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American Resources completes restructuring of its latest carbon processing complex following acquisition

The company acquired Kentucky-based Perry County Resources in October as part of Chapter 11 bankruptcy proceedings

American Resources Corporation complex
The company is interviewing for the PCR complex and hopes to have it back online in the next 30 days.

American Resources Corporation (NASDAQ:AREC) has completed the post-acquisition restructuring of the carbon processing complex Perry County Resources. 

American Resources acquired Kentucky-based PCR in October as part of the Chapter 11 bankruptcy proceedings of Cambrian Holding Company Inc.

The company managed to eliminate roughly $35 million in annual expenses by cutting policies, contracts, leases and operations including certain long-term leases that cost the complex over $80 million over the last 20 years.

READ: American Resources breathes life into Appalachia’s metallurgical coal business

"We are extremely excited to have the restructuring of Perry County Resources complete and now have the complex in a much better position to serve its customers, workforce, community and all of our shareholders," CEO Mark Jensen said in a statement. "We also applaud our team's hard work, tenacity and ability to stay focused, despite numerous distractions that have been presented by parties that fought such change and to keep this project on its desired timeline."

Among the specific initiatives, American Resources:

  • Executed a mine consolidation project to reallocate resources from two existing deep mines into a single deep mine, allowing it to run super-sections, rather than single-sections, which essentially doubles the output
  • Entered into an agreement to divest the non-core, idled deep mine which reduces holding costs and provides capital and equipment to support the operating deep mine at PCR
  • Implemented repair and revised maintenance plans to both underground and processing equipment to significantly increase the efficiency and productivity of the equipment and workforce
  • Restructured the remaining deep mine to reduce maintenance and holding costs, while improving the safety of the retained operations.

"We remain fully confident in the changes we brought to PCR and are bringing to the industry as a whole. We look forward to discussing with the state, regulators and employees about getting this mine back into production,” Jensen said. “We are willing and able to hire back approximately 100 men and women and are confident that the state and regulators would also like to see these jobs created and retained in an area that needs them more than ever."

The company is currently interviewing for the PCR complex and hopes to have it back online in the next 30 days.

American Resources, based in Indiana, is setting higher standards in the metallurgical coal industry after establishing its influence in this demanding sector by taking control of eight struggling coal operations across Central Appalachia in the last five years. 

With operations in eastern Kentucky and West Virginia, the company extracts, processes, and sells metallurgical carbon to the steel industry.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

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Price: 1.06 USD

NASDAQ:AREC
Market: NASDAQ
Market Cap: $28.98 m
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