AK Coal Resources, Inc.

Sun Coke Energy

In October of 2011, AK Steel acquired a company with significant metallurgical (met) coal interests in Somerset County, Pennsylvania. This company, which was renamed AK Coal Resources, Inc., became a wholly-owned subsidiary of AK Steel. As a result, AK Steel now controls, through ownership and lease, low-volatile met coal reserves estimated to exceed 20 million tons.

AK Steel intends to develop a series of mines for the company to satisfy up to 50 percent of its annual coal needs at a cost substantially below the market price and/or to sell the product as a financial hedge against its future coal purchases. The company anticipates that AK Coal Resources’ met coal production will provide AK Steel with significant cost savings for low-volatile met coal once mining activities commence.

Blends of met coal are used to produce coke, which is a necessary fuel and chemical reducing agent in the production of molten iron in a blast furnace. AK Steel operates blast furnaces at its steel plants in Middletown, Ohio and Ashland, Kentucky.

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