In July 2016, we acquired from Alpha Natural Resources, Inc. (“Alpha”) (i) a preparation plant and coal- loading facility along with a refuse impoundment and (ii) an idle mine at its Knox Creek operations (the “Knox Creek Acquisition”). We do not intend to resume mining operations at the currently idle mine. However, we are evaluating the feasibility of a potential metallurgical deep mine in the Jawbone seam of coal, which would be accessed through the same portal and slope as the idle mine. Assuming the Jawbone seam mine meets our economic and geologic thresholds for development, we anticipate initial production to begin at Knox Creek in 2017. We are currently developing our mine plan for the Jawbone Seam.
The Knox Creek property consists of approximately 43,281 acres of controlled mineral. We are currently conducting coal-washing services for a third party at the Knox Creek preparation plant and loading facility, for a per-ton processing and loading fee pursuant to a contract where we will process approximately 95,000 raw tons of third-party coal monthly through February 2017, generating revenue of approximately $440,000 per month. This contract will expire in February 2017 and will not be renewed. In October 2016, we also began processing coal purchased from third parties in the Knox Creek preparation plant for sale for our own account through RAMACO Coal Sales, LLC, our wholly-owned subsidiary. Once our mines are in production, we will process and load coal mined from our Berwind coal reserve and from the Knox Creek Jawbone seam mine at this facility.