American Resources Corp announced that it has signed a met coal offtake agreement along with a $2.5 million commitment with Integrity Coal Sales to start its Carnegie 2 mine. The company said this incremental production will enable it to benefit from the current strength in the high vol met coal market, aligning the risk and return for both Integrity and American Resources.
“Integrity Coal Sales has been a strong customer and partners of ours for a number of years, and we are focused on working together for everyone’s success,” American Resources CEO Mark Jensen said. Together, we’re developing long term opportunities to expand low cost metallurgical [coal] production. This will further expand our production out of the McCoy Elkhorn complex while we are also expanding our Carnegie 1 mine production capabilities.”
American Resources said it is focused on mine plans and operations that are built to be low cost once ramped up, ranging from 20 to 40 years or more while also making them safer and more productive operations. Post initial production ramp, Carnegie 2 is anticipating adding $25 to $35 million in additional yearly revenue to the company’s top line with attractive margins.
