Item 2. Properties
Item 2. Properties
Summary Overview of Mining Operations
Information concerning our mining properties in this Annual Report has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K, which first became applicable to us for the fiscal year ended December 31, 2021. These requirements differ significantly from the previously applicable disclosure requirements of SEC Industry Guide 7. Among other differences, subpart 1300 of Regulation S-K requires us to disclose our mineral resources, in addition to our mineral reserves, as of the end of our most recently completed fiscal year both in the aggregate and for each of our individually material mining properties.
As used in this Annual Report, the terms “mineral resource,” “measured mineral resource,” “indicated mineral resource,” “inferred mineral resource,” “mineral reserve,” “proven mineral reserve” and “probable mineral reserve” are defined and used in accordance with subpart 1300 of Regulation S-K. Under subpart 1300 of Regulation S-K, mineral resources may not be classified as “mineral reserves” unless the determination has been made by a qualified person that the indicated and measured mineral resources can be the basis of an economically viable project. You are specifically cautioned not to assume that any part or all of the mineral resources will ever be converted into mineral reserves, as defined by the SEC. See “Item 1A “Risk Factors”
You are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Inferred mineral resources are estimates based on limited geological evidence and sampling and have a too high of a degree of uncertainty as to their existence to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Estimates of inferred mineral resources may not be converted to a mineral reserve. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. A significant amount of exploration must be completed in order to determine whether an inferred mineral resource may be upgraded to a higher category. Therefore, you are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be the basis of an economically viable project, or that it will ever be upgraded to a higher category. Likewise, you are
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cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted to mineral reserves. See “Item 1A “Risk Factors”
The information that follows relating to the Elk Creek Complex and the Berwind/Knox Creek complex (the “Berwind/Knox Creek Complex”) is derived, for the most part, from, and in some instances is an extract from, the technical report summaries (“TRS”) relating to such properties prepared in compliance with the Item 601(b)(96) and subpart 1300 of Regulation S-K. Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein. Reference should be made to the full text of the TRS’s, incorporated herein by reference and made a part of this Annual Report.
The following map shows the location of our mining properties and offices, as of December 31, 2021:
At December 31, 2021, we had three mining properties, as summarized in the table below:
Controlled
Processing Facilities -
Location
Acres
(years)
Stage
Mine Type
Quality
Transportation
Elk Creek Complex
Logan, Wyoming and Mingo Counties, WV
20,200
20+
Production
Underground, Highwall, Surface
High Volatile A, A/B, B
Elk Creek Preparation Plant - CSX RR, Truck
Berwind/Knox Creek Complex
McDowell County, WV, Buchanan Russell and Tazewell Counties, VA
103,400
20+
Production
Underground, Highwall, Surface
Low, Mid and High Volatile A
Knox Creek Preparation Plant - Truck, Norfolk Southern RR
RAM Mine
Washington County, PA
1,567
10
Development
Underground
High Volatile C
Truck, Barge
Total
125,167
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At December 31, 2021, we owned or controlled, primarily through long-term leases, approximately 123,600 acres of coal in Virginia and West Virginia and 1,567 acres of coal in Pennsylvania. The aggregate annual production for our properties during the three most recently completed fiscal years are as follows: 2.2 million tons for fiscal year 2021, 1.7 million tons for fiscal year 2020 and 1.9 million tons for fiscal year 2019. Our preparation plants and loadout facilities are located on properties owned by us or held under leases which expire at varying dates over the next 30 years. Most of the leases contain options to renew. Many of these leases provide for a royalty payment to the lessor based on a specific price per ton of coal extracted or as a percentage of coal sales revenue. We believe that all of our leases were entered into at market terms.
Our executive headquarters occupies leased office space in Lexington, Kentucky and we lease office space in Charleston, West Virginia as an operations center. See Item 1. “Business - Our Projects” for specific information about our mining operations.
We hold numerous environmental and mineral extraction permits, water rights and other permits, licenses and approvals from governmental authorities authorizing operations at each of our facilities. With respect to each facility at which we produce coal, permits, licenses and approvals are obtained as needed in the normal course of business based on our mine plans and federal, state, and local regulatory provisions regarding mine permitting and licensing. Based on our historical permitting experience, we expect to be able to continue to obtain necessary mining permits and approvals to support historical rates of production.
