What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-05-19 compared with 2024-04-15 · 71 added, 135 removed, 427 unchanged (33% of the section changed)

7 unchanged sentences

On November 25, 2020, Quest Energy changed its name to American Carbon Corp.

(American Carbon)

American Carbon currently has seven coal mining and processing operating subsidiaries:

On December 27, 2024, American Carbon changed its name to American Infrastructure Corporation (American Infrastructure Corporation).

American Infrastructure Corporation currently has seven coal mining and processing operating subsidiaries:

McCoy Elkhorn Coal LLC (doing business as McCoy Elkhorn Coal Company) (McCoy Elkhorn), Knott County Coal LLC (Knott County Coal), Deane Mining, LLC (Deane Mining), Wyoming County Coal LLC (Wyoming County), Perry County Resources (Perry County) located in eastern Kentucky and western West Virginia within the Central Appalachian coal basin, and ERC Mining Indiana Corporation (ERC) located in southwest Indiana within the Illinois coal basin.

1 unchanged sentence

Efforts to diversify revenue streams have led to the establishment of additional subsidiaries;

American Metals LLC (AM) which is focused on the aggregation, recovery and sale of recovered metal and steel and American Rare Earth LLC (ARE) which is focused on the purification and monetization of critical and rare earth element deposits and end of life magnets and batteries.

Electrified Materials Corporation (EMC) which is focused on the aggregation, recovery and sale of recovered metal and steel and American Rare Earth LLC (ARE) which is focused on the purification and monetization of critical and rare earth element deposits and end of life magnets and batteries.

During 2024, American Rare Earth LLC changed its name to ReElement Technologies LLC (ReElement).

2 unchanged sentences

Since mid-2019, we have not mined or sold coal which is sold into the thermal coal markets.

All production and future investment will be for the mining of metallurgical coal.

Due to adverse market conditions all mining operations are currently idled.

Should mining operations commence, all production and future investment will be for the mining of metallurgical coal.

The following table is presented for historical purposes.

4 unchanged sentences

McCoy Elkhorn Coal LLC

Located primarily within Pike County, Kentucky, McCoy Elkhorn is currently comprised of one active mine (the Carnegie 1 Mine), one mine in “idle” status (the Mine#15 Mine), two coal preparation facilities (Bevins #1 and Bevins #2), and other mines and permits in various stages of development or reclamation.

Located primarily within Pike County, Kentucky, McCoy Elkhorn is currently comprised of three mines in “idle” status (Mine #15 and the Carnegie 1 and Carnegie 2 Mines), two coal preparation facilities (Bevins #1 and Bevins #2), and other mines and permits in various stages of development or reclamation.

The address for the Bevins #1 and #2 preparation facilities is 2069 Highway 194 E Meta, KY 41501.

The address for Mine #15 is 2560 Highway194 E Meta, KY 41501.

The address for Carnegie 1 is 209 Meathouse Fork Kimper, KY 41502.

McCoy Elkhorn sells its coal to a variety of customers, both domestically and internationally, primarily to the steel making industry as a high-vol “B” coal or blended coal.

The coal controlled at McCoy Elkhorn (along with our other subsidiaries) has not been classified as either “proven” or “probable” as defined in the United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, do not have any “proven” or “probable” reserves under such definition and are classified as an “Exploration Stage” pursuant to Items 1300 through 1305 of Regulation S-K.

Approximate coal deposits owned is 0 tons and leased by McCoy Elkhorn totals 11,108,724 tons as of September 30, 2023.

The current leases contain minimum annual payments of $20,000 and production royalty payments of 7% of gross sales price.

Within the McCoy Elkhorn subsidiary, Carnegie 1 is deemed material under Items 1304 of Regulation S-K.

When operating, McCoy Elkhorn has historically sold its coal to a variety of customers, both domestically and internationally, primarily to the steel making industry as a high-vol “B” coal or blended coal.

Due to adverse market conditions, Mine #15 was in idle status during 2023 and 2024 and the mining operations at Carnegie 1 and 2 were idled during 2023.

Approximate coal deposits owned and leased as of December 31, 2024 are 0 tons and 11,108,724 tons, respectively.

Current leases contain minimum annual payments of $20,000 and production royalty payments based on gross sales price.

Mine #15 is an underground mine in the Millard (also known as Glamorgan) coal seam and located near Meta, Kentucky.

