American Resources Corp. (NASDAQ:AREC), a supplier of raw materials to the steel industry, has struck up a partnership with Land Betterment LLC, a community development company that renovates former coal mining sites, in a bid to rehabilitate the Gold Star mine, its idled thermal coal mine in Green County, Indiana.
Under the new partnership, Land Resources will take charge of selling scrap metal and other equipment at Gold Star. It will also provide environmental remediation services at the Indiana mining site to help American Resources repurpose parts of it for either alternative businesses or community use.
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The new deal is set to pare back American Resources’ environmental bonding liabilities at Gold Star by $1.3 million.
“We are always looking for opportunities to reduce our environmental liabilities and have become much more proactive in our efforts to permanently shut down any of those liabilities associated with thermal coal within our portfolio,” said Mark Jensen, chairman and CEO of American Resources.
“This partnership provides us with a viable solution to reduce such liabilities and will be something we could potentially expand on in the future, allowing American Resources to focus on efficiently continuing the growth of its metallurgical carbon platform to service the steelmaking and infrastructure markets worldwide,” Jensen added.
With operations based in the Central Appalachian basin of eastern Kentucky and West Virginia, American Resources specializes in the extraction, processing, transportation and selling of metallurgical carbon and pulverized coal injection (PCI) to the steel industry.