What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-03-15 compared with 2020-03-18 · 218 added, 209 removed, 524 unchanged (45% of the section changed)

Unless otherwise indicated or the context otherwise requires, references in this “Business” section to “the combined company,” “we,” “us” and other similar terms refer to Contura Energy, Inc.

and its consolidated subsidiaries after giving effect to the Merger.

We are a large scale, diversified provider of met and thermal coal to a global customer base.

We operate high-quality, cost-competitive coal mines across coal basins in Virginia, West Virginia and Pennsylvania.

Our portfolio of mining operations consists of 21 underground mines, eight surface mines and 10 coal preparation plants.

Unless otherwise indicated or the context otherwise requires, references in this “Business” section to “the combined company,” “we,” “us” and other similar terms refer to Alpha Metallurgical Resources, Inc.

and its consolidated subsidiaries (previously Contura Energy, Inc.

and its consolidated subsidiaries).

Effective February 1, 2021, we changed our corporate name from Contura Energy, Inc.

to Alpha Metallurgical Resources, Inc.

to more accurately reflect our strategic focus on the production of metallurgical coal.

Following the effectiveness of our name change, our ticker symbol on the New York Stock Exchange changed from “CTRA” to “AMR” effective on February 4, 2021.

We are a Tennessee-based mining company with operations across Virginia and West Virginia.

With customers across the globe, high-quality reserves and significant port capacity, we are a leading U.S.

supplier of metallurgical products for the steel industry.

We operate high-quality, cost-competitive coal mines across the Central Appalachia (“CAPP”) coal basin.

Our portfolio of mining operations consists of 16 underground mines, seven surface mines and eight coal preparation plants.

We own a 65.0% interest in Dominion Terminal Associates (“DTA”), a coal export terminal in eastern Virginia.

DTA provides us with the ability to fulfill a broad range of customer coal quality requirements through coal blending, while also providing storage capacity and transportation flexibility.

Although we are in the process of shifting our focus toward met coal production and away from thermal coal production, we currently produce a diverse mix of coal products, which enables us to satisfy a broad range of customer needs across all our operations.

In the Central Appalachia (“CAPP”) coal basin, we predominantly produce low-ash metallurgical (“met”) coal, including High-Vol.

B, Mid-Vol., and Low-Vol., which is shipped to domestic and international coke and steel producers.

In the CAPP coal basin, we also produce low sulfur, high British thermal unit (“BTU”) thermal coal for electricity generation, as well as specialty coal for industrial customers.

In the Northern Appalachia (“NAPP”) coal basin, we produce primarily high-BTU thermal coal.

This thermal coal has metallurgical properties, but it is higher in sulfur content than typical products sold in the metallurgical coal market.

Limited volumes can be placed in the metallurgical coal market where customers have the flexibility to accommodate quantities of higher sulfur coal in their coking coal blends.

We predominantly produce low-ash metallurgical (“met”) coal, including High-Vol.

A, Mid-Vol., High-Vol.

B, and Low-Vol.

coal, which is shipped to domestic and international coke and steel producers.

Although our strategic focus is on the production of met coal, we also produce low sulfur, high British thermal unit (“BTU”) thermal coal for electricity generation, as well as specialty coal for industrial customers.

Our thermal coal is primarily sold to the domestic power generation industry.

We have three reportable segments:

CAPP - Met, CAPP - Thermal, and NAPP.

We have two reportable segments:

Met, and CAPP - Thermal.

Refer to Note 25 to the Consolidated financial statements for more information about our reportable segments.

We have a substantial reserve base of 445.0 million tons of proven reserves and approximately 178.5 million tons of probable reserves, which we believe could support current production levels for more than 25 years based on our 2020 production levels.

Our reserve base in CAPP - Met consists of 443.1 million tons of proven and 201.6 million tons of probable reserves, of which 96% is met coal.

Our reserve base in Met consists of 441.1 million tons of proven and 178.0 million tons of probable reserves, of which 91% is met coal.

Our reserve base in CAPP - Thermal consists of 3.9 million tons of proven and 0.5 million tons of probable reserves, of which 100% is thermal coal.

Our reserve base in NAPP consists of 395.9 million tons of proven and 248.5 million tons of probable reserves, of which 93% is thermal coal.

Through our operations and reserves in two major U.S.

coal producing basins, we are able to source coal from multiple mines to meet the needs of a long-standing global customer base, many of which have been served by us or our predecessors for over a decade.

Through our operations and reserves across coal producing basins in Virginia and West Virginia, we are able to source coal from multiple mines to meet the needs of a long-standing global customer base, many of which have been served by us or our predecessors for over a decade.

We are continuously evaluating opportunities to strategically cultivate current relationships to drive new business in our target growth markets that include India and Southeast Asia, among others.

In addition, our experienced management team continues to analyze acquisitions, joint ventures and other opportunities that would be accretive and synergistic to our existing asset portfolio.

We have also identified the following organic met coal opportunities which are currently in development:

Road Fork 52 in CAPP - Met, which is primarily a reserve replacement mine, but could potentially provide incremental production of Low-Vol.

met coal in the near term.

The mine began production in the first quarter of 2020.

Black Eagle in CAPP - Met, which is expected to provide 0.7-0.8 million tons per year of High-Vol.

Lynn Branch Project in CAPP - Met, which is primarily a reserve replacement mine, but could potentially provide incremental production of High-Vol.

B+ met coal in the near term.

Production at these adjacent mines provides embedded growth potential while leveraging existing infrastructure.

In addition, our operational footprint in two U.S.

coal basins provides significant opportunities for potential synergies from domestic acquisitions.

We were formed to acquire and operate certain of Alpha Natural Resources, Inc.’s (“Alpha”) former core coal operations, as part of the Alpha Restructuring in 2016.

We entered into various settlement agreements with the Alpha Debtors, their bankruptcy successor, and third parties as part of the Alpha Debtors’ bankruptcy reorganization process.

We assumed acquisition-related obligations through those settlement agreements, which became effective on July 26, 2016, the effective date of the Alpha Debtors’ Plan of Reorganization.

In addition, our experienced management team regularly analyzes acquisitions, joint ventures and other opportunities that would be accretive and synergistic to our existing asset portfolio.

During 2020, we began production at Road Fork 52, Black Eagle and Lynn Branch which were previously identified organic met coal opportunities within Met.

Road Fork 52 and Lynn Branch are primarily reserve replacement mines, but they are expected to provide some incremental production of Low-Vol.

and High-Vol.

B+ met coal, respectively.

The Black Eagle mine is expected to increase production of Marfork High-Vol met coal.

Production at these adjacent mines provides embedded growth potential while utilizing existing infrastructure.

We were formed to acquire and operate certain of Alpha Natural Resources, Inc.’s former core coal operations, as part of the Alpha Natural Resources, Inc.

Plan of Reorganization in 2016.

We entered into various settlement agreements with the Debtors, their bankruptcy successor, and third parties as part of the Debtors’ bankruptcy reorganization process.

We assumed acquisition-related obligations through those settlement agreements, which became effective on July 26, 2016, the effective date of the Debtors’ Plan of Reorganization.

Refer to Note 16 for further information on our acquisition-related obligations.

We began operations on July 26, 2016 and currently operate mines in the Northern Appalachia and Central Appalachia regions.

We began operations on July 26, 2016 and currently operate mines in the Central Appalachia region.

On December 8, 2017, we closed a transaction with Blackjewel L.L.C.

(“Buyer” or “Blackjewel”) to sell the Eagle Butte and Belle Ayr mines located in the Powder River Basin (“PRB”), Wyoming, along with related coal reserves, equipment, infrastructure and other real properties.

The PRB results of operations and financial position are reported as discontinued operations in the Consolidated Financial Statements.