Mine #15 is mined via room-and-pillar mining methods using continuous miners, and the coal is belted directly from the stockpile to McCoy Elkhorn’s coal preparation facility.

Mine #15 is currently a “company run” mine, whereby the Company manages the workforce at the mine and pays all expenses of the mine.

The coal from Mine #15 is stockpiled at the mine site and belted directly to the Company’s nearby coal preparation facilities.

Production at Mine #15 re-commenced under Quest Energy’s ownership in September 2016.

When operating, coal is mined via room-and-pillar mining methods using continuous miners and belted directly from the stockpile to McCoy Elkhorn’s coal preparation facility.

Mine #15 has the estimated capacity to produce up to approximately 40,000 tons per month of coal.

The Company acquired Mine #15 as an idled mine, and since acquisition, the primary work completed at Mine #15 by the Company includes changing working sections within the underground mine, air ventilation enhancements primarily through brattice work and the use of overcasts and installing underground mining infrastructure as the mine advances due to coal extraction.

In 2023, Mine #15 produced approximately 0 tons.

In 2022, Mine #15 produced approximately 0 tons.

During 2022 and 2021, 100% and 100%, respectively, of the coal extracted from Mine #15 was high-vol “B” metallurgical coal quality, of which 100% was sold into the PCI market and 100% was sold into the metallurgical market, respectively.

The mineral available through Mine #15 is leased from various 3 rd party mineral holders.

The mineral available is leased from various 3 rd party mineral holders.

Coal mined from the lease requires a payment of greater of $2.50 per ton or 5% of gross sales price.

The Carnegie 1 Mine is an underground mine in the Alma and Upper Alma coal seams and located near Kimper, Kentucky.

In 2011, coal production from the Carnegie 1 Mine in the Alma coal seam commenced and then subsequently the mine was idled.

Production at the Carnegie 1 Mine was reinitiated in early 2017 under Quest Energy’s ownership and is currently being mined via room-and-pillar mining methods utilizing a continuous miner.

Within the McCoy Elkhorn subsidiary, Carnegie 1 is deemed material under Items 1304 of Regulation S-K.

The Carnegie 1 is an underground mine in the Alma and Upper Alma coal seams and located near Kimper, Kentucky.

When operating, coal is mined via room-and-pillar mining methods utilizing a continuous miner with the estimated capacity to produce up to approximately 10,000 tons per month of coal.

The coal is stockpiled on-site and trucked approximately 7 miles to McCoy Elkhorn’s preparation facilities.

The Carnegie 1 Mine is currently a “company run” mine, whereby the Company manages the workforce at the mine and pays all expenses of the mine.

The Carnegie 1.

Mine has the estimated capacity to produce up to approximately 10,000 tons per month of coal.

The Company acquired the Carnegie 1 Mine as an idled mine, and since acquisition, the primary work completed at the Carnegie 1 Mine by the Company includes mine rehabilitation work in preparation for production, changing working sections within the underground mine, air ventilation enhancements primarily through brattice work, and installing underground mining infrastructure as the mine advances due to coal extraction.

In 2023, the Carnegie 1 Mine produced approximately 67,372.57 tons and sold at an average of $180.32 per ton.

In 2022, the Carnegie 1 Mine produced approximately 59,911.58 tons and sold at an average of $166.09 per ton..

During 2023 and 2022 100% of the coal extracted from the Carnegie 1 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market.

The mineral being mined through Carnegie 1 is leased from a 3 rd party professional mineral company.

Coal mined from the lease requires a payment of greater of $1.75 per ton or 6% of gross sales price.

The Carnegie 2 Mine is an underground mine in the Alma and Upper Alma coal seams and located near Kimper, Kentucky.

In 2021, mine development began and operations at the Carnegie 2 Mine started in August 2022 and is currently being mined via room-and-pillar mining methods utilizing a continuous miner.

In 2023, Carnegie 1 produced approximately 67,000 tons and sold at an average of $180 per ton.

The mineral mined is leased from a 3 rd party professional mineral company with lease payments based on the greater of $1.75 per ton or 6% of gross sales price.

Carnegie 2 is also an underground mine in the Alma and Upper Alma coal seams and located near Kimper, Kentucky.

When operating, coal is mined via room-and-pillar mining methods utilizing a continuous miner with the estimated capacity to produce up to approximately 10,000 tons per month of coal.

