What changed in this filing

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Item 2. Properties

2025-02-21 compared with 2024-02-27 · 50 added, 36 removed, 75 unchanged (53% of the section changed)

Knife River currently maintains its principal executive office at 1150 W.

We currently maintain our principal executive office at 1150 W.

Century Ave., Bismarck, North Dakota 58503.

In addition to the principal office, Knife River maintains and operates physical locations in 14 states throughout the United States.

Knife River’s operations include 180 active aggregate sites, 102 ready-mix plants, 56 asphalt plants, eight cement terminals, five liquid-asphalt terminal sites and six petroleum recovery collection points, as discussed in the section entitled “Item 1.

In addition to the principal office, we maintain and operate physical locations in 14 states throughout the United States.

Our operations include the following properties:

Pacific Northwest Mountain Central

Energy Services

Active Aggregate Sites

16 52 32 82 — 182

Ready-Mix Plants

21 27 17 41 — 106

Asphalt Plants

4 12 15 20 — 51

Liquid Asphalt Terminals — — — — 9 9

Cement Terminals 8 — — — — 8

Aggregate sites and reserves

Knife River mines crushed stone and sand and gravel at its 180 active aggregate sites across its operating segments.

The aggregates produced by Knife River are utilized in general construction and are a major component in the production of ready-mix concrete and asphalt.

Knife River’s aggregate sites contain both reserves and resources.

We mine crushed stone and sand and gravel at our active aggregate sites across our segments.

The aggregates produced are utilized in general construction and are a major component in the production of ready-mix concrete and asphalt.

Our aggregate sites contain both reserves and resources.

Mineral reserves are defined as an estimate of tonnage that, in the opinion of the qualified person, can be economically mined or extracted, which includes diluting materials and allowances for losses that may occur throughout the process.

4 unchanged sentences

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

Reported proven and probable reserves include only quantities that are owned in fee or under lease and for which all

appropriate zoning and permitting have been obtained or are expected to be obtained through permit, contract or grandfathered status.

Reported proven and probable reserves include only quantities that are owned in fee or under lease and for which all appropriate zoning and permitting have been obtained or are expected to be obtained through permit, contract or grandfathered status.

Mineral resources are defined as a concentration or occurrence of material of economic interest in such form, grade or quality, and quantity that has a reasonable prospect to be economically extracted.

12 unchanged sentences

Property setbacks and other regulatory restrictions and limitations are identified to determine the total area available for mining.

Knife River also considers mine plans, economic viability and production history in the aggregate reserve and resource estimates.

Knife River’s reserve estimates include only salable tonnage and thus exclude waste materials that are generated in the crushing and processing phases of the operation.

The reserves are based on estimates of volumes that can be economically extracted and sold to meet current market and product applications.

Knife River’s reserves and resources are on properties that are permitted, or are expected to be permitted, for mining under current regulatory requirements.

We also consider mine plans, economic viability and production history in the aggregate reserve and resource estimates.

Our reserve estimates include only salable tonnage and thus exclude waste materials that are generated in the crushing and processing phases of the operation.

The reserves are based on estimates of volumes that can be economically extracted and sold to meet current and anticipated market and product applications.

Our reserves and resources are on properties that are permitted, or are expected to be permitted, for mining under current regulatory requirements.

The data used to calculate reserve and resource estimates may require revisions in the future to account for changes in customer requirements, regulatory requirements and unknown geological occurrences.

Knife River classifies the applicable quantity of a particular deposit as a reserve or resource by reviewing and analyzing, independently, each geological formation, testing results and production processes, along with other modifying factors, to determine an expected yield of recoverable tonnage an area will produce.

We classify the applicable quantity of a particular deposit as a reserve or resource by reviewing and analyzing, independently, each geological formation, testing results and production processes, along with other modifying factors, to determine an expected yield of recoverable tonnage an area will produce.

These results may have an effect on mine plans and the selection of processing equipment.

3 unchanged sentences

Additionally, management assesses the risks associated in obtaining and maintaining the various land use, mining and environmental permits necessary for the properties to operate as mines.

Annual reviews of mining reserves are conducted by the qualified individual and

include procedures such as ensuring financial assumptions related to life of mine expenses are based on the most accurate estimates available.

Knife River has reviewed its properties and has determined it does not have any individual sites that are material.

The following tables set forth details applicable to Knife River’s aggregate production and aggregate sites as of December 31, 2023, by the various regions where the sites are located.

Annual reviews of mining reserves are conducted by the qualified individual and include procedures such as ensuring financial assumptions related to life of mine expenses are based on the most accurate estimates available.

We have reviewed our properties and have determined we do not have any individual sites that are material.

The following tables set forth details applicable to our aggregate production and aggregate sites as of December 31, 2024, by the various regions where the sites are located.

Aggregate Production

12 unchanged sentences

Total 23 31 93 39

The following table sets forth details applicable to Knife River’s aggregate reserves as of December 31, 2023.

The following table sets forth details applicable to our aggregate reserves as of December 31, 2024.

Crushed Stone Sand & Gravel

10 unchanged sentences

2 The aggregates mined are of suitable grade and quality to be used as construction materials and no further grade or quality disclosure is applicable.

