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American Resources receives advanced roof control plan approval for Carnegie metallurgical carbon mines

Published: 09:02 05 Dec 2022 EST

American Resources Corporation -
American Resources said the new roof control plan will reduce operating costs by an estimated $2 per ton.

American Resources Corporation (NASDAQ:AREC) told investors that it has received approval from the Mine Safety and Health Administration (MSHA) for an advanced roof control plan at both its Carnegie 1 and Carnegie 2 mines in Pike County, Kentucky.

The Fishers, Indiana-based company said the new roof control plan, which was issued due to the mine conditions and excellent work performed by its operating teams, will reduce operating costs by an estimated $2 per ton.

"Having a team in place that can create a safe and efficient workplace is the key to any operation,” CEO Mark Jensen said in a statement.

“I'm extremely proud that our team on the ground is constantly looking at ways to increase production, reduce costs and make our workplace a better operating environment,” he added.

READ: American Resources says it is focused on monetizing its carbon assets as it posts third quarter numbers

The company explained that the Carnegie 1 and Carnegie 2 mines are underground room and pillar mines that are set up in a manner that will provide significant growth over the course of the next few years.

It said it aims to achieve such growth and efficiencies with minimal capital expenditure by optimizing the operations through methods such as adding additional mining sections, now that mining has advanced further into the seam, and through deep cut mine plans at Carnegie 2, similar to those recently announced at Carnegie 1.

Additionally, it believes that the strength in the current carbon market will be further exemplified in 2023 for metallurgical carbon for steel production as China slowly emerges from COVID-related lockdowns.

“Our focus for 2023 is to continually showcase steady growth from our operations in a time of persistent global supply constraints, allowing us to steadily increase cash to our balance sheet,” Jensen continued.

“Receiving this approval not only reduces our mining costs and expands production at our Carnegie mines, but it also puts less physical stress on our team at the operations which makes it a win for all parties involved. During the next few months, we'll be leveraging these proven capabilities to maximize our production at our McCoy Elkhorn complex while we also progress on our planning at our Wyoming County complex to secure our tax-exempt bond issuance that is progressing given some stabilization of interest rates and the bond markets."

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

Contact the author at stephen.gunnion@proactiveinvestors.com

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