The coal is stockpiled on-site and trucked approximately 7 miles to McCoy Elkhorn’s preparation facilities.

The Carnegie 2 Mine is currently a “company run” mine, whereby the Company manages the workforce at the mine and pays all expenses of the mine.

The Carnegie 2.

Mine has the estimated capacity to produce up to approximately 10,000 tons per month of coal.

In 2023, the Carnegie 2 Mine produced approximately 13,000 tons and sold at an average of $237 per ton.

In 2022, the Carnegie 2 Mine produced approximately 6,200 tons and sold at an average of $233.11 per ton.

During 2023 and 2022 100% of the coal extracted from the Carnegie 2 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market.

The mineral being mined through Carnegie 1 is leased from a 3 rd party professional mineral company.

Coal mined from the lease requires a payment of greater of $1.75 per ton or 6% of gross sales price.

American Carbon acquired the PointRock Mine in April 2018.

On May 8, 2020, the PointRock Mine permits were released from the Company’s control upon the settlement agreement with prior permit holder.

Beginning in January 2020 through the report date, Mine #15 and Carnegie 1 mines were idled due to the adverse market effects Covid-19 global pandemic.

The Carnegie 1 mine restarted during October 2021.

The Carnegie 2 mine commenced operations in August 2022.

The mineral being mined is leased from a 3 rd party professional mineral company with lease payments based on the greater of $1.75 per ton or 6% of gross sales price.

Processing & Transportation:

2 unchanged sentences

The Bevins #1 facility has a fine coal circuit and a stoker circuit that allows for enhance coal recovery and various coal sizing options depending on the needs of the customer.

The Company acquired the Bevins Preparation Plants as idled facilities, and since acquisition, the primary work completed at the Bevins Preparation Plants by the Company includes rehabilitating the plants’ warehouse and replacing belt lines.

The Bevins #2 Preparation Plant is on the same permit site as Bevins #1 and is a 500 ton-per-hour processing facility with fine coal recovery and a stoker circuit for coal sizing options.

Bevins #2 has raw coal stockpile storage of 25,000 tons of coal and a clean coal stockpile storage of 45,000 tons of coal.

We are currently utilizing less than 10% of the available processing capacity of Bevins #1 and Bevins #2.

Both Bevins #1 and Bevins #2 have a batch-weight loadout and rail spur for loading coal into trains for rail shipments.

4 unchanged sentences

Both Bevins #1 and Bevins #2 are facilities owned by McCoy Elkhorn, subject to certain restrictions present in the agreement between McCoy Elkhorn and the surface land owner.

Both Bevins #1 and Bevins #2, as well as the rail loadout, are operational and any work required on any of the plants or loadouts would be routine maintenance.

The allocated cost of for this property at McCoy Elkhorn Coal paid by the company is $95,210.

Due to additional coal processing storage capacity at Bevins #1 and Bevins #2 Preparation Plants, McCoy Elkhorn processes, stores, and loads coal for other regional coal producers for an agreed-to fee.

Although currently idle, Bevins #1 and Bevins #2, as well as the rail loadout no work is required beyond routine maintenance to recommence operations.

The 2017 purchase price allocated to the McCoy Elkhorn properties was approximately $95,000.

Due to the processing storage capacity at Bevins #1 and Bevins #2 Preparation Plants, McCoy Elkhorn has the capacity to process, store, and load coal for other regional coal producers for agreed to fees.

Additional Permits:

In addition to the above mines, McCoy Elkhorn holds 11 additional coal mining permits that are idled operations or in various stages of reclamation.

For the idled coal mining operations, McCoy Elkhorn will determine which coal mines to bring back into production, if any, as the coal market changes, and there are currently no other idled mines within McCoy Elkhorn that are slated to go into production in the foreseeable future.

For these other idle coal mining operations, McCoy Elkhorn will determine which coal mines to bring back into production, if any, as the coal market changes, and there are currently no other idled mines within McCoy Elkhorn that are slated to go into production in the foreseeable future.

Any idled mines that are brought into production would require significant upfront capital investment, and there is no assurance of the feasibility of any such new operations.

1 unchanged sentence

Knott County Coal LLC

Located primarily within Knott County, Kentucky (but with additional idled permits in Leslie County, Perry County, and Breathitt County, Kentucky), Knott County Coal is comprised of one active mine (the Wayland Surface Mine) and 22 idled mining permits (or permits in reclamation), including the permits associated with the idled Supreme Energy Preparation Plant.

