American Resources sells idled US coking coal permits

US coking coal producer American Resources has agreed to sell three idled coking coal mining permits at its Perry County Resources (PCR) subsidiary in eastern Kentucky to an undisclosed third party for $1mn in cash and equipment.

The non-core assets are associated with an underground mine and a surface mine located near the town of Hazard in Perry County, Kentucky. The mines produce mainly pulverized coal injection (PCI) and semi-soft coking coal.

American Resources acquired Perry County Resources from Cambrian Holdings as part of a court-supervised bankruptcy in September 2019.

The sale of the three permits will enable American Resources to reduce its liabilities by writing-off $3mn of associated reclamation bonds and restructure its costs as part of its mine consolidation project. The sale is expected to close within 30 days.