What changed in this filing

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Item 1. Business

2022-03-07 compared with 2021-03-15 · 249 added, 164 removed, 578 unchanged (42% 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 Alpha Metallurgical Resources, Inc.

Unless otherwise indicated or the context otherwise requires, references in this “Item 1.

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).

Disclosures in this “Item1.

Business” section should be read in conjunction with “Item 1A.

Risk Factors” for further discussion of factors impacting our business.

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

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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.

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

With customers across the globe, high-quality reserves and significant port capacity, we reliably supply metallurgical coal products to the steel industry.

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

Our portfolio of mining operations consists of 13 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.

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

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 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 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.

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 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.

We predominantly produce metallurgical (“met”) coal, which is shipped to domestic and international steel and coke producers.

Although our strategic focus is on the production of met coal, we also produce thermal coal which is primarily sold to the domestic power generation industry.

Refer to Notes 23 and 24 to the Consolidated Financial Statements for geographical information about our coal sales and additional segment information.

We have a substantial reserve base of 351.1 million tons of proven and probable reserves as of December 31, 2021.

Our reserve base consists of 335.8 million tons of proven and probable metallurgical reserves, and 15.3 million tons of proven and probable thermal reserves.

Additionally, we have approximately 381.7 million tons of in situ bituminous coal resources as of December 31, 2021.

Through our operations across the CAPP coal basin 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 decades.

We are continuously evaluating opportunities to strategically cultivate current relationships to drive new business in our target growth markets.

Additionally, the trade tensions between China and Australia have not yet been resolved and China’s ban on Australian coal remains in place, creating opportunities for other producers to fulfill China’s need for high quality metallurgical coal.

Although there is little certainty about when circumstances may change between China and Australia, we have been pleased to expand our customer base in 2021 and hope to continue cultivating relationships that could develop into long-term contracts.

We are also strategically expanding our marketing efforts to grow Alpha’s metallurgical sales opportunities throughout other parts of Asia.

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

During 2020, our Kepler, Marfork, and Aracoma mining complexes began production at newly developed mines Road Fork 52, Black Eagle, and Lynn Branch.

Production at these mines increased in 2021.

Road Fork 52 and Lynn Branch produce 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.

B met coal, respectively, while the Black Eagle mine produces High-Vol A met coal.

We were formed in 2016 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.

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 Central Appalachia region.

Refer to Note 15 to the Consolidated Financial Statements for further information on our acquisition-related obligations.

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

(“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.

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

On October 4, 2019, we closed on a transaction with Eagle Specialty

Materials (“ESM”), the ESM Transaction, in connection with Blackjewel’s subsequent bankruptcy filing.

On May 29, 2020, certain of our subsidiaries (Contura Coal West, LLC and Contura Wyoming Land, LLC), one of which held the mining permits for the Western Mines, were merged with certain subsidiaries of ESM to become wholly-owned subsidiaries of ESM and to complete the permit transfer process in connection with the ESM Transaction.

On November 9, 2018, we merged with Alpha Natural Resources Holdings, Inc.

and ANR, Inc.

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

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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.

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

Refer to Note 3 to the Consolidated Financial Statements for further information on discontinued operations.

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

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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

The following tables present a summary of our mining operations by reportable segment:

Number & Type of Mines as of December 31, 2020

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.

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 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

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.

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 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.

The reserve area is composed of five individual leases signed between 1929 and 2018 with various extension terms and periods.

The majority of the reserve is located on a lease dated January 1, 1956 that expires on December 31, 2024.

The earliest lease expiration date without renewal rights is December 21, 2022.

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

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

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.

For the years ended December 31, 2020 and 2019, our CAPP - Thermal coal quality was composed of low sulfur, high BTU coal.

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.

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

Our Mining Operations and Properties

The following table provides a summary of information regarding our material and active mining complexes as of December 31, 2021 (see also “Item 2.