The historical information in the accompanying Notes to the Consolidated Financial Statements has been restated to reflect the effects of the PRB operations being reported as discontinued operations in the Consolidated Financial Statements.

Refer to Note 4 for further information on discontinued operations.

(“Buyer” or “Blackjewel”) to sell our Eagle Butte and Belle Ayr mines located in the Powder River Basin (“PRB”), Wyoming, along with related coal reserves, equipment, infrastructure and other real properties.

Refer to Note 3 for information related to Blackjewel’s subsequent bankruptcy filing and the related ESM Transaction.

We merged with Alpha Natural Resources Holdings, Inc.

1 unchanged sentence

on November 9, 2018.

Upon the consummation of the transactions contemplated by a definitive merger agreement (the “Merger Agreement”), our common stock began trading on the New York Stock Exchange under the ticker “CTRA.” Refer to Note 3 for information on terms of the Merger Agreement.

Previously, our shares traded on the OTC market under the ticker “CNTE.”

Upon the consummation of the transactions contemplated by a definitive merger agreement (the “Merger Agreement”), our common stock began trading on the New York Stock Exchange under the ticker “CTRA.” Previously, our shares traded on the OTC market under the ticker “CNTE.”

On December 10, 2020, we closed on a transaction with Iron Senergy Holdings, LLC, to sell our thermal coal mining operations located in Pennsylvania consisting primarily of our Cumberland mining complex and related property (our former Northern Appalachia (“NAPP”) operations).

This transaction accelerated our strategic exit from thermal coal production to shift our focus to met coal production.

The former PRB and NAPP operations results of operations and financial position are reported as discontinued operations in the Consolidated Financial Statements.

The historical information in the accompanying Notes to the Consolidated Financial Statements has been restated to reflect the effects of these former operations being reported as discontinued operations in the Consolidated Financial Statements.

Refer to Note 3 for further information on discontinued operations.

Effective February 1, 2021, we changed our corporate name from Contura Energy, Inc.

to Alpha Metallurgical Resources, Inc.

to more accurately reflect our strategic focus on the production of met coal.

Following the effectiveness of our name change, our ticker symbol on the New York Stock Exchange changed from “CTRA” to “AMR” effective on February 4, 2021.

Operations and Properties

1 unchanged sentence

Number & Type of Mines as of December 31, 2020

Reportable Segment

Preparation Plants / Shipping Points as of December 31, 2019

McClure, Toms Creek, Bandmill, Kepler, Kingston, Marfork, Power Mountain, Pax Loadout, Delbarton, Mammoth, Marmet

CAPP - Thermal

Bandmill, Delbarton, Mammoth, Kingston, Marfork, Pax Loadout, Marmet

Cumberland, Labelle River & Rail Terminal

Reportable Segment

Coal Qualities

Transportation

2019 Production of Saleable Tons (in thousands) (1)

Reportable Segment Location Preparation Plants / Shipping Points as of December 31, 2020 Underground Surface Total

Met VA, WV McClure, Toms Creek, Bandmill, Kepler, Kingston, Marfork, Power Mountain, Pax Loadout, Mammoth, Marmet, Feats Loadout 15 7 22

CAPP - Thermal WV Bandmill, Mammoth 1 — 1

Reportable Segment Primary Coal Qualities Transportation 2020 Production of Saleable Tons (in thousands) (1)

Met High-Vol.

Met, Mid-Vol.

Met, Low-Vol.

Truck, CSX Transportation, Norfolk Southern Railway Company, Barge

CAPP - Thermal

Truck, CSX Transportation, Norfolk Southern Railway Company, Barge

Met Truck, CSX Transportation, Norfolk Southern Railway Company, Barge 12,157

CAPP - Thermal Thermal Truck, CSX Transportation, Norfolk Southern Railway Company, Barge 1,978

(1) Includes coal purchased from third-party producers that was processed at our preparation plants in 2020.

We consider Deep Mine 41, Road Fork 52, Black Eagle, and the Lynn Branch Project in CAPP - Met and Cumberland Mine in NAPP to be individually material mines.

Road Fork 52 and the Lynn Branch are primarily reserve replacement mines, but they could provide incremental production of Low-Vol.

and High-Vol.

B+ met coal, respectively.

The Black Eagle mine is a development project which is expected to increase production of Marfork High-Vol met coal.

Our CAPP - Met operations consist of high-quality met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch.

The coal produced by CAPP - Met operations is predominantly met coal with some amounts of thermal coal being produced as a byproduct of mining.

The following table provides a summary of our CAPP - Met coal qualities during the years ended December 31, 2019 and 2018:

We consider Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch in Met to be individually material mines.

Our Met operations consist of high-quality met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch.

The coal produced by Met operations is predominantly met coal with some amounts of thermal coal being produced as a byproduct of mining.

The following table provides a summary of our Met operations’ coal qualities during the years ended December 31, 2020 and 2019:

Year Ended December 31,

Coal Qualities 2020 2019

During the years ended December 31, 2019 and 2018 , we shipped 8.4 million tons and 9.6 million tons, respectively, of our coal production from our CAPP - Met operations internationally to customers in Europe, Asia and the Americas, with the remaining met coal production sold into the domestic market.

A 36.3% 38.2%

B 19.4% 19.5%

Thermal 8.0% 6.5%

During the years ended December 31, 2020 and 2019, we shipped 9.1 million tons and 8.4 million tons, respectively, of our coal production from our Met operations internationally to customers in Europe, Asia and the Americas, with the remaining met coal production sold into the domestic market.

Properties, Costs & Calculations, for the two-year historical average sales prices.

Deep Mine 41, associated with the McClure Prep Plant, is located in Dickenson County, Virginia on property subject to a lease dated April 1, 2003.

Contura can automatically extend the lease until March 31, 2063.

We can automatically extend the lease until March 31, 2063.

The McClure Plant is a 1,000 ton per hour plant that is located on owned property in Dickenson County, Virginia.

It was built in 1979 and upgraded in 1998.

Road Fork 52 is located in Wyoming County, West Virginia on property subject to a lease dated August 25, 1997.

After expiration of the initial 10-year term, the lease automatically extended for successive five-year periods.

Road Fork 52 is located in Wyoming County, West Virginia on three individual lease tracts.

These leases were signed between 1960 and 2020.

Current production is on a lease dated August 25, 1997.

After expiration of the initial 10-year term of this lease, the lease automatically extended for successive five-year periods.

The current five-year period expires August 24, 2022 and shall be renewed for another five-year period unless a 90-day termination notice is provided by the lessee.

There will be future production on a lease dated January 28, 2020 which has a term of 20 years, and a lease dated August 1, 1960 which extends for successive 30 year terms until the mineable and merchantable coal is exhausted.

Black Eagle is located in Boone and Raleigh County, West Virginia near the community of Pettus.

3 unchanged sentences

It is customary to enter into new leases once the final extension period has expired.

The Lynn Branch Project is located in Logan County, West Virginia near the community of Rita.

The project includes the development of the Lynn Branch #1 mine in the 2 Gas seam and the Upper Chilton Mine in the Upper Chilton seam, both deep mines.

There are several leases dedicated to both mines with the primary reserves for the project controlled by a lease dated January 1, 1969, which currently expires on December 31, 2026.

Contura can automatically extend the lease for three successive five-year terms until December 31, 2041.

Lynn Branch deep mine in the 2 Gas seam is located in Logan County, West Virginia near the community of Rita.

There are several leases dedicated to the mine with the primary reserves controlled by a lease dated January 1, 1969, which currently expires on December 31, 2026.

We can automatically extend the lease for three successive five-year terms until December 31, 2041.

All other leases are in good standing with similar lease terms.

CAPP - Thermal

Our CAPP - Thermal operations consist of surface and underground thermal coal mines.