Located primarily within Knott County, Kentucky (but with additional idled permits in Leslie County, Perry County, and Breathitt County, Kentucky), Knott County Coal is comprised of one idled mine (the Wayland Surface Mine) and 22 idled mining permits (or permits in reclamation), including the permits associated with the idled Supreme Energy Preparation Plant.

The idled mining permits are either in various stages of planning, idle status or reclamation.

The idled mines at Knott County Coal are primarily underground mines that utilize room-and-pillar mining.

The coal controlled at Knott County Coal (along with our other subsidiaries) has not been classified as either “proven” or “probable” as defined in the United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, do not have any “proven” or “probable” reserves under such definition and are classified as an “Exploration Stage” pursuant to Items 1300 through 1305 of Regulation S-K.

Approximate coal deposits owned by Knott County is 0 tons and leased by Knott County totals 3,206,713 tons.

The current leases contain minimum annual payments of $0 and production royalty payments of the great of $1.50 per clean ton or 6% of gross sales price.

The idled mines at are primarily underground mines that utilize room-and-pillar mining.

Approximate coal deposits owned and leased are 0 tons and 3,207,000 tons, respectively.

The current leases contain production royalty payments based on the greater of $1.50 per clean ton or 6% of gross sales price.

The Wayland Surface Mine is a surface waste-rock reprocessing mine in a variety of coal seams (primarily the Upper Elkhorn 1 coal seam) located near Wayland, Kentucky.

The Wayland Surface Mine is mined via area mining through the reprocessing of previously processed coal, and the coal is trucked approximately 22 miles to the Mill Creek Preparation Plant at Deane Mining, where it is processed and sold.

The Wayland Surface Mine is currently a “company run” mine, whereby the Company manages the workforce at the mine and pays all expenses of the mine.

During June 2018, production at the Wayland Surface Mine commenced under Quest Energy’s ownership.

The associated permit was purchased during May 2018.

Since acquisition, the primary work completed at the Wayland Surface Mine has been removing overburden to access the coal.

The Wayland Surface Mine has the estimated capacity to produce up to approximately 15,000 tons per month of coal and started production in mid-2018 with nominal coal extracted and sold as thermal coal.

In 2022, the Wayland Surface Mine produced approximately 0 tons.

In 2021, the Wayland Surface Mine produced approximately 0 tons.

During 2022, the Wayland Surface Mine was idled due to the company’s focus on the metallurgical and industrial markets.

No tons were produced during 2023.

When operating, coal is mined via area mining through the reprocessing of previously processed coal, and the coal is trucked approximately 22 miles to the Mill Creek Preparation Plant at Deane Mining, where it is processed and sold.

The mine has an estimated capacity to produce up to approximately 15,000 tons per month of coal and started production in mid-2018 with nominal coal extracted and sold as thermal coal.

Since 2022, mining operations have been idle due to the company's focus on the metallurgical and industrial markets and adverse market conditions.

Other potential customers of Knott County Coal include industrial customers, specialty customers and utilities for electricity generation, although no definitive sales have been identified yet.

2 unchanged sentences

The Bates Branch rail loadout associated with the Supreme Energy Preparation Plant is a batch-weigh rail loadout with 220 rail car storage capacity and serviced by CSX Transportation in their Big Sandy rate district.

The coarse refuse is trucked to the Kings Branch impoundment, which is approximately one mile from the Supreme Energy facility.

The slurry from coal processing is piped from the Supreme Energy facility to the Kings Branch impoundment.

The Supreme Energy Preparation Plant is owned by Knott County Coal, subject to certain restrictions present in the agreement between Knott County Coal and the surface land owner, Land Resources & Royalties LLC.

When operating, coarse refuse is trucked to the Kings Branch impoundment, which is approximately one mile from the Supreme Energy facility, and slurry is piped from the Supreme Energy facility to the Kings Branch impoundment.

During 2024 components of the Supreme Energy Preparation Plant have been transferred as part of the WCC development.

The Company acquired the Supreme Energy Preparation Plants as an idled facility, and since acquisition, no work has been performed at the facility other than minor maintenance.

Both the Supreme Energy Preparation Plant and the rail loadout are idled and would require an undetermined amount of work and capital to bring them into operation.

