American Resources Corporation’s American Carbon Commissions the McCoy Elkhorn Processing Plant For Both Internal and Third Party Carbon Processing
McCoy Elkhorn's processing plant is a state-of-the-art carbon complex with cumulative production capacity of 1,300 tons per hour, full logistics and extensive refuse storage impoundments
Operating the internal processing and logistics facilities provides significant opportunity to expand processing revenue and expand margins from internal production
FISHERS, IN / ACCESSWIRE / March 6, 2023 / American Resources Corporation's (NASDAQ:AREC) ("American Resources" or the "Company"), American Carbon subsidiary, a leading producer of high quality metallurgical and specialty carbon, announced that it has commissioned its McCoy Elkhorn processing facilities in Pike County, Kentucky for internal processing, third party processing, and carbon loading businesses, thereby enabling additional growth opportunities and enhanced margins from existing production.
Tarlis Thompson, President of American Carbon Corporation commented, "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. Due to the strong commitment from our team to get these facilities back operating, we are pleased to have the recommissioning of these plants ahead of schedule and under budget. Given the market opportunity and our planned expansion from the McCoy complex, we have been working on the restart of our internal processing capacity at this location. 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. I am thankful for the hard work the men and women on our team have put forth to make this happen in this strong carbon market".
The McCoy Elkhorn processing complex in Pike County, Kentucky has two onsite, state-of-the-art processing facilities (one 500 ton per hour and one 800 ton per hour), 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, 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. The Company is currently producing at its Carnegie 1 and 2 mines and previously announced the planned expansion around its McCoy Elkhorn complex in the coming weeks due to recent investment in structural upgrades to the mines. Additionally, the Company is also working on commencing production at several regional mines that have a logistical advantage and can be brought into production this year with relatively low cost. Given its recent strong production, the Company has been shipping production to its customer to fulfill existing orders while also building a stockpile of inventory at its McCoy complex to immediately begin processing.
Furthermore, in addition to American Carbon's own production, the Company 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 beyond what has already been incurred as part of this startup, thereby further increasing the value of this complex to the Company and the surrounding region. Third party processing can come in the form of tolling arrangements for both processing carbon as well as loading carbon through its state of the art loadout facilities on either the CSX railway or truck, both present on-site.
About American Resources Corporation
American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About ReElement Technologies LLC
ReElement Technologies LLC is redefining how critical and rare earth elements are both sourced and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well as coal-based waste streams and byproducts to create a low-cost and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Capture-Process-Purify" process chain in conjunction with its licensed intellectual property including 16 patents and technologies and sponsored research partnerships with three leading universities to support the domestic supply chain's growing demand for magnet and battery metals. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
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SOURCE: American Resources Corporation
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