21 unchanged sentences
7, our two operating mines, had approximately 89.0 million metric tons of recoverable reserves and our undeveloped
−Removed: 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.
+Added: Blue Creek mine contained 68.2 million metric tons of recoverable reserves and 39.2 million metric tons of in-place mineral resources exclusive of reserves, which total 107.4 million metric tons.
The following map shows the major locations of our mining operations.
10 unchanged sentences
Specialized mining service providers including slope, shaft, and preparation plant construction companies are located in the immediate area.
−Removed: All of our operations were previously owned and controlled by Jim Walter Resources, a subsidiary of Walter Energy.
−Removed: In connection with the acquisition of certain assets of Walter Energy, we acquired the mineral rights for Mine No.
−Removed: 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, 2022, 2021 and 2020:
10 unchanged sentences
As of December 31, 2022, we had outstanding surety bonds with parties for post-mining reclamation at all of our mining operations totaling $41.2 million and $4.2 million for miscellaneous purposes.
−Removed: A substantial amount of the coal that the Company mines is produced from mineral reserves leased from third-party land owners.
+Added: A substantial amount of the coal that the Company mines is produced from mineral reserves leased from third-party landowners.
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.
−Removed: Although coal leases have varying renewal terms and conditions,
−Removed: they generally last for the economic life of the reserves.
−Removed: 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.
+Added: Although coal leases have varying renewal terms and conditions, they generally last for the economic life of the reserves.
+Added: Coal royalty expense was $138.9 million, $65.4 million, and $49.5 million, for the years ended December 31, 2022, December 31, 2021, and December 31, 2020, respectively.
The following table provides the location and quality of our proven and probable mineral reserves as of December 31, 2022.
9 unchanged sentences
Various 9.0 — 9.0 — — 3.2 - 23.5 .95 - 6.01 N/A
−Removed: Total Alabama 128.9 33.9 162.8 20.1 142.7
+Added: Total 129.0 37.2 166.2 11.4 138.4
Total Warrior Met Coal 129.0 37.2 166.2 11.4 138.4
1 unchanged sentence
(2) 1 metric ton is equivalent to 1.102311 short tons.
−Removed: (2) See a description of the material mineral reserve estimates for each mine below.
−Removed: 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.
4 unchanged sentences
The range of met coal sales prices used to assess our Mine No.
−Removed: 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.
+Added: 4 reserves were based on 98 percent of the average of premium low-vol and mid-vol forecast through 2030 and was held constant beyond that date and varies between $152 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 $191 per metric ton.
−Removed: 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.
−Removed: For the Mine No.
−Removed: 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.
+Added: The range of met coal sales prices used to assess our Blue Creek reserves were based on the IHS High Volatile A price forecast through 2030 and was held constant beyond that date and varies between $143 to $177 per metric ton.
+Added: 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.
+Added: Measured resources, which may convert to proven reserves, 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.
−Removed: 7 mineral reserves were estimated within an accuracy threshold of plus or minus 15 percent.
+Added: Inferred resources are commonly assumed to be located between 0.75 miles and 3 miles from a point of observation.
+Added: The 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:
2 unchanged sentences
Various - consists of idle mines and mines that are actively operating under third party leases.
+Added: (5) See a description of the material mineral reserve estimates for each mine below.
+Added: Coal reserve tons were estimated at a 10% moisture and represent the saleable product from the property.
Our mineral reserves are controlled either through direct ownership of the property or through third-party leases.
7 unchanged sentences
The proven and probable mineral reserves for these properties were prepared by McGehee Engineering Corporation.
−Removed: The following table provides the location and quality of our measured, indicated and inferred mineral resources as of December 31, 2021.
+Added: The following table provides the location and quality of our measured, indicated and inferred mineral resources, exclusive of reserves, as of December 31, 2022.
Summary of Mineral Resources Exclusive of Reserves as of December 31, 2022 (1)
19 unchanged sentences
Summary of Material Mineral Reserves as of December 31, 2022 as compared to December 31, 2021
−Removed: (in thousands of metric tons) (1)
+Added: (in millions of metric tons) (1)
As of December 31, Change
20 unchanged sentences
The degree of assurance, although lower than for proven reserves, is high enough to assume continuity between points of observation.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: 4 and Mine No.
+Added: 7 change in proven and probable mineral reserves and quality is primarily attributable to production and incorporation of additional exploration drilling and associated coal quality data.
+Added: The Blue Creek change in proven and probable mineral reserves is primarily due to tons previously classified as mineral resources, exclusive of reserves, now qualifying to be classified as a proven and probable reserve.
The following table provides a comparison of our material mineral resources exclusive of reserves as of December 31, 2022 and December 31, 2021:
Summary of Material Mineral Resources as of December 31, 2022 as compared to December 31, 2021
−Removed: (in thousands of metric tons) (1)
+Added: (in millions of metric tons) (1)
As of December 31, Change
10 unchanged sentences
4 in April 2016, the mine began production.
−Removed: 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:
+Added: The property has been extensively explored as early as 1916 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.
−Removed: Steel, The Pittsburgh & Midway Coal Mining Company and Walter
−Removed: Energy, Inc..
−Removed: 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.
+Added: Steel, The Pittsburgh & Midway Coal Mining Company and Walter Energy, Inc.
+Added: 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.
14 unchanged sentences
4 has had multiple improvements to the infrastructure by adding new portal facilities in 2019 and 2021.
+Added: 4 North portal development is expected to be completed in 2023.
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.
3 unchanged sentences
This preparation plant runs the most modern circuits, including an ultrafine coal recovery system.
−Removed: 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.
+Added: The preparation plant has had numerous upgrades since its 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.
2 unchanged sentences
As of the filing of this annual report Mine No.
−Removed: 4 is currently active with two continuous mining sections and one longwall.
+Added: 4 is currently active with three continuous mining sections and one longwall.
4, inclusive of depleted mine works and future reserve areas, is composed of approximately 46,000 total acres.
10 unchanged sentences
7 in April 2016.
−Removed: 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:
+Added: The property has been extensively explored as early 1916 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.
34 unchanged sentences
Of the 43,000 acres, approximately 10,100 are associated with future mining areas.
−Removed: Future mining areas include approximately 19,600 acres of leased mineral holdings and approximately 700 acres of uncontrolled mineral holdings.
+Added: Future mining areas include approximately 10,000 acres of leased mineral holdings and approximately, 100 acres of owned mineral holdings and 300 acres of uncontrolled mineral holdings.
Our controlled reserves are either through direct ownership of the property or through third-party leases.
6 unchanged sentences
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.
−Removed: 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.
+Added: Based on the current schedule, we expect the first development tons from continuous miner units to occur in the third quarter of 2024 with the longwall scheduled to start in the second quarter of 2026.
+Added: We expect to invest approximately $650.0 to $700.0 million over the next five years to develop Blue Creek.
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.
4 unchanged sentences
4 and Mine No.
+Added: The net book value of property, plant and equipment associated with Blue Creek as of December 31, 2022, was $54.9 million.
The mine property is located approximately 87°26’35” latitude and 33°35’21”N longitude.
−Removed: 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.
+Added: 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
+Added: 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.
−Removed: We believe we will have the ability to add a second longwall subsequent to
−Removed: finalization of development.
+Added: 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.
19 unchanged sentences
Carlson Mining software was utilized to generate the life of mine plan.
−Removed: 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.
+Added: The range of met coal sales prices used to assess our reserves were based on IHS High Volatile A price forecast through 2030 and was held constant beyond that date and varies between $143 to $177 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.
14 unchanged sentences
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.
−Removed: 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.
+Added: We update our reserve estimates
+Added: 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.