What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2022-02-22 compared with 2021-02-24 · 286 added, 197 removed, 17 unchanged (97% of the section changed)

The following map shows the major locations of our mining operations.

Our administrative headquarters and production facilities as of December 31, 2020 were as follows:

Land Acreage Building Square Footage

Business Unit/Location

(State/County/Town) Principal Operations Leased Owned Leased Owned

Warrior Met Coal Mining, LLC

Alabama/Tuscaloosa/Brookwood Administrative headquarters & mine support facilities — — — 668,764

Alabama/Jefferson & Tuscaloosa/Adger & Brookwood Coal mines, mine support facilities, land holdings & barge loadout 18,504 46,323 — —

Alabama/Mobile/Mobile Administrative headquarters, mine support facilities & real estate — — 1,471 —

Warrior Met Coal BCE, LLC

Alabama/Jefferson/Adger Real estate — 223 — —

Alabama/Tuscaloosa/Whitson Coal mines & land holdings 26,194 2,112 — 2,360

Warrior Met Coal Gas, LLC

Alabama/Tuscaloosa/Tuscaloosa Administrative headquarters & mine support facilities 10 28 — 15,425

Alabama/Tuscaloosa & Fayette /Various Natural gas fields-developed 86,922 — — —

Warrior Met Coal Land, LLC

Alabama/Various/Various Real estate — 21,042 400 12,430

Alabama/Various/Various Real estate-mineral interest only — 170,061 — —

Warrior Met Coal TRI, LLC

Alabama/Tuscaloosa/

Brookwood Real estate — 187 — —

Warrior Met Coal LA, LLC

Louisiana/Terrebonne/Houma Real estate — 1,304 — —

Warrior Met Coal WV, LLC

West Virginia/Various/Various Real estate — 2,510 — —

West Virginia/Various/Various Real estate-mineral interest only — 3,740 — —

Estimated Recoverable Coal Reserves

The estimates of our proven and probable reserves as of December 31, 2020 included in this Annual Report (i) for our Mine No.

We operate two underground mines based in Alabama, Mine No.

4 and Mine No.

7 were prepared by Marshall Miller, (ii) for our Blue Creek mine were prepared by Stantec, and (iii) for our other mining properties described in this Annual Report were prepared by McGehee Engineering Corp.

Within Marshall Miller, the technical person primarily responsible for preparing the estimates of our proven and probable reserves for our Mine No.

7 and own property in Alabama for the development of the Blue Creek mine.

7 are deep underground mines with a long history of operations as discussed in further detail below.

7 and Blue Creek were considered material properties.

Our mining operations also consist of other surface met and thermal coal mines, two of which are currently under lease to third parties and four of which are not operating.

Information concerning our mining properties in this Annual Report on Form 10-K has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K, which first became applicable to us for the fiscal year ended December 31, 2021.

These requirements differ significantly from the previously applicable disclosure requirements of SEC Industry Guide 7.

Among other differences, subpart 1300 of Regulation S-K requires us to disclose our mineral resources, in addition to our mineral reserves, as of the end of the our most recently completed fiscal year both in the aggregate and for each of our individually material mining properties.

As used in this Annual Report on Form 10-K, the terms "mineral resource," "measured mineral resource," "indicated mineral resource," "inferred mineral resource," "mineral reserve," "proven mineral reserve" and "probable mineral reserve" are defined and used in accordance with subpart 1300 of Regulation S-K.

Under subpart 1300 of Regulation S-K, mineral resources may not be classified as "mineral reserves" unless the determination has been made by a qualified person that the mineral resources can be the basis of an economically viable project.

As such, you are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value.

Likewise, you are cautioned not to assume that all or any part of measured and indicated mineral resources will ever be converted to mineral reserves.

Technical Report Summary

The information that follows relating to our individually material properties:

7 and Blue Creek, is derived, for the most part, from, and in some instances is an extract from, the technical report summaries ("TRS") relating to such properties prepared in compliance with Item 601(b)(96) and subpart 1300 of Regulation S-K by Marshall Miller.

Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein.

Reference should be made to the full text of the TRSs, incorporated herein by reference and made a part of this Annual Report on Form 10-K.

Overview and Highlights

As of December 31, 2021, and under the SEC's new rules governing mineral reserves, specifically subpart 1300 of Regulation S-K under the Modernization of Property Disclosures for Mining Registrants, we had estimated reserves totaling 162.8 million metric tons and estimated mineral resources exclusive of reserves of 44.9 million metric tons.

4 and Mine No.

Within Stantec, the technical person primarily responsible for preparing the estimates of our proven and probable reserves for our Blue Creek mine is Pat Akers.

Within McGehee, the technical person primarily responsible for preparing the estimates of our proven and probable reserves for our mining properties owned by Warrior Met Coal TRI, LLC and Warrior Met Coal Land, LLC is Sanford M.

We maintain an internal staff of engineers and geoscience professionals who worked closely with our independent reserve engineers to ensure the integrity, accuracy and timeliness of the data used to calculate our estimated reserves.

