American Resources acquires West Virginia met coal mine

US mining firm American Resources has expanded its footprint in the metallurgical coal sector with the $16mn acquisition of all the assets of Synergy Coal, an idle West Virginia mid-volatile coking coal producer.

American Resources said it will rehabilitate the Wyoming County mine site, including its coal washing and rail loading facilities, over the next 18 months with the aim of producing 2mn short tons/yr (1.81mn t/yr) from 2020.

The restart in West Virginia is the latest in a series that has boosted US coking coal output amid high prices and firm margins for global steel producers.

Indiana-based American Resources earlier this year began production at its 312,000 t/yr Razorblade thermal and pulverised injection coal grade mine in Letcher county, Kentucky.

US metallurgical exports in August climbed to 5.7mn st in August and 42.3mn st year-to-date from 5.1mn st and 35.3mn st a year earlier.

Spot prices for low-volatile hard coking coal averaged $170.80/t fob Hampton Roads in August 2018, up from $156.85/t from the same month a year earlier.