What changed in this filing

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Item 1. Business

2024-02-14 compared with 2023-02-15 · 185 added, 183 removed, 337 unchanged (52% of the section changed)

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(together with its subsidiaries, the "Company" or "Warrior") is a U.S.-based, environmentally and socially minded supplier to the global steel industry headquartered in Brookwood, Alabama.

We are dedicated entirely to mining non-thermal met coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia.

We are a large-scale, low-cost producer and exporter of premium quality met coal, also known as hard coking coal (“HCC”), operating highly-efficient longwall operations in our underground mines based in Alabama, Mine No.

We are dedicated entirely to mining non-thermal steelmaking coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia.

We are a large-scale, low-cost producer and exporter of premium quality met or steelmaking coal, also known as hard coking coal (“HCC”), operating highly efficient longwall operations in our underground mines based in Alabama, Mine No.

4 and Mine No.

Our met coal production totaled 5.7 million metric tons in 2022.

Our natural gas operations remove and sell natural gas from the coal seams owned or leased by reducing natural gas levels in our mines.

Our steelmaking coal production totaled 6.9 million metric tons in 2023.

Our natural gas operations remove and sell natural gas from our owned and leased coal seams by reducing natural gas levels in our mines.

We operate as a single reportable segment.

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We believe that we have the following competitive strengths:

Leading pure play met coal producer focused on premium met coal products .

Leading pure play steelmaking coal producer focused on premium steelmaking coal products .

Unlike other publicly listed U.S.

coal companies, substantially all of our revenue is derived from the sale of premium met coal in the global seaborne markets.

All of our resources are primarily allocated to the mining, transportation and marketing of met coal.

The premium nature of our HCC makes it ideally suited as a base feed coal for steel makers and results in price realizations near or above the S&P Global Platts Index (as defined below).

The combination of low sulfur, low-to-medium ash, LV to MV, and other characteristics of our coal, as well as our ability to blend them, makes our HCC product an important component within our customers’ overall coking coal requirements.

As a result of our premium met coal, we are able to achieve higher realized prices and operating margins relative to other U.S.

met coal producers.

coal companies, substantially all of our revenue is derived from the sale of premium steelmaking coal in the global seaborne markets.

Our resources are primarily allocated to the mining, transportation and marketing of steelmaking coal.

The premium nature of our steelmaking coal makes it ideally suited as a base feed coal for steel makers and our Mine No.

7 steelmaking coal results in price realizations near or above the S&P Global Platts Index (as defined below).

4 steelmaking coal transitioned in the second half of the year from a Mid Vol to a High Vol A quality coal that typically trades at a larger discount to the price of coal from Mine No.

The combination of low sulfur, low-to-medium ash, high CSR, low volatility ("Low Vol") to high volatility ("High Vol"), and other characteristics of our coal, as well as our ability to blend them, makes our HCC product an important component within our customers’ overall coking coal requirements.

As a result of our premium steelmaking coal, we are able to achieve higher realized prices and operating margins relative to other U.S.

steelmaking coal producers.

World-class Blue Creek provides us with a high-return growth project.

Blue Creek represents one of the last remaining large scale untapped premium quality, high volatility ("High Vol") A coal reserves in the U.S.

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, has 68.2 million metric tons of recoverable reserves and 39.2 million metric tons of coal resources exclusive of reserves, which total 107.4 million metric tons.

We have the ability to acquire adjacent properties that could increase the total recoverable reserves to approximately 104.0 million metric tons with a mine life of approximately 30 years assuming a single longwall operation.

Further, we believe that we have the potential to elevate coal resources exclusive of reserves to recoverable reserves contingent upon favorable results from future exploration campaigns and property acquisitions, which we believe could increase the total reserve tons by up to 40.0 million metric tons for a total of 144.0 million metric tons with a mine life of 40 plus years.

High Vol A has traditionally priced at a slight discount to the Australian premium LV and the U.S.

Blue Creek represents one of the last remaining large scale untapped premium quality, High Vol A coal reserves in the U.S.

with a mine life of 40 or more years.

High Vol A coals have traditionally priced at a slight discount to the Australian premium Low Vol and the U.S.

Low Vol coals;

however, we have observed extended periods in which they achieved a premium over these indices.

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We believe this creates an opportunity for Blue Creek to take advantage of favorable pricing dynamics driven by the declining supply of premium High Vol A coals.

We expect our fourth longwall to start at Blue Creek in the second quarter of 2026.

The startup of Blue Creek is expected to increase our annual High Vol A production by 4.4 million metric tons per year, thereby increasing our annual production capacity by 60%.

We expect to also have the ability to add a fifth longwall which would increase our annual High Vol A production to 9.6 million metric tons, thereby increasing our total annual production capacity by 98% over our nameplate capacity of 7.3 million metric tons.

We anticipate that Blue Creek will not only decrease our cash costs and further improve our position in the first quartile global cost curve but, due to Blue Creek's expected low-cost structure, we expect that it will significantly drive down our all-in cash cost breakeven point and enhance our profitability and cash flow generation.

Highly flexible cost structure protects through-the-cycle profitability .

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Our highly flexible cost structure provides us with a key competitive advantage relative to our competitors and which we expect should allow us to remain profitable in all coal market conditions.

Significant logistical cost advantage to the seaborne market .

Our two operating mines and Blue Creek are located approximately 300 miles from our export terminal capacity in Mobile, Alabama and have alternative transportation routes to move our coal to port.

Robust logistics and significant logistical cost advantage to the seaborne market .

We have developed a logistics strategy based on multiple modalities, multiple carriers for both rail and river transportation and multiple terminals to ensure reliability of supply and cost-competitive rates.

Our ability to move our coals via rail and/or barge is a significant advantage for

Our two operating mines and Blue Creek are located approximately 300 miles from our primary export terminal capacity in Mobile, Alabama.

Our proximity to port and the flexibility of our logistics networks underpin our logistical cost advantage compared to other U.S.

met coal producers.

steelmaking coal producers.

We sell our coal to a diversified customer base of blast furnace steel producers, primarily located in Europe, South America and Asia.

We enjoy a shipping time and distance advantage serving customers throughout the Atlantic Basin relative to competitors located in Australia and Western Canada.

This advantage results in a higher margin for our met coal.

We have a shipping time and distance advantage serving customers throughout the Atlantic Basin relative to competitors located in Australia and Western Canada.

Our strategic location is enhanced by our long-tenured, well-established customer portfolio.

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The coal from our mines is competitive in quality with the premium HCC produced in Australia, which is used to set pricing for the industry.

The combination of low sulfur, low-to-medium ash, LV to MV and high coking strength drives our consistently high price realization relative to other U.S.

met coal producers who typically focus on lower rank met coals.

The combination of low sulfur, low-to-medium ash, Low Vol to High Vol A and high coking strength drives our consistently high price realization relative to other U.S.

steelmaking coal producers who typically focus on lower rank steelmaking coals.

We believe Mine No.

4 and Mine No.

7 are two of the lowest cost met coal mines in North America.

Clean balance sheet and tax asset to drive robust cash flow generation.

7 are two of the lowest cost steelmaking coal mines in North America.

Clean balance sheet to drive robust cash flow generation.

Unlike other U.S.

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With minimal legacy liabilities, we are not burdened by the annual fixed obligations that are typically associated with these types of liabilities.

Our clean balance sheet and its low sustaining capital expenditure requirements position us to generate strong cash flows across a range of met coal price environments.

Additionally, we expect our cash flows to benefit from a low cash tax rate until our NOLs are fully utilized or expire, which will enable strong cash conversion from our operating profits.

Our clean balance sheet and its low sustaining capital expenditure requirements position us to generate strong cash flows across a range of steelmaking coal price environments.