Our internal technical team members meet with our independent reserve engineers periodically to discuss the assumptions and methods used in the proved reserve estimation process.

We provide historical information to the independent reserve engineers for our properties, such as ownership interest, production, test data, commodity prices and operating and development costs.

These estimates are based on engineering, economic and geologic data, coal ownership information and current and proposed mine plans.

Our proven and probable coal reserves are reported as “recoverable coal reserves,” which is the portion of the coal that could be economically and legally extracted or produced at the time of the reserve determination, taking into

account mining recovery and preparation plant yield.

These estimates are periodically updated to reflect past coal production, new drilling information and other geologic or mining data.

Acquisitions or dispositions of coal properties will also change these estimates.

Changes in mining methods may increase or decrease the recovery basis for a coal seam, as will changes in preparation plant processes.

“Reserves” are defined by the SEC Industry Guide 7 as that part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.

Industry Guide 7 divides reserves between “proven (measured) reserves” and “probable (indicated) reserves,” which are defined as follows:

• “Proven (Measured) Reserves.” Reserves for which (a) 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 (b) 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.

• “Probable (Indicated) Reserves.” Reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) 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 (measured) reserves, is high enough to assume continuity between points of observation.

As of December 31, 2020, we had estimated reserves totaling 210.4 million metric tons, of which 103.3 million metric tons, or 49.1%, were “assigned” recoverable reserves that were either being mined, were controlled and accessible from a then active mine, or located at idled facilities where limited capital expenditures would be required to initiate operations when conditions warrant.

The remaining 107.1 million metric tons were classified as “unassigned,” representing coal at currently non-producing locations that we anticipate mining in the future, but which would require significant additional development capital before operations could begin.

Our reserve estimates are predicated on engineering, economic, and geological data assembled and analyzed by internal engineers, geologists and finance associates, as well as third-party consultants.

We update our reserve estimates annually to reflect past coal production, new drilling information and other geological or mining data, and acquisitions or sales of coal properties.

The following table provides the location and coal reserves associated with each mine or potential mine as of December 31, 2020:

As of December 31, 2020

(in thousands of metric tons) (1)

Recoverable Reserves (2)

Reserve Control (5)

7, our two operating mines, had approximately 90.2 million metric tons of recoverable reserves and our undeveloped

Blue Creek mine contained 63.3 million metric tons of recoverable reserves and 44.9 million metric tons of coal resources exclusive of reserves, which total 108.2 million metric tons.

The following map shows the major locations of our mining operations.

In addition to our underground and surface mines, we utilize a substantial amount of existing infrastructure which includes administration buildings, a central supply maintenance shop, a central supply warehouse, a training center, a central lab for coal quality testing, and a barge loading facility.

Our operations are located in Tuscaloosa County in central Alabama and our headquarters is in the town of Brookwood, Alabama.

The nearest major population centers are Tuscaloosa, Alabama and Birmingham, Alabama.

Infrastructure in the areas surrounding our operations are very diverse, well established and robust due to the large populations and current industrial activity in the surrounding metropolitan areas of Birmingham and Tuscaloosa.

An international airport is located approximately 30 miles to the east of our operations.

Access to all of our properties is via well maintained, paved, two-lane public roads with interstate access in close proximity.

All of the primary infrastructure that our operations need to operate (power, water, transportation/roads) is available with reasonable access requirements.

All of our operations receive power provided by Alabama Power Company.

Our operations also are well serviced by major mining equipment manufacturers,

rebuild facilities, and mine supply vendors.

Specialized mining service providers including slope, shaft, and preparation plant construction companies are located in the immediate area.

All of our operations were previously owned and controlled by Jim Walter Resources, a subsidiary of Walter Energy.

In connection with the acquisition of certain assets of Walter Energy, we acquired the mineral rights for Mine No.

7, Blue Creek and the other surface properties in April 2016.

The following table provides the production (in thousands of metric tons) for our operating mines for each of the three years ended December 31, 2021, 2020 and 2019:

Location/Mine

Operation (6)

Unassigned (4)

2021 2020 2019

Warrior Met Coal Mining, LLC

4 U Production Blue Creek/Mary Lee Assigned 40,676 40,621 54 — 40,675

7 U Production Blue Creek/Mary Lee Assigned 56,818 40,432 16,386 466 56,352

Warrior Met Coal BCE, LLC

Blue Creek U Exploration Mary Lee Unassigned 103,042 64,309 38,733 2,624 100,418

Warrior Met Coal TRI, LLC

Carter/Swann’s Crossing (8)

S Idled Brookwood Assigned 2,609 2,609 — 2,609 —

Warrior Met Coal Land, LLC

Beltona East S Development Black Creek Unassigned 1,013 1,013 — 1,013 —

Bull Gap Mine S Development Unassigned 624 624 — 624 —

Carter West S Development Unassigned 8 8 — 8 —

Howton S Idled Brookwood Unassigned 271 271 — 271 —

Kimberly S Development Black Creek Unassigned 128 128 — 128 —

S Production Mary Lee Assigned 3,191 3,191 — 3,191 —

Searles 8 & 10 (8)

S Production Brookwood Assigned 6 6 — 6 —

Searles BW-UG U Exploration Unassigned 2,032 2,032 — 2,032 —

4 736 1,956 2,015

7 4,349 5,176 5,669

Total Alabama 5,085 7,132 7,684

All mining operations are subject to federal and state laws and must obtain permits to operate mines, coal preparation and related facilities, haul roads, and other incidental surface disturbances necessary for mining to occur.

