American Resources Corporation (NASDAQ:AREC) has said its Carnegie 1 mine is set to double metallurgical carbon production with the development of a continuous haulage bridge section.
The section, when completed, is expected to add revenue of $2.25 million to $3.5 million per month at current prices. The company's Carnegie 1 team is currently setting up the ventilation required to start the added bridge section with production anticipated to start in the next 60 to 90 days.
“Our series of Carnegie mines and the McCoy Elkhorn complex are major contributors to our revenue, cash flow and future growth. Carnegie 1 is a very young mine to where we have advanced to the point in the resource seam where we can expand our mine plan by adding additional sections and further reduce the overall cost structure and increase performance,” Mark Jensen, CEO of American Resources said in a statement.
READ: American Resources kicks off production at Carnegie 2 metallurgical carbon mine in Pike County, Kentucky
“Given our extensive equipment and asset base that we already own, we are able to bring this bridge section online with very little CAPEX and highlights the flexibility and growth attributes of our mining platform,” he added.
The Carnegie 1 mine produces high vol metallurgical carbon that has specific characteristics, allowing it to be blended with iron to make new steel. This quality of product is in high demand given worldwide infrastructure growth and persistent supply constraints.
“Expanding an existing mine using owned equipment is the highest margin method to grow in today's market environment as it doesn't require the same labor, energy or equipment costs to expand an existing mine versus starting a new mine making it a very accretive opportunity for the company,” he concluded.
American Resources is focused on low-cost mine plans and operations with a mine life ranging from 20 to over 40+years while also making them safer and more productive.
The company is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market.
Contact the author at jon.hopkins@proactiveinvestors.com