Properties” for further information):

(Amounts in thousands, except for mine data )

Tons Sold (4)

Mining Complex Location Acquired Mines (1)

Equipment (2)

2021 2020 2019 Carrying Value (5)

Aracoma WV 2018 3 CM CSX 2,221 1,564 1,775 $ 170,593 44,181

Kepler WV 2018 1 CM CSX/NS 1,571 800 912 $ 234,003 48,611

Kingston WV 2018 4 CM/S/H CSX 2,348 2,040 1,410 $ 21,256 32,489

Marfork WV 2018 5 CM/S/H CSX 4,032 3,394 3,446 $ 288,551 145,741

McClure/Toms Creek VA 2016 5 CM/S/H CSX/NS 4,033 3,706 3,891 $ 47,873 80,077

(1) Number of active mines as of December 31, 2021.

(2) Equipment:

S = Shovel/Excavator/Loader/Trucks;

CM = Continuous Miner;

H = Highwall Miner

(3) CSX = CSX Transportation;

NS = Norfolk Southern Railway Company

(4) Tons of coal purchased from third parties and not processed are not included.

(5) Net book value of property, plant and equipment and owned and leased mineral rights as of December 31, 2021.

(6) Proven and probable reserves as of December 31, 2021.

Refer to Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Notes 24 and 25 for financial information about reportable segments and geographic areas.

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

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.

Properties for further information.

Aracoma – Aracoma is a mining complex located in Logan, Mingo, and Boone counties, West Virginia.

The complex has three active underground mines which produce primarily High-Vol.

B quality met coal from the Upper Chilton, Upper Cedar Grove, and No.

2 Gas coal seams.

Mine lives range from 5 to 17 years.

Coal is processed at the Bandmill Preparation Plant and loaded onto CSX rail for delivery to customers.

Kepler – Kepler is a mining complex located in Wyoming, McDowell, and Raleigh counties, West Virginia.

The complex has one active underground mine (with an estimated life of 30 years) which produces primarily Low-Vol.

quality met coal from the Pocahontas No.

Coal is processed at the Kepler Preparation Plant and either loaded onto NS rail or trucked to the Feats Loadout and loaded onto the CSX rail for delivery to customers.

Kingston – Kingston is a mining complex located in Fayette and Raleigh counties, West Virginia.

The complex has one active underground mine which produces primarily Mid-Vol.

quality met coal from the Douglas coal seam.

The complex also has three active surface mines which produced High-Vol.

A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams.

Mine lives range from 2 to 21 years.

Coal from the underground mine is processed at the Kingston Preparation Plant and trucked to the Pax Loadout to be loaded onto CSX rail for delivery to customers.

Coal from the

surface mines may be processed through the Kingston Preparation Plant, trucked to and processed through the Mammoth or Marfork Preparation Plants, or trucked directly to the Pax Loadout or Marmet Dock for delivery to customers.

Marfork – Marfork is a mining complex located in Raleigh, Boone, Kanawha, and Fayette counties, West Virginia.

The complex has three active underground mines which produce High-Vol.

A quality met coal from the Eagle coal seam.

The complex also has two active surface mines which produce High-Vol.

A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams.

Mine lives range from 1 to 35 years.

Coal from the underground mines is processed at the Marfork Preparation Plant and loaded onto the CSX rail for delivery to customers.

Coal from the surface mines may be processed through the Marfork Preparation Plant or trucked directly to the Pax Loadout or the Marmet Dock for delivery to customers.

McClure/Toms Creek – McClure/Toms Creek is a mining complex located in Dickenson, Buchanan, Russell, and Wise counties, Virginia.

The complex has three active underground mines which produce High-Vol.

A and Mid-Vol.

quality met coal from the Upper Banner, Lower Banner, and Jawbone coal seams.

The complex also has two active surface mines which produce High-Vol.

A and Mid-Vol quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams.

Mine lives range from 3 to 42 years.

