American Resources Corp. has entered into a one-year, coal processing, transloading agreement with a third-party operator. Under the agreement, American Resources will provide coal processing, storage and rail and/or truck loading services at its Davidson Branch prep plant, located at the company’s Perry County Resources complex in Hazard, Kentucky.

“We are constantly evaluating opportunities to secure strong, joint venture partnerships to reinforce our growth, and at the same time enhance our efficiencies and profitability,” Chairman and CEO of American Resources Mark Jensen said. “Having the ability to leverage our large infrastructure base to process third-party carbon further demonstrates our ability to maximize the value of our assets and allows us to increase our efficiencies to further reduce our operating costs at the Perry County complex, thereby reducing the overall processing cost for all carbon processed at the facility.”

The coal being processed under this agreement is considered one of the most specialized grades, known as Blue Gem, according to the company. This specific type of coal is used in a variety of industrial and technology applications that use silicon and ferrous metal alloys.

Under the agreement, American Resources will have the ability to purchase certain coal qualities and products from the third party for its own orders of high-quality metallurgical coal.

The Davidson Branch prep plant has a raw feed capacity of 1,300 tons per hour, equipped with multiple stoker circuits to process a variety of finished products.