We are the operators of the mining and processing operations and the mining methods we use consist of surface, underground and highwall mining methods. The mining operations for the Elk Creek Complex and the Berwind/Knox Creek Complex are material to our business and are further described below.
Elk Creek Complex
The Elk Creek Complex is located approximately 45 miles south of Charleston, West Virginia, in Logan, Wyoming, and Mingo Counties at N 37.698718, W 81.778297. The nearest town is Man, West Virginia, which is approximately five miles to the northwest of the Elk Creek Complex. The Elk Creek Complex is within the Southern West Virginia coal field of the Central Appalachia Coal Producing Region (the “CAPP Region”) of the United States.
Companies that previously mined on the Elk Creek Complex include Island Creek Coal Company (“Island Creek”) which started mining in the area in December 1904. Consolidation Coal Company, now known as Consol Energy, Inc. (“Consol”), bought Island Creek in July 1993 and continued operations in and around the area until the late-1990s when Consol idled its Elk Creek Mine. Ramaco Coal bought the property from Consol in 2012 and started production on the Elk Creek Complex in the fourth quarter of 2016. The 2012 purchase included acquisition of rail access, permitted impoundment and coal refuse disposal facilities, as well as numerous reclaimed, but permitted deep mines. Pittston Coal Company operated mines on the northern Huff Creek portion (McDonald and Baisden properties) of the Elk Creek Complex in the 1970s and 1980s before the company exited the coal mining business in 2001.
The Elk Creek Complex consists of approximately 20,200 acres of leased coal holdings. Within the Elk Creek Complex controlled coal holdings, 16,000 acres lie in Logan County, 2,800 acres in Wyoming County and 1,400 acres in Mingo County. The Elk Creek Complex is in the production stage and currently has four active mines, five planned and permitted mines, one permitted inactive mine, and one planned but not permitted mine. The five planned and permitted mines include two contour surface mine developing areas for a highwall miner, and three underground room and pillar mines, which use continuous miners for mine development. Ramaco began production of metallurgical coal at the complex in 2016. A majority of the underground mines implement retreat mining, which results in mining recovery of greater than 80 percent. Contour mining has an average mining recovery of approximately 90 percent, and the highwall mines have and average mining recovery of approximately 40 percent.
The Elk Creek Complex is mining several seams and seam splits, including the Chilton A, Upper Dorothy, Upper Dorothy 2, 3, and 4, Middle Dorothy, Lower Dorothy, Upper Cedar Grove, Lower Cedar Grove A, Lower Cedar Grove B, Lower Cedar Grove C, No. 2 Gas, Upper Alma, Lower Alma, Powellton, and Eagle seams.
Currently, there are four active mines within the complex:
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● Ram No. 1 Surface and Highwall Mine;
● Stonecoal No. 2 Alma Deep Mine;
● Rockhouse Eagle Deep Mine; and
● No. 2 Gas Deep Mine.
There are five planned and permitted mines within the complex:
● Michael Powellton Deep Mine, scheduled for late-2022 startup;
● Crucible Lower Cedar Grove B and C seams, scheduled for early-2022 startup;
● Ram No. 3 Surface and Highwall Mine, scheduled for 2023 startup;
● Ram No. 2 Surface and Highwall Mine (which is the extension of Ram No. 1 above), scheduled for 2023 startup; and
● Glenalum Tunnel #1 Deep Mine, scheduled for 2027 startup.
There is one permitted inactive mine, the Eight-Kay Deep Mine that is projected to start in 2027 and the Bens Creek Deep Mine is planned but is not yet permitted. The projected startup date for this mine is 2026. There are several other resource areas on the property which Ramaco may plan to mine and permit at a future date.
