American Resources Corp., American Carbon subsidiary, a leading producer of high quality metallurgical and specialty coals, announced that it has commissioned its McCoy Elkhorn processing facilities in Pike County, Kentucky for internal processing, third party processing, and coal loading businesses.
“We are excited to be in an advantageous position to commence operation at our McCoy Elkhorn processing and loading facilities, which are state-of-the-art facilities located in the heart of the metallurgical coal region of eastern Kentucky,” said Tarlis Thompson, president of American Carbon. “Reopening this complex enables us to expand our production capabilities and take advantage of attractive specialty carbon contracts that are available in the market, while also buying and processing third party carbon for additional revenue growth.”
The McCoy Elkhorn processing complex in Pike County, Kentucky has two onsite, state-of-the-art processing facilities, one with a 500 ton per hour (tph) raw feed capacity and one with an 800-tph raw feed capacity, a unit train rail loadout on the CSX railway and two extensive refuse impoundments that have significant life and storage capacity.
The McCoy Elkhorn complex is in the heart of the company’s existing and potential reserve base, Thompson explained, containing both currently operating mines and several permitted mines that can be restarted at a relatively low-cost, but contain high production capacity for many years to come.
American Resources is currently producing coal at its Carnegie Nos. 1 and 2 mines and previously announced the planned expansion around its McCoy Elkhorn complex as a result of a recent investment in structural upgrades to the mines. Additionally, the company plans to start production at several regional mines that have a logistical advantage and can be brought into production this year at a relatively low cost.
Moreover, American said it has been approached by third parties seeking the use of the McCoy Elkhorn complex for their processing and loading needs. This additional business will enable the company to significantly expand its processing revenue with minimal additional capital expenditures.
