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American Resources gears up to restart metallurgical carbon mining and processing at restructured Perry County Resources

The infrastructure company said Perry County Resources has been overhauled as one of the lowest cost stoker operations in the US

American Resources Corporation -
American Resources anticipates restarting the E4-2 mine and PCR complex within the next 45 days and plans to hire over the next 12 months

American Resources Corporation (NASDAQ:AREC) said Monday that it has made progress towards starting mining operations at its Perry County Resources (PCR) mining complex in Hazard, Kentucky.

The infrastructure company said it is committed to being one of the lowest-cost operators in the Central Appalachian basin and throughout all its carbon mining, processing, and transportation operations. Perry County is one of the company's five operating complexes within the Central Appalachian basin and was acquired in September 2019. The company said PCR has been restructured to eliminate nearly $45 million in annual expenses.

In a statement, American Resources CEO Mark Jensen said: "We are extremely proud of our team for the coordination and efforts to prepare Perry County Resources to be brought back online under our low-cost operating model.”

READ: American Resources dramatically narrows losses in 1Q as it shifts from coal to mining carbon

He added: “During these unique and challenging times, we are extremely grateful that we have stayed healthy and have advanced our operations. We believe the achievements have set the Perry County operations up to be one of the lowest, if not the lowest, PCI operations in the country that has production capabilities of over 1 million tons per year."

Production at Perry County has been idle during the coronavirus pandemic, but American Resources has focused on a number of environmental reclamation projects to further lower the company's holding costs, as well as implement efficiencies at its PCR and McCoy Elkhorn subsidiaries.

In preparation to restart production at Perry County, American Resources said it has installed a new slope belt at PCR's E4-2 deep mine, pumped excess water from the E4-2 mine and prepared staffing plans to match the E4-2 revised mine plan.

Additionally, the company has received approval to begin the process of installing seals in the E4-2 mine to close off the mine's old works. The installation of seals at the mine will cost $150,000, but will significantly reduce operating costs per month by around $60,000 to $90,000. Most importantly, it will make the mine a safer place for its employees.

American Resources anticipates restarting the E4-2 mine and PCR complex within the next 45 days. “Over the next twelve months, the company plans on filling around 140 positions at PCR, with the capability to expand over the next five years to over 211 long term sustainable jobs for the community,” said the company.

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

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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