Additionally, we expect our cash flows to benefit from a low cash tax rate, which will enable strong cash conversion from our operating profits.

Disciplined financial policies to ensure stable performance .

We believe maintaining financial discipline will provide us with the ability to manage the volatility in our business resulting from changes in met coal prices.

We believe maintaining financial discipline will provide us with the ability to manage the volatility in our business resulting from changes in steelmaking coal prices.

We intend to preserve a strong and conservative balance sheet, with sufficient liquidity and financial flexibility to support our operations.

As such, we will seek to maintain a conservative financial leverage target of 1.50 - 2.00x based on normalized EBITDA and seek to maintain minimum liquidity of $100 million.

As such, we will seek to maintain a conservative financial leverage target of 1.50 - 2.00x based on normalized EBITDA and seek to maintain minimum liquidity of $250 million during the development of Blue Creek.

We plan to continually evaluate our liquidity needs based on our estimated capital needs.

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7, and over 30 years of experience in longwall coal mining.

Furthermore, following the acquisition of certain assets of Walter Energy, we hired several key personnel with extensive direct operational experience in met coal longwall mining, including our Chief Operating Officer, Jack Richardson, and a member of our Board of Directors, Stephen D.

Furthermore, following the acquisition of certain assets of Walter Energy, we hired several key personnel with extensive direct operational experience in steelmaking coal longwall mining, including our Chief Operating Officer, Jack Richardson, and a member of our board of directors (the "Board"), Stephen D.

We have a strong record of operating safe mines and are committed to environmental excellence.

Our dedication to safety is at the core of all of our overall operations as we work to further reduce workplace incidents by focusing on policy awareness and accident prevention.

Our continued emphasis on enhancing our safety performance has resulted in zero fatal incidents as compared to the national fatal incidence rate for underground coal mines in the United States of 0.025 for the nine months ended September 30, 2022, as well as total reportable incidence rates of 2.05 at Mine No.

Our continued emphasis on enhancing our safety performance has resulted in total reportable incidence rates of 2.02 at Mine No.

4 and 1.82 at Mine No.

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Strong focus on reducing greenhouse gas emissions and water usage.

Investors and other third parties are increasingly focused on sustainability matters, and we are committed to reducing the release of greenhouse gases (“GHGs”) from our operations and our water usage.

GHG emissions are produced as a by-product of mining activities, as operations in underground metallurgical coal mines produce coal bed methane.

With a view towards being an industry leader in environmental stewardship, we are actively engaged in several initiatives that occur before, during and after mining to reduce GHG emissions, including the capture of coalbed methane.

We also continuously work to evaluate and test emerging technologies that can optimize our water usage.

The Company currently captures approximately 67% of the coalbed methane that is produced during our mining activities as part of our commitment to reduce the Company’s GHG emissions.

We are then able to sell this gas into the natural gas market.

The Company also operates a low-quality gas plant, which is able to improve the quality of ordinarily unsaleable gas that would otherwise escape to the atmosphere.

Investors and other third parties are increasingly focused on sustainability matters.

With a view towards being an industry leader in environmental stewardship, we are actively engaged in several initiatives that occur before, during and after mining to reduce greenhouse gas ("GHG") emissions, including the capture of coalbed methane.

In 2022, we refocused on our long-term environmental goals and successfully set aggressive, yet achievable targets for decreasing our carbon footprint.

In connection with this strategy, we established targets which include a 50% reduction in GHG emissions by 2030 and a 25% water usage reduction by 2030 from our 2021 baseline year.

We are pleased to report that in 2022, we successfully captured and collected approximately 69% of the methane produced in our mines which would have otherwise been vented to the atmosphere resulting in a 16% reduction in total methane emissions as compared to the 2021 baseline year.

We were also able to reduce Scope 1 and Scope 2 GHG emissions by 13% compared to the 2021 baseline year.

We also operate a low-quality gas plant, which is able to improve the quality of ordinarily unsaleable gas that would otherwise escape to the atmosphere.

The improved gas is then sold and used by consumers.

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In 2021, in conjunction with a third party, we also installed our first flare system to destroy methane vented from open degasification boreholes.

We also successfully achieved a 99.89% compliance record with the EPA National Pollutant Discharge Elimination System ("NPDES") program, which addresses water pollution by regulation point source discharges.

We remain committed to taking steps to decrease our carbon footprint by reducing GHG emissions and decreasing our consumption of natural resources.

We also continuously work to evaluate and test emerging technologies that can optimize our water usage and successfully achieved a

99.93% compliance record with the EPA National Pollutant Discharge Elimination System ("NPDES") program, which addresses water pollution by regulating point source discharges.

We remain committed to taking steps to decrease our carbon footprint by reducing GHG emissions and minimizing our impact on the environment.

Our Business Strategies

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Maximize profitable production .

In the year ended December 31, 2022, we produced 5.7 million metric tons of met coal from Mine No.

In the year ended December 31, 2023, we produced 6.9 million metric tons of steelmaking coal from Mine No.

7 and Mine No.

Based on our management’s operational experience, we are confident in our ability to continue to produce at or close to capacity in a safe and efficient manner, and with a comparable cost profile to our current costs, should market conditions warrant.

Maximize organic growth.

Maximize organic growth and profitability.

On May 3, 2022, we announced the relaunch of the development of Blue Creek into a new, world-class longwall mine located in Alabama near our existing mines.

The new single longwall mine at Blue Creek is expected to have the capacity to produce an average of 4.4 million metric tons per annum of premium High Vol A met coal over the first ten years of production.

Once fully developed, we expect Blue Creek to be a transformational investment that will increase annual production capacity by 60% and expand our product portfolio to our global customers, offering three premium HCCs that are expected to achieve the highest premium met coal prices in the seaborne markets.

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, Blue Creek has 68.2 million metric tons of recoverable reserves and 39.2 million metric tons of coal resources exclusive of reserves, which total 107.4 million metric tons.

Further, we believe that we have the potential to elevate resources exclusive of reserves to recoverable reserves contingent upon favorable results from future exploration campaigns and property acquisitions, which we believe could increase the total reserve tons by up to 40.0 million metric tons for a total of 144.0 million metric tons with a mine life of 40 plus years.

The new single longwall mine at Blue Creek is expected to have the capacity to produce an average of 4.4 million metric tons per annum of premium High Vol A steelmaking coal over the first ten years of production.

Once fully developed, we expect Blue Creek to be a transformational investment that will increase annual production capacity by 60% and expand our product portfolio to our global customers, offering two premium HCCs that are expected to achieve the highest premium steelmaking coal prices in the seaborne markets.

We will also have the ability to add a fifth longwall which would increase our annual High Vol A production to 9.6 million metric tons, thereby increasing our total annual production capacity by 98% over our nameplate capacity of 7.3 million metric tons.

We anticipate that Blue Creek will decrease our cash costs and further improve our position in the first quartile global cost curve and, due to Blue Creek's expected low-cost structure, we expect that it will significantly drive down our all-in cash cost breakeven point and enhance our profitability and cash flow generation.

Broaden our marketing reach and maintain strong correlation between realized coal prices and the S&P Platts Index .

We have implemented a strategy to improve both our sales and marketing focus, with a goal of achieving better pricing relative to the S&P Platts Index, which includes:

(i) opportunistic selling into the spot met coal market and (ii) selected instances of entering into fixed price contracts.

We have implemented a strategy to improve both our sales and marketing focus, with a goal of achieving better pricing relative to the S&P Platts Index for our Mine No.

7 coal and the East Coast High Vol A indices for our Mine No.

