Business
American Resources Corporation Signs Offtake and Financial Partnership to Start Carnegie 2 Mine
Company's long-standing partner and customer has provided a non-dilutive financial commitment of $2.5 million to start the Carnegie 2 mine with top tier
About this update from American Resources Corporation
[{"type":"text","content":"Company's long-standing partner and customer has provided a non-dilutive financial commitment of $2.5 million to start the Carnegie 2 mine with top tier equipment and infrastructureFISHERS, IN / ACCESSWIRE / May 18, 2022 / American Resources Corporation (NASDAQ:AREC) (\"American Resources\" or the \"Company\"), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced that it has signed a carbon offtake agreement along with a non-dilutive financial commitment of $2.5 million with a long-standing customer and premier supplier of metallurgical carbon to the global steel and alloy metal marketplace, Integrity Coal Sales (\"Integrity\"), to start its Carnegie 2 mine. This incremental production will enable the Company to benefit from the current strength in the high vol met carbon market, aligning the risk and return for both Integrity and American Resources.Mark Jensen, CEO of American Resources commented, \"Integrity Coal Sales has been a strong customer and partners of ours for a number of years, and we are focused on working together for everyone's success. Together, we're developing long term opportunities to expand low cost metallurgical carbon production to feed global steel demand for the infrastructure market. Finalizing the development of the Carnegie 2 mine coupled with the very strong market for high vol met carbon in the international markets provides a very attractive return on capital for our shareholders. This will further expand our production out of the McCoy Elkhorn complex while we are also expanding our Carnegie 1 mine production capabilities\".High Vol metallurgical carbon is not burned for energy use. Instead, specific characteristics allow it to be blended with iron to make new steel. This quality of product is in high demand in the current market environment given many of the producers in the U.S. are producing from old mines that are expensive to operate and coming to end-of-life. American Resources is focused on mine plans and operations that are built to be low cost once ramped ranging from 20 to 40+ years while also making them safer and more productive operations. Post initial production ramp Carnegie 2 is anticipating adding $25 to $35 million in additional year...