Permits generally require that the permittee post a performance bond in an amount established by the regulatory program to provide assurance that any disturbance or liability created during mining operations is properly restored to an approved post-mining land use and that all regulations and requirements of the permits are fully satisfied before the bond is returned to the permittee.

Significant penalties exist for any permittee who fails to meet the obligations of the permits including cessation of mining operations, which can lead to potential forfeiture of the bond.

We have obtained all mining and discharge permits to operate our mines and processing loadout or related facilities.

As of December 31, 2021, we had outstanding surety bonds with parties for post-mining reclamation at all of our mining operations totaling $40.9 million and $3.6 million for miscellaneous purposes.

A substantial amount of the coal that the Company mines is produced from mineral reserves leased from third-party land owners.

These leases convey mining rights to the Company in exchange for royalties to be paid to the land owner as either a fixed amount per ton or as a percentage of the sales price.

Although coal leases have varying renewal terms and conditions,

they generally last for the economic life of the reserves.

Coal royalty expense was $65.4 million, $49.5 million, $87.3 million, for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively.

The following table provides the location and quality of our proven and probable mineral reserves as of December 31, 2021.

Summary of Mineral Reserves as of December 31, 2021 (1)

(in millions of metric tons) (2)

Mineral Reserves (3)(5)

Quality (Air-Dried Basis)

Location/Mine

Status of Operation (4)

4 Production 38.4 1.0 39.4 — 39.4 10.2 0.8 31

7 Production 39.6 11.1 50.7 — 50.7 10.2 0.7 22

Blue Creek Development 41.5 21.8 63.3 10.7 52.6 10.2 0.7 32

Various 9.3 — 9.3 9.3 — 7.7 - 20.5 .95 - 2.58 N/A

Total Alabama 128.9 33.9 162.8 20.1 142.7

Total Warrior Met Coal 128.9 33.9 162.8 20.1 142.7

(1) The price used and the time frame and point of reference used is discussed in the description of each mine below.

(2) 1 metric ton is equivalent to 1.102311 short tons.

(2) Reserves are that part of a mineral deposit which can be economically and legally extracted or produced at the time of the reserve determination.

Recoverable reserves represent the amount of proven and probable reserves that can actually be recovered taking into account all mining and preparation losses involved in producing a saleable product using existing methods under current law.

Recoverable reserve estimates incorporate losses for dilution and mining recovery based upon a 95% longwall recovery, 35% to 40% continuous miner recovery and a 95% preparation plant efficiency.

The ranges of met coal sales prices used to assess our reserves were $103 and $93 per metric ton (which represents a 3-year average between 2014 and 2016) at Mine No.

4 and Mine No.

7, respectively, and $117 per metric ton at Blue Creek.

We believe that the ranges of met coal sales prices used to assess our reserves exclude favorable changes in met coal prices since such time.

For example, our average net selling price per metric ton realized for Mine No.

4 and Mine No.

7 for the year ended December 31, 2020 was $113.12 per metric ton, which was a year in which met coal prices were negatively impacted by the COVID-19 pandemic, and at the time of the Blue Creek reserve study was $195 per metric ton.

Our mineral reserves were also assessed using a historical three year average met coal sales price to determine the reserves were economical.

4 and Mine No.

7 proven reserves were estimated within a 3/4 mile radius from point of measurement with thickness and representative coal quality and probable reserves were estimated within a 3/4 mile radius from a point of measurement with thickness but no representative coal quality.

4 and Mine No.

7 mineral reserves were estimated within an accuracy threshold of plus or minus 15 percent which represents the margin of error of a standard final feasibility study.

Blue Creek and our surface mines proven reserves were estimated within a 3/4 mile radius from point of measurement.

Blue Creek mineral reserves were estimated within an accuracy threshold of plus or minus 25 percent which represents the margin of error of a standard pre-feasibility study.

Blue Creek is an adjacent property to our existing operating Mines No.

4 and could allow for either a continuation of current production levels or allow for additional tons to be brought to market.

This property has similar mining conditions, measured geology and the ability to utilize equipment and infrastructure from our current operations.

(3) Reserves are further categorized as Proven (Measured) and Probable (Indicated) as defined by SEC Industry Guide 7 as follows:

Proven (Measured) Reserves are reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes;

(2) See a description of the material mineral reserve estimates for each mine below.

Coal reserve tons were estimated at a 10% moisture and represent the saleable product from the property.

(3) Reserves are further categorized as Proven and Probable as defined by subpart 1300 of Regulation S-K under the Modernization of Property Disclosures for Mining Registrants.