Coal is processed at either the McClure Preparation Plant or the Toms Creek Preparation Plant and loaded on the CSX or NS rail, respectively for delivery to customers.

Our plant and equipment, including underground and surface equipment, are of varying age, in good operational condition, and are regularly maintained and serviced by a dedicated maintenance workforce and third-party suppliers, including scheduled preventive maintenance.

Preparation Plants, Loadouts, and Docks

The following is a summary of information regarding our active preparation plants as of December 31, 2021 :

Preparation Plant Year Constructed/Upgraded Processing Capacity (Tons per hour) Utilization % Power Source

Bandmill 2010 1,200 60% American Electric Power

Kepler 1967 900 51% American Electric Power

Kingston 1974 700 58% American Electric Power

Marfork 1994/2019 2,400 54% American Electric Power

McClure 1979/2019 1,100 61% American Electric Power

Toms Creek 1980/2004 1,100 39% American Electric Power

The following is a summary of information regarding our active loadouts and docks as of December 31, 2021 :

Loadout/Dock Year Constructed Loading Capacity (Tons per hour)

Pax Loadout 2006 3,500

Feats Loadout 1975 3,500

Marmet Dock 1986 1,600

Export Terminal

The following is a summary of information regarding DTA (in which we own a 65% interest) as of December 31, 2021:

Export Terminal Year Constructed Loading Capacity (Tons per hour) Storage Capacity (Net tons)

DTA 1984 Up to 6,500 1.7 million

Coal Mining Techniques

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.

room-and-pillar mining, truck-and-shovel mining and 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.

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Contour Mining

We use contour mining in our CAPP mines, which limits the overburden removal from above a coal seam or series of coal seams.

We use contour mining at certain of our CAPP surface mines, which limits the overburden removal from above a coal seam or series of coal seams.

In contour mining, surface mining machinery follows the contours of a coal seam or seams around a ridge, excavating the overburden and recovering the coal seam or seams as a “contour bench” around the ridge is created.

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Highwall Mining

We utilize highwall mining methods at our CAPP surface mines.

We utilize highwall mining methods at certain of our CAPP surface mines.

A highwall mining system consists of a remotely controlled continuous miner, which extracts coal and conveys it via augers or belt conveyors to the surface.

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

Financial Information About Reportable Segments and Geographic Areas

Refer to “Item 7.

Management’s Discussion and Analysis of Financial Condition—Results of Operations” and Notes 23 and 24 to the Consolidated Financial Statements for financial information about our reportable segment and geographic areas.

Marketing, Sales and Customer Contracts

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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.

By offering coal of various types and grades to provide specific qualities of heat content, sulfur and ash and other characteristics relevant to our customers, we are able to serve a global customer base.

Our marketing efforts are centered on meeting customer needs and requirements.

By offering coal of various grades, we are able to provide the

specific qualities relevant to our customers and to serve a global customer base.

Through this global platform, our coals are shipped to customers on five continents.

This diversity allows us to adjust to changing market conditions.

Our broad customer and product base allows us to adjust to changing market conditions.

Many of our larger customers are well-established steel manufacturers and public utilities.

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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 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 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.

Refer to Note 24 for additional export coal revenue information.

Our metallurgical coal sales are typically made with customers with whom we have a long-term relationship.

However, defined pricing and volume in our sales agreements tend to be short-term in nature.

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

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

Our export shipments serviced customers in 25 and 23 countries during the years ended December 31, 2021 and 2020, respectively.

Asia was our largest export market for the year ended December 31, 2021, with coal sales to Asia accounting for approximately 49% of export coal revenues and 37% of coal revenues.

For the year ended December 31, 2021, coal sales to Europe accounted for approximately 23% of export coal revenues and 17% of coal revenues.

Europe was our largest export market for the year ended December 31, 2020, with coal sales to Europe accounting for approximately 34% of export coal revenues and 22% of coal revenues.

