Its subsidiary American Metals LLC has entered into a partnership with a third-party metal aggregating and processing company to provide for the allocation and processing of the decommissioned railcars.
American Resources said it is initially utilizing certain areas of its Indiana property, including its rail spur, for storing and staging areas for the railcars to be processed and ultimately transported to be recycled.
"As an important part of our overall strategy of being a leading supplier of raw materials to the growing global infrastructure space, we continue to find ways to expand our metal recovery business,” said American Resources CEO Mark Jensen in a statement.
“Our innovation provides us with various ways of maximizing the value of our assets, and our goal of broadening the raw material products we can offer our valued customer base. By leveraging our American Metals subsidiary and continuing to buildout our business lines in forward-looking industries that supply the infrastructure market, we believe we have the ability to not only expand our revenue but also create further diversification for our shareholders."
The Indiana property is a decommissioned thermal coal mine located in Greene County, Indiana that is currently undergoing a complete environmental reclamation and remediation. It once served as a baseload supplier of thermal coal to a regional utility provider however, with the transition away from coal-based fuels, it became an unviable mine.
Given its centralized location among various coal fields and regional steel mills, it has proven to be ideal for an aggregation and processing location for the railcars to be recycled and reused in the steel markets.
American Resources said it is keen on efficiently and effectively utilizing all asset bases to supply customers in the steel industry with raw materials to manufacture steel products in the most sustainable way while focusing on building out its full suite of infrastructure-related business lines.
The company added that it is committed to continuing its efforts to identify operational efficiencies in its ongoing goal to be one of the lowest cost operators and responsible stewards of the environment in Central Appalachia and throughout all its mining, processing, and transportation operations.
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