Proven reserves are reserves for which (a) 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 (b) the sites of 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.

Probable (Indicated) Reserves are reserves for which quantity and grade and/or quality are computed from information

similar to that used for proven (measured) 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 for proven (measured) reserves, is high enough to assume continuity between points of observation.

(4) “Assigned” reserves represent recoverable reserves that are either currently being mined, reserves that are controlled and accessible from a currently active mine or reserves at idled facilities where limited capital expenditures would be required to initiate operations.

“Unassigned” reserves represent coal at currently non-producing locations that would require significant additional capital spending before operations begin.

(5) “Reserve Control” of recoverable reserves is either through direct ownership of the property or through third-party leases.

Third-party leases have initial terms extending up to 30 years and generally provide for terms or renewals through the anticipated life of the associated mine.

These renewals are conditioned upon the payment of minimum royalties.

Under current mining plans, assigned reserves reported will be mined out within the period of existing leases or within the time period of probable lease renewal periods.

All recoverable reserves reported are either 100% owned or controlled through lease agreements.

Probable reserves are 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 for proven reserves, is high enough to assume continuity between points of observation.

The range of met coal sales prices used to assess our Mine No.

4 reserves were based on 96 percent of the premium low-vol forecast through 2030 and was held constant beyond that date and varies between $153 to $187 per metric ton.

The range of met coal sales prices used to assess our Mine No.

7 reserves were based on 98 percent of the premium low-vol forecast through 2030 and was held constant beyond that date and varies between $156 to $181 per metric ton.

The range of met coal sales prices used to assess our Blue Creek reserves were based on 95 percent of the Platts Index forecast through 2030 and was held constant beyond that date and varies between $152 to $185 per metric ton.The categories for proven and probable coal reserves are based on distances from valid points of measurement as determined by the qualified person for the area under consideration.

For the Mine No.

7 estimate, measured resource, which may convert to a proven reserve, is based on a 0.25 mile radius from a valid point of observation.

The distance between 0.25 and 0.75 of a mile radius was selected to define indicated resources.

7 mineral reserves were estimated within an accuracy threshold of plus or minus 15 percent.

(4) The “Status of Operation” for each mine is classified as follows:

Exploration-mines where exploration has been conducted sufficient to define recoverable reserves, but the mine is not yet in development or production stage;

Development-an established commercially minable deposit (reserves) is being prepared for extraction but that is not yet in production;

Development - an established commercially mineable deposit (reserves) is being prepared for extraction but that is not yet in production.

Production - the mine is actively operating.

Idled -previously active mines that have been idled until such time as reinitiating operations are considered feasible.

If conditions warrant, the mines could be re-opened with less capital investment than would be required to develop a new mine.

(7) Type of Mine:

U = Underground;

(8) Reserve is leased to a third party, royalty is collected by us from the third party and we have first right of refusal to purchase mined product if we elect to exercise the right.

The following table provides a summary of the quality of our reserves as of December 31, 2020:

Estimated Recoverable Coal Reserves (Continued)

As of December 31, 2020

(in thousands of metric tons) (1)

Seam Thickness

Various - consists of idle mines and mines that are actively operating under third party leases.

(5) Our mineral reserves are controlled either through direct ownership of the property or through third-party leases.

Third-party leases have initial terms extending up to 30 years and generally provide for terms or renewals through the anticipated life of the associated mine.

These renewals are conditioned upon the payment of minimum royalties.

Under current mining plans, Mine No.

4 and Mine No.

7 will be mined out within the period of existing leases or within the time period of probable lease renewal periods.

All mineral reserves reported are either 100% owned or controlled through lease agreements.

(6) Our other mines consist of other surface met and thermal coal mines, two of which are currently under lease to third parties and four of which are not operating.

The proven and probable mineral reserves for these properties were prepared by McGehee Engineering Corporation.

The following table provides the location and quality of our measured, indicated and inferred mineral resources as of December 31, 2021.

Summary of Mineral Resources Exclusive of Reserves as of December 31, 2021 (1)

(in millions of metric tons) (2)

Demonstrated Coal Resources

Quality (Air-Dried Basis)

Location/Mine

Warrior Met Coal Mining, LLC

40,676 LVM/MVM 10.76 0.76 N/A 6.50 1976 N/A

7 56,818 LVM 9.53 0.62 N/A 5.40 1978 N/A

Warrior Met Coal BCE, LLC

Blue Creek 103,042 HVM 9.10 0.70 N/A 5.20 N/A N/A

Warrior Met Coal TRI, LLC

Carter/Swann’s Crossing 2,609 M/T 11.23 1.23 12,575 10.43 2011 2013

Warrior Met Coal Land, LLC

Beltona East 1,013 M/T 7.79 2.58 14,162 4.88 N/A N/A

Bull Gap Mine 624 M/T 4.07 1.54 14,013 4.98 N/A N/A

Carter West 8 M/T 6.57 1.58 13,937 1.10 N/A N/A

Howton 271 M/T 12.80 1.27 12,619 7.52 2006 2009

Kimberly 128 M/T 6.47 2.32 13,748 5.58 N/A N/A

Morris 3,191 T 20.46 1.19 11,260 5.12 2014 N/A

Searles 8 6 M/T 13.34 1.24 12,307 5.90 2013 N/A

Searles BW-UG 2,032 T 15.89 0.95 11,587 3.57 N/A N/A

Total Alabama 210,418

Total Warrior Met Coal 210,418

(1) 1 metric ton is equivalent to 1.102311 short tons.