For the year ended December 31, 2020, coal sales to Asia accounted for approximately 28% of export coal revenues and 18% of coal revenues.

All of our sales are conducted in U.S.

Refer to Note 23 to the Consolidated Financial Statements for additional export coal revenue information.

Our met coal sales are typically made with customers with whom we have a long-term relationship.

Domestic met 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 each subsequent contract year.

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Any export agreement with a term greater than one year would generally have a renegotiation of pricing terms for each subsequent contract year.

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 five years) with our thermal coal customers.

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

We often enter into long-term contracts 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.

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

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.

In the years ended 2021 and 2020, 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 82% and 80% of total shipments of coal volume from our mines during the years ended 2021 and 2020, respectively.

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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.

Our equipment, including underground and surface, is of varying age and in good operational condition.

It is regularly maintained and serviced by a dedicated maintenance workforce and third-party suppliers, including scheduled preventive maintenance.

We may ship limited export quantities through other U.S.

ports when warranted by logistics and economics.

Principal goods and services used in our business include mining equipment, replacement parts and materials such as explosives, diesel fuel, tires, conveyance structure, ventilation supplies, lubricants, steel, magnetite and other raw materials, maintenance and repair services, electricity, and roof control and support items.

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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.

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and internationally.

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

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

In the met coal market, of the approximately 64.3 million tons produced in the U.S.

in 2021, we produced approximately 13.8 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 73% of our metallurgical coal sold was shipped internationally in 2020.

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

Approximately 69% of our met coal tons sold were shipped internationally in 2021.

In the thermal market, of the approximately 512.3 million tons produced in the U.S.

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

in 2021, we produced approximately 2.5 million tons, or less than 1%.

Only a small portion of overall U.S.

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

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

Approximately 20% of our thermal coal tons sold were shipped internationally in 2021.

We compete for U.S.

sales with numerous coal producers in the Appalachian region and the Illinois basin, and in some cases with western coal producers.

The key factors of this competition are delivered coal price, coal quality and characteristics, transportation costs from the mine to the customer and the reliability of supply.

Competition from coal with lower production costs shipped from other coal basins has resulted in increased competition for coal sales in the Appalachian region.

Demand for met coal and the prices that we are able to obtain for it depend to a large extent on the demand and price for steel in the U.S.

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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.

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, 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.

Human Capital Resources

As of December 31, 2021, we had approximately 3,500 employees, all of which were full-time employees, with 73% of our total workforce being hourly workers.

Our employees were almost entirely located in the United States, with three employees located outside the United States.

Approximately 97% of our total workforce was union-free as of December 31, 2021.

Certain of our subsidiaries have wage agreements with the United Mine Workers of America (“UMWA”) representing 3% of our workforce.

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.

As of December 31, 2021, we had approximately 3,270 employees working at our mining operations across Central Appalachia in Virginia and West Virginia, while the remainder of our personnel were employed at our headquarters in Bristol, Tennessee, in Julian, West Virginia, or at other administrative offices throughout the region.

As of December 31, 2021,

approximately 45% of our total workforce had at least ten years of service with our Company, while nearly 28% had fifteen or more years of service with our Company.

Employee Compensation and Benefits

We require a skilled workforce with mining experience and proficiency as well as qualified managers and supervisors to run our business.

In addition, we depend on the experience and industry knowledge of our officers and other key employees to design and execute our business plans.

We, along with the mining industry generally, face a shortage of skilled and experienced employees.

Therefore, we offer employees competitive compensation and benefits to attract and retain a skilled and qualified workforce.

We offer our employees competitive fixed base pay;

a bonus incentive program for administrative positions tied to company safety, environmental stewardship, and financial performance;

an operations bonus incentive program tied to site-specific safety, environmental stewardship and production goals;

retention programs;

paid time-off including holidays;

a comprehensive benefits package that includes medical, dental, and vision coverage;

disability and life insurance coverages;

and a 401(k) retirement savings program with an employer match.