The following table sets forth details applicable to Knife River’s aggregate resources as of December 31, 2023.

Sand & Gravel

The following table sets forth details applicable to our aggregate resources as of December 31, 2024.

Crushed Stone Sand & Gravel

Production Area Aggregate

Sites Measured

Resources Indicated

Resources Measured +

Resources Measured

Resources Indicated

Resources Measured +

Resources Inferred

(Tons in thousands)

2 unchanged sentences

Mountain 1 — 47,749 47,749 27,628 9,765 37,393 1,733

Central 0 — — — — — — —

Total 4 128,613 152,861 281,474 77,016 30,741 107,757 265,555

__________________

* Pacific, Northwest and Mountain all have sites that include both reserves and resources, which are included in the aggregate sites for reserves.

* Pacific, Northwest and Mountain all have sites that include both reserves and resources, which are included in the number of aggregate sites for reserves.

Our mining properties are categorized as follows:

(1) Production Stage – properties with reported proven or probable reserves where the Company is actively mining aggregates, (2) Development Stage – properties with reported proven or probable reserves where the Company is not actively mining aggregates, and (3) Exploration Stage – properties with no reported reserves.

Of Knife River’s 180 active properties, 138 are in a production stage and 42 are in a development stage.

Additionally, the Company has six properties in the exploration stage.

(1) Production Stage – properties with reported proven or probable reserves where we are actively mining aggregates, (2) Development Stage – properties with reported proven or probable reserves where we are not actively mining aggregates, and (3) Exploration Stage – properties with no reported reserves.

Of our 182 active properties, 144 are in a production stage and 38 are in a development stage.

As of December 31, 2024, 1.04 billion tons of estimated proven and probable reserves are located on production stage properties and 119 million tons on developmental stage properties.

The Company classifies aggregates located on exploration stage properties as resources.

Knife River’s aggregate annual production in tons for all aggregate mining properties was 30.7 million, 32.2 million and 31.1 million for the years ended December 31, 2023, 2022 and 2021, respectively.

We classify aggregates located on exploration stage properties as resources.

Our aggregate annual production in tons for all aggregate mining properties, including project specific sites and sites with short-term leases that are not included in the previous tables, was 30.3 million, 30.7 million and 32.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The average selling price per ton for crushed stone and sand and gravel was $19.59 and $12.80, respectively, in 2024.

2 unchanged sentences

The average pricing is based on salable product, or materials that are ready for sale.

Knife River believes the current sales price is reasonable and justifiable to estimate the aggregates’ current fair value, while the Consolidated Balance Sheets reflect the historical costs.

Knife River conducts its mining operations across 114 owned properties, of which 109 are active sites, and another 72 leased properties, of which 71 are active sites.

Its reserves are comprised of 506 million tons on properties that are owned and 596 million tons that are leased.

The remaining reserve life in years was calculated by

dividing remaining reserves by the three-year average production from 2021 through 2023.

Knife River estimates the useful life of its owned reserves are approximately 28 years based on the most recent three-year production average.

Approximately 36 percent of the reserves under lease have lease expiration dates of more than 20 years and the weighted average years remaining on all leases containing estimated proven aggregate reserves is approximately 19 years, including options for renewal that are at Knife River’s discretion.

The average time necessary to produce remaining aggregate reserves from its leased sites is approximately 47 years.

We believe the current sales price is reasonable and justifiable to estimate the aggregates’ current fair value, while the Consolidated Balance Sheets reflect the historical costs.

We conduct our mining operations across 116 owned properties, of which 113 are active sites, and another 70 leased properties, of which 69 are active sites.

Our reserves are comprised of 630 million tons on properties that are owned and 532 million tons that are leased.

The remaining reserve life in years was calculated by dividing remaining reserves by the three-year average production from 2022 through 2024.

We estimate the useful life of our owned reserves are approximately 36 years based on the most recent three-year production average.

The average time necessary to produce remaining aggregate reserves from our leased sites is approximately 45 years.

Some sites have leases that expire prior to the exhaustion of the estimated reserves.

The estimated reserve life assumes, based on Knife River’s experience, that leases will be renewed to allow sufficient time to fully recover these reserves.

The estimated reserve life assumes, based on our experience, that leases will be renewed to allow sufficient time to fully recover these reserves.

Actual useful lives of these reserves will be subject to, among other things, fluctuations in customer demand, customer specifications, geological conditions and changes in mining plans.

3 unchanged sentences

For aggregate reserve and resource additions, management, which includes the qualified person, performs its due diligence and reviews the study of technical, economic and operating factors, as well as applicable supplemental information, including a summary of the site’s geotechnical report.

Knife River maintains a database of all aggregate reserves, which is reconciled at least annually and reviewed and approved by the qualified person.

We maintain a database of all aggregate reserves, which is reconciled at least annually and reviewed and approved by the qualified person.

The evaluation, classification and estimation of reserves has inherent risks, including changing geotechnical, market and permitting conditions.

1 unchanged sentence

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

What changed 10-K

Item 2. Properties