Published: November 19, 2020 |

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American Resources Corporation, a supplier of raw materials to the infrastructure market, announced a move on Wednesday to fully reclaim the non-core Indiana thermal coal mine complex acquired from a bankruptcy in September 2019.

In 2019, American Resources received a feeler from the trustee of a bankrupt estate regarding acquiring the facility. The management decided that based on the structures and asset value the property could be reclaimed at a cost that would be lower than the acquired assets.

The group has been reclaiming the over 175-acre property while also considering lease structures from third-party operators in the region. Based on current market conditions, American Resources has decided to continue with its primary plan to fully reclaim the site and relocate certain assets to achieve a full bond release of around $1.3 million in environmental bonds.

In a statement, American Resources CEO Mark Jensen said: “When approached by the estate’s trustee, our team analyzed and determined that by utilizing an innovative and environmentally friendly approach, we could reclaim the property at a cost that was less than the asset value of the property and consideration paid as well as burning considerably less fuel.”

He added: “We also saw an opportunity to clean up the environmental liabilities that were neglected and egregiously left behind by the prior operators. When completed we are confident that this project will prove that our model of achieving true social and environmental goals can be achieved while also generating a positive shareholder return.”

After taking ownership of the site, the company along with environmental solutions firm Land Betterment Corp, implemented a plan to clean up various environmental problems and make the site compliant. The company has removed all structures out of the mine pit, removed a majority of the overland belt and a majority of mobile structures. It is now deconstructing and removing the processing facility, mobile stackers and coal load-out facility and accepting bids on select items like processing plant components and rotary stackers.

The company has repurposed a segment of the acquired property for its American Metals business line to reprocess used coal railcars for the electric ARC furnace marketplace while also creating good-paying jobs in the community.

American Resources has strategically acquired and restructured mining complexes to establish itself as one of the fastest-growing, lowest cost metallurgical carbon platforms in the Central Appalachian basin. It has become one of the largest owners of mining infrastructure in eastern Kentucky.

Source: Proactive Investors

About American Resources
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The company’s primary focus is on the extraction, processing, transportation and selling of metallurgical Carbon and PCI to the steel industry. The company operations are based in the Central Appalachian basin of eastern Kentucky and West Virginia where premium quality metallurgical products are located.

The company’s business model is based on running a streamlined and efficient operation to economically extract and deliver resources to meet our customers’ demands. By running operations with low or no legacy costs, American Resources Corporation works to maximize margins for our investors while being able to scale its operations to meet the growth of the global infrastructure market.

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