Kentucky Mine Partners is performing operations at the complex in Knox County.
Earlier this month the company announced production commencement from the No. 2 mine, where it is extracting from the Blue Gem and Jellico seams.
Initial estimates from the Blue Gem and Jellico seams total 8,000-10,000 tons per month combined.
"NAG is looking forward to increasing production at the North American Gem No. 2 mine as well as commencing operations of additional projects," company president Charles Desjardins said.
"This includes the North American Gem Processing Facility [which] has equipment in place that is capable of crushing and screening coal. We will have the ability to purchase outside coal to produce custom blended products for customers, which will increase market potential.”
NAG plans to service the industrial stoker markets, as well as silicon metal producers and electricity generators with the output.
The highest-priced coal grade in the US, Blue Gem coal’s value is about 200% higher than high-quality steam coal.
In addition to coal production, NAG also has interests in molybdenum and other base metals in Canada.
It is currently seeking to sell or establish a joint venture for its Louise Lake copper property.