NEW YORK AK Steel Corp. subsidiary AK Coal Resources Inc. expects to receive permits to develop an underground coal mine in Pennsylvania in the second quarter of this year.
The mine is expected to start producing significant amounts of coal in 2014 and meet about 50 percent of West Chester, Ohio-based AK Steels annual metallurgical coal needs by 2015.
Once the mine is fully operational, it is expected to produce about 1 million tons of low-volatility metallurgical coal annually.
"By becoming more vertically integrated with regard to coal and iron ore, AK Steel will gain greater control over its cost structure, enhance its raw materials self-sufficiency and benefit from a financial hedge against global market price increases for those critical steelmaking inputs," AK Steel director of government and public relations Barry Racey told AMM sister publication Steel First.
A version of this article was first published by AMM sister publication Steel First.