(2) Coal Type:

M=Metallurgical Coal;

LVM = LV Metallurgical Coal;

MVM = MV Metallurgical Coal;

HVM = High Volatility Metallurgical Coal

(3) Current pricing for Mine No.

4 reflects a combination of both LV and MV markets.

It is anticipated that the pricing of coal produced at Mine No.

4 for at least the next six years will be priced relative to the LV and MV markets.

Beyond this period, the volatile contents in the area are anticipated to increase and the coal may be priced relative to the MV and HV markets.

The following table provides a summary of information regarding our mining operations as of December 31, 2020:

Transportation

Preparation Plant

Location/Mine Reserves

(thousands of

metric tons) (1)

Equipment (3)

Rail Other (4)

Warrior Met Coal Mining, LLC

4 40,676 U LW,CM CSX T,B 1,180 80% ALPCO

5* N/A N/A N/A N/A N/A 907 86% ALPCO

7 56,818 U LW,CM CSX T,B 1,270 90% ALPCO

Warrior Met Coal BCE, LLC

Blue Creek 103,042 U In exploration or development

Warrior Met Coal TRI, LLC

Carter/Swann’s Crossing 2,609 S S,T N/A T,B N/A N/A ALPCO

Warrior Met Coal Land, LLC

Beltona East 1,013 S In exploration or development

Bull Gap Mine 624 S In exploration or development

Carter West 8 S In exploration or development

Howton 271 S S,T N/A T N/A N/A ALPCO

Kimberly 128 S In exploration or development

Morris 3,191 S S,T N/A T N/A N/A ALPCO

Searles 8 6 S S,T N/A T N/A N/A ALPCO

Searles BW-UG 2,032 U In exploration or development

Status of Operation (3)

Measured + Indicated

Blue Creek Development — 44.9 44.9 — 19.3 1.6 31

Total Alabama — 44.9 44.9 —

Total Warrior Met Coal — 44.9 44.9 —

(1) The price used and the time frame and point of reference used is discussed in the description of Blue Creek below.

(2) 1 metric ton is equivalent to 1.102311 short tons.

(2) Type of Mine:

U = Underground

(3) Mining Equipment:

D = Dragline;

S = Shovel/Excavator/Loader;

LW = Longwall;

CM = Continuous Miner;

H=Highwall Miner

(4) Transportation:

Other T = Trucks;

B = Barge Loadout availability

(5) Source of Power:

ALPCO = Alabama Power Company

* Represents a preparation plant

The following table provides the production (in thousands) and average coal selling price per metric ton for our operating mines for each of the three years ended December 31, 2020, 2019 and 2018:

Production (1) / Average Coal Selling Price Per Metric Ton

Location/Mine

(3) The “Status of Operation” for each mine is classified as follows:

Development - an established commercially mineable deposit (reserves) is being prepared for extraction but that is not yet in production.

Material Mining Properties

The information that follows relating to our individually material properties:

7 and Blue Creek, is derived, for the most part, from, and in some instances is an extract from, the TRS relating to such properties prepared in compliance with Item 601(b)(96) and subpart 1300 of Regulation S-K by Marshall Miller.

Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein.

Reference should be made to the full text of the TRSs, incorporated herein by reference and made a part of this Annual Report on Form 10-K.

The following table provides a comparison of our material proven and probable mineral reserves as of December 31, 2021 and December 31, 2020:

Summary of Material Mineral Reserves as of December 31, 2021 as compared to December 31, 2020

(in thousands of metric tons) (1)

As of December 31, Change

2021 2020 Tons

Material Reserves (2)

38.4 40.6 (2.2) (5) %

Warrior Met Coal Mining, LLC

1.0 0.1 0.9 900 %

39.4 40.7 (1.3) (3) %

Total Alabama 7,132 7,684 7,017

(1) There were no purchases of coal from third parties during the periods presented.

All metric tons produced were on leased property.

Information provided within the previous tables concerning our properties has been prepared in accordance with applicable U.S.

federal securities laws.

All mineral reserve estimates have been prepared in accordance with SEC Industry Guide 7.

Material Reserves (2)

39.6 40.4 (0.8) (2) %

11.1 16.4 (5.3) (32) %

50.7 56.8 (6.1) (11) %

Material Reserves (2)

41.5 64.3 (22.8) (35) %

21.8 38.7 (16.9) (44) %

63.3 103.0 (39.7) (39) %

(1) 1 metric ton is equivalent to 1.102311 short tons.

