American Resources Corp. has commenced initial production at its greenfield Carnegie No. 2 metallurgical coal mine ahead of schedule. Following the mine’s initial development production, the company will increase the output over the next several months to fully expand and maximize production, revenues and cashflow.
“We are proud of our team, led by Tarlis Thompson, to get the Carnegie 2 into production ahead of schedule and within budget,” said American Resources CEO Mark Jensen.
“Supply chain issues and inflationary pressures continue to present challenges for many industries, however our extensive asset base and the efforts of our team has enabled us to use internal resources to get this mine into a great position to produce,” Jensen said. “Our McCoy Elkhorn complex will be an area of growth for our business given the quality of the [coal] and the ability to bring on a meaningful amount of incremental new mine production, or expand our existing mines, to feed the global growth in the steel industry.
“Our focus is to bring a low-cost, low-risk and high-quality supply of metallurgical [coal] to the market as we believe there are a substantial number of high-cost, end-of-life mines that will decline over the next five years,” Jensen said. “Our platform puts us in a great position to feed the global demand from these new opportunities yet maintain a low environmental impact on operations while still achieving our negative net acres impact commitment due to our continued land reclamation efforts to further reduce the overall cost for the business.”
The Carnegie No. 2 mine is a new operation that has more than 20 years of low-cost, favorable mining conditions. It produces high-vol met coal from the same seam as the company’s Carnegie No. 1 mine. The mine plan uses room and pillar mining and a completely rebuilt Joy 14CM15 continuous miners with shuttle cars. The mine is set up to run one working section until it can expand to two working sections accessed from one mining portal to optimize the mine’s efficiency and asset base.