To help retain key employees in certain positions, our long-term incentive program awards cash or equity grants with time-based and performance-based vesting conditions.

Certain key employees are also eligible to participate in our non-qualified deferred compensation plan.

Employee Training and Development

At Alpha, we strive to maintain a diverse and inclusive workforce and a positive culture where employees can contribute their best work, take pride in doing the right thing, and work to improve and strengthen the organization.

To have a successful operation, we endeavor to establish and maintain relationships with and among our employees that are built upon mutual respect, trust, and appreciation.

We frequently provide training opportunities for operations employees to obtain certifications for Emergency Medical Technician (“EMT”), Mechanical Engineering Technology (“MET”), foreman and supervisory certifications, and electrical certifications in addition to providing apprentice miner training and supervisor training programs.

In addition to various training programs that we require employees in certain skilled positions to complete, all of our employees are provided with employee handbooks and are expected to follow policies and procedures concerning employment matters at Alpha and our affiliates including, but not limited to:

anti-harassment, workplace violence, code of business ethics, drug and alcohol policies, safety policies and vehicle policies.

Employee Safety

Safety is one of our core values and is the foundation for how we manage every aspect of our business.

Our employees are empowered with the skills, training, resources, and responsibility to perform their jobs in a safe manner and are accountable for their own safety as well as the safety of their co-workers.

Every employee has a voice in the safety process at each of our mines and other operating sites.

Our behavior-based safety process empowers employees to engage in the elimination of at-risk behaviors in the workplace and in incident prevention and continuous improvement.

In recognition of the interdependence between safety and operations, our “Safe Production” process promotes the effective utilization of procedures, developing safety action plans at each operating group and sharing of best practices, safety alerts and lessons learned across the entire organization.

Safety leadership and training programs are based upon the concepts of situational awareness and observation, changing behaviors and, most importantly, employee involvement.

The core elements of our safety training include identification of critical behaviors and the frequency of those behaviors, employee feedback, and removal of barriers for continuous improvement.

All employees are empowered to champion the safety process and are challenged to identify hazards and initiate prompt corrective actions.

All levels of the organization are expected to be proactive and commit to continuous improvement and implementation of new safety processes that promote a safe and healthy work environment.

Based on available data for the first three quarters of 2021, we achieved an overall NFDL (Non-fatal days lost) safety incident rate that was 30% better than the U.S.

industry average NFDL safety incident rate per 200,000 hours worked.

Alpha’s mine operations routinely collaborate with academic institutions as well as federal and state agencies to facilitate testing of new concepts and technologies and to utilize them whenever possible to provide the best safety and protection for our employees.

We also believe in taking precautions to avoid incidents and prevent them from occurring.

Our Incident Response Plan and Mine Emergency Response Drills have been developed and widely disseminated to appropriate operations and corporate personnel to lay the framework for a prompt and coordinated response in the event an incident occurs.

Alpha’s award-winning mine rescue teams undergo highly specialized training and compete in regional and national mine rescue events to test their skills in first aid, firefighting, mine ventilation, and critical decision-making.

As posted on our Company website, several of our mine operations have been recognized on numerous occasions for outstanding performance and have received several awards in the areas of safety and mine rescue.

Refer to Exhibit 95 Mine Safety Disclosure included in this Annual Report on Form 10-K for additional mine safety information.

Employee Health and Welfare

In the first quarter of 2020, the COVID-19 virus was declared a pandemic by the World Health Organization.

During 2021, our Company experienced an increase in employee absences due to COVID-19-related matters such as precautionary quarantining, waiting on COVID-19 test results, testing positive for COVID-19, receiving a vaccination, or providing care for a family member.

In response to the COVID-19 pandemic, we implemented policies, procedures, and prevention measures to protect the safety and health of our employees.