4 coal, which includes:

(i) opportunistic selling into the spot steelmaking coal market and (ii) to a lesser extent selected instances of entering into fixed price contracts.

Each of these elements is intended to further embed our coal product among a broader group of steel customers.

Traditionally, we have predominantly marketed our coal to European and South American buyers.

For the year ended December 31, 2022, our sales geographic customer mix was 61% in Europe, 20% in Asia and 19% in South America.

Since February 2017, we have had an arrangement with Xcoal Energy & Resource (“Xcoal”) to serve as Xcoal’s strategic partner for exports of LV HCC into certain markets.

Under this arrangement, Xcoal takes title to and markets coal that we would historically have sold on the spot market to certain markets, in an amount of the greater of (i) 10% of our total production during the applicable term of the arrangement or (ii) 250,000 metric tons.

While the volumes being sold through this arrangement with Xcoal are relatively limited, we are positioned to potentially benefit from Xcoal’s expertise and relationships across all coal that we sell.

To that end, we also have an incentive-based arrangement with Xcoal to cover other tonnage, in the event Xcoal is able to offer us a higher realized price relative to the S&P Platts Index than we have previously achieved.

In recent years, due to a combination of market dynamics and geopolitical events we have expanded the marketing of our coal to Asia and we are actively marketing our coal to India and Southeast Asia buyers.

For the year ended December 31, 2023, our sales geographic customer mix was 48% in Europe, 29% in Asia, 21% in South America and 2% in the U.S.

When advantageous, we work with strategic partners to assist in the marketing of our coals.

We benefit from the local presence and knowledge of these partners to capture the highest value for our premium coals.

Capitalize on opportunities for technological innovation to continue to reduce our impact on the environment.

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We are committed to providing our products in a responsible manner.

In 2022, we partnered with a third-party consultant to develop a comprehensive Environmental, Social and Corporate Governance ("ESG") strategy that was focused on the following objectives, among others, materiality and risk assessment, creating and tracking measurable goals, GHG reduction, water usage reduction, enhancing governance standards and performing a community impact assessment.

We refocused on our long-term environmental goals and successfully set aggressive, yet achievable targets for decreasing our carbon footprint.

In connection with this strategy, we established targets which include, among others, a 50% reduction in GHG emissions by 2030 and 25% water usage reduction by 2030.

In 2023, we are planning to install the first full-scale methane destroying Regenerative Thermal Oxidizer ("RTO"), which is anticipated to result in significant emission reductions, and we are working with industry experts to test and implement the first stage of a new corporate Environmental Management Information System ("EMIS") software, which we plan to continually improve and enhance over time.

The EMIS system will include monitoring and tracking for water quality and usage, waste management, and GHG emissions, among other items, which will streamline our ability to measure and evaluate our environmental performance data against our stated objectives and goals.

The Company’s management and board of directors (the "Board") are increasingly focused on these and other opportunities for technical innovation.

In 2022, we partnered with a third-party consultant to develop a sustainability strategy that is focused on the following objectives, among others:

materiality and risk assessment, creating and tracking measurable goals, GHG reduction, water usage reduction, enhancing governance standards and performing a community impact assessment.

In 2023, we committed to installing a new Environmental Management Information System ("EMIS"), which we plan to continually improve and enhance over time.

The EMIS system enhances our ability to monitor and track water quality and usage, waste management, and GHG emissions, which streamlines our ability to measure and evaluate our environmental performance data against our stated objectives and goals.

Final evaluations are being conducted towards our goal of installing the first full-scale Regenerative Thermal Oxidizer ("RTO") to address ventilation air methane ("VAM") emissions on our property.

With permits obtained in 2023 and fabrication anticipated to begin in 2024, this RTO system is a significant step towards our emission reduction goals.

The RTO system is anticipated to result in material emission reductions, and we are currently evaluating other locations where this technology would be environmentally beneficial.

Description of Our Business

Our underground mining operations are headquartered in Brookwood, Alabama and as of December 31, 2022, based on a reserve report prepared by Marshall Miller, were estimated to have approximately 89.0 million metric tons of recoverable reserves located in west central Alabama between the cities of Birmingham and Tuscaloosa.

Operating at approximately 2,000 feet below the surface, the Mines No.

7 are two of the deepest underground coal mines in North America.

The met coal is mined using longwall extraction technology with development support from continuous miners.

Our two operating mines and Blue Creek are located approximately 300 miles from our export terminal at the Port of Mobile in Alabama, which we believe to be the shortest mine-to-port distance of any U.S.-based met coal producer.

Our underground mining operations are headquartered in Brookwood, Alabama and as of December 31, 2023, based on a reserve report prepared by Marshall Miller & Associates, Inc., were estimated to have approximately 82.9 million metric tons of recoverable reserves located in west central Alabama between the cities of Birmingham and Tuscaloosa.

Operating at approximately 2,000 feet below the surface, Mines No.

7 are two of the deepest underground coal mines in North

The steelmaking coal is mined using longwall extraction technology with development support from continuous miners.

Our low and variable cost structure, and our flexible and efficient rail and barge network underpins our cost advantage and dependable access to the seaborne markets.

We sell our coal to a diversified customer base of blast furnace steel producers, primarily located in Europe, South America and Asia.

We enjoy a shipping time and distance advantage serving our customers throughout the Atlantic Basin relative to competitors located in Australia and Western Canada.

Our HCC, mined from the Southern Appalachian region of the United States, is characterized by low-to-medium volatile matter (“VM”) and high coke strength after reaction (“CSR”).

We have a shipping time and distance advantage serving our customers throughout the Atlantic Basin relative to competitors located in Australia and Western Canada.

Our HCC, mined from the Southern Appalachian region of the United States, is characterized by low-to-high volatile matter (“VM”) and high coke strength after reaction (“CSR”).

These qualities make our coal ideally suited as a coking coal for the manufacture of steel.

As a result of our high quality coal, our realized price has historically approximated the Platts Premium Low Volatility (“LV”) FOB Australian Index price (the “S&P Platts Index”).

As a result of our high-quality coal, our realized price has historically approximated the Platts Premium Low Volatility FOB Australian Index price (the “S&P Platts Index”).

4 steelmaking coal transitioned in the second half of the year from a Mid Vol to a High Vol A quality coal that typically trades at a larger discount to the price of Mine No.

We now primarily target the East Coast High Vol A indices price for our Mine No.

In contrast, coal produced in the Central Appalachian region of the United States is typically characterized by medium-to-high VM and a CSR that is below the requirements of the Australian Index price.

The met coal from our Mines No.

7 is sold as a high-quality LV and MV met coal.

The steelmaking coal from our Mines No.

7 is sold as high-quality Low Vol and High Vol A steelmaking coal.

7 are located near Brookwood, Alabama, and are serviced by CSX railroad.

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Service via both rail and barge culminates in delivery to the Port of Mobile in Alabama, where shipments are exported to our international customers via ocean vessels.

Substantially all of our met coal sales consist of sales to international customers.

Substantially all of our steelmaking coal sales consist of sales to international customers.

We are currently in the process of testing alternative outbound logistics routes to increase transportation and vessel shipping optionality.

We also have 67.6 million metric tons of recoverable reserves and 39.7 million metric tons of coal resources exclusive of reserves, which total 107.3 million metric tons, at Blue Creek located to the northwest of Mine No.

4, based on a reserve report prepared by Marshall Miller.

4, based on a reserve report prepared by Marshall Miller and Associates, Inc.

We have the ability to acquire adjacent reserves that would increase total reserves to 144 million metric tons at Blue Creek.

According to our third-party reserve report, the met coal reserve base of Blue Creek is a high-quality High Vol A coal that is characterized by low-sulfur and high CSR.

