Pennsylvania

CURRENT OPERATIONS – STOCKTON

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Stockton Mine is operated by Atlantic Carbon Group’s 100% owned subsidiary Coal Contractors (1991) Inc., and is located one mile from Hazleton, Luzerne County, Pennsylvania. Geographically it is well positioned, with excellent industry infrastructure surrounding the property including well-maintained state roads and a railroad with nearby rail loading facilities. Geologically, it is located in the eastern portion of the Hazleton Coal basin, part of the Eastern Middle Anthracite coalfield. The Hazleton Coal basin is a relatively long, narrow synclinal fold striking east northeast – west southwest.

Stockton encompasses circa 900 acres and has proven reserves of 1.7 million tons of washed anthracite product. This is primarily located in the Mammoth seam, which reaches thickness of over 40 feet in the bottom of the basin, although there are also significant reserves to be found in the overlying Primrose, Diamond, Orchard and Tracey seams. As Stockton has been mined at various times since the 1850s, there is an excellent library of underground mine plans and cross sections which have given us a wealth of information about the site reserves and geology, demonstrating that there is still an abundance of high quality anthracite remaining. Reserve 'audits' are carried out annually by an independent mine engineering firm, the latest of which has confirmed the current proven reserve figure at 1.7 million tons and given Stockton a forecast mine life of approx. six years although there is scope to increase this with a minor re-alignment of the adjacent railroad track.

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Plant and equipment at the site includes two large capacity hydraulic excavators and fifteen dump trucks as well as an anthracite preparation plant capable of washing 400,000 tons of Run of Mine coal per annum. Mine operations are conducted under a valid mining permit issued by Pennsylvania’s Department of Environmental Protection. Atlantic Carbon Group practices concurrent mine reclamation at Stockton as part of our environmental policy, backfilling the mine pit as we move along the seam. More detailed information can be found on our Modern Mining Processes page describing how our Stockton operations make a significant contribution to reclaiming past mine dereliction.

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Currently a large proportion of Atlantic Carbon Group’s product from Stockton is sold to the steelmaking industry in the US, as well as coal merchants who supply homes and public buildings. The clean burning properties of anthracite mean that the home heating market is a robust one, and conveniently located to the mine. However our product is a high quality one, and so an important component of our current overall sales profile is niche markets such as filtration, and as a tincture for glass products. Anthracite’s suitability in metallurgy and steelmaking is well known, and the board have found there are vast opportunities worldwide for exporting high quality anthracite product, meaning this forms an important part of our future sales profile.

Production of hard rock aggregates has commenced at Stockton Mine in 2017, crushing hard sandstones which are extracted as part of the overburden removal to recover anthracite. The aggregates are shipped from the site via the Stockton rail terminal and provide a useful revenue stream for the Company.