production shifts. The initial production range of this first phase of expanded production is expected to be 14,000 to 20,000 tons per month, an increase from less than 7,000 tons per month historically from this mine utilizing just one continuous miner during one production shift. The Company expects to complete this first phase of development by the second week of April. Upon completion, American Resources has previously detailed plans to even further expand the coal production at Carnegie 1 to eventually bring total output to approximately 32,000 to 42,000 tons per month. The coal produced from this mine is sold on current metallurgical contracts that range from $97.00 to $102.00 per ton "freight on board" railcar.
"This is an interim yet important milestone in our expansion plan at Carnegie 1", stated Tarlis Thompson, Chief Operating Officer at American Resources Corporation. "Having the proper equipment and mine plan is integral to the long term success of our mines". "We have spent the past several months developing Carnegie 1 to deliver such success and we applaud our team for all of their hard work". We're excited to see how the team continues to execute and advance our expansion plan forward."
As in the past, all production at the Carnegie mine will be trucked to the company's McCoy Elkhorn Coal facility to be processed and loaded onto rail. Additionally, the enhanced production will give American Resources the ability to blend the coal from its Carnegie mine with other metallurgical production at McCoy Elkhorn to offer its customers a very attractive high-vol metallurgical coal product. As a result of the increased tonnage the fixed operating costs at the McCoy process and load out complex will further be reduced on a per ton basis, providing further margin expansion.
American Resources Corporation continues to focus on its growth objective by efficiently leveraging its large number of core mining permits and through identifying strategic, supplemental acquisitions and continuing to consolidate quality coal assets for future growth and production. The company is committed to being one of the lowest cost operators in CAPP and throughout all its coal mining, processing, and transportation operations.
About American Resources Corporation
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The company's primary focus is on the extraction, processing, transportation and selling of metallurgical coal and pulverized coal injection (PCI) to the steel industry. The company operations are based in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical products are located.
The company's business model is based on running a streamlined and efficient operation to economically extract and deliver resources to meet its customers' demands. By running operations with low or no legacy costs, American Resources Corporation works to maximize margins for its investors while being able to scale its operations to meet the growth of the global infrastructure market.
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American Capital Ventures
Howard Gostfrand, President
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Company Contact:
Mark LaVerghetta
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Vice President of Corporate Finance and Communications
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Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. 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 the control of the Company. 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.
SOURCE: American Resources Corporation