According to our third-party reserve report, the steelmaking coal reserve base of Blue Creek is a high-quality High Vol A coal that is characterized by low-sulfur and high CSR.

Our two operating mines have demonstrated an ability to produce an average run rate of 7.0 million metric tons of HCC and 7.5 million metric tons of HCC when operating at full capacity.

As of December 31, 2022, our operations were producing below this capacity primarily due to the United Mine Workers of America (“UMWA”) strike.

Our operations have continued throughout the period of the strike, and have generated strong net income of $641.3 million and record Adjusted EBITDA of $994.2 million during the year ended December 31, 2022.

Coal Preparation and Blending

Our met coal mines have preparation and blending facilities convenient to each mine.

The met coal preparation and blending facilities receive, blend, process and ship met coal that is produced from the mines.

Using these facilities, we are able to ensure a consistent quality and efficiently blend our met coal to meet our customers’ specifications.

Our steelmaking coal mines have preparation and blending facilities convenient to each mine.

The steelmaking coal preparation and blending facilities receive, blend, process and ship steelmaking coal that is produced from the mines.

Using these facilities, we are able to ensure a consistent quality and efficiently blend our steelmaking coal to meet our customers’ specifications.

Marketing, Sales and Customers

Met coal prices can differ substantially by region and are impacted by many factors, including the overall economy, demand for steel, location, market, quality and type of met coal, mine operation costs and the cost of customer alternatives.

Steelmaking coal prices can differ substantially by region and are impacted by many factors, including the overall economy, demand for steel, location, market, quality and type of steelmaking coal, mine operation costs and the cost of customer alternatives.

The major factors influencing our business are the global economy and demand for steel.

Our operations’ high quality met coal is considered among the highest quality met coals in the world and is preferred as a base met coal in our customers’ blends.

Our marketing strategy is to focus on international markets mostly in Europe and South America where we have a shipping time and distance advantage and where our met coal is in demand.

Our operations’ high-quality steelmaking coal is considered among the highest quality steelmaking coals in the world and is preferred as a base steelmaking coal in our customers’ blends.

Our marketing strategy is to focus on international markets mostly in Europe and South America where we have a shipping time and distance advantage and where our steelmaking coal is in demand.

We focus on long-term customer relationships where we have a competitive advantage.

We typically sell our met coal under fixed supply contracts primarily with indexed pricing terms and volume terms of one to three years.

Some of our sales of met coal can, however, occur in the spot market as dictated by available supply and market demand.

We typically sell our steelmaking coal under fixed supply contracts primarily with indexed pricing terms and volume terms of one to three years.

Some of our sales of steelmaking coal can, however, occur in the spot market as dictated by available supply and market demand.

For more information regarding our customers, see Note 2 to our consolidated financial statements included elsewhere in this Annual Report.

We have an arrangement with Xcoal to serve as Xcoal’s strategic partner for exports of LV HCC into certain markets.

Xcoal has specialized marketing capabilities and deep technical expertise as the largest met coal marketer in the United States.

Our arrangement with Xcoal is expected to expand the geographic reach of our customers through Xcoal’s global presence.

We expect to be able to leverage Xcoal’s more than 30 year history selling coal to key European and Asian steel customers to further improve the selling prices of our met coal relative to the global S&P Platts Index.

Substantially all of our met coal sales are exported.

Substantially all of our steelmaking coal sales are exported.

Our major competitors are businesses that sell into our core business areas of Europe, South America and Asia.

We primarily compete with producers of premium met coal from Australia, Canada, Russia, Mozambique and the United States.

The principal factors on which we compete are met coal prices at the port of delivery, coal quality and characteristics, customer relationships and the reliability of supply.

The demand for our met coal is significantly dependent on the general global economy and the worldwide demand for steel.

We primarily compete with producers of premium steelmaking coal from Australia, Canada, Russia, Mozambique and the United States.

The principal factors on which we compete are steelmaking coal prices at the port of delivery, coal quality and characteristics, customer relationships and the reliability of supply.

The demand for our steelmaking coal is significantly dependent on the general global economy and the worldwide demand for steel.

Although there are significant challenges in the current economy, we believe that we have competitive strengths in our business areas that provide us with distinct advantages.

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We also purchase services at our mine sites, including services related to maintenance for mining equipment, construction and temporary labor.

We do not believe that we have any operational or financial risk associated with our dependence on any individual service providers.

We do not believe that we have any material operational or financial risk associated with our dependence on any individual service providers.

We have exposure to inflation in connection with the purchase of supplies that are used directly or indirectly in the normal course of production, such as belt structure, roof bolts, cable, magnetite, rock dust and other supplies, plus labor and parts used to repair and rebuild equipment.

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The Company takes pride in its environmental record and strives to be an industry leader in environmental stewardship.

The Company recently released its annual ESG sustainability report that was prepared in accordance with the Global Reporting Initiative Standards (Core Option) and the Sustainability Accounting Standards Board standards for Coal Operations and highlights our goals of becoming an industry leader in environmental stewardship, maintaining a strong environmental compliance record and safety statistics that are better than the industry average, and forming collaborative partnerships focused on workforce development and our communities.

We partnered with a third-party consultant to develop a comprehensive ESG strategy that was focused on the following, among others, materiality and risk assessment, creating and tracking measurable goals, GHG reduction, water usage reduction and reporting standards.

This comprehensive plan was made publicly available in January 2023 and can be found in the "Corporate Sustainability" section of our website (http://www.warriormetcoal.com).

We recently partnered with a third-party consultant to develop a sustainability strategy.

This plan was made publicly available in January 2023 and can be found in the "Corporate Sustainability" section of our website.

The Company recently released its annual Environmental, Social and Corporate Governance ("ESG") sustainability report that was prepared in accordance with the Global Reporting Initiative Standards (Core Option) and the Sustainability Accounting Standards Board standards for Coal Operations and highlights our goals of becoming an industry leader in environmental stewardship, maintaining a strong environmental compliance record and safety statistics that are better than the industry average, and forming collaborative partnerships focused on workforce development and our communities.

We continually invest in new technologies to lessen our environmental impact and to improve our efficiencies and productivity.

Our executive leadership team, from our Board down, is fully committed to being a responsible corporate citizen

to our employees, customers, communities, and other stakeholders.

Highlights of our comprehensive ESG strategies are detailed below.

Our executive leadership team, from our Board down, is fully committed to being a responsible corporate citizen to our employees, customers, communities, and other stakeholders.

Highlights of our sustainability strategies are detailed below.

Environmental

We work to safely and efficiently produce some of the highest quality HCC met coal for our global customers while prioritizing the safety of our environmental footprint.

We work to safely and efficiently produce some of the highest quality HCC steelmaking coal for our global customers while prioritizing the safety of our environmental footprint.

This includes accounting for and working to reduce our GHG emissions, water usage and impact on biodiversity.

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We are proud of our environmental performance, including our award-winning reclamation activities.

We currently capture approximately 67% of the coalbed methane that is produced during our mining activities as part of our commitment to reduce GHG emissions.

We are actively engaged in the EPA's voluntary programs to reduce and report GHG emissions and to improve estimates of national GHG emissions.

We have completed our first GHG Scope 1 and Scope 2 emissions inventory in accordance with the GHG Protocol and aim to reduce our GHG emissions by 50% by 2030 from our 2021 baseline year.

In 2021, we successfully installed the first flare system to destroy methane vented from open degasification boreholes with the offset compliance credits being verified by the California Air Resource Board as part of the California Cap-and-Trade Program.

Looking ahead, in 2023, we plan on installing the first full-scale methane destroying RTO which is anticipated to result in significant emission reductions.

