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8-K - CURRENT REPORT - American Resources Corp | arc_8k.htm |
Exhibit 99.1
American Resources Corporation Provides Mining Reclamation and
Environmental Update
Company is Reclaiming Irrational Thermal Coal Mines While
Continuing Its Growth of Metallurgical Carbon for
Steelmaking
December 31, 2019 | Source: American Resources
Corporation
FISHERS, INDIANA / ACCESSWIRE / December
31, 2019
/ American Resources Corporation (NASDAQ:AREC) (“American
Resources” or the “Company”), a supplier of raw
materials to the rapidly growing global infrastructure marketplace
with a primary focus on the extraction, processing and distribution
of metallurgical carbon to the steel and specialty alloy metals
industries, is pleased to provide an update on its environmental
reclamation of non-core mining properties. The Company’s
environmental focus is to continuously evaluate its mining permits
and identify those properties that are at or below their
proprietary (economic and environmental) margin and slate them for
reclamation. Throughout the company’s strategic acquisition
plan, when an acquired mining complex involves both thermal and
metallurgical properties, it immediately identifies such thermal
coal permits, used for utility power generation, as below the
margin.
American
Resources, since inception, has strategically acquired and
restructured mining complexes to set itself up for being one of the
fastest growing, lowest cost metallurgical carbon platforms in the
Central Appalachian basin over the next few years through cost
cutting and right-sizing operations to fit the current and future
market conditions. To date, American Resources has acquired over 75
mining permits with an associated reclamation bonding amount in
excess of $36 million. To date, the Company has reclaimed, or is
currently working to complete reclamation, on 25 thermal mining
sites with an associated environmental reclamation liability of
over $16.7 million.
Historically,
the coal mining industry has deferred many environmental
reclamation liabilities out for decades, instead of deeming such
permits as “reclamation only” permits, in the hope that
certain permits will rise above the margin and become active mines
again in the future and/or to avoid permanent reclamation of such
properties. American Resources, instead, has chosen not to defer
that liability and deems such sites as “reclamation
only” with a goal of remediating, and in certain cases,
repurposing irrational mining sites that fall below the margin.
Reclamation only permits are those that a company has decided to
completely reclaim and not attempt to defer the reclamation work
for a later time. This approach has resulted, at times, in the
Company setting very aggressive reclamation deadlines for it to
achieve. Consequently, as with many mining companies, this has
caused American Resources to, at times, be named on the Office of
Surface Mining Reclamation and Enforcement’s (OSMRE)
Applicant Violators System (AVS) list for trying to adhere to such
aggressive final reclamation deadlines. As the Company
expeditiously completes and progresses on this reclamation, it will
naturally be removed from the AVS list, as the case with all other
mining companies. Regardless, the Company and its team are proud of
its desire to reduce the environmental footprint of its
below-the-margin and thermal mines and remains focused exclusively
on its specially metals and metallurgical carbon
operations.
“Because
our acquisition plan included complexes that often consisted of
permits tied to both metallurgical carbon (used for steel making)
and thermal coal (used for electricity generation), our strategic
restructuring and environmental focus has been to separate the two
assets by quality types.”, stated Mark Jensen, Chief
Executive Officer of American Resources Corporation.
“Immediately post-acquisition, we then look to reclaim
thermal coal mining sites that do not fit within our business
model, while tying the metallurgical carbon assets into our
existing operating growth platform. Our focus is to grow and expand
our metallurgical carbon platform, but at the same time find
efficient and viable solutions to either reclaim or repurpose the
land associated with the thermal coal assets we acquire. Our goal
here is to work with our partners to find the right solutions to
benefit the environment and local communities, and in some cases
create viable commercial uses for the land, while also reducing our
overall environmental liability costs.”
American
Resources Corporation will continue to identify operational
efficiencies and ways to reduce future liabilities in its
continuing goal to be one of the lowest cost operators and
responsible stewards of the environment in Central Appalachia and
throughout all its coal mining, processing, and transportation
operations.
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About American Resources Corporation
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 pulverized
coal injection (PCI) to the steel industry. The company operations
are based in the Central Appalachian basin of eastern Kentucky and
southern 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 its customers’ demands. By running
operations with low or no legacy costs, American Resources
Corporation works to maximize margins for its investors while being
able to scale its operations to meet the growth of the global
infrastructure market.
Website:
http://www.americanresourcescorp.com
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.
Institutional/Retail/Individual Contact:
PCG
Advisory
Adam
Holdsworth
646-862-4607
adamh@pcgadvisory.com
www.pcgadvisory.com
Company Contact:
Mark
LaVerghetta
317-855-9926
ext. 0
Vice
President of Corporate Finance and Communications
investor@americanresourcescorp.com
Source:
American Resources Corporation
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