The allocated cost of for the property at Knott County Coal paid by the Company is $286,046.

The purchase price allocated of the Knott County Coal property was approximately $286,000.

Additional Permits:

In addition to the above mines, Knott County Coal holds 20 additional coal mining permits that are in development, idled or in various stages of reclamation.

In addition to the above mines, Knott County Coal holds 20 additional coal mining permits, idled or in various stages of reclamation.

Any idled mines that are brought into production would require significant upfront capital investment and there is no assurance of the feasibility of any such new operations.

25 unchanged sentences

The associated Rapid Loader rail loadout is a batch-weight rail loadout with 110 car storage capacity and services by CSX Transportation in their Big Sandy and Elkhorn rate districts.

The Mill Creek Preparation Plant is owned by Deane Mining, subject to certain restrictions present in the agreement between Deane Mining and the surface land owner, Land Resources & Royalties LLC.

The Mill Creek Preparation Plant is owned by Deane Mining, subject to certain restrictions present in the agreement between Deane Mining and the surface landowner, Land Resources & Royalties LLC.

We are currently utilizing less than 10% of the available processing capacity of the Mill Creek Preparation Plant.

6 unchanged sentences

Wyoming County Coal LLC

Located within Wyoming County, West Virginia, Wyoming County Coal is comprised of two idled underground mining permits and the three permits associated with the idled Pioneer Preparation Plant, the Hatcher rail loadout, and Simmons Fork Refuse Impoundment.

Located within Wyoming County, West Virginia, Wyoming County Coal (WCC) is comprised of two idled underground mining permits and the three permits associated with the idled Pioneer Preparation Plant, the Hatcher rail loadout, and Simmons Fork Refuse Impoundment.

The two idled mining permits are undisturbed underground mines that are anticipated to utilize room-and-pillar mining.

The coal controlled at Wyoming County Coal (along with our other subsidiaries) has not been classified as either “proven” or “probable” as defined in the United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, do not have any “proven” or “probable” reserves under such definition and are classified as an “Exploration Stage” pursuant to Items 1300 through 1305 of Regulation S-K.

Approximate coal deposits owned by Wyoming County is 5,668,115 tons and leased by Knott County totals 0 tons.

The mining permits held by Wyoming County Coal are in various stages of planning and development with no mines currently in production.

Potential customers of Wyoming County Coal would include steel mills in the United States or international marketplace although no definitive sales have been identified yet.

Approximate coal deposits owned and leased are 5,668,00 tons and 0 tons, respectively.

The mining permits held by WCC are in various stages of planning and development with no mines currently in production.

Potential customers of WCC would include steel mills in the United States or international marketplace although no definitive sales have been identified yet.

Processing & Transportation:

1 unchanged sentence

The Hatcher rail loadout associated with the Pioneer Preparation Plant is a rail loadout serviced by Norfolk Southern Corporation.

The refuse from the preparation facility is trucked to the Simmons Fork Refuse Impoundment, which is approximately 1.0 mile from the Pioneer Preparation facility.

When operating, the refuse from the preparation facility will be trucked to the Simmons Fork Refuse Impoundment, which is approximately 1.0 mile from the Pioneer Preparation facility.

The preparation plant utilizes a belt press technology which eliminates the need for pumping slurry into a slurry pond for storage within an impoundment.

The Company is in the process of upgrading and redeveloping the preparation facility to a modern 350 ton per hour preparation facility.

The Company is also in the planning phase of upgrading the rail load out facility to a modern batch weight load out system.

The Company acquired the Pioneer Preparation Plants as an idled facility, and since acquisition, no work has been performed at the facility.

Both the Pioneer Preparation Plant and the rail loadout are idled and would require an undetermined amount of work and capital to bring them into operation, which is currently in the initial phases of planning and no cost estimates have been received.

The allocated cost for the property at Wyoming County Coal will pay by the Company is $22,326,101 of which $22,091,688 has been paid using shares of the Company’s Class A Common stock.

In June 2023, WCC closed on an Industrial Development Bond in the amount of $45,000,000 for the purpose of financing the development of the permits and infrastructure.

As of December 31, 2024 and 2023, approximately $32,500,000 and $9,500,000 of the $36,500,000 initial project fund have been expended, respectively.

Due to a delay in government approvals and the expansion of rare earth concentrations it is undeterminable as to when meaningful operations will commence and the additional capital expenditures required.