As of December 31, 2020, our CAPP - Thermal operations consist one underground thermal coal mine.

The coal produced by CAPP - Thermal operations is predominantly thermal coal with some met coal byproduct.

1 unchanged sentence

During the years ended December 31, 2020 and 2019, we shipped 1.8 million tons and 3.5 million tons of our thermal coal production from our CAPP - Thermal operations domestically to utility and industrial customers.

Our NAPP operations consist of the large-scale, high-quality Cumberland mine.

Cumberland is located in Greene County, Pennsylvania and operates one highly efficient longwall supported by four continuous miner sections for longwall panel development.

Our NAPP operations also include the idled Emerald mine complex, which is currently being used as an underground water treatment and holding facility, allowing Cumberland to realize significant cost savings on water management expenditures.

We have been able to sell part of our Cumberland coal production (0.3 million tons and 0.7 million tons for the years ended December 31, 2019 and 2018 , respectively) into the met coal market, achieving higher realized pricing

than if sold as thermal coal.

The coal produced by the Cumberland mine is from the Pittsburgh 8 seam, which is recognized for its high-BTU, low chlorine content and desirable ash fusion properties.

This makes Cumberland coal ideal for boilers and, accordingly, most of the domestic customer base for this mine consists of base load, scrubbed coal-fired power plants.

Additionally, NAPP offers transportation optionality through rail and barge through the Labelle River & Rail Terminal, allowing us to reach a broader customer base.

We enter into long-term supply agreements, typically ranging from one to four years, to contract our thermal coal production in advance, thereby reducing the risks associated with our thermal coal portfolio in future years.

The Cumberland Mine is on property owned by our subsidiaries, as well as on property subject to a lease dated December 4, 1980 (the “Greene Manor Lease”).

The current lease period ends on December 31, 2021, and we can extend the Greene Manor Lease for successive 10-year periods.

The Cumberland Plant (associated with Cumberland Mine) is a 1,600 ton per hour plant located on owned property in Greene County, Pennsylvania.

It was built in 1978 and upgraded in 1996.

The Labelle River & Rail Terminal is a multimodal materials handling facility offering river to rail shipping for the Cumberland mine with access to both CSX Transportation (“CSX”) and Norfolk Southern Railway Company (“NS”) rail carriers.

The facility features 1,200 ton per hour unloading capacity, 400,000 ton stockpile capacity, and a 4,200 ton per hour batch weigh train loadout.

Our PRB operations formerly consisted of the Belle Ayr and Eagle Butte mines, located in Wyoming.

On December 8, 2017, we sold these, along with related coal reserves, equipment, infrastructure and other real properties.

Refer to Note 4 for further information on discontinued operations.

Former NAPP and PRB Operations

Our former NAPP operations consisted of our thermal coal mining operations located in Pennsylvania consisting primarily of our Cumberland mining complex and related property.

On December 10, 2020, we closed on a transaction with Iron Senergy Holdings, LLC, to sell the former NAPP operations.

Our former PRB operations consisted of the Belle Ayr and Eagle Butte mines, located in Wyoming.

On December 8, 2017, we sold these to Blackjewel, along with related coal reserves, equipment, infrastructure and other real properties.

Refer to Note 3 for information related to Blackjewel’s subsequent bankruptcy filing, the related ESM Transaction, and further information on discontinued operations.

Financial Information About Reportable Segments and Geographic Areas

2 unchanged sentences

The following table provides a summary of mine life for our active mines by segment, as of December 31, 2020:

Reportable Segment

Estimated Years

CAPP - Met (1)

Virginia, West Virginia

CAPP - Thermal

West Virginia

(1) Includes Deep Mine 41 with an estimated mine life of 18 years and Black Eagle with an estimated mine life of 28 years.

(2) Includes Cumberland with an estimated mine life of 17 years.

Cumberland mine includes all of the Cumberland Reserve block and a portion of the Greene Manor Reserve block.

The remaining portion of the Greene Manor Reserve block and the CNG and Consol Trade Area reserve blocks are located adjacent to the area included in the Cumberland mine life area .

Reportable Segment Location Estimated Years

Virginia, West Virginia 1 to 26

CAPP - Thermal West Virginia 3

(1) Includes Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch with estimated mine life of 15 years, 25 years, 18 years, and 26 years, respectively.

Coal Mining Techniques

We use five different mining techniques to extract coal from the ground:

longwall mining, room-and-pillar mining, truck-and-shovel mining, truck and front-end loader mining, contour mining and highwall mining.

We use four different mining techniques to extract coal from the ground:

room-and-pillar mining, truck-and-shovel mining, truck and front-end loader mining, contour mining and highwall mining.

We do not use mountaintop removal mining and currently have no plans to do so in the future.

Longwall Mining

At our Cumberland mine, we utilize longwall mining techniques, which are the most productive underground mining methods used in the United States.

Continuous miners are used to develop access to long rectangular blocks of coal which are then mined with longwall equipment, allowing controlled subsidence behind the advancing machinery.

A hydraulic system supports the roof of the mine while a mechanical rotating drum advances through the coal.

Chain conveyors then move the loosened coal to a standard underground mine conveyor system for transport to the surface.

Longwall mining is highly productive and most effective for large blocks of medium to thick coal seams.

High capital costs associated with longwall mining demand large, contiguous reserves.

Ultimate seam recovery of in-place reserves using longwall mining is much higher

than the room-and-pillar mining underground technique.

All of the coal mined at our longwall mines is processed in preparation plants to remove rock and impurities before it becomes saleable clean coal.

Room-and-Pillar Mining

27 unchanged sentences

We market coal produced at our operations and purchase and resell coal mined by others.

We have coal supply commitments with a wide range of steel and coke manufacturers, electric utilities, and industrial customers.

We have coal supply commitments with a wide range of steel and coke manufacturers, industrial customers, and electric utilities.

Our marketing efforts are centered on customer needs and requirements.

5 unchanged sentences

These volumes are processed by us, meaning that we washed, crushed or blended the coal at one of our preparation plants or loading facilities prior to resale.

Our coal volumes within our CAPP-Met operations also include met coal volumes purchased from domestic third-party producers and sold into international markets.

Our coal volumes within our Met operations also include met coal volumes purchased from domestic third-party producers and sold into international markets.

Our export shipments serviced customers through shipping ports in 23 and 22 countries during the years ended December 31, 2020 and 2019, respectively.

Europe was our largest export market during these periods, with coal sales to

Europe accounting for approximately 36% and 40%, respectively, of export coal revenues and 20% and 33%, respectively, of coal revenues for the years ended December 31, 2019 and 2018 .

Europe was our largest export market during these periods, with coal sales to Europe accounting for approximately 34% and 37%, respectively, of export coal revenues and 22% and 22%, respectively, of coal revenues for the years ended December 31, 2020 and 2019.

All of our sales are made in U.S.

3 unchanged sentences

Domestic metallurgical customers typically enter into one-year agreements with a fixed price for the entire contract year.

Any longer-term agreement would generally have a renegotiation of price every subsequent contract year.

Any longer-term agreement would generally have a renegotiation of price each subsequent contract year.

Export sales are generally made on an annual, quarterly, or spot cargo basis.

2 unchanged sentences

Future volume for future years is generally contingent on both parties agreeing to a pricing mechanism to cover the contract year.

We enter into long-term contracts (typically ranging from one to four years) with our thermal coal customers.

We enter into long-term contracts (typically ranging from one to five years) with our thermal coal customers.

Terms of these agreements may address coal quality requirements, quantity parameters, flexibility and adjustment mechanisms, permitted sources of supply, treatment of environmental constraints, options to extend, force majeure, suspension, termination and assignment issues, the allocation between the parties of the cost of complying with future governmental regulations and many other matters.

14 unchanged sentences

We depend upon rail, barge, trucking and other systems to deliver coal to markets.