(2) See a description of the material mineral reserve estimates for each mine below.

Coal reserve tons were estimated at a 10% moisture and represent the saleable product from the property.

(3) Reserves are further categorized as Proven and Probable as defined by subpart 1300 of Regulation S-K under the Modernization of Property Disclosures for Mining Registrants.

Proven reserves are reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes;

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

4 change in proven and probable mineral reserves and quality is primarily due to a more detailed analysis of yield estimates and incorporation of additional coal quality information as there was minimal production in 2021.

7 change in proven and probable mineral reserves and quality is primarily attributable to production, incorporation of additional exploration drilling and associate coal quality data that has increased the relative percentage of proven tons.

The Blue Creek change in proven and probable mineral reserves and quality is primarily due to the new rules governing mineral reserves under subpart 1300 of Regulation S-K combined with a significant portion of tons formerly categorized as reserves being reclassified as a resource exclusive of reserve due to variations in coal quality.

The following table provides a comparison of our material mineral resources exclusive of reserves as of December 31, 2021 and December 31, 2020:

Summary of Material Mineral Resources as of December 31, 2021 as compared to December 31, 2020

(in thousands of metric tons) (1)

As of December 31, Change

2021 2020 Tons

Mineral Resources

Measured — — — — %

Indicated 44,883 — 44,883 100 %

Measured + Indicated 44,883 — 44,883 100 %

(1) 1 metric ton is equivalent to 1.102311 short tons.

The Blue Creek change in coal resources exclusive of reserves and quality is primarily due to the new rules governing mineral reserves under subpart 1300 of Regulation S-K combined with a significant portion of tons formerly categorized as reserves being reclassified as a resource exclusive of reserves due to variations in coal quality.

4 was opened by Jim Walter Resources in 1974 and has been in operation since.

In 2015, in connection with the Chapter 11 filing by Walter Energy, Mine No.

Upon our acquisition of Mine No.

4 in April 2016, the mine began production.

The property has been extensively explored as early as 1916 and as recently as 2021 by subsurface drilling efforts carried out by numerous entities, the majority of which were completed prior to our acquisition of the assets including:

by Tennessee Coal, Iron & Railroad Company, U.S.

Steel, The Pittsburgh & Midway Coal Mining Company and Walter

Energy, Inc..

The majority of the drilling was accomplished by means of conventional core hole exploration and air rotary drilling with geophysical logging for coalbed methane wells.

The following shows the current property and facilities layout of Mine No 4.

Mine No 4 is located at approximately 87°19’32” latitude and 33°19’49”N longitude which is approximately 20 miles east of Tuscaloosa, Alabama and 30 miles southwest of Birmingham, Alabama.

Access to Mine No.

4 is by State Route 59 (Lock 17 Road), a well maintained, paved, two-lane road with interstate access in close proximity to the south, and a short access road to the main entrance of the mine.

All of the facilities are in close proximity to high quality, public roads and lie within 2 miles of each other.

On site facilities include an administration building, maintenance shop, preparation plant and a stock yard.

4 preparation plant services the mine via a skip system which transports extracted coal from an underground bunker to the surface facility.

4 preparation plant has a capacity to process 1,300 raw metric tons per hour.

Rail transportation for the mine sites is provided by CSX railroad and river transportation is available on the Black Warrior River.

The rail line and Black Warrior River serves as the primary means of transportation of coal from the mine.

4 is a longwall operation that uses a longwall shearing machine for the extraction of coal at the production face.

A chain conveyor is used to remove coal from the longwall face for discharge onto the conveyor belt which then ultimately delivers the coal to a skip system.

Development for the longwall is conducted by the extraction of coal from the production faces using continuous miners and haulage using shuttle cars to a feeder-breaker located at the tail of the section conveyor belt.

The feeder-breaker crushes large pieces of coal and rock and regulates coal feed onto the mine conveyor.

supplemental equipment is used in the production, development and maintenance of the mine such as roof-bolting machines, battery scoops, personnel carriers, supply vehicles, belts, high-voltage cables, transformers, etc.

4 has had multiple improvements to the infrastructure by adding new portal facilities in 2019 and 2021.

These facilities have helped to decrease travel time to the active sections, as well as improving the safety of the miners by having shafts closer to the main work areas.

Currently the mine operates a single longwall with advanced features that improves horizon control, dust control, and the latest shield technology for partial automation.

The mine routinely updates or rebuilds equipment and during this process, adds the latest safety or production features available.

4 preparation plant has also routinely been upgraded with the latest technology.

This preparation plant runs the most modern circuits, including an ultrafine coal recovery system.

The preparation plant has had numerous upgrades since it’s original construction, which has helped it to continue to capture a higher percentage of coal with each upgrade.

4 preparation plant most recently completed a new fine coal recovery system in 2020, to further improve overall plant recovery.

The net book value of property, plant and equipment associated with Mine No.

4 as of December 31, 2021, was $136.7 million.

As of the filing of this annual report Mine No.

4 is currently active with two continuous mining sections and one longwall.

