American Resources inks third-party carbon processing deal

American Resources Corporation (NASDAQ:AREC), a raw materials supplier, has signed a carbon processing agreement with a third-party, the company announced on Monday. Under the terms of the deal, American Resources will provide carbon processing, storage and loading services at its Davidson branch Preparation Plant, located at the Perry County Resources complex in Hazard, Kentucky. The agreement will begin immediately under an initial trial period and then carry a one-year term if both parties approve, with an option to renew on an annual basis. "We are constantly evaluating opportunities to secure strong, joint venture partnerships to reinforce our growth and at the same time enhance our efficiencies and profitability", CEO Mark Jensen said in a statement READ: American Resources adds two continuous miners at Perry County Resources complex in Kentucky "Having the ability to leverage our large infrastructure base to process third-party carbon further demonstrates our ability to maximize the value of our assets and allows us to increase our efficiencies to further reduce our operating costs at the Perry County complex, thereby reducing the overall processing cost for all carbon processed at the facility,” Jensen said. “We are very proud of the work we have done at Perry County to position it as the most innovative and lowest cost PCI, stoker and specialty carbon facilities in the United States." The carbon being processed under this agreement is a specialized grade known as Blue Gem, the company said. This specific type of carbon is used in a variety of industrial and technology applications that utilize silicon and ferrous metal alloys. Under the agreement, American Resources will be able to purchase carbon qualities and products from the third party for its own orders. American Resources’ Davidson plant can produce 1,300 tons of carbon per hour and is equipped with multiple stoker circuits to process a variety of finished products. This particular plant was chosen due to its specialized facilities and its ability to process carbon to a variety of specifications, the company said.  Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com Follow him on Twitter @andrew_kessel