Ramaco Resources, Inc. Announces a Partial Structural Failure at one of the storage silos at the Company’s Elk Creek coal c...
November 06 2018 - 9:15AM
Ramaco Resources, Inc. (NASDAQ:METC) (“Ramaco” or the
“Company”) announced today that at approximately 1:00 p.m. on
November 5, 2018, one of the three raw coal storage silos that feed
its Elk Creek plant in West Virginia experienced a partial
structural failure, which included the failure of various
components internal to the silo. The damaged storage silo holds
approximately two thousand raw tons of coal. The other two
contiguous silos together hold approximately an additional one
thousand five hundred raw tons of coal.
Ramaco is in the process of evaluating the structural integrity
of the damaged silo, and similar evaluations will be conducted
on the other two silos at Elk Creek. All three silos were
previously existing on the Elk Creek property when it was acquired
by Ramaco in 2012, and were subsequently linked into the newly
constructed preparation plant and loadout facility, which was
completed in late 2017.
There were no personnel related accidents as a result of the
structural failure at the silo. Upon confirmation of the failure,
Ramaco personnel idled the Elk Creek preparation plant, and placed
a safety zone around the areas that could potentially be impacted
from a more severe failure. At this early initial stage of review,
Ramaco does not have an estimated time frame for the resumption of
processing or shipping coal from the Elk Creek infrastructure. All
coal mines at Elk Creek will, however, continue to operate as
scheduled. Depending on the extent of the damage, Ramaco currently
estimates that there is adequate storage area to continue coal
production at the mine complex for an extended period of time,
likely into December and possibly further.
Ramaco has not at this time issued any force majeure notices to
its customers, but it is probable that such notices will be issued
in the near future. Ramaco believes that it has insurance policies
in place to provide adequate financial coverage for the incident,
including both business interruption and extra expenses. Additional
information relating to the physical condition of the silo assets,
insurance coverage and any potential force majeure will be
forthcoming as new information is developed. Any such
additional new information will be relayed in conjunction with
Ramaco’s scheduled earnings release on November 7th and its
subsequent conference call with investors to be held on November
8th.
Ramaco Resources is an operator and
developer of high quality, low cost metallurgical coal in
southern West Virginia, southwestern Virginia and
southwestern Pennsylvania. For more information,
visit www.ramacoresources.com.
POINT OF CONTACT: Michael P. Windisch, Chief
Accounting Officer mpw@ramacocoal.com 859-244-7455
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