In the years ended 2019 and 2018 , our produced coal was transported from the mines and to the customer primarily by rail, with the main rail carriers being CSX Transportation and Norfolk Southern Railway Company.

In the years ended 2020 and 2019, our produced coal was transported from the mines and to the customer primarily by rail, with the main rail carriers

being CSX Transportation and Norfolk Southern Railway Company.

Rail shipments constituted approximately 80% and 79% of total shipments of coal volume from our mines during the years ended 2020 and 2019, respectively.

The balance was shipped from our preparation plants, loadout facilities or mines via truck or barge.

Our export sales are primarily shipped to DTA and Pier 6 (Lamberts Point) shipping ports in the Hampton Roads area of Virginia.

Contura may ship limited export quantities through other US ports when warranted by logistics and economics.

Our export sales are primarily shipped to DTA and Pier 6 (Lambert’s Point) shipping ports in the Hampton Roads area of Virginia.

We may ship limited export quantities through other US ports when warranted by logistics and economics.

In March 2017, we increased our stake in the DTA coal export terminal from 40.6% to 65.0%, which provides us with 14 million tons of export capacity.

3 unchanged sentences

We rely on third-party suppliers to provide mining materials and equipment.

Although there continues to be consolidation, which has resulted in a limited number of

suppliers for certain types of equipment and supplies, we believe that adequate substitute suppliers are available.

For further discussion of our sources and availability of materials, see Item 1A “Risk Factors–Risks Related to Our Operations– Decreased availability or increased costs of key equipment and materials, including certain items mandated by regulations, or of coal that we purchase from third parties, could affect our cost of production and decrease our profitability .”

Although there continues to be consolidation, which has resulted in a limited number of suppliers for certain types of equipment and supplies, we believe that adequate substitute suppliers are available.

For further discussion of our sources and availability of materials, see Item 1A “Risk Factors–Risks Related to Our Operations– Decreased availability or increased costs of key equipment and materials, including certain items mandated by regulations, or of coal that we purchase from third parties, could impact our cost of production and decrease our profitability.

We incur substantial expenses each year to procure goods and services in support of our respective business activities in addition to capital expenditures.

6 unchanged sentences

In the metallurgical coal market, of the approximately 59 million tons produced in the U.S.

in 2019, Contura sold approximately 12.9 million tons, or 19%.

in 2020, we sold approximately 12.4 million tons, or 21%.

A significant portion of U.S.

metallurgical coal production is shipped internationally, where it competes directly with international sources of production.

Approximately 66% of Contura’s metallurgical coal sold was shipped internationally in 2019.

Approximately 73% of our metallurgical coal sold was shipped internationally in 2020.

In the thermal market, of the approximately 475 million tons produced in the U.S.

in 2019, Contura sold approximately 10.8 million tons, or 2%.

in 2020, we sold approximately 3.2 million tons, or almost 1%.

Only a small portion of overall U.S.

thermal production is shipped internationally, but there is strong competition in the domestic market.

Approximately 8% of Contura’s thermal coal sold was shipped internationally in 2019.

Approximately 21% of our thermal coal sold was shipped internationally in 2020.

We compete for U.S.

8 unchanged sentences

Demand for thermal coal and the prices that we are able to obtain for it are closely linked to coal consumption patterns of the domestic electric generation industry.

These coal consumption patterns are influenced by many factors beyond our control, including the demand for electricity, which is significantly dependent upon summer and winter temperatures, and commercial and industrial outputs in the U.S., environmental and other government regulations, technological developments and the location, availability, quality and price of competing sources of power.

location, availability, quality and price of competing sources of power.

These competing sources include natural gas, nuclear, fuel oil and increasingly, renewable sources such as solar and wind power.

Demand for thermal coal and the prices that we are able to obtain for it are affected by each of the above factors.

As of December 31, 2019 , we had approximately 4,360 employees, with the United Mine Workers of America (“UMWA”) representing approximately 15% of these employees.

Certain of our subsidiaries have wage agreements with the UMWA that are subject to termination by either the employer or the UMWA, without cause, on July 31, 2020.

As of December 31, 2020, we had approximately 3,250 employees, all of which are full-time employees, with the United Mine Workers of America (“UMWA”) representing approximately 3% of these employees.

Certain of our subsidiaries have wage agreements with the UMWA that are subject to termination by either the employer or the UMWA, without cause, on July 31, 2025 and one on February 28, 2026.

Relations with organized labor are important to our success, and we believe that we have good relations with our employees.

3 unchanged sentences

While some legal matters may specify the damages claimed by the plaintiffs, many seek an unquantified amount of damages.

Even when the amount of damages claimed against us or our subsidiaries is stated, (i) the

claimed amount may be exaggerated or unsupported;

Even when the amount of damages claimed against us or our subsidiaries is stated, (i) the claimed amount may be exaggerated or unsupported;

(ii) the claim may be based on a novel legal theory or involve a large number of parties;

9 unchanged sentences

Future legislation, regulations or orders, as well as future interpretations and more rigorous enforcement of existing laws, regulations or orders, may require substantial increases in equipment and operating costs to us and delays, interruptions, or a termination of operations, the extent of which we cannot predict.

In particular, the new presidential administration and congressional majorities have expressed support for policies that may result in stricter environmental, health and safety standards applicable to our operations and those of our customers.

We intend to continue to comply with these regulatory requirements as they evolve by timely implementing necessary modifications to facilities or operating procedures.

14 unchanged sentences

Typically, we submit the necessary permit applications several months, or even years, before we plan to begin mining a new area.

Mining permits generally are approved many months or even years after a completed application is submitted.

Mining permits generally are approved months or even years after a completed application is submitted.

Therefore, we cannot be assured that we will obtain future mining permits in a timely manner.

Permitting requirements also require, under certain circumstances, that we obtain surface owner consent if the surface estate has been severed from the mineral estate.

This requires us to negotiate with third parties for surface rights that overlay coal we control or intend to control.

This requires us to negotiate with third parties for surface rights that overlie coal we control or intend to control.

These negotiations can be costly and time-consuming, lasting years in some instances, which can create additional delays in the permitting process.

If we cannot successfully negotiate for surface rights, we could be denied a permit to mine coal we already control.

On October 4, 2019, the Bankruptcy Court entered an order approving the sale by Blackjewel of the Belle Ayr and Eagle Butte mines located in the PRB (the “Western Assets”) to Eagle Specialty Materials (“ESM”), an affiliate of FM Coal, LLC (“FM Coal”).

The closing of the ESM acquisition (the “ESM Transaction”) occurred on October 18, 2019.

We were the former owner of the Western Assets, having sold them to Blackjewel in December 2017 (the “2017 Blackjewel Sale”).

As the mine permit transfer process relating to our sale of the Western Assets to Blackjewel had not been completed prior to Blackjewel’s and certain of its affiliates’ filing petitions for relief under chapter 11 of title 11 of the U.S.

As the mine permit transfer process relating to our sale of the Western Assets to Blackjewel had not been completed prior to Blackjewel’s and certain of its affiliates’ filing

petitions for relief under chapter 11 of title 11 of the U.S.

Code (the “Bankruptcy Code”), we remained the permitholder in good standing for both mines.

In connection with ESM’s acquisition of the Western Assets from

Blackjewel, on October 18, 2019, we and ESM finalized an agreement that provided, among other items, for the eventual transfer of the Western Asset permits from us to ESM and replacement by ESM of our surety bonds associated with these properties.

ESM is expected to operate the mines during the permit transfer process and has agreed to use commercially reasonable efforts to cause the permits to be transferred as promptly as possible.

We are closely monitoring the permit transfer process for the Western Assets.

