A Long Game In The Metallurgical Coal Sector

American resources corporation’s efficiency play aims to steel its long game in the metallurgical coal sector

- 

Despite reports of an industry sector slowly asphyxiating before our very eyes, the death of coal production in the US has been greatly exaggerated. Just ask the leadership team fueling American Resources Corporation (NASDAQ: AREC), a firm committed to becoming America’s fastest, most efficient metallurgical coal producer in service to the global steelmaking and infrastructure industries.

Metallurgical coal, or met coal, is different from thermal coal used for heating and energy. Met coal is converted into a pure form of carbon (coke), a necessary ingredient in steel. Coal is also used as an important energy source in cement production and the coal combustion product fly ash is an important ingredient in manufacturing cement and throughout the construction industry. AREC extracts, processes, transports, and sells met coal and its related product, pulverized coal injection (PCI), which is also used in steel production.

AREC occupies an enviable niche in the sector as one of the few companies with the ability to scale through focusing on organic growth, as well as expansion through mergers and acquisitions. “Our expertise in setting up efficient operations throughout quality coal assets and running them very lean and efficiently which enables us to have a significant growth opportunity,” AREC CEO Mark Jensen told BOSS during a recent sit-down with the firm’s leadership team. “We continue to expand our business rapidly, where other, bigger companies have been burdened with too much debt on their books, way too much corporate overhead, and aren’t nimble enough to take advantage of the market opportunities that they’re presented with.”