American Resources Corp., through its subsidiary, American Carbon Corp., a metallurgical coal producer, announced that it has expanded production at its Carnegie 2 mine in Pike County, Kentucky, by adding a second operating section. It is expected that the production from this section will initially ramp up to approximately 9,000 to 12,000 additional tons per month.
“Our McCoy Elkhorn complex is a showcase operation that possesses a significant opportunity for growth from our internal portfolio of assets,” Mark Jensen, CEO of American Resources said. “Adding a second operating section at this already producing mine is one of the highest margin growth opportunities we can execute upon as a company, given no additional fixed costs and minimal additional variable costs are needed to achieve the incremental growth of production. Now that this has been achieved, we look forward to focusing on additional growth expansion at the McCoy Elkhorn complex, while we continue to minimize capex costs and maximize speed to market.”
American Resources Corp. over the years has acquired a significant fleet of underground and surface equipment that it can use to expand production. This new expansion at Carnegie 2 is using almost entirely owned equipment that the company has been able to acquire over the years. American Carbon still has more than three additional full operating sections of equipment that it intends to use for Carnegie 1 expansion, the upcoming Mine #15A expansion, as well as its Wyoming County Coal LLC complex that it is currently developing.