In connection with the Industrial Development Bond financing, the Company is in the process of upgrading and redeveloping the preparation facility to a modern 350 ton per hour preparation facility and upgrading the rail load out facility to a modern batch weight load out system.

The Company acquired the Pioneer Preparation Plant as an idled facility.

The purchase price allocated to the Wyoming County Coal property was approximately $22,300,000 of which approximately $22,100,000 was settled with shares of the Company’s Class A Common stock.

The remaining portion was satisfied in the form of a convertible note which was converted to Company common stock in December 2020.

Wyoming County Coal holds two coal mining permits that are in the initial planning phase and three permits associated with the idled Pioneer Preparation Plant, the Hatcher rail loadout, and Simmons Fork Refuse Impoundment.

Any mine that is brought into production would require significant upfront capital investment and there is no assurance of the feasibility of any such new operations.

As of the report date, the permits have not been fully transferred as they await final regulatory approval.

As of the balance sheet date and report date, the West Virginia permit transfers have not yet been approved, and WCC has not substituted its reclamation surety bonds for the seller’s bond collateral.

The transfer of any new permits to the Company is subject to regulatory approval.

This approval is subject to the review of both unabated or uncorrected violations that are listed on the Applicator Violator List.

The Company, to include several of its subsidiaries, does have unabated and/or uncorrected violations that are listed on the Applicator Violator List.

Should the state regulators believe that the Company is not in the process of abating or correcting the currently outstanding issues associated with their currently held permits they may choose not to issue the Company any new permits until such issues are properly rectified.

Wyoming County Coal holds two coal mining permits that are in the development phase including faceup and infrastructure work and three permits associated with the idled Pioneer Preparation Plant, the Hatcher rail loadout, and Simmons Fork Refuse Impoundment.

Below is a map showing the location of the idled Pioneer Prep Plant, Hatcher rail Loadout, and Simmons Fork Refuse Impoundment at Wyoming County Coal:

Perry County Resources LLC

Located primarily within Perry County, Kentucky, Perry County Resources LLC is comprised of one active underground mine (the E4-2 mine) and one active coal processing facility called the Davidson Branch Preparation Plant, along with two additional idled underground mining permits.

Located primarily within Perry County, Kentucky, Perry County Resources LLC is comprised of one idled underground mine (the E4-2 mine) and one idled coal processing facility called the Davidson Branch Preparation Plant, along with two additional idled underground mining permits.

The E4-2 mine and Davidson Branch Preparation Plan are located at 1845 KY-15 Hazard, KY 41701.

The two idled mining permits are for underground mines and have been actively mined in the past and being maintained as idled, pending any changes to the coal market that may warrant re-starting production.

The coal controlled at Perry County Resources (along with our other subsidiaries) has not been classified as either “proven” or “probable” as defined in the United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, do not have any “proven” or “probable” reserves under such definition and are classified as an “Exploration Stage” pursuant to Items 1300 through 1305 of Regulation S-K.

Approximate coal deposits owned by Perry County is 0 tons and leased by Perry County totals 58,108,612 tons.

Approximate coal deposits owned and leased are 0 tons and 58,100,000 tons.

The current leases contain minimum annual payments of $12,000 and production royalty payments ranging from 6% to 7% of gross sales price.

1 unchanged sentence

The E4-2 mine is an underground mine in the Elkhorn 4 (aka the Amburgy) coal seam located near the town of Hazard, Kentucky.

The E4-2 mine is mined via room-and-pillar mining methods using both continuous miners and continuous haulage systems, and the coal is belted directly from the mine to the raw coal stockpile at the Davidson Branch Preparation Plant less than a mile away.

The E4-2 mine is currently a “company-run” mine, whereby the Company manages the workforce at the mine and pays all expenses of the mine.

The Company acquired the E4-2 mine as an active mine, and since acquisition in September 2019, the primary work at the E4-2 mine has been rehabilitation of existing infrastructure to increase the operational efficiencies of the mine, including replacing belt structure, repairing equipment, replacing underground mining infrastructure, and installing new mining infrastructure as the mine advances due to coal extraction.

When operating, coal is mined via room-and-pillar mining methods using both continuous miners and continuous haulage systems, and the coal is belted directly from the mine to the raw coal stockpile at the Davidson Branch Preparation Plant less than a mile away.