4, inclusive of depleted mine works and future reserve areas, is composed of approximately 46,000 total acres.

Of the 46,000 acres, approximately 17,700 are associated with future mining areas.

Future mining areas include approximately 14,900 acres of leased mineral holdings and approximately 2,800 acres of uncontrolled mineral holdings.

Our controlled reserves are either through direct ownership of the property or through third-party leases.

Third-party leases have initial terms extending up to 30 years and generally provide for terms or renewals through the anticipated life of the associated mine.

These renewals are conditioned upon the payment of minimum royalties.

Under current mining plans, assigned reserves reported will be mined out within the period of existing leases or within the time period of probable lease renewal periods.

All recoverable reserves reported are either 100% owned or controlled through lease agreements.

There are no significant title encumbrances to the property.

7 was opened by Jim Walter Resources in 1974 and has been in operation since.

In connection with the acquisition of certain assets of Walter Energy, we acquired the mineral rights for Mine No.

7 in April 2016.

The property has been extensively explored as early 1916 and as recently as 2021 by subsurface drilling efforts carried out by numerous entities, the majority of which were completed prior to our acquisition of the assets including:

Steel, Tennessee Coal, Iron & Railroad Company and Walter Energy.

The majority of the drilling was accomplished by means of conventional core hole exploration and air rotary drilling with geophysical logging for coalbed methane wells.

The following shows the current property and facilities layout of Mine No 7.

Mine 7 is located at approximately 87°14’46” latitude and 33°19’35”N longitude which is approximately 20 miles east of Tuscaloosa, Alabama and 30 miles southwest of Birmingham, Alabama.

Access to Mine No.

7 is by Hannah Creek road, a well maintained, paved, two-lane road with interstate access in close proximity to the south via Lock 17 road.

All of the facilities are in close proximity to high quality, public roads.

On site facilities include an administration building, maintenance shop, preparation plant and a stock yard.

7 preparation plant services the mine via skip system which transports extracted coal from an underground bunker to the surface facility.

7 also uses the No.

5 preparation plant via an

overland conveyor.

7 preparation plant has a capacity to process 1,260 raw metric tons per hour and the Mine No.

5 preparation plant has the capacity to process 900 raw metric tons per hour.

Rail transportation for the mine sites is provided by CSX railroad and river transportation is available on the Black Warrior River.

The rail line and Black Warrior River serve as the primary means of transportation of coal from the preparation plants.

7 is a longwall operation that uses a longwall shearing machine for the extraction of coal at the production face.

A chain conveyor is used to remove coal from the longwall face for discharge onto the conveyor belt which then ultimately delivers the coal to a skip system.

The feeder-breaker crushes large pieces of coal and rock and regulates coal feed onto the mine conveyor.

Other supplemental equipment is used in the production, development and maintenance of the mine such as roof-bolting machines, battery scoops, personnel carriers, supply vehicles, belts, high-voltage cables, transformers, etc.

7 has had multiple improvements to the infrastructure by adding new portal facilities in 2009 and 2018, among others.

These facilities have helped to decrease travel time to the active sections, as well as improving the safety of the miners by having shafts closer to the main work areas.

Currently the mine operates two longwalls with advanced features that improve horizon control, face alignment, dust controls, and the latest shield technology for partial automation.

The mine routinely updates or rebuilds equipment and during this process, adds the latest safety or production features available.

7 and Mine No.

5 preparation plants also are routinely upgraded with the latest technology.

These preparation plants run the most modern circuits, including ultrafine coal recovery systems.

Both preparation plants have had numerous upgrades since their construction, which has helped them to continue to capture a higher percentage of coal with each upgrade.

7 most recently completed a new fine coal recovery system, with another system also currently under construction, at the same plant, to further improve overall plant recovery.

The net book value of property, plant and equipment associated with Mine No.

7 as of December 31, 2021, was $326.5 million.

As of the filing of this annual report Mine No.

7 is currently active with two longwall sections and five continuous mining sections.

7, inclusive of depleted mine works and future reserve areas, is composed of approximately 43,000 total acres.

Of the 43,000 acres, approximately 20,300 are associated with future mining areas.

Future mining areas include approximately 19,600 acres of leased mineral holdings and approximately 700 acres of uncontrolled mineral holdings.

Our controlled reserves are either through direct ownership of the property or through third-party leases.

Third-party leases have initial terms extending up to 30 years and generally provide for terms or renewals through the anticipated life of the associated mine.

These renewals are conditioned upon the payment of minimum royalties.

Under current mining plans, assigned reserves reported will be mined out within the period of existing leases or within the time period of probable lease renewal periods.

All recoverable reserves reported are either 100% owned or controlled through lease agreements.

There are no significant title encumbrances to the property.

We believe that Blue Creek represents one of the few remaining untapped reserves of premium High Vol A met coal in the United States and that it has the potential to provide us with meaningful growth.

We believe that the combination of a low production cost and the high quality of the High Vol A met coal mined from Blue Creek, assuming we achieve our expected price realizations, will generate some of the highest met coal margins in the U.S., generate strong investment returns for us and achieve a rapid payback of our investment across a range of met coal price environments.