In addition to the innovations we are using to reduce our carbon footprint, we are also optimizing our operational plans to reduce GHG emissions.

In late 2023, we are planning on sealing a shaft at Mine No.

4, which is currently our largest source of emissions at Mine No.

In 2022, we successfully captured and collected approximately 69% of the methane produced in our mines which would have otherwise been vented to the atmosphere resulting in a 16% reduction in total methane emissions as compared to the 2021 measured

We were also able to reduce Scope 1 and Scope 2 GHG emissions by 13% compared to the 2021 baseline year.

These emission reductions have been realized even with a 13% increase in production compared to the baseline year.

Methane is collected and then processed at our gas plant, transforming it into a useful and marketable gas product.

We have expanded our degasification and flaring efforts in strategic locations in 2022 and 2023 and will continue to be more aggressive in proactive degasification processes in coming years to achieve our stated goals.

Our flare system expansion has resulted in the verified offset of more than 63-thousand metric tons of CO2e for periods ending in 2022, as recognized by the California Air Resource Board under the California Global Warming Solutions Program.

Final evaluations are being conducted towards our goal of installing the first full-scale RTO to address VAM emissions on our property.

With permits obtained in 2023 and fabrication anticipated to begin in 2024, this RTO system is a significant step towards our emission reduction goals.

The RTO system is anticipated to result in material emission reductions, and we are currently evaluating other locations where this technology would be environmentally beneficial.

Water Management

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Freshwater is primarily used for processing coal or sent underground for use in mining operations.

This optimizes the performance of our mining machinery and helps create a safer environment for our workforce.

In 2023, we plan to implement a system to optimize and monitor our water usage and recycling.

This optimizes the performance of our mining machinery and helps create and maintain a safe environment for our workforce.

In 2023, we earned the Water Quality Stewardship Award from the Alabama Mining Association, reflecting our ongoing dedication to environmental excellence.

In 2023, we committed to new EMIS software, which enhances our ability to optimize and monitor our environmental performance.

Further, we collaborated with Innovative Wireless Technologies ("IWT") to install wireless sensors which allows us to enhance our real-time monitoring of environmental and water data using a mesh node communication system which provides constant readings of water levels and certain water quality parameters at sensitive locations.

We also successfully completed testing of a dewatering pilot system for slurry tailings.

After more than a year of testing and optimizing the system, we are pleased to report successful results of the dry slurry system.

Due to the success observed during the testing of the pilot unit, Warrior made an immediate commitment towards the construction of the full-scale dry slurry system.

The full-scale system was completed in October 2023, more than two years ahead of our previously stated plans.

This unit is currently undergoing testing and system optimization while awaiting final regulatory approvals.

The second portion of the final phase of our water efficiency plans involves automating mechanical controls for water withdrawal systems across several critical Warrior sites.

This is currently the only aspect of the plan not yet completed but is anticipated to be installed well ahead of schedule.

The implementation of the newly installed full-scale dry slurry system and monitoring system is anticipated to allow the company to achieve our stated goals.

The automating of mechanical controls for water withdrawal systems should enable Mine 7 to recycle more than 50% of water utilized for processing, thus resulting in a significant long-term reduction of our water demand.

In addition to improving how we track and measure water consumption, we will strategically draw water from local rivers and springs to store in reservoirs which can be utilized during periods of low flow to prevent possible stress to the local hydrologic balance.

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According to the World Resources Institute, we do not have any mines operating within or near regions identified with high or extremely high baseline water stress.

We are working with industry experts to test and implement the first stage of a new corporate EMIS software in 2023.

This system will include monitoring and tracking for water quality and usage, waste management, and GHG emissions, among other items.

Currently, we control seven certified tailings impoundment facilities that are subject to MSHA regulations and certification.

Of these seven impoundments, six are inactive and classified as low hazard facilities, and all are either already in active reclamation or planned to begin reclamation activities soon.

We are partnering with industry experts to review all current and planned tailings impoundments relative to the Global Industry Standard on Tailings Management, which sets a precedent for the safe management of existing and planned facilities, toward the goal of zero human or environmental harm.

In 2023, we implemented the EMIS software, which enhances our monitoring and tracking for water quality and usage, waste management, and GHG emissions, among other items.

Currently, we control nine certified tailings impoundment facilities that are subject to MSHA regulations and certification.

Of these nine impoundments, seven are classified as low hazard facilities and only two of the seven are active.

Our two high-hazard tailings impoundments undergo rigorous risk analyses and regular independent inspections to ensure safety and compliance.

We recognize the importance of our natural surroundings and aim to be the best stewards of the delicate and diverse natural ecosystem located on our properties and within the surrounding areas.

In 2021, we earned the Land Stewardship Award from the Alabama Mining Association for a wetland development project.

In 2021 and 2022, we earned the Land Stewardship Award from the Alabama Mining Association for a wetland development project.

We strive to conduct all mining-related activities and environmental studies with the intent to minimize ecosystem impacts.

Our ADEM-authorized National Pollutant Discharge System discharge permits include quarterly toxicity tests that detect potential water quality issues that could impact local aquatic life.

Our Alabama Department of Environmental Management-authorized NPDES discharge permits include quarterly toxicity tests that detect potential water

quality issues that could impact local aquatic life.

If any evidence of potential impact is discovered, alternative operational plans are activated.

Field experts are also

consulted during the permitting process to provide guidance related to potential biodiversity impacts.

Over the previous five-year period we have reduced reclamation requirements by 19.3% or 1,300 acres.

Field experts are also consulted during the permitting process to provide guidance related to potential biodiversity impacts.

The safety of our employees is rooted in our core values.

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In 2023, our total incidence rate was 1.90, which is 57% lower than the national total reportable incidence rate for all underground coal mines in the United States of 4.39 for the nine months ended September 30, 2023, which represents the latest data available.

In 2021, we had 100% compliance with annual safety training as required by MSHA and we received the Sentinels of Safety award issued by the National Mining Association.

This is one of the most prestigious industry honors for safety, awarded annually to mines with a minimum of 4,000 injury-free hours.

We strive to recruit, hire and retain a talented and diverse team of people.

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We incorporate training best practices, provide continuing education and constantly reinforce individual skills.

We are committed to developing and retaining our workforce.

Our employees make us who we are, and we offer tools to identify, grow and nurture our talent, including our future leaders development program, annual supervisor and development training, employee education assistance and annual performance evaluations.

In 2023, our training initiatives were expansive:

over 260 training sessions were conducted, involving more than 1,500 employees.

This resulted in over 4,500 training days, accumulating to more than 36,000 hours of dedicated training.

These figures underscore our commitment to providing comprehensive and practical training to our workforce.

Human Capital

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We also offer our employees paid time off and an Employee Assistance Program which is a comprehensive network of accredited counselors and other specialized professional who provide support on several issues, including mental health, relationships, wellbeing, stress and personal finances.

In 2023, we are launching a volunteer PTO program through which employees will receive PTO to volunteer with organizations or causes that are important to them.

In 2023, we launched a volunteer PTO program through which employees receive PTO to volunteer with organizations or causes that are important to them.

Talent Attraction:

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To help achieve this, we engage a broad range of communication channels, tools, and processes to attract highly capable external candidates to generate an experienced and diverse candidate pool.

We also work with universities to attract top candidates in key fields, while seeking to develop its in-house talent and providing opportunities for employees to increase their level of responsibility within the organization.

We have also elevated our efforts on minority and veteran recruiting by visiting and recruiting from Historically Black Colleges and Universities, growing existing and seeking new partnerships with groups to provide diverse internships, and attending and recruiting at military job fairs .

We also work with universities to attract top candidates in key fields, while seeking to develop our in-house talent and providing opportunities for employees to increase their level of responsibility within the organization.

