American Resources Corp (ARC) recently completed the acquisition of Quest Energy, Inc, a diversified energy company focused on the extraction, processing, storage and distribution of fuel sources, with an immediate focus on the metallurgical coal markets. The acquisition of Quest Energy enables ARC to gain an important footprint in the coal industry with significant growth and expansion opportunities.
Quest Energy has just commenced production at its Carnegie mine in Pike County, Kentucky. The Carnegie mine is in the Alma seam and is a High Vol A/B metallurgical coal that is used to make steel in both the domestic and export market.
Carnegie is the first of the company’s series of mines in the Alma seam that it anticipates bringing into production during the course of 2017. The company forecasts its production costs at this mine to be sub $56.00/t and will be loaded on the rail at the company’s McCoy Elkhorn Bevins Branch complex.
“We are excited to begin production at the first in a series of Alma seam mines in the area.” stated Tom Sauve, President of American Resources. “I applaud our team for coming in under budget on the development of the mine and achieving a very expedited timeframe to get on production. This mine offers us the ability to create blends with our other metallurgical production at our McCoy Elkhorn facility and offer our customers a very attractive High Vol metallurgical product at a time when High Vol coal is in demand.”
With a primary focus on eastern Kentucky, Quest Energy has three operating subsidiaries throughout Knott, Pike, Letcher, and Floyd counties, namely McCoy Elkhorn Coal, Knott County Coal, and Deane Mining. While current coal production is focused on the metallurgical coal markets, ARC is also working on expansion of its existing operations in the pulverized coal injection, specialty, high-grade thermal coal and industrial markets.