The E4-2 mine has the estimated capacity to produce up to approximately 80,000 tons per month of coal.

The mineral available through the E4-2 mine is partially owned by the Company and partially leased from various mineral holders.

The mineral available is partially owned by the Company and partially leased from various mineral holders.

The lease terms are the greater of $1.50 per ton or 6% of gross sales price.

In 2023, the EF-2 mine produced approximately 0 tons.

In 2022, the E4-2 mine produced approximately 105,577.11 tons and sold the coal at an average price of $153.43.

In 2022, the E4-2 mine produced approximately 106,000 tons and sold the coal at an average price of $153 per ton.

During the period of ownership by the Company, 100% of the coal sold was sold as industrial stoker and PCI.

Beginning in January 2020, The E4-2 mine was idled due to the adverse market effects Covid-19 global pandemic.

The E4-2 Mine was restarted during March 2021.

During 2022, the E4-2 Mine was idled due to regional historic flooding and the declared national emergency.

Since the end of 2022, the mine has been idle due to adverse market conditions.

Processing and Transportation:

2 unchanged sentences

The Davidson Branch Preparation Plant is owned by Perry County Resources.

We are currently utilizing less than 10% of the available processing capacity of the Davidson Branch Preparation Plant.

Both the Davidson Branch Preparation Plant and the rail loadout are operational, and any work required on any of the plant or loadouts would be routine maintenance.

The allocated cost of for the property at Perry County Resources paid by the Company is $1,550,663.

With mining operations currently idle, the preparation plan is not currently operating.

Both the Davidson Branch Preparation Plant and the rail loadout have been maintained should operations commence in a future period.

The purchase price allocated to Perry County Resources property was approximately $1,551,000.

Additional Permits:

In addition to the above mine, preparation facility, and related permits, Perry County Resources holds four additional coal mining permits that are idled or in development.

In addition to the above mine, preparation facility, and related permits, Perry County Resources had four additional coal mining permits that are idled or in development stage.

Any idled mines that are brought into production would require significant upfront capital investment and there is no assurance of the feasibility of any such new operations.

Three of the idled permits were sold to an unrelated entity on March 4, 2020 for $700,000 cash and $300,000 of value for equipment.

As of the report date, the permits have not been fully transferred as they await final regulatory approval.

The transfer of any new permits to the Company is subject to regulatory approval.

6 unchanged sentences

ERC sold its coal in the past as thermal coal to utilities.

The Company does not plan to mine the property and purchased it for monetization of infrastructure assets and to reclaim the property which was in process during 2021 and continued during 2022 and 2023.

The coal controlled at ERC (along with our other subsidiaries) has not been classified as either “proven” or “probable” as defined in the United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, do not have any “proven” or “probable” reserves under such definition and are classified as an “Exploration Stage” pursuant to Items 1300 through 1305 of Regulation S-K.

Approximate coal deposits owned by ERC is 4,383,298 tons and leased by ERC totals 0 tons.

The Company does not plan to mine the property and purchased it for monetization of infrastructure assets and to reclaim the property which has been ongoing through 2024.

The Company is facilitating the full reclamation and remediation of the former mine site.

Approximate coal deposits owned and leased are 0 tons and 4,383,298 tons, respectively.

All of the deposits are in reclamation.

1 unchanged sentence

Currently idled, the Gold Star Mine has been mined in the past via room-and-pillar mining methods using continuous miners, and the coal is belted directly from the mine to the raw coal stockpile at the preparation plant less than a mile away.

The Company is facilitating the full reclamation and remediation of the former mine site.

Processing and Transportation:

2 unchanged sentences

The preparation plant has a coarse refuse and slurry impoundment.

The allocated cost of for the property at Gold Star paid by the Company is $-.

There was no purchase price allocated to the Gold Star property.

ERC holds one permit that covers the Gold Star Mine, processing plant, rail loadout, and related infrastructure which are in reclamation status.

1 unchanged sentence

Coal mining and processing involves the extraction of coal (mineral) and the use of surface property incidental to such extraction and processing.

All of the mineral and surface related to the Company’s coal mining operations is leased from various mineral and surface owners (the “Leases”).

With the exception of Wyoming County Coal, all of the mineral and surface related to the Company’s coal mining operations are leased from various mineral and surface owners (the “Leases”).

The Company’s operating subsidiaries, collectively, are parties to approximately 200 various Leases and other agreements required for the Company’s coal mining and processing operations.