We have also elevated our efforts on minority and veteran recruiting by visiting and recruiting from Historically Black Colleges and Universities, growing existing partnerships and seeking new partnerships with groups to provide diverse internships, and attending and recruiting at military job fairs .

Employee Development and Retention:

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We also offer tuition reimbursement opportunities for those who wish to further their education.

These efforts help employees

pursue career paths that are both interesting and rewarding, and will also assist in their pursuit of their individual goals, while at the same time helping to develop robust talent pipelines that support broader company succession planning efforts.

In 2023, we invested $0.4 million in leadership development training demonstrating our commitment to fostering a skilled and capable workforce.

efforts help employees pursue career paths that are both interesting and rewarding, and will also assist in their pursuit of their individual goals, while at the same time helping to develop robust talent pipelines that support broader company succession planning efforts.

Diversity, Equity and Inclusion:

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Employees have the right and are empowered to report issues via several reporting channels, including our third party-managed confidential employee hotline should they wish to remain anonymous.

As of year-end 2022, our Board was 33% female and 17% racially and/or ethnically diverse.

At the end of 2022, more than 18% of our workforce was racially or ethnically diverse, while almost 5% of the workforce is made up of women.

As of December 31, 2023, our Board was 33% female and 17% racially and/or ethnically diverse and more than 24% of our workforce was racially or ethnically diverse, up from 18% as of December 31, 2022.

While only 4% of our entire full-time workforce is comprised of women, women play an integral role across our operations and support facilities, like our central mining office, where they represent more than 33% of the workforce.

Human Righ ts:

Respect for human rights is a fundamental value, and we are committed to treating employees and stakeholders with dignity, respect, and equality consistent with the United Nations Universal Declaration for Human Rights.

In an effort to ensure a safe and inclusive work environment, Warrior has implemented policies and conducts annual training regarding human rights, anti-bullying, harassment, and discrimination.

In an effort to ensure a safe and inclusive work environment, Warrior has implemented policies and in 2024, we are enhancing our corporate training program to include training on human rights, anti-bullying, harassment, and discrimination.

Community Engagement

We understand the importance of making a difference in our community and that the support of our community is essential to our current and future mining operations.

Effectively engaging with members of the community is just as important as mining our premium quality metallurgical coal for our customers around the world.

Effectively engaging with members of the community is just as important as mining our premium quality steelmaking coal for our customers around the world.

In that spirit, we work to proactively foster constructive relationships that are founded on trust, dialogue, and collaboration for the overall benefit of our community.

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In 2023, we contributed over one million dollars to local nonprofits through sponsorships and other donations.

In 2023, our new volunteer PTO benefit will be available to all full-time employees to enable them to provide hands-on assistance to organizations or causes that are important to them throughout each year.

In 2024, our volunteer PTO benefit will continue to be available to all full-time employees to enable them to provide hands-on assistance to organizations or causes that are important to them throughout each year.

Our Board oversees our policies, creating strategies and initiatives that embrace ESG matters.

The Board's Nominating and Corporate Governance Committee has responsibility for developing our Corporate Governance Guidelines, recommending qualified Board candidates and overseeing evaluation of the Board and our management team.

Additionally, all four Board Committees (Nominating and Corporate Governance, Audit, Compensation, and Sustainability, Environmental Health and Safety) play specific and important roles in setting the tone by providing oversight for and fostering a culture of strong corporate governance, ethics, and compliance as described in the charters on our website.

Additionally, all four Board Committees (Nominating and Corporate Governance, Audit, Compensation, and Sustainability, Environmental Health and Safety) play specific and important roles in setting the tone for the Company by providing oversight for and fostering a culture of strong corporate governance, ethics, and compliance as described in the charters on our website.

The Company has dedicated employees that oversee the Company’s efforts with respect to various environmental issues, including our efforts with respect to the programs discussed above.

Through their efforts, as well as oversight by our senior management and the Board, we continue to make significant progress in improving our environmental stewardship.

The Environmental, Health & Safety Committee of the Board is tasked with assessing the effectiveness of the Company’s environmental, health and safety policies, programs and initiatives, as well as reviewing and monitoring the Company’s compliance with applicable environmental, health and safety laws, rules and regulations.

This committee receives quarterly reports from Company management, during which the committee reviews and discusses the Company’s various environmental, health and safety initiatives and any issues related to these areas.

The Sustainability, Environmental, Health & Safety Committee of the Board (the "EHS Committee") is tasked with assessing the effectiveness of the Company’s sustainability, environmental, health and safety policies, programs and initiatives, as well as reviewing and monitoring the Company’s compliance with applicable sustainability, environmental, health and safety laws, rules and regulations.

The EHS Committee receives quarterly reports from Company management, during which the EHS Committee reviews and discusses the Company’s various sustainability, environmental, health and safety initiatives and any issues related to these areas.

Environmental and Regulatory Matters

Our businesses are subject to numerous federal, state and local laws and regulations with respect to matters such as permitting and licensing, employee health and safety, reclamation and restoration of property and protection of the environment.

In the U.S., environmental laws and regulations include, but are not limited to, the federal Clean Air Act and its state and local counterparts with respect to air emissions;

In the U.S., environmental laws and regulations include, but are not limited to, the Clean Air Act and its state and local counterparts with respect to air emissions;

the Clean Water Act and its state counterparts with respect to water discharges and dredge and fill operations;

the Resource Conservation and Recovery Act and its state counterparts with respect to solid and hazardous waste generation, treatment, storage and disposal, as well as the regulation of underground storage tanks;

the Comprehensive Environmental Response, Compensation and Liability Act and its state counterparts with respect to releases, threatened releases and remediation of hazardous substances;

Comprehensive Environmental Response, Compensation and Liability Act and its state counterparts with respect to releases, threatened releases and remediation of hazardous substances;

the Endangered Species Act with respect to protection of threatened and endangered species;

the National Environmental Policy Act with respect to the impacts of federal actions such as the issuance of permits and licenses;

and the Surface Mining Control and Reclamation Act of 1977 and its state counterparts

with respect to environmental protection and reclamation standards for mining activities.

and the Surface Mining Control and Reclamation Act of 1977 and its state counterparts with respect to environmental protection and reclamation standards for mining activities.

Compliance with these laws and regulations may be costly and time-consuming and may delay commencement, continuation or expansion of exploration or production at our operations.

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Beginning on June 1, 2020, the Company has a deductible policy where the Company is responsible for the first $1.0 million for each workers' compensation related claim from any of our employees.

In addition, certain of our subsidiaries are responsible for medical and disability benefits for black lung disease under the Federal Coal Mine Health and Safety Act of 1969, the Mine Act and the Black Lung Benefits Revenue Act of 1977 and the Black Lung Benefits Reform Act of 1977 (together, the “Black Lung Benefits Act”), each as amended, and are insured under a guaranteed cost insurance policy beginning on April 1, 2016 through May 31, 2018 for black lung claims of any of our employees.

In addition, certain of our subsidiaries are responsible for medical and disability benefits for black lung disease under the Federal Coal Mine Health and Safety Act of 1969, the Mine Act and the Black Lung Benefits Revenue Act of 1977 and the Black Lung Benefits Reform Act of 1977, each as amended (together, the “Black Lung Benefits Act”), and are insured under a guaranteed cost insurance policy beginning on April 1, 2016 through May 31, 2018 for black lung claims of any of our employees.

From June 1, 2018 to May 31, 2020, the Company had a deductible policy where the Company was responsible for the first $0.5 million for each black lung claim from any of our employees.

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We are self-insured for these black lung liabilities and have posted $18.6 million in surety bonds and $9.0 million of collateral recognized as short term investments in addition to maintaining a black lung trust of $1.8 million that was acquired from Walter Energy.