In connection with ESM’s acquisition of the Western Assets from Blackjewel, on October 18, 2019, we and ESM finalized an agreement that provided, among other items, for the eventual transfer of the Western Asset permits from us to ESM and replacement by ESM of our surety bonds associated with these properties.

In furtherance of certain objectives contemplated under that agreement, we and ESM agreed to the merger of two of our now-former subsidiaries, i.e.

, Contura Coal West, LLC (“CCW”), which held and still holds the Western Asset permits, and Contura Wyoming Land, LLC (“CWL”), with certain entities formed by ESM for purposes of acquiring CCW and CWL.

The ESM entities involved in the mergers were ESM Coal West SPV, LLC (“First Merging Entity”) and ESM Wyoming Land SPV, LLC (“Second Merging Entity”).

The mergers were consummated effective May 29, 2020, with the First Merging Entity merging with and into CCW, with CCW as the surviving entity (the “First Surviving Entity”), and the Second Merging Entity merging with and into CWL, with CWL as the surviving entity (the “Second Surviving Entity”).

Upon the mergers becoming effective, each of the First Surviving Entity and the Second Surviving Entity became wholly-owned subsidiaries of ESM.

As such, the Western Asset permits are still held by the same entity, Contura Coal West, LLC, but said entity is no longer a subsidiary of ours, and we no longer have surety bonds associated with these permits and properties.

Surface Mining Control and Reclamation Act

29 unchanged sentences

Public notice of the proposed permit is given that also provides for a comment period before a permit can be issued.

Some SMCRA mine permits take over a year to prepare, depending on the size and complexity of the mine and may take many months or even years to be issued.

Some SMCRA mine permits take over a year to prepare, depending on the size and complexity of the mine and may

take months or even years to be issued.

Regulatory authorities have considerable discretion in the timing of the permit issuance and the public and other agencies have rights to comment on and otherwise engage in the permitting process, including through intervention in the courts.

1 unchanged sentence

The proceeds are used to reclaim mine lands closed or abandoned prior to SMCRA’s adoption in 1977.

The current fee is $0.28 per ton on surface-mined coal and $0.12 per ton on deep-mined coal.

The current fee, which is effective through September 30, 2021, is $0.28 per ton on surface-mined coal and $0.12 per ton on deep-mined coal.

Future legislation is expected to extend these fees through 2028 at reduced rates.

For the years ended December 31, 2020 and 2019, we recorded $2.3 million and $2.5 million, respectively, of expense related to these fees.

4 unchanged sentences

Federal and state laws require us to obtain surety bonds or other approved forms of security to cover the costs of certain long-term obligations, including mine closure or reclamation costs under SMCRA, federal and state workers’ compensation costs, coal leases and other miscellaneous obligations.

As of December 31, 2019 and 2018 , our posted third-party surety bond amount in all states where we operate was approximately $343.5 million and $344.1 million, excluding portions attributable to discontinued operations, respectively, which was used to primarily secure the performance of our reclamation and lease obligations.

As of December 31, 2020 and 2019, our posted third-party surety bond amount in all states where we operate was approximately $351.6 million and $343.7 million, respectively, including portions attributable to discontinued operations of $134.2 million and $119.9 million, respectively, which was used to primarily secure the performance of our reclamation and lease obligations.

Posting of a bond or other security with respect to the performance of reclamation obligations is a condition to the issuance of a permit under SMCRA.

Under the terms of agreements we and Alpha entered into in connection with the Alpha Restructuring, we and Alpha were required to replace Alpha’s self-bonds with surety bonds, collateralized bonds, or other financial assurance mechanisms, over time and under applicable regulations.

Under the terms of agreements we and Alpha Natural Resources, Inc.

entered into in connection with the Alpha Natural Resources, Inc.

Restructuring, we and Alpha Natural Resources, Inc.

were required to replace Alpha Natural Resources, Inc.’s self-bonds with surety bonds, collateralized bonds, or other financial assurance mechanisms, over time and under applicable regulations.

Self-bonding may not be available to us as a means to comply with our reclamation bonding obligations for the foreseeable future.

17 unchanged sentences

Other states will be required to develop new plans for areas that were previously in “attainment,” but do not meet the revised standards.

For example, in October 2015, the EPA finalized the NAAQS for ozone pollution and reduced the limit to 70 parts per billion (ppb) from the previous 75 ppb standard.

On December 7, 2020, the EPA announced the agency’s final

decision to retain the existing National Ambient Air Quality Standards for particulate matter (PM) set by the Obama-Biden Administrations without changes.

In October 2015, the EPA finalized the NAAQS for ozone pollution and reduced the limit to 70 parts per billion (ppb) from the previous 75 ppb standard.

The EPA made the majority of area designations related to this rule on November 16, 2017 and June 4, 2018 and finalized designations for the remaining regions of the country on July 25, 2018.

6 unchanged sentences

In April 2017, the D.C.

Circuit Court granted EPA’s motion to indefinitely delay any decision on the challenges pending the EPA’s possible reconsideration of the rule.

Circuit Court granted the EPA’s motion to indefinitely delay any decision on the challenges pending the EPA’s possible reconsideration of the rule.

In July 2018, the D.C.

2 unchanged sentences

Circuit upheld the rule with the exception of the secondary NAAQS standards addressing protection of animals, crops and vegetation, which were sent back to the EPA for further consideration.

The EPA indicated that it would decide by December 2020 whether to maintain the 2015 ozone limits or to tighten them.

On December 23, 2020, the EPA announced its decision to retain, without changes, the 2015 ozone National Ambient Air Quality Standards set by the Obama- Biden Administration.

• NOx SIP Call.

3 unchanged sentences

Installation of additional emission control measures will make it more costly to operate coal-fired power plants, potentially making coal a less attractive fuel.

On February 26, 2019, EPA published a final rule amending the NOx SIP Call regulations to allow states to establish alternative monitoring and reporting requirements for certain sources.

On February 26, 2019, the EPA published a final rule amending the NOx SIP Call regulations to allow states to establish alternative monitoring and reporting requirements for certain sources.

• Cross-State Air Pollution Rule.

11 unchanged sentences

For states to meet their requirements under CSAPR, a number of coal-fired electric generating units will likely need to be retired, rather than retrofitted with the necessary emission control technologies, reducing demand for thermal coal.

On October 15, 2020, the EPA proposed the Revised Cross-State Air Pollution Rule Update in order to fully address 21 state’s outstanding interstate pollution transport obligations for the 2008 ozone National Ambient Air Quality Standards.

Starting in the 2021 ozone season, the proposed rule would require additional emissions reductions of nitrogen oxides from power plants in 12 states.

The public comment period for the proposal closed on December 14, 2020.

However, on January 20, 2021 the new presidential administration announced a freeze with respect to all pending rulemaking.

Accordingly, the outcome of this rulemaking may result in stricter standards than those contained in the proposed rule.

• Mercury and Hazardous Air Pollutants.

7 unchanged sentences

In August 2018, the EPA stated that it plans on sending a draft proposal to the White House questioning the EPA’s earlier finding and intends to reevaluate the MATS rule itself.

On December 27, 2018, EPA issued a proposed revised Supplemental Cost Finding for MATS, as well as the Clean Air Act required “risk and technology review.” After taking account of both the cost to coal- and oil-fired power plants of complying with the MATS rule and the benefits attributable to regulating hazardous air pollutant (HAP) emissions from these power plants, EPA proposed to determine that it is not “appropriate and necessary” to regulate HAP emissions from power plants under Section 112 of the Clean Air Act.

The emission standards and other requirements of the MATS rule, first promulgated in 2012, would remain in place, however, since EPA did not propose to remove coal- and oil-fired power plants from the list of sources that are regulated under Section 112 of the Act.

