Through its subsidiary Quest Energy and McCoy Elkhorn Coal, American Resources Corp. has entered into an agreement to acquire coal assets from Empire Coal Processing, including the currently operating PointRock surface mine in Phelps, Kentucky. Under the agreement, McCoy Elkhorn Coal will immediately assume operational control of the PointRock mine as well as the associated leases, permits, government approvals, reclamation bonds and equipment.
American Resources said it will integrate the PointRock surface mine into its McCoy Elkhorn Coal subsidiary to be managed by Quest Energy’s Surface Operations Team, using their operational expertise. Management plans on using surface, auger and highwall-mining methods to access various coal seams including the Pond Creek, Upper Alma, Lower Alma and Cedar Grove, all of which have excellent metallurgical characteristics and are well-known within the met coal market.
“We’re excited to be adding PointRock to our portfolio of high-quality coal mines and strategically it makes a lot of sense,” said Thomas Sauve, president of American Resources. “Given its close proximity to McCoy Elkhorn Coal and that PointRock has been operated as a stand-alone mining operation, we are confident that by implementing our operating philosophy with the support of our processing and transportation infrastructure, we will be able to materially improve the operational efficiencies and profitability at PointRock.”
“The added volume of High-Vol A and B coal qualities will enable us to increase our metallurgical coal sales and help fulfill some of our customers’ demand at McCoy Elkhorn, while allowing us to expand our operating margins,” Sauve said.
Production from the PointRock mine will be trucked to McCoy Elkhorn’s Bevins prep plant and rail loadout facility, enhancing American Resources’ coal blending capabilities and sales volume from its McCoy Elkhorn subsidiary.