These include, but are not limited to, employee communications on COVID-19 monitoring and precautionary measures, enhanced cleaning and sterilization practices, and remote work arrangements.

We will continue to evaluate these policies, procedures, and precautionary measures in light of further developments as necessary or appropriate.

In the first half of 2020 and in response to uncertainty and anticipated negative impacts to our business at the onset of the pandemic, we temporarily furloughed some employees at certain mine operations, suspended employer 401(k) contributions, and implemented wage reductions across the company.

As conditions improved in 2021, we were able to reinstate the employer 401(k) contributions, lift the 2020 wage reductions as well as award additional wage increases company-wide.

Legal Proceedings

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The current fee, which is effective through September 30, 2034, is $0.224 per ton on surface-mined coal and $0.096 per ton on deep-mined coal.

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

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

For the years ended December 31, 2021 and 2020, we recorded $2.5 million and $2.3 million, respectively, of expense related to these fees.

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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, 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.

As of December 31, 2021 and 2020, our posted third-party surety bond amount in all states where we operate was approximately $176.1 million and $351.6 million, respectively, including portions attributable to discontinued operations of $30 thousand and $134.2 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.

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As a result, some states will be required to amend their existing individual state implementation plans (“SIPs”) to achieve compliance with the new air quality standards.

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

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.

Other states will be required to develop new plans for areas that were previously in

“attainment,” but do not meet the revised standards.

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.

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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.

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

In addition, numerous U.S.

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Under the Black Lung Benefits Revenue Act of 1977 and the Black Lung Benefits Reform Act of 1977, as amended in 1981, each coal mine operator must secure payment of federal black lung benefits to claimants who are current and former employees and to a trust fund for the payment of benefits and medical expenses to claimants who last worked in the coal industry prior to July 1, 1973.

Effective January 1, 2019, the trust fund was funded by an excise tax on production of up to $0.50 per ton for deep-mined coal and up to $0.25 per ton for surface-mined coal, neither amount to exceed 2% of the gross sales price.

Effective January 1, 2020, the trust fund is funded by an excise tax on coal sold of up to $1.10 per ton for deep-mined coal and up to $0.55 per ton for surface-mined coal, neither amount to exceed 4.4% of the gross sales price.

Effective January 1, 2020, the trust fund was funded by an excise tax on coal sold of up to $1.10 per ton for deep-mined coal and up to $0.55 per ton for surface-mined coal, neither amount to exceed 4.4% of the gross sales price.

Absent further legislation, beginning in 2022, the trust fund will be funded by an excise tax on coal sold of up to $0.50 per ton for deep-mined coal and up to $0.25 per ton for surface-mined coal, neither amount to exceed 2% of the gross sales price.

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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.

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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.

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

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

Since ash increases the weight of coal, it adds to the cost of handling and can affect the burning characteristics of coal.

Assigned reserves.

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.

Bituminous coal.

Coal used primarily to generate electricity and to make coke for the steel industry with a heat value ranging between 10,500 and 15,500 BTU’s per pound.

British Thermal Unit or BTU.

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Coal producing area in eastern Kentucky, Virginia, southern West Virginia and a portion of eastern Tennessee.

Coal reserves.

The economically mineable part of a measured or indicated coal resource, which includes diluting materials and allowances for losses that may occur when coal is mined or extracted.

Coal resources.

Coal deposits in such form, quality, and quantity that there are reasonable prospects for economic extraction.

Coal deposits occur in layers.

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Its production results in a number of useful byproducts.

Coal used to produce coke, the primary source of carbon used in steelmaking.

Alpha Metallurgical Resources, Inc.

(previously named Contura Energy, Inc.)

Development stage property.

A property with disclosed coal reserves but no material extraction.

Environmental, social and governance sustainability criteria.

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

Exploration stage property.

A property with no disclosed coal reserves.

A coking coal used in steel production with a volatile matter content between 31% and 34.5% on a dry basis.

