Benzinga | Oct 8, 2021 08:02AM EDT

American Resources Corporation Expands Carbon Production With Restart Of McCoy Elkhorn Complex, Secures Initial Sales Contracts; Terms Not Disclosed

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 restarted production of its McCoy Elkhorn processing and logistics complex as well as its Carnegie 1 mine. The Company's Carnegie 1 mine produces high-quality, metallurgical carbon from the Alma carbon seam and is used for steel making. Additionally, American Resources has signed sales commitments for this fourth quarter of 2021's production at its Carnegie 1 mine. The baseload committed sales for the fourth quarter from Carnegie 1 enables the Company to take advantage of the currently strong metallurgical carbon market while also evaluating multiple opportunities for 2022 contracts.

Kirk Taylor, Chief Financial Officer of American Resources Corporation commented, "We are proud of our teams' accomplishment of identifying high-value assets, repositioning them for a sustainable future and executing on the ramp up of these assets into opportune market environments. Our Carnegie 1 mine should be one of the lowest cost operations in the US met carbon industry and is set up with a great spread of newly refurbished equipment and fully rehabbed mining infrastructure. Our Carnegie 1 mine is just the start of what our McCoy Elkhorn complex will be able to accomplish over the coming years!"

The Carnegie 1 mine will be operated as a walking super section whereby utilizing two continuous miners operating on one section to eliminate inefficiencies and maximize production. The Company has recently acquired and rebuilt two continuous miners and three completely rebuilt wide body shuttle cars. The mine will operate on two production shifts and one maintenance shift per day.

Beyond its Carnegie 1 mine, American Resources will subsequently bring its Carnegie 2 mine online early in 2022 which accesses the same boundary of carbon to supplement production at the complex. The Company will thereafter bring its Carnegie Surface mine online to meet the demand of the strong global steel market. In total, the Company expects to produce over 40,000 tons of carbon per month from its Carnegie complex which will be processed at its nearby McCoy Elkhorn facility and shipped into both the domestic and international markets.

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.