We received a letter from the Department of Labor ("DOL") on February 21, 2020 under its new process for self-insurance renewals that would require us to increase the amount of collateral posted to $39.8 million, but we have appealed such increase.

We received a letter from the Department of Labor ("DOL") on February 21, 2020, under its new process for self-insurance renewals, which would require us to increase the amount of collateral posted to $39.8 million, but we appealed such increase.

We received another letter from the DOL on December 8, 2021 requesting additional information to support our appeal of the collateral requested by the DOL.

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In addition, on January 19, 2023, the DOL proposed revisions to regulations under the Black Lung Benefits Act governing authorization of self-insurers.

The proposed rules requires, among other requirements, all self-insured operators to post security of at least 120 percent of their projected black lung liabilities.

The proposed rules require, among other requirements, all self-insured operators to post security of at least 120 percent of their projected black lung liabilities.

The changes in the estimated claims to be paid or changes in the amount of collateral required by the DOL may have a greater impact on our profitability and cash flows in the future.

Under the Black Lung Benefits Act, as amended, each coal mine operator must make payments to a trust fund for the payment of benefits and medical expenses to claimants who last worked in the coal industry prior to January 1, 1970.

Under the Black Lung Benefits Act, each coal mine operator must make payments to a trust fund for the payment of benefits and medical expenses to claimants who last worked in the coal industry prior to January 1, 1970.

The trust fund is funded by an excise tax on production;

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Federal and state laws require us to obtain surety bonds or other acceptable security to secure payment of certain long-term obligations including mine closure or reclamation costs and other miscellaneous obligations.

The amount of security required to be obtained can change as the result of new federal or state laws, as well as changes to the factors used to calculate the bonding or security amounts.

The amount of security required to be obtained can change as the result of changes to federal or state laws, as well as changes to the factors used to calculate the bonding or security amounts.

Surety bond rates have increased in recent years and the market terms of such bonds have generally become less favorable.

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and regional governmental

In particular, in August 2022, President Biden signed the Inflation Reduction Act of 2022 ("IRA") into law.

In particular, in December 2009, the EPA published findings that GHG emissions present an endangerment to public health and welfare because, according to the EPA, emissions of such gases contribute to warming of the earth's atmosphere and other climatic changes.

The EPA's findings focus on six GHGs, including carbon dioxide and nitrous oxide (which are emitted from coal combustion) and methane (which is emitted from coal beds).

The findings by the EPA allowed the agency to proceed with the adoption and implementation of regulations to restrict emissions of GHGs under existing provisions of the Clean Air Act, including rules that regulate emissions of GHGs from motor vehicles and certain large stationary sources of emissions such as power plants or industrial facilities.

Also, in August 2022, President Biden signed the Inflation Reduction Act of 2022 ("IRA") into law.

The IRA contains billions of dollars in incentives for the development of renewable energy, clean hydrogen, clean fuels, electric vehicles, investments in advanced biofuels and supporting infrastructure and carbon capture and sequestration, amongst other provisions.

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Further, numerous proposals have been made and are likely to continue to be made at the international, national, regional and state levels of government that are intended to limit emissions of GHGs by enforceable requirements and voluntary measures.

In December 2009, the EPA published findings that GHG emissions present an endangerment to public health and welfare because, according to the EPA, emissions of such gases contribute to warming of the earth’s atmosphere and other climatic changes.

The EPA’s findings focus on six GHGs, including carbon dioxide and nitrous oxide (which are emitted from coal combustion) and methane (which is emitted from coal beds).

The findings by the EPA allowed the agency to proceed with the adoption and implementation of regulations to restrict emissions of GHGs under existing provisions of the federal Clean Air Act, including rules that regulate emissions of GHGs from motor vehicles and certain large stationary sources of emissions such as power plants or industrial facilities.

In May 2010, the EPA adopted regulations that, among other things, established Prevention of Significant Deterioration (“PSD”) and Title V permit reviews for certain large stationary sources, such as coal-fueled power plants, that are potential major sources of GHG emissions.

The so-called Tailoring Rule established new GHG emissions thresholds that determine when stationary sources must obtain permits under the PSD and Title V programs of the Clean Air Act.

On June 23, 2014, the Supreme Court held that stationary sources could not become subject to PSD or Title V permitting solely by reason of their GHG emissions.

The Court ruled, however, that the EPA may require installation of best available control technology for GHG emissions at sources otherwise subject to the PSD or Title V programs.

On August 26, 2016, the EPA proposed changes needed to bring EPA’s air permitting regulations in line with Supreme Court and D.C.

Circuit decisions on greenhouse gas permitting.

The proposed rule was published in the Federal Register on October 3, 2016 and the public comment period closed on December 16, 2016.

It is unclear when a final rule will be issued and/or whether and how additional actions by the Biden Administration could impact further regulatory developments in this area.

In June 2010, Earthjustice petitioned the EPA to make a finding that emissions from coal mines may reasonably be anticipated to endanger public health and welfare, and to list them as a stationary source subject to further regulation of emissions.

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If the EPA were to make an endangerment finding in the future, we may have to further reduce our methane emissions, install additional air pollution controls, pay certain taxes or fees for our emissions, incur costs to purchase credits that permit us to continue operations as they now exist at our underground coal mines or perhaps curtail coal production.

In addition, in August 2015, the EPA announced three separate, but related, actions to address carbon dioxide pollution from power plants, including final Carbon Pollution Standards for new, modified and reconstructed power plants, a final Clean Power Plan to cut carbon dioxide pollution from existing power plants, and a proposed federal plan to implement the Clean Power Plan emission guidelines.

However, on March 28, 2017, the Trump Administration issued an executive order directing the EPA to review all three actions and, if appropriate, initiate a rulemaking to rescind or revise the rules consistent with the stated policy of promoting clean and safe development of the nation’s energy resources, while at the same time avoiding regulatory burdens that unnecessarily encumber energy production.

Accordingly, on July 8, 2019, the EPA published a final replacement rule that would "reduce the compliance burden" of the Clean Power Plan.

On January 19, 2021, the D.C.

Circuit Court of Appeal vacated the replacement rule and remanded the rulemaking to the EPA for further proceedings.

On February 12, 2021, the EPA clarified that states are not required to take any actions to develop or submit plans under the Clean Power Plan or the now-vacated replacement rule.

Also, on June 30, 2022, the Supreme Court ruled that the Clean Power Plan's generation shifting approach for emission reductions was not authorized by section 111(d) of the Clean Air Act.

The EPA is working on new rules to limit carbon emissions from power plants, which, depending on the requirements, could have a material adverse impact on the demand for thermal coal nationally.

While the above power plant rules do not affect our marketing of met coal, the continued regulatory focus could lead to future GHG regulations for the mining industry and its steelmaking customers, which ultimately could make it more difficult or costly for us to conduct our operations or adversely affect demand for our products.

Demand for met coal and natural gas also may be impacted by international efforts to reduce GHG emissions.

In addition, on May 23, 2023, the EPA published proposed emission limits and guidelines for carbon dioxide from fossil-fuel-fired power plants.

The proposed limits and guidelines require ambitious reductions in carbon dioxide emissions, which, if finalized, could have a material adverse impact on coal-fired power plants and the demand for thermal coal nationally.

While the proposed power plant rules do not affect our marketing of our steelmaking coal, the continued regulatory focus could lead to future GHG regulations for the mining industry and its steelmaking customers, which ultimately could make it more difficult or costly for us to conduct our operations or adversely affect demand for our products.

Demand for steelmaking coal and natural gas also may be impacted by international efforts to reduce GHG emissions.

