How does building muscle eliminate fat?
I have a lot of excess fat around my tummy. Ive started doing lots of cardio and using the ab machine at the gym to build muscle. What is going to eliminate the fat, just the cardio or the muscle building also? How does that work?
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the energy you use to do cardio and other exercises causes the fat to be broken down and converted to heat energy to fuel the body to do the exercising.
each lb. of muscle you build uses 75 extra calories a day just by existing meaning that it will take more calories to just fuel the body and those are calories that won't be stored as fat.
a lb. of fat only uses 2calories a day just by existing.
cardio will eliminate most of the fat and the more muscle you have the less chance of gaining back more fat.
To loose weight: you eat clean and work out; while spending more calories! To gain muscle: you eat clean and work out; while eating more calories! You can't loose weight and gain muscle at the same time, or loose weight on specific body parts it impossible anatomically. Yeah, if studies and books worked multibillion diet industry in the US would shut down. And if any of them worked USA would be a nation of skinny fit people
Right now it's the fattest country in the world that spends the most money of studies and diet books 
BOTH!
The more muscle you have, the more your body will use them, the more your body will use calories, the more you burn the calories, the more fat you lose.
Thats basically it.