American Resources Corporation Receives Approval of Deep Cut Plan at Carnegie 1

Rhea-AI Summary

American Resources Corporation (AREC) announced the approval of a deep cut plan at its Carnegie 1 mine by the Mine Safety and Health Administration (MSHA). This enhancement is expected to increase production by 30% per shift and reduce maintenance costs. The company has strategically restructured its assets to optimize growth and minimize legacy costs, positioning its operations for high-quality, sustainable production. The McCoy Elkhorn Complex, which includes modern processing plants, is central to this expansion, aiming to enhance both safety and efficiency in line with market demands.

Positive

• Approval of deep cut plan at Carnegie 1 mine expected to increase production by 30% per shift.
• Reduction in maintenance costs due to decreased equipment movement.
• Strategic asset restructuring positions company for growth in high-quality raw materials.
• Expansion of the McCoy Elkhorn Complex to meet increasing demand.

Negative

• None.

Enhanced mine plan enables 30% additional production per shift and reduces maintenance expense at the mine

FISHERS, IN / ACCESSWIRE / October 24, 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 been approved by the Mine Safety and Health Administration ("MSHA") for a deep cut plan at its Carnegie 1 mine.

Tarlis Thompson, COO of American Resources commented, "Over the last 7 years we have acquired, restructured and repositioned our asset base to provide substantial growth potential from high quality assets with long operating life, high margins and require low capital investment. We have focused on putting in place the best environmental and safety standards at each of our operations. Today's announcement of receiving a deep cut mine plan at our Carnegie 1 mine exemplifies the safety standards and team we have at our operations. As we continue to expand the McCoy Elkhorn complex, we are also focused on revenue expansion and cost optimization at each of our existing mine sites. A deep cut plan enables 30% additional production while reducing the movement of our mechanized equipment, which further reduces the potential for injury to our operating team, reduces travel time and wear and tear of the equipment. The Company is also pursuing such approvals at our newly operating Carnegie 2 mine. Having these assets in place positions our carbon platform as one of the few in the industry that can organically expand production and feed the demand especially while older mines in our region are coming to end of life."

The McCoy Elkhorn Complex was formerly a complex owned and ran by James River Coal as one of their premier facilities in the region. The complex is one of the last high-quality long-life mining facilities in the market and in the region. The hub and spoke facility is centered around two state of the art processing plants (800 tph and 500 tph) and a 110 car unit train rail load out facility and two fully approved and permitted impoundments that can process north of 6 million tons of carbon per year. Post the start of its next two mines, the Company will begin the planning of the next phase of organic growth from the McCoy Elkhorn complex.

American Resources continues to focus on running efficient streamlined operations in being a new-aged supplier of raw materials to the infrastructure and electrification marketplace in the most sustainable of ways, while also helping the world achieve its goals of carbon neutrality. By operating with low or no legacy costs and having one of the largest and most innovative growth pipelines in the industry, American Resources Corporation works to maximize value for its investors by positioning its large asset base to best fit a new-aged economy, while being able to scale its operations to meet the growth of the markets it serves.

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 Technologies 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.

PR Contact

Precision Public Relations
Matt Sheldon
917-280-7329
matt@precisionpr.co

Investor Contact:

JTC Team, LLC
Jenene Thomas
833-475-8247
arec@jtcir.com

RedChip Companies Inc.
Todd McKnight
1-800-RED-CHIP (733-2447)
Info@redchip.com

Company Contact:

Mark LaVerghetta
Vice President of Corporate Finance and Communications
317-855-9926 ext. 0
investor@americanresourcescorp.com

SOURCE: American Resources Corporation

View source version on accesswire.com:
https://www.accesswire.com/721756/American-Resources-Corporation-Receives-Approval-of-Deep-Cut-Plan-at-Carnegie-1

FAQ

What is the recent development for American Resources Corporation (AREC) regarding its Carnegie 1 mine?

American Resources Corporation received approval for a deep cut plan at its Carnegie 1 mine, which allows for a 30% increase in production per shift.

How will the deep cut plan affect production and costs at the Carnegie 1 mine?

The deep cut plan is expected to enhance production by 30% per shift while reducing maintenance expenses due to less equipment movement.

What is the significance of the McCoy Elkhorn Complex for American Resources Corporation?

The McCoy Elkhorn Complex is key to American Resources' operations, featuring advanced processing facilities and positioned to meet the growing demand for its raw materials.

How does American Resources Corporation plan to optimize its operations?

The company focuses on restructuring its asset base to ensure high-quality output with low capital investment while adhering to safety and environmental standards.

When was the approval of the deep cut plan announced by American Resources Corporation?

The approval was announced on October 24, 2022.