In December 2015, the United States joined the international community at the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change in Paris, France.

The text of the Paris Agreement calls for nations to undertake “ambitious efforts” to hold the increase in the global average temperature to well below 2º C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5º C above pre-industrial levels;

reach global peaking of GHG

emissions as soon as possible;

reach global peaking of GHG emissions as soon as possible;

and take action to conserve and enhance sinks and reservoirs of GHGs, among other requirements.

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The resulting Glasgow Climate Pact calls upon the parties to "accelerate efforts towards the phase-down of unabated coal power and phase-out inefficient fossil fuel subsidies." Furthermore, many state and local leaders have stated their intent to intensify efforts to support the international commitments.

It is possible that the Paris Agreement and subsequent domestic and international regulations will have adverse effects on the market for met coal, natural gas, and other fossil fuel products.

It is possible that the Paris Agreement and subsequent domestic and international regulations will have adverse effects on the market for steelmaking coal, natural gas, and other fossil fuel products.

Methane must be expelled from our underground coal mines for mining safety reasons.

Our gas operations extract methane from our underground met coal mines prior to mining.

With the exception of some methane that is vented into the atmosphere when the met coal is mined, much of the methane is captured and sold into the natural gas market and used as fuel.

If regulation of GHG emissions does not exempt the release of methane, we may have to curtail met coal production, pay certain taxes or fees for our emissions or incur costs to purchase credits that allow us to continue operations as they now exist at our underground met coal mines.

Our gas operations extract methane from our underground steelmaking coal mines prior to mining.

With the exception of some methane that is vented into the atmosphere when the steelmaking coal is mined, much of the methane is captured and sold into the natural gas market and used as fuel.

If regulation of GHG emissions does not exempt the release of methane, we may have to curtail steelmaking coal production, pay certain taxes or fees for our emissions or incur costs to purchase credits that allow us to continue operations as they now exist at our underground steelmaking coal mines.

The existing laws and regulations or other current and future efforts to stabilize or reduce GHG emissions could adversely impact the demand for, price of and value of our products and reserves.

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Clean Air Act

The federal Clean Air Act and comparable state laws that regulate air emissions affect coal mining operations both directly and indirectly.

The Clean Air Act and comparable state laws that regulate air emissions affect coal mining operations both directly and indirectly.

Direct impacts on coal mining may occur through permitting requirements and/or emission control requirements relating to particulate matter, such as fugitive dust, or fine particulate matter measuring 2.5 micrometers in diameter or smaller.

The Clean Air Act indirectly affects our mining operations by extensively regulating the air emissions of sulfur dioxide, nitrogen oxides, mercury, ozone and other compounds emitted by steel manufacturers, coke ovens and coal-fired utilities.

These laws are constantly evolving and may become more stringent.

For example, on July 31, 2023, the EPA proposed new, more stringent emission standards for hazardous air pollutants for integrated iron and steel manufacturing facilities.

As described above, existing and proposed regulations also subject GHG emissions to regulation under the Clean Air Act.

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• Dredge and Fill Permits .

Many mining activities, such as the development of refuse impoundments, fresh water impoundments, refuse fills, and other similar structures, may result in impacts to waters of the United States, including wetlands, streams and, in certain instances, man-made conveyances that have a hydrologic connection to such streams or wetlands.

Many mining activities, such as the development of refuse impoundments, freshwater impoundments, refuse fills, and other similar structures, may result in impacts to waters of the United States, including wetlands, streams and, in certain instances, man-made conveyances that have a hydrologic connection to such streams or wetlands.

Under the CWA, coal companies are required to obtain a Section 404 permit from the U.S.

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The USACE may also issue individual permits for mining activities that do not qualify for Nationwide Permit 21.

Recent regulatory actions and court decisions have created some uncertainty over the scope of CWA jurisdiction.

Recent regulatory actions and court decisions created some uncertainty over the scope of CWA jurisdiction.

On June 29, 2015, the EPA and the USACE jointly promulgated final rules expanding the scope of waters protected under the CWA, revising regulations that had been in place for more than 25 years.

However, on October 22, 2019, the agencies published a final rule to repeal the 2015 rules and then, on April 21, 2020, the EPA and the USACE published a final rule replacing the 2015 rule, and significantly reducing the waters subject to federal regulation under the Clean Water Act.

On August 30, 2021, a federal court struck down the replacement rule and, on December 30, 2022, the EPA and the USACE published a final rule that would restore water protections that were in place prior to 2015.

Meanwhile, in October 2022, the Supreme Court heard oral argument in a case addressing the proper test for determining whether wetlands are "waters of the United States." This case would provide much needed clarification, as confusion over the scope of CWA jurisdiction has led to significant permitting delays, litigation, and uncertainty in the mining industry.

On August 30, 2021, a federal court struck down the replacement rule and, on January 18, 2023, the EPA and the USACE published a final rule that would restore water protections that were in place prior to 2015.

However, on May 25, 2023, the Supreme Court issued an opinion substantially narrowing the scope of "waters of the United States" protected under the CWA.

On September 8, 2023, the EPA and the USACE published a final rule conforming their regulations to the decision.

recent actions provide much needed clarity, as confusion over the scope of CWA jurisdiction had led to significant permitting delays, litigation, and uncertainty in the mining industry.

Resource Conservation and Recovery Act

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Comprehensive Environmental Response, Compensation and Liability Act

The Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and similar state laws affect our met coal mining operations by, among other things, imposing investigation and cleanup requirements for threatened or actual releases of hazardous substances.

The Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and similar state laws affect our steelmaking coal mining operations by, among other things, imposing investigation and cleanup requirements for threatened or actual releases of hazardous substances.

Under CERCLA, joint and several liability may be imposed on operators, generators, site owners, lessees and others regardless of fault or the legality of the original activity that caused or resulted in the release of the hazardous substances.

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Protection of threatened, endangered and other special status species may have the effect of prohibiting or delaying us from obtaining mining permits and may include restrictions on our activities in areas containing the affected species.

Also, the designation of previously unidentified

threatened, endangered or special status species in areas where we operate could cause us to incur additional costs or become subject to operating delays, restrictions or bans.

Also, the designation of previously unidentified threatened, endangered or special status species in areas where we operate could cause us to incur additional costs or become subject to operating delays, restrictions or bans.

Our primary business is not materially impacted by seasonal fluctuations.

Demand for met coal is generally more heavily influenced by other factors such as the global economy, demand for steel, interest rates and commodity prices.

Demand for steelmaking coal is generally more heavily influenced by other factors such as the global economy, demand for steel, interest rates and commodity prices.

Available Information

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Our common stock is listed and traded on the New York Stock Exchange under the symbol “HCC.” Our reports, proxy statements and other information filed with the SEC can also be inspected and copied at the New York Stock Exchange, 20 Broad Street, New York, New York 10005.

We also make available on our website (http://www.warriormetcoal.com) all of the documents (including any amendments thereto) that we file or furnish with the SEC, free of charge, as soon as reasonably practicable after we electronically file such material with the SEC.

Our Code of Business Conduct and Ethics, Corporate Governance Guidelines and the charters of our audit committee, compensation committee, nominating and corporate governance committee and environmental, health & safety committee are also available on our website and in print free of charge to any stockholder who requests them.

electronically file such material with the SEC.

Our Code of Business Conduct and Ethics, Corporate Governance Guidelines and the charters of our audit committee, compensation committee, nominating and corporate governance committee and sustainability, environmental, health & safety committee are also available on our website and in print free of charge to any stockholder who requests them.

Requests should be sent by mail to our corporate secretary at our executive office at 16243 Highway 216, Brookwood, Alabama 35444.

2 unchanged sentences

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