On December 27, 2018, the EPA issued a proposed revised Supplemental Cost Finding for MATS, as well as the Clean Air Act required “risk and technology review.” After taking account of both the cost to coal- and oil-fired power plants of complying with the MATS rule and the benefits attributable to regulating hazardous air pollutant (HAP) emissions from these power plants, the EPA proposed to determine that it is not “appropriate and necessary” to regulate HAP emissions from power plants under Section 112 of the Clean Air Act.

The emission standards and other requirements of the MATS rule, first promulgated in 2012, would remain in place, however, since the EPA did not propose to remove coal- and oil-fired power plants from the list of sources that are regulated under Section 112 of the Act.

On April 15, 2020, the EPA established a new subcategory in the MATS for electric utility steam generating units (EGU’s) that burn eastern bituminous coal refuse (EBCR).

Coal refuse includes low-quality coal mixed with rock, clay and other material.

The EPA is also establishing emission standards from these facilities.

The new subcategory and emission standards will affect six existing EGUs that burn EBCR.

On May 22, 2020, the EPA published the completed reconsideration of the appropriate and necessary finding for the MATS.

The EPA concluded that it is not “appropriate and necessary” to regulate electric utility steam generating units under Section 112 of the Clean Air Act.

The EPA is also taking final action on the residual risk and technology review that is required by the CAA Section 112.

The EPA states, “emissions of HAP have been reduced such that residual risk is at acceptable levels, that there are no developments in HAP emissions controls to achieve further cost-effective reductions beyond the current standard, and, therefore, no changes to the MATS rule are warranted”.

Apart from MATS, several states have enacted or proposed regulations requiring reductions in mercury emissions from coal-fired power plants, and federal legislation to reduce mercury emissions from power plants has been proposed.

Regulation of mercury emissions by the EPA, states, Congress, or pursuant to an international treaty may

further decrease the demand for coal.

Regulation of mercury emissions by the EPA (and in particular, the reconsideration by the current EPA of any rulemaking relating to the MATS rule during the prior presidential administration), states, Congress, or pursuant to an international treaty may further decrease the demand for coal.

Like CSAPR, MATS and other similar future regulations could accelerate the retirement of a significant number of coal-fired power plants, in addition to the significant number of plants and units that have already been retired as a result of environmental and regulatory requirements and uncertainties adversely impacting coal-fired generation.

8 unchanged sentences

These limitations could result in additional coal plant closures and affect the future market for coal.

A final Regional Haze rule was published on January 10, 2017 and is currently being reevaluated by the EPA.

A final Regional Haze rule was published on January 10, 2017.

In addition, the EPA’s new source review program under certain circumstances requires existing coal-fired power plants, when modifications to those plants significantly change emissions, to install the more stringent air emissions control equipment required of new plants.

Federal legislation to reform new source review has been reintroduced and regulatory reform is being considered by the EPA.

Litigation seeking to force the EPA to list coal mines as a category of air pollution sources that endanger public health or welfare under Section 111 of the CAA and establish standards to reduce emissions from sources of methane and other emissions related to coal mines was dismissed by the D.C.

17 unchanged sentences

will withdraw from the Paris Agreement.

Nevertheless, numerous U.S.

This withdrawal formally took effect on November 4, 2020.

However, on January 20, 2021, President Biden issued a statement formally accepting the Paris Agreement on behalf of the U.S., which triggers a 30 day process for rejoining the accord.

In addition, numerous U.S.

governors, mayors and businesses have pledged their commitments to the goals of the Paris Agreement.

3 unchanged sentences

For example, the EPA has adopted rules requiring the monitoring and reporting of GHG emissions from specified large GHG emission sources in the U.S., including coal-fired electric power plants and steel-making operations.

The EPA has also promulgated the Tailoring Rule, which requires that all new or modified stationary sources of GHGs that will emit more

than 75,000 tons of carbon dioxide per year and are otherwise subject to CAA regulation, and any other facilities that will emit more than 100,000 tons of carbon dioxide per year, to undergo prevention of significant deterioration (“PSD”) permitting, which requires that the permitted entity adopt the best available control technology.

The EPA has also promulgated the Tailoring Rule, which requires that all new or modified stationary sources of GHGs that will emit more than 75,000 tons of carbon dioxide per year and are otherwise subject to CAA regulation, and any other facilities that will emit more than 100,000 tons of carbon dioxide per year, to undergo prevention of significant deterioration (“PSD”) permitting, which requires that the permitted entity adopt the best available control technology.

In June 2014, the U.S.

9 unchanged sentences

The standard is based on the performance of a supercritical pulverized coal boiler implementing partial carbon capture and storage (“CCS”).

Modified and reconstructed fossil fuel fired steam generating units must implement the most efficient generation achievable through a combination of best operating practices and equipment upgrades, to meet an emission standard consistent with best historical performance.

Modified and reconstructed fossil fuel fired steam generating units

must implement the most efficient generation achievable through a combination of best operating practices and equipment upgrades, to meet an emission standard consistent with best historical performance.

Reconstructed units must implement the most efficient generating technology based on the size of the unit (supercritical steam conditions for larger units, to meet a standard of 1,800 lb CO2/MWh-gross, and subcritical conditions for smaller units to meet a standard of 2,000 lb CO2/MWh-gross).

2 unchanged sentences

If such legislative or regulatory programs are adopted or maintained, and economic, commercially available carbon capture technology for power plants is not developed or adopted in a timely manner, it would negatively affect our customers and would further reduce the demand for coal as a fuel source, causing coal prices and sales of our coal to decline, perhaps materially.

On March 28, 2017, President Trump signed the March 2017 Executive Order, which directed the EPA to review and, if appropriate, suspend, revise or rescind, (among other things) the Power Plant NSPS as necessary to ensure consistency with the goals of energy independence, economic growth and cost-effective environmental regulation.

In response to the March 2017 Executive Order, in December 2018, EPA proposed to revise the Power Plant NSPS.

Among other things, the EPA proposed an emission standard for newly constructed coal-fired units that would require the most efficient demonstrated steam cycle (i.e., supercritical steam conditions for large EGUs and best available subcritical steam conditions for small EGUs) in combination with the best operating practices, instead of CCS.

The outcome of this rulemaking is uncertain and likely to be subject to extensive notice and comment and litigation.

In August 2015, the EPA issued the Clean Power Plan (“CPP”), a final rule that establishes carbon pollution standards for existing power plants, called CO2 emission performance rates.

1 unchanged sentence

The CPP was immediately subject to legal challenges and was stayed before it was implemented.

In addition, in response to the March 2017 Executive Order, which also directed EPA review the CPP for possible repeal and replacement, on July 8, 2019, the EPA, published the ACE Rule, a replacement of the CPP.

On July 8, 2019, the EPA, published the ACE Rule, a replacement of the CPP.

In contrast to the CPP, which called for the shifting of electricity generation away from coal-fired sources toward natural gas and renewables, the ACE Rule focuses on reducing GHG emissions from existing coal-fired plants by requiring states to mandate the implementation of a range of technologies at power plants designed to improve their heat rate (i.e., decrease the amount of fuel necessary to generate the same amount of electricity).

The ACE Rule is the subject of legal challenges, the outcome of which is uncertain.

However, on January 19, 2021, the Court of Appeals of the District of Columbia struck down the ACE rule.

The EPA has since announced an intent to consider new regulations governing carbon emissions from existing power plants.

More stringent standards for carbon dioxide emissions as a result of these rulemakings could further reduce demand for coal, and our business would be adversely impacted.

The United States Congress has, from time to time, considered legislation to reduce GHG emissions, such as a resolution referred to as the Green New Deal, which was introduced in the U.S.

House of Representatives in February 2019.

House of Representatives in February 2019 and similar legislation may be introduced in the current Congressional term.

To date, Congress has not passed a bill specifically addressing GHG regulation.