3 unchanged sentences

During the year ended December 31, 2023, coal sales came from the Company’s Carnegie 1 and 2 mines.

During the year ended December 31, 2022, coal sales came from the Company’s Perry’ E4-2 mine and McCoy’s Carnegie 1 and 2 mines.

During the year ended December 31, 2024, there was no meaningful sales from coal production.

The Company may, at times, purchase coal from other regional producers to sell on its contracts.

Coal sales at the Company is primarily outsource to third party intermediaries who act on the Company’s behalf to source potential coal sales and contracts.

Coal sales at the Company are primarily outsource to third party intermediaries who act on the Company’s behalf to source potential coal sales and contracts.

The third-party intermediaries have no ability to bind the Company to any contracts, and all coal sales are approved by management of the Company.

Met coal accounted for approximately 100% and 91% of our coal revenues for the years ended December 31, 2023 and 2022, respectively.

Two customers made up approximately 74% and 26% of our coal revenues for the year ended December 31, 2023.

Three customers made up approximately 62%, 28% and 19% of our coal revenues for the year ended December 31, 2022.

Met coal accounted for approximately 100% of our coal revenues in 2023.

Two customers made up approximately 74% and 26% of our coal revenues for 2024.

Due to the Covid-19 global pandemic, traditional sales channels have been disrupted.

As a supplier of the raw materials into the steel and industrial industries, our customers are sensitive to global fluctuations in steel demand.

Demand remains constrained due to adverse market conditions amid global trade uncertainty.

The coal industry is intensely competitive.

53 unchanged sentences

The current per ton fee is $0.224 per ton for surface mined coal and $0.096 per ton for underground mined coal.

In 2023, we recorded $X.X million of expense related to these reclassification fees.

Mining Permits and Approvals

123 unchanged sentences

Collectively, these initiatives could result in higher electric costs to our customers or lower the demand for coal used in electric generation, which could in turn adversely impact our business.

At present, we are principally focused on metallurgical coal production, which is not used in connection with the production of power generation.

At present, we are principally focused on metallurgical coal property development, which is not used in connection with the production of power generation.

However, we may seek to sell greater amounts of our coal into the power-generation market in the future.

33 unchanged sentences

Changes and proposed changes in state and federally recommended water quality standards may result in the issuance or modification of permits with new or more stringent effluent limits or terms and conditions.

For instance, waters.

For instance, waters that states have designated as impaired (i.e., as not meeting present water quality standards) are subject to Total Maximum Daily Load regulations, which may lead to the adoption of more stringent discharge standards for our coal mines and could require more costly treatment.

65 unchanged sentences

Each of these laws can impact permitting or planned operations and can result in additional costs or operational delays.

Our principal offices are located at 12115 Visionary Way, Fishers, Indiana 46038.

We pay $8,911.56 per month in rent for the office space and the rental lease expires December 2032.

We also rent office space from an affiliated entity, LRR, at 11000 Highway 7 South, Kite, Kentucky 41828 and pay $1,702 per month rent and the rental lease expires January 1, 2030.

On August 17, 2021, ReElement entered into a Commercial Land Lease sublease agreement with Land Betterment for nearly 7 acres of land for the purpose of building a commercial grade critical element purification facility.

The sublease is for the period of 5 years with a rate of $3,500 a month.

On October 8, 2021, ReElement entered into a Commercial Lease for 6,700 square feet of warehouse space for the operation of a commercial grade critical element purification facility.

This for the period of 2 years with a rate of $5,059.28 a month which has ability for annual extensions

The Company also utilizes various office spaces on-site at its coal mining operations and coal preparation plant locations in eastern Kentucky, with such rental payments covered under any surface lease contracts with any of the surface land owners.

The following map shows the location of our mining properties:

ARC, through its operating subsidiaries, employs a combination of company employees and contract labor to mine coal, process coal, and related functions.

ARC and its operating subsidiaries, employ a combination of company employees and contract labor.

The Company is continually evaluating the use of company employees and contract labor to determine the optimal mix of each, given the needs of the Company.

Currently, McCoy Elkhorn’s Carnegie 1 and 2 Mines and Perry’s E4-1 mine and are primarily run by contract labor under Company management and direction, and the Company’s various coal preparation facilities are run by contract labor.

The Company currently has approximately 23 direct employees.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business