The mine is extracting from the Blue Gem and Jellico seams, and marks the company’s first opportunity to mine the highly sought Blue Gem.

NAG said last week that contract miner Kentucky Mine Partners had obtained and staged all necessary equipment, and has begun mining coal from No.2.

Initial estimates for the No. 2 mine from Blue Gem and Jellico total 8,000-10,000 tons per month combined.

Once mined, the coal will be sent to the North American Gem Processing Facility, the company’s central operation and distribution point for its operations in the region.

NAG has already secured a buyer for all of the No. 2 mine’s coal production.

"Blue Gem coal is a rare and increasingly valuable seam of coal used in the production of silicon metals," company president Charles Desjardins said in late July when the final state approvals were received.

"Producing Blue Gem coal has been our primary strategic business focus; this new mine is a significant step forward for the company and we are aiming to achieve our goal of becoming a long-term Blue Gem coal producer."

The highest-priced coal grade in the US, Blue Gem coal’s value is about 200% higher than high-quality steam coal.

NAG also announced last week that its NAG No. 1 highwall/auger operation in Whitley County had been completed.

“The Jellico coal, which averaged in quality less than 12% ash, less than 1.1% sulfur and greater than 12,200Btu [British thermal units], was sold to four buyers over the course of the mine's operations,” NAG officials said.

“Since North American Gem Mine No. 1 was opened for the primary purpose of initiating and streamlining NAG's Kentucky mining operations, the decision to conclude mining at the … mine was based on profitability analysis of the remaining coal at the mine and the need to dedicate assets to more profitable mining operations.”