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American Resources resumes 2nd underground coal mine development

American Resources Corp. resumed the development of its Carnegie 2 underground coal mine in Pike County, Ky., the company said in a March 26 release.

The Carnegie 2 and Carnegie 1 mines, with access to the Alma coal seam, are expected to create a low-cost operation with production of 6,000 to 8,000 tons per month.

Carnegie 2's initial production, likely to begin in June, is expected to produce a revenue of $9 million to $10 million per year at an estimated 40% EBITDA margin at current market prices.

American Resources is currently in advanced talks with a contract mining company which will operate Carnegie 2.