American Resources Corporation (NASDAQ:AREC) announced that it has acquired the operating rights to a PCI carbon surface mine operation which will expand production at its McCoy Elkhorn Complex in Kentucky.
Carbon production from this operation will be transported to American Resources’ processing facilities at McCoy Elkhorn around 15 miles away, where it will be processed and shipped to customers.
The Fishers, Indiana-based firm anticipates the operation will produce between 5,000 to 15,000 tons per month.
READ: American Resources increases equipment fleet at Carnegie #1 mine to double production of high-quality metallurgical carbon
No financial terms were disclosed, but American Resources did say that there was no capital paid upfront as part of the transaction.
"We are excited to be able to bring incremental, near-term production opportunities to life, given our vast asset base in the region,” American Resources CEO Thomas Sauve said in a statement.
“This operation is a low-cost opportunity with high quality product that will have the ability to serve our steel-making customers.”
Sauve told shareholders that American Resources is hoping to bring the operation online over the next 60 days, which should add an additional 15 direct and indirect jobs to the local community.
“Additionally, bringing this operation online in the current market will help feed the massive shortage in the supply of high-quality carbon while allowing us to capitalize on current market prices,” Sauve added.
American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia, where premium quality metallurgical carbon and rare earth mineral deposits are concentrated. The group is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled.
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