Ramaco Resources acquires Amonate assets from Coronado Global
Ramaco Resources has wrapped up its previously announced $30 million acquisition of the Amonate assets in the US from Coronado Global Resources.
The Amonate assets include a mine complex in McDowell County, West Virginia, and Tazewell County, Virginia.
According to Ramaco Resources, all the assets involved in the deal are located near and contiguous to its existing Berwind mine complex.
The Kentucky-based metallurgical coal producer said that the acquisition mainly consists of nearly 50 million tons of low and mid volatile reserves. A majority of this will be mined from the Berwind mine, said Ramaco Resources.
Also, part of the acquisition are various additional permitted mines, and a presently idled coal preparation plant which has a 1.3-million-ton per annum capacity.
Ramaco Resources acquires Amonate assets from Coronado Global. Photo courtesy of Ramaco Resources, Inc.
Ramaco Resources anticipates launching mine development on the Amonate reserves with immediate effects. The metallurgical coal producer expects initial production to be achieved by Q2 2022, with total new incremental production for the full year at around 200,000 tons.
Furthermore, the company will immediately begin refurbishment of the existing but idled Amonate preparation facility.
Ramaco Resources hopes to produce more than 1.5 million tons per year of mainly low volatile coal from the combined Berwind mine and Amonate assets.
Randall Atkins — Ramaco Resources Chairman and CEO said: “We are delighted to announce two milestones for us. First, the closing of the purchase of the Amonate Assets from Coronado is a complementary acquisition we had considered for several years. We will now be immediately moving forward to develop these assets in combination with our contiguous Berwind mine complex.
“Also, as we have previously communicated, by now becoming a dividend paying company we are fulfilling a fundamental long-term goal of ours. It is our hope and intention to progressively increase the dividend each year, as we grow the size of the Company to ultimately double production from current levels.”