The current Elk Creek Complex Life-of-Mine (“LOM”) Plan projects mining through 2040; an expected mine life for the complex of 19 years. Ramaco projects total annual mine production to range from 2.0 to 2.6 million clean tons when the surface and continuous miner units are operating (2022 through 2028) and 0.5 to 1.6 million clean tons per year from 2029 through 2040 after surface mining ceases in 2028, in the absence of new mine development. It is likely future mines will be planned and scheduled, as necessary, from resource areas within the complex, to meet internal Ramaco production goals aligned with market conditions.
All Run-of-Mine (“ROM”) coal is washed at the Elk Creek Preparation Plant. The Elk Creek Preparation Plant, built in 2017 by Raw Resources Group located in Princeton, West Virginia, is a well designed and constructed preparation plant, with ROM processing capacity of 700 tons per hour.
The book value of the Elk Creek Complex property and its associated plant and equipment was $186 million as of December 31, 2021. The Elk Creek Complex utilizes industry standard, modern surface and underground mining equipment, processing equipment and infrastructure that is in good operating condition and capable of meeting planned production requirements using prudent operating methods and operating schedules.
The Elk Creek Complex produces a high quality, high-volatile metallurgical coal. Historically, the market for metallurgical coal from the Elk Creek Complex has been domestic metallurgical coal consumers and the global seaborne metallurgical coal market. Coal produced from the complex is primarily high-volatile A and high-volatile B metallurgical coal. The Elk Creek Complex also produces thermal coal and specialty coals, which represent approximately five percent of sales.
Volatiles refers to the volatile matter contained in the coal. Classification of coal as low, mid or high-volatile refers to the specific volatile content within the coal, with coals of 17% to 22% volatile matter being classified as low-volatile, 23% to 31% as mid volatile and 32% or greater as high-volatile. The volatile matter in coal impacts coke yield (i.e. the amount of coke and coke by-products produced per ton of coal charged). Low-volatile coal contains more carbon, but too much carbon can result in coke oven damage. Too much volatile matter results in less carbon and reduces the volume of coke produced. Therefore, coke producers use blends of high-volatile and low-volatile coals for coke production.
We are unaware of any significant encumbrances to the Elk Creek Complex, including current and future permitting requirements and associated timelines, permit conditions, and violations and fines.
Berwind/Knox Creek Complex
The Berwind/Knox Creek Complex consists of three general properties or areas as follows:
● Berwind Property;
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● Big Creek Property; and
● Knox Creek Property.
The Berwind/Knox Creek Complex is located approximately 80 miles south of Charleston, West Virginia; 100 miles west of Roanoke, Virginia; 60 miles northeast of Kingsport, Tennessee; and 160 miles east/southeast of Lexington, Kentucky at N 37.164522, W 81.744893. The complex includes areas in Buchanan, Russell and Tazewell Counties, Virginia and McDowell County, West Virginia. The Berwind/Knox Creek Complex is within the Southwestern Virginia and Southern West Virginia coal fields of the CAPP Region of the United States.
The Berwind/Knox Creek Complex and surrounding area has an extensive history of coal mining, primarily by underground mining methods. Mining within the Berwind/Knox Creek Complex likely began in the early-1900s and there have been many different mine operators both large and small in the region since then.
The Berwind/Knox Creek Complex consists of approximately 103,400 acres of owned and leased coal holdings. Within the Berwind/Knox Creek Complex controlled coal holdings, 32,500 acres lie in McDowell County, West Virginia, 24,900 acres lie in Buchanan County, Virginia, 30,300 acres in Tazewell County, Virginia, and 15,700 acres in Russell County Virginia. The Berwind/Knox Creek Complex is in the production stage and currently has three active mines and two planned and permitted mines. The three active mines include one contour surface mine developing areas for a highwall miner, and two underground room and pillar mines, which use continuous miners for mine development. Ramaco began production of metallurgical coal at the complex in 2017. A majority of the underground mines implement retreat mining, which results in mining recovery of greater than 80 percent. Contour mining has an average mining recovery of approximately 90 percent, and the highwall mine has an average mining recovery of approximately 40 percent.
The Berwind/Knox Creek Complex is mining several seams and seam splits, including the Pocahontas 4, Pocahontas 3, Jawbone and Tiller seams.