A coking coal used in steel production with a volatile matter content between 34.5% and 38% on a dry basis.

Indicated coal resource.

That part of a coal resource for which quantity and quality are estimated on the basis of adequate geological evidence and sampling sufficient to establish geological and quality continuity with reasonable certainty.

Inferred coal resource.

That part of a coal resource for which quantity and quality are estimated on the basis of limited geological evidence and sampling sufficient to establish that geological and quality continuity are more likely than not.

Given the higher level of geological uncertainty, inferred coal resources are not considered when assessing the economic viability of a mining project or determining coal reserves.

Initial assessment.

A preliminary technical and economic study of the economic potential of all or parts of mineralization to support the disclosure of mineral resources.

In situ coal resources.

Coal resources stated on an in-seam dry basis (excluding surface and inherent moisture) with no consideration for dilution or losses that may occur when coal is mined or extracted.

Longwall mining.

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

A coking coal used in steel production with a volatile matter content between 16% - 23% on a dry basis.

Marketable coal reserves.

Coal reserves on a moist basis (including surface and inherent moisture) after considering dilution and losses that may occur when coal in mined or extracted.

Measured coal resource.

That part of a coal resource for which quantity and quality are estimated on the basis of conclusive geological evidence and sampling sufficient to test and confirm geological and quality continuity.

Merger with ANR, Inc.

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The various grades of coal suitable for carbonization to make coke for steel manufacture.

Also known as “met” coal, its quality depends on four important criteria:

volatility, which affects coke yield;

the level of impurities, including sulfur and ash, which affect coke quality;

composition, which affects coke strength;

and basic characteristics, which affect coke oven safety.

Also known as “met” coal, its quality is primarily differentiated based on volatility or its percent of volatile matter.

Met coal typically has a particularly high BTU but low ash and sulfur content.

A coking coal used in steel production with a volatile matter content between 23% -31% on a dry basis.

Northern Appalachia or NAPP.

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Coal producing area in northeastern Wyoming and southeastern Montana.

Pre-feasibility study.

A comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a preferred method of mining or pit configuration, an effective method of mineral processing and an effective plan to sell the product has been determined.

Preparation plant.

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A preparation plant is usually located on a mine site, although one plant may serve several mines.

Probable reserves.

Reserves for which quantity and grade and/or quality are computed from information similar to that used for proven reserves, but the sites for inspection, sampling and measurement are farther apart or are otherwise less adequately spaced.

The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.

Probable mineral reserve.

The economically mineable part of an indicated and, in some cases, a measured coal resource.

Production stage property.

A property with material extraction of coal reserves.

Productivity.

As used in this report, refers to clean metric tons of coal produced per underground man hour worked, as published by the MSHA.

Proven reserves.

Reserves for which quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes;

grade and/or quality are computed from the results of detailed sampling;

and the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well-established.

Proven mineral reserve.

The economically mineable part of a measured coal resource.

Qualified person.

A mineral industry professional as defined in subpart 1300 of Regulation S-K.

The process of restoring land and the environment to their original state following mining activities.

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Reclamation is closely regulated by both state and federal law.

Recoverable reserves.

Metric tons of mineable coal that can be extracted and marketed after deduction for coal to be left behind within the seam (i.e., pillars left to hold up the ceiling, coal not economical to recover within the mine) and adjusted for reasonable preparation and handling losses.

That part of a mineral deposit that could be economically and legally extracted or produced at the time of the reserve determination.

The stratum of rock or other mineral above a coal seam;

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a “metric” ton (or “ tonne ”) is approximately 2,205 pounds.

Tonnage amounts in this prospectus are stated in short tons, unless otherwise indicated.

Unassigned reserves.

Coal that is likely to be mined in the future, but which is not considered assigned reserves .

Tonnage amounts are stated in short tons, unless otherwise indicated.

United Mine Workers of America.

Underground mine.

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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