American Resources Corporation (NASDAQ:AREC) has restarted production of its McCoy Elkhorn processing and logistics complex as well as its Carnegie 1 mine.
The Carnegie 1 mine produces high-quality, metallurgical carbon from the Alma carbon seam which is used for steel making.
Additionally, American Resources said it has signed sales commitments for the current fourth quarter of 2021's production at its Carnegie 1 mine.
READ: American Resources acquires mineral reserves for its Perry County Resources' E4-2 Deep Mine
The baseload committed sales for the 4Q from Carnegie 1 enables the company to take advantage of the currently strong metallurgical carbon market while also evaluating multiple opportunities for 2022 contracts.
"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,” said American Resources CFO Kirk Taylor in a statement.
“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 company said the Carnegie 1 mine will be operated as a walking super section 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 widebody shuttle cars. The mine will operate on two production shifts and one maintenance shift per day.
Beyond its Carnegie 1 mine, American Resources said it will subsequently bring its Carnegie 2 mine online early in 2022. The mine accesses the same boundary of carbon to supplement production at the complex.
The company added that it will bring its Carnegie Surface mine online to meet the demand of the strong global steel market. In total, it 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.
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