After an agreement was reached between Swedish engineering company Sandvik and Alpha Metallurgical Resources, the mining materials are set to be produced at a facility in West Virginia.
In the newly formed joint venture, Sanvik maintains 51% ownership while Alpha holds the remaining. The deal establishes local manufacturing of Sandvik’s “ground support” businesses in the US market and includes an exclusive long-term supply agreement with Alpha.
“Creating this joint venture with Sandvik is a step in securing our supply chain by manufacturing more of our mining materials right here in central Appalachia,” said Andy Eidson, CEO of Alpha. “We are excited about the anticipated benefit to Alpha and, more broadly, to the state of West Virginia.”
New 9300 m2 The facility will primarily manufacture rock bolts and resin. According to Sandvik, the site will be designed with the ability to expand in the future if necessary.
Along with the long-term supply agreement with Alpha, the joint venture will market the products to third-party customers.
For mining companies in Central Appalachia, local manufacturing of these products should help reduce wait times and insulate the local economy from global disruptions – factors that are becoming increasingly important across the sector.
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