The development of Blue Creek is anticipated to take five to six years and was originally projected to have an estimated cost of approximately $550 to $650 million.

These costs include, among others, costs to construct a preparation plant and coal handling facility, longwall and continuous miner equipment, belts and advancement material, outside facilities and related matters.

Beyond the initial investment, additional capital will be required for sustaining production.

This includes rebuilds and replacement of equipment, mine development and multiple bleeder, intake and return shafts.

These amounts could be higher now with the passage of time, inflation and labor shortages in the general economy.

The Blue Creek mine will be a similar operation to our currently active operations, Mine No.

4 and Mine No.

The mine property is located approximately 87°26’35” latitude and 33°35’21”N longitude.

Access to the Blue Creek property is by State Route 69, a well maintained, paved, two-lane road with interstate access in close proximity to both the north and south.

The current mine plan allows for three continuous mining sections and a longwall unit to mine simultaneously through the initial stages of mine development.

We believe we will have the ability to add a second longwall subsequent to

finalization of development.

The project includes surface facilities to be constructed at multiple locations in close proximity.

Rail transportation for the proposed mine site is a major rail line and river transportation is available on the Black Warrior River.

We currently control approximately 17,000 total acres of mining rights associated with the Blue Creek project, approximately 88% of which is leased from various entities and individuals.

We have plans to continue to acquire additional leases, which are primarily from private entities and individuals as well as federally owned coal via the Bureau of Land Management.

Our controlled reserves are either through direct ownership of the property or through third-party leases.

Third-party leases have initial terms extending up to 30 years and generally provide for terms or renewals through the anticipated life of the associated mine.

These renewals are conditioned upon the payment of minimum royalties.

Under current mining plans, assigned reserves reported will be mined out within the period of existing leases or within the time period of probable lease renewal periods.

All recoverable reserves reported are either 100% owned or controlled through lease agreements.

There are no significant title encumbrances to the property.

The Blue Creek property was formerly controlled by Jim Walter Resources, a subsidiary of Walter Energy.

Walter Energy acquired the majority of its mineral rights for the Blue Creek property in 2010 through its purchase of Chevron Mining, Inc.

In connection with the acquisition of certain assets of Walter Energy, we acquired the mineral rights for Blue Creek in April 2016.

Since the acquisition, we have strategically purchased and leased mineral and surface rights to further assemble the project.

The property has been extensively explored as early as 1957 by means of continuous coring and analytic testing, rotary drilling, ongoing drilling associated with coalbed methane production and by downhole geophysical logging methods.

The property has been extensively explored by numerous entities, the majority of which were completed prior to our acquisition of the assets including:

Steel, Tennessee Coal, Iron & Railroad Company, The Pittsburgh & Midway Coal Mining Company/Chevron and Walter Energy.

We have performed ongoing exploration since acquiring the property and the data we have acquired is consistent with that of past drilling activities.

A life of mine plan was used by the TRS in developing the estimate of proven and probable reserves.

The mine plan was generated based on previous mine plans, anticipated lease acquisitions, and operational criteria with modifications where necessary due to geologic mapping or other factors.

Carlson Mining software was utilized to generate the life of mine plan.

The range of met coal sales prices used to assess our reserves were based on 98 percent of the Platts Index forecast through 2030 and was held constant beyond that date and varies between $147 to $191 per metric ton.

The categories for proven and probable coal reserves are based on distances from valid points of measurement as determined by the qualified person for the area under consideration.

For the Blue Creek mine estimate, measured resources, which may convert to a proven reserve, is based on a 0.25 mile radius from a valid point of observation.

The distance between 0.25 and 0.75 of a mile radius was selected to define indicated resources.

Blue Creek mineral reserves were estimated within an accuracy threshold of plus or minus 15 percent.

Internal Controls and Material Assumptions

Our internal technical team members meet with our independent reserve engineers periodically to discuss the assumptions and methods used in the estimation process.

We provide historical information to the independent reserve engineers for our properties, such as ownership interest, production, test data, commodity prices, coal quality and operating and development costs.

The estimates of mineral reserves and resources may be materially affected if mining, quality, or infrastructure factors change from those currently anticipated.

These estimates are based on engineering, economic and geologic data, coal ownership information and current and proposed mine plans.

Our proven and probable coal reserves are reported as mineral reserves, which is an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person (as defined in the SEC rules), can be the basis of an economically viable project.

More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.

These estimates are periodically updated to reflect past coal production, new drilling information and other geologic or mining data.

Acquisitions or dispositions of coal properties will also change these estimates.

Changes in mining methods may increase or decrease the recovery basis for a coal seam, as will changes in preparation plant processes.

Our reserve estimates are predicated on engineering, economic, and geological data assembled and analyzed by internal engineers, geologists and finance associates, as well as third-party consultants.

We update our reserve estimates annually to reflect past coal production, new drilling information and other geological or mining data, and acquisitions or sales of coal properties.

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 2. Properties