In addition, various states and regions have adopted initiatives to reduce, and in some cases phase out, GHG emissions and certain governmental bodies, including the states of Virginia and California, have considered or are considering the imposition of fees or taxes based on the emission of GHGs by

certain facilities.

A number of states have enacted legislative mandates requiring electricity suppliers to use renewable energy sources to generate a certain percentage of power.

23 unchanged sentences

On March 5, 2014, the EPA, the U.S.

Department of Justice (“DOJ”), West Virginia Department of Environmental Protection, the Pennsylvania Department of Environmental Protection and the Kentucky Energy and Environment Cabinet filed a Complaint against Alpha and its permit holding subsidiaries in Kentucky, Pennsylvania, Tennessee, Virginia and West Virginia alleging that Alpha’s mining affiliates in those states and in Tennessee and Virginia exceeded certain water discharge permit limits during the period of 2006 to 2013 and simultaneously entered into a Consent Decree with Alpha resolving their claims.

The Consent Decree was entered by the Southern District of West Virginia on November 26, 2014 and amended on June 12, 2016 and again on February 28, 2018 (the “Alpha Consent Decree”).

As part of the Alpha Consent Decree, Alpha agreed to implement an integrated environmental management system and an expanded auditing/reporting protocol, install

selenium and osmotic pressure treatment facilities at specific locations, and certain other measures.

The Alpha Consent Decree required Alpha to pay $27.5 million in civil penalties, to be divided among the federal government and state agencies.

All required water treatment systems have been constructed, the environmental management system has been implemented, and the other terms and conditions of the Alpha Consent Decree have been substantially satisfied.

We remain subject to the Alpha Consent Decree and pay stipulated penalties to the U.S.

government and the state of West Virginia when water discharge permit limitations are exceeded.

We have been and are currently in material compliance with our obligations under the Alpha Consent Decree.

Discussions continue with the EPA and DOJ to terminate the Alpha Consent Decree based upon satisfactory compliance, with partial termination having been granted by EPA on February 25, 2020.

and its permit holding subsidiaries in Kentucky, Pennsylvania, Tennessee, Virginia and West Virginia alleging that Alpha Natural Resources, Inc.’s mining affiliates in those states and in Tennessee and Virginia exceeded certain water discharge permit limits during the period of 2006 to 2013 and simultaneously entered into a Consent Decree with Alpha Natural Resources, Inc.

resolving their claims.

The Consent Decree was entered by the Southern District of West Virginia on November 26, 2014 and amended on June 12, 2016 and again on February 28, 2018 (the “Alpha Natural Resources, Inc.

Consent Decree”).

As part of the Alpha Natural Resources, Inc.

Consent Decree, Alpha Natural Resources, Inc.

agreed to implement an integrated environmental management system and an expanded auditing/reporting protocol, install selenium and osmotic pressure treatment facilities at specific locations, and certain other measures.

The Alpha Natural Resources, Inc.

Consent Decree required Alpha Natural Resources, Inc.

to pay $27.5 million in civil penalties, to be divided among the federal government and state agencies.

All required water treatment systems have been constructed, the environmental management system has been implemented, and the other terms and conditions of the Alpha Natural Resources, Inc.

Consent Decree have been substantially satisfied.

On February 25, 2020, partial termination of the Consent Decree was granted by the EPA for all but 6 of the Alpha Natural Resources, Inc.

On January 29, 2021, full termination of the Consent Decree was granted for all the Defendants.

Dredge and Fill Permits

5 unchanged sentences

Nationwide Permits are typically reissued for a five-year period and require appropriate mitigation, and permit holders must receive explicit authorization from the COE before proceeding with proposed mining activities.

The COE reauthorized use of nationwide permits for surface and underground coal mines in January 2017.

On January 13, 2021, the COE published its final rule reissuing and modifying a portion of its Nationwide permits.

The COE reissued and modified 12 existing Nationwide permits and issued four new permits.

The 12 reissued permits replace the 2017 versions which now expire March 14, 2021.

The COE finalized the proposed removal of the 300 linear foot limit for losses of stream bed from several of the Nationwide permits.

Expansion of our mining operations into new areas may trigger the need for individual COE approvals, which could be more costly and take more time to obtain.

2 unchanged sentences

The rule replaces a rule issued in June 2015 by the previous presidential administration, the Clean Water Rule.

The Clean Water Rule was the subject of extensive legal challenges, injunctions and administrative action, and was formally repealed in December 2019.

The Clean Water Rule was the subject of extensive legal challenges, injunctions and administrative action, and was formally

repealed in December 2019.

The Navigable Waters Protection Rule is designed to fulfill a February 2017 executive order calling on the EPA and the USACE to develop a rule consistent with Justice Antonin Scalia's plurality opinion in the 2006 Supreme Court decision, Rapanos v.

10 unchanged sentences

On April 25, 2017, the EPA stayed the implementation of the rule indefinitely to allow for reconsideration.

This stay is the subject of legal challenges.

On November 22, 2019, the EPA published a proposed rule to modify the ELGS.

The comment period ended on January 21, 2020.

On August 31, 2020, the EPA finalized the rule to revise the ELGS.

The 2020 rule changes the technology basis for treatment of Flue Gas Desulfurization Wastewater and Bottom Ash Transport Water.

Endangered Species Act

1 unchanged sentence

Protection of threatened and endangered species may have the effect of prohibiting or delaying us from obtaining mining permits and mine plan modifications and approvals, and may include restrictions on timber harvesting, road building and other mining activities in areas containing the affected species or their habitats.

We may also need to obtain additional permits or approvals if the

incidental take of these species in the course of otherwise lawful activity may occur, which could take more time, be more costly and have adverse effects on operations.

We may also need to obtain additional permits or approvals if the incidental take of these species in the course of otherwise lawful activity may occur, which could take more time, be more costly and have adverse effects on operations.

A number of species indigenous to properties we control or surrounding areas are protected under the ESA including the Guyandotte River Crayfish and the Big Sandy River Crayfish.

On January 28, 2020 the U.S.

Fish & Wildlife Service officially published the draft critical habitat designation for the Guyandotte River Crayfish and the Big Sandy River Crayfish in the Federal Register, starting the public comment period on the draft designations.

Fish & Wildlife Service (“FWS”) officially published the draft critical habitat designation for the Guyandotte River Crayfish and the Big Sandy River Crayfish in the Federal Register, starting the public comment period on the draft designations.

On July 10, 2020, the FWS issued guidance regarding the preparation of protection and enhancement plans (“PEPs”) for coal mining operations located in the Guyandotte River Crayfish habitat in southern West Virginia.

The guidance contains several suggestions for requirements to be included in PEPs for proposed mining operations, such as minimizing fill placement, retaining 100 foot vegetative buffers around streams and constructing stream crossings in periods of low flow.

Certain other sensitive species that are not currently protected by the ESA may also require protection and mitigation efforts consistent with federal and state requirements.

ESA regulatory review is currently underway at the U.S.

Fish and Wildlife Agency (“FWS”) and on July 25, 2018 the FWS issued proposed regulatory amendments that are considered to be favorable to our industry.

After the Stream Protection Rule and the accompanying 2016 Biological Opinion were repealed in February 2017, OSM issued a Section 7(d) determination that reinitiated consultation with the FWS to develop a new Biological Opinion.

A new Biological Opinion could make compliance with the ESA more difficult and expensive.

The new Biological Opinion was released on October 16, 2020.

One of the most notable changes is the incidental take coverage if there is no agreement between the state regulatory authority and the FWS at the conclusion of the dispute resolution process and the regulatory authority issues the permit.

The new Biological Opinion states that “any prohibited take of listed species incidental to that permit action will not be exempted through this incidental take statement.” The Biological Opinion also includes discussion of OSM enforcement powers in primacy states potentially allowing the FWS to effect a permit veto via OSM enforcement actions.

