American Resources Corp. has been named the primary bidder for certain assets offered for sale through the bankruptcy proceedings of Cambrian Holding Co. Inc. Under the proposal, American Resources would acquire all assets and operations of Perry County Coal LLC, an subsidiary of Cambrian Coal LLC, located near Hazard, Kentucky.
The Perry County Coal complex consists of three active mines (two underground mines and one surface mine) with access to more 110 million tons of coal reserves consisting primarily of high-quality, soft coking and PCI coals, which serves the steelmaking and industrial stoker markets. Historically, it has produced about 1 million tons per year (t/y) of coal. The assets include the Davidson Branch preparation plant, with a raw feed capacity of 1,300 t/h, more than 300,000 tons of on-site coal storage, and batch weight rail loadout with access to the CSX Railroad.
American Resources said it continues to execute on its growth initiatives by efficiently leveraging its infrastructure and large number of core mining permits throughout the Central Appalachian Basin, in addition to identifying strategic supplemental acquisitions. “The potential addition of Perry County Coal fits extremely well within our current platform both geographically and strategically,” said Mark Jensen, chairman and CEO, American Resources. “We’re confident that our efficient, low-cost operating structure will set these assets up for long-term success.”
Pursuant to the terms of the proposed transaction, American Resources would acquire the specific assets free and clear of all liens, claims, interests and encumbrances, and would assume no liabilities other than all reclamation obligations.