American Resources Corp. (AREC) has acquired the operating rights to a surface mining operation that produces coal for pulverized coal injection (PCI) markets. The acquisition will further expand production at its McCoy Elkhorn Complex in Pike County, Kentucky.
“We are excited to be able to bring incremental, near-term production opportunities to life given our vast asset base in the region,” AREC President Thomas Sauve said. “This operation is a low-cost opportunity with a high-quality product that will have the ability to serve our steel-making customers. We are putting a plan in place to bring this operation online over the next 60 days.”
Raw coal will be transported approximately 15 miles to the AREC’s McCoy Elkhorn prep plant to be processed and shipped to customers. Once ramped, the company anticipates the operation will produce between 5,000 to 15,000 tons of PCI product per month. While the terms of the transaction were not disclosed, there was no capital paid upfront as part of the transaction.