The new Biological Opinion could make the permitting process more difficult and expensive.

Resource Conservation and Recovery Act

3 unchanged sentences

The EPA also concluded that beneficial uses of CCR, other than for mine filling, pose no significant risk and no additional national regulations of such beneficial uses are needed.

However, the EPA determined that national non-hazardous waste regulations under RCRA are warranted for certain wastes generated from coal combustion, such as coal ash, when the wastes are disposed of in surface impoundments or landfills or used as minefill.

However, the EPA determined that national non-hazardous waste regulations under RCRA are

warranted for certain wastes generated from coal combustion, such as coal ash, when the wastes are disposed of in surface impoundments or landfills or used as minefill.

In December 2014, the EPA finalized regulations that address the management of coal ash as a non-hazardous solid waste under Subtitle D.

2 unchanged sentences

In July 2018, the EPA published a final rule extending certain deadlines under the original rules, granting certain authority to states with authorized CCR programs and establishing groundwater protection standards for certain constituents.

EPA and OSM plan additional rulemaking relating to CCR.

The EPA and OSM plan additional rulemaking relating to CCR.

There have also been several legislative proposals that would require the EPA to further regulate the storage of CCR.

18 unchanged sentences

Many of the requirements of the proposed regulations would be duplicative of those in place under the Bureau of Alcohol, Tobacco, Firearms and Explosives, including registration and background checks, and DHS has moved its 2011 rulemaking to a non-active status because the approach proposed was unlikely to deliver appreciable security benefits.

Additional requirements may include tracking and

verifications for each transaction related to ammonium nitrate.

Additional requirements may include tracking and verifications for each transaction related to ammonium nitrate.

The outcome of these rulemakings could materially adversely affect our cost or ability to conduct our mining operations.

29 unchanged sentences

The excise tax does not apply to coal shipped outside the United States.

For the years ended December 31, 2019 and 2018 , we recorded $5.8 million and $6.4 million, respectively, of expense related to this excise tax.

For the years ended December 31, 2020 and 2019, we recorded $5.1 million and $2.9 million excluding portions attributable to discontinued operations, respectively, of expense related to this excise tax.

The Patient Protection and Affordable Care Act (“PPACA”) introduced significant changes to the federal black lung program, including an automatic survivor benefit paid upon the death of a miner with an awarded black lung claim, and established a rebuttable presumption with regard to pneumoconiosis among miners with 15 or more years of coal mine employment that are totally disabled by a respiratory condition.

These changes could have a material impact on our costs

expended in association with the federal black lung program.

These changes could have a material impact on our costs expended in association with the federal black lung program.

For former mining employees meeting statutory eligibility standards for federal black lung benefits, we maintain a trust fund and insurance coverage to cover the cost of present and future claims.

2 unchanged sentences

Coal Industry Retiree Health Benefit Act of 1992

Unlike many companies in the coal business, we do not have any liability under the Coal Industry Retiree Health Benefit Act of 1992 (the “Coal Act”), which requires the payment of substantial sums to provide lifetime health benefits to union-represented miners (and their dependents) who retired before 1992, because liabilities under the Coal Act that had been imposed on Alpha were settled in the bankruptcy process.

Refers to the transaction by which Contura acquired certain of Alpha’s core coal operations as part of the Alpha Restructuring.

were settled in the bankruptcy process.

Refers to the transaction by which the Company acquired certain of Alpha Natural Resources Inc.’s core coal operations as part of the Alpha Natural Resources, Inc.

Restructuring.

Alpha Metallurgical Resources, Inc.

Alpha Natural Resources, Inc.’s Plan of Reorganization.

Alpha Natural Resources, Inc’s plan of reorganization approved on July 7, 2016 and effective as of July 26, 2016.

Alpha Natural Resources, Inc.

Alpha’s Plan of Reorganization.

Alpha’s plan of reorganization approved on July 7, 2016 and effective as of July 26, 2016.

Alpha Restructuring.

Restructuring.

On August 3, 2015, Alpha Natural Resources, Inc.

(“Predecessor Alpha”) and each of its wholly owned domestic subsidiaries other than ANR Second Receivables Funding LLC (collectively, the “Alpha Debtors”) filed voluntary petitions for relief under Chapter 11 of the U.S.

and each of its wholly owned domestic subsidiaries other than ANR Second Receivables Funding LLC (collectively, the “Debtors”) filed voluntary petitions for relief under Chapter 11 of the U.S.

Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Virginia (the “Bankruptcy Court”).

The Bankruptcy Court approved the Alpha Debtors’ Plan of Reorganization on July 7, 2016.

On July 26, 2016, a consortium of former creditors of the Alpha Debtors acquired Contura common stock in exchange for a partial release of their creditor claims pursuant to the Alpha Debtors’ bankruptcy settlement.

The Alpha Debtors, collectively, were a coal producer with operations in Central Appalachia, Northern Appalachia, and the PRB.

The Bankruptcy Court approved the Debtors’ Plan of Reorganization on July 7, 2016.

On July 26, 2016, a consortium of former creditors of the Debtors acquired the Company’s common stock in exchange for a partial release of their creditor claims pursuant to the Debtors’ bankruptcy settlement.

The Debtors, collectively, were a coal producer with operations in Central Appalachia, Northern Appalachia, and the PRB.

Impurities consisting of iron, alumina and other incombustible matter that are contained in coal.

2 unchanged sentences

Coal that is planned to be mined at an operation that is currently operating, currently idled, or for which permits have been submitted and plans are eventually to develop the operation.

Back-to-Back Coal Supply Agreements.

In connection with the 2017 Blackjewel Sale, Blackjewel and the Company entered into agreements (the “Original Back-to-Back Coal Supply Agreements”) under which Blackjewel agreed to supply, deliver and sell to us, and we agreed to accept, purchase and pay for, all coal that we are obligated to supply, deliver and sell under the Company’s PRB coal supply agreements existing as of the 2017 Blackjewel Sale closing date that did not transfer to Blackjewel on that date.

The Original Back-to-Back Coal Supply Agreements were not assumed in connection with the ESM Transaction (refer to Note 4 ).

Instead, the Company entered into new back-to-back coal supply agreements with Bluegrass Commodities LP, the sales and marketing agent for ESM, whereby the Company agreed to purchase and pay for, all coal that the Company is obligated to supply, deliver and sell under the Company’s PRB coal supply agreements that were still in effect as of the closing date of the ESM Transaction.

British Thermal Unit or BTU.

7 unchanged sentences

Its production results in a number of useful byproducts.

Contura or Company.

Contura Energy, Inc.

Alpha Metallurgical Resources, Inc.

(previously named Contura Energy, Inc.)

Environmental, social and governance sustainability criteria.

ESM Transaction.

The sale by Blackjewel L.L.C.

(“Blackjewel”) of the Eagle Butte and Belle Ayr mines located in Wyoming (the “Western Mines” or “Western Assets”) to Eagle Specialty Materials (“ESM”), an affiliate of FM Coal, LLC on October 18, 2019.

The ESM Transaction was approved by the United States Bankruptcy Court for the Southern District of West Virginia (the “Bankruptcy Court”) pursuant to an order on October 4, 2019.

The Company was the former owner of the Western Assets, having sold them to Blackjewel in December 2017.

Longwall mining.

2 unchanged sentences

Chain conveyors then move the loosened coal to a standard underground mine conveyor system for delivery to the surface.

Merger with ANR, Inc.

and Alpha Natural Resources Holdings, Inc.

completed on November 9, 2018.

Metallurgical coal.

50 unchanged sentences

Usually located several hundred feet below the earth’s surface, an underground mine’s coal is removed mechanically and transferred by shuttle car and conveyor to the surface.

United Mine Workers of America.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business