All are specialty coal seams and are anticipated to sell in the $70-80 range per ton, at current coal prices. AECo is currently negotiating a sales contract for its initial monthly production of 10-12,000 tons of coal, to be delivered on a 15-month contract with Blueflame Coal located in Knoxville, Tennessee.
Chris Headrick, president and Co-CEO of AECo, said: “The Highway 92 Property is representative of the exceptional quality of the coal properties that the Evans Coal has assembled over the last 15 years. Combined with the Upland Church property, our total monthly production will be increased to approximately 25,000 tons.
“AECo also owns a proven reserve of more than 4.57 million tons of coal in Bledsoe county, Tennessee where we have recently completed the required overburden drilling on the coal property and are moving forward with our engineers to obtain a surface mine permit. The property includes two seams of coal, the Richland and the Sewannee.”