Active Mines:
● Berwind No. 1 Pocahontas 4 Deep Mine
● triad Pocahontas 4 Deep Mine
● Big Creek Surface and Highwall Mine
Planned and Permitted Mines:
● Big Creek Jawbone 1 Deep Mine, scheduled for mid-2022 startup
● Laurel Fork Deep Mine, scheduled for mid-2022 startup
We recently acquired the Laurel Fork Deep Mine as part of the purchase of the Amonate Assets, however, geology work has not been completed for this mining property and reserves have not been estimated.
The current Berwind/Knox Creek Complex LOM Plan projects mining through 2039, an expected mine life for the complex of 18 years. Ramaco projects total annual production to range from 0.8 to 1.0 million clean tons when the surface and continuous miner units are operating (2022 through 2023), and 0.4 to 0.8 million clean tons per year from 2024 through 2039 after surface mining ceases in 2023. These figures do not include mining on the Amonate reserves, which we anticipate adding between 0.7-0.9 million tons of annual production by the end of 2023. It is likely future mines will be planned and scheduled, as necessary, from resource areas within the complex, to meet internal Ramaco production goals aligned with market conditions.
Currently, all ROM coal is washed at the Knox Creek preparation plant. The Knox Creek preparation plant, built in 1981 by Powell Construction Company located in Johnson City, Tennessee, is a well designed and constructed preparation plant, with ROM processing capacity of 750 tons per hour.
The book value of the Berwind/Knox Creek Complex property and its associated plant and equipment is $96 million as of December 31, 2021. The Berwind/Knox Creek Complex utilizes industry standard, modern surface and
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underground mining equipment, processing equipment and infrastructure that is in good operating condition and capable of meeting planned production requirements using prudent operating methods and operating schedules.
The Berwind/Knox Creek Complex produces primarily a high quality, mid and low-volatile metallurgical coal. Historically, the market for metallurgical coal from the Berwind/Knox Creek Complex has been domestic metallurgical coal consumers and the global seaborne metallurgical coal market. The Berwind/Knox Creek Complex also produces a minimal quantity of thermal coal from the surface mine, which represents approximately two percent of its total coal sales.
We are unaware of any significant encumbrances to the Berwind/Knox Creek Complex, including current and future permitting requirements and associated timelines, permit conditions, and violations and fines.
Summary of Mineral Resources and Reserves
Summaries of our mineral resources and reserves at December 31, 2021, are set forth in Tables 1 and 2.
Table 1. Summary Mineral Resources at end of Fiscal Year ended December 31, 2021
Measured Mineral Resources
Indicated Mineral Resources
Measured + Indicated
Mineral Resources
Inferred Mineral Resources
Coal Quality (Dry Basis) Raw
Coal Quality (Dry Basis) Raw
Coal Quality (Dry Basis) Raw
Coal Quality (Dry Basis) Raw
Amount
(000 Tons)
Ash (%)
Relative Density
(Lbs./Cu.Ft.)
Amount
(000 Tons)
Ash (%)
Relative Density
(Lbs./Cu.Ft.)
Amount
(000 Tons)
Ash (%)
Relative Density
(Lbs./Cu.Ft.)
Amount
(000 Tons)
Ash (%)
Relative Density
(Lbs./Cu.Ft.)
Area
Berwind/Knox Creek Complex
Berwind Property
197,215
21.80
92.20
40,825
21.80
92.20
238,040
21.80
92.20
4,495
21.80
92.20
Big Creek Property
30,150
13.60
90.50
—
—
—
30,150
13.60
90.50
—
—
-
Knox Creek Property
259,035
11.30
87.70
6,765
11.30
87.70
265,800
11.30
87.70
—
—
-
Elk Creek
Ram Surface
95,250
15.74
88.65
14,055
15.74
88.65
109,305
15.74
88.65
—
15.74
88.65
Crucible Deep
2,285
8.74
84.04
730
8.74
84.04
3,015
8.74
84.04
—
8.74
84.04
Stonecoal No. 2 Alma Deep Mine
24,005
15.25
87.44
5,135
15.25
87.44
29,140
15.25
87.44
—
15.25
87.44
Michael Powellton Mine
2,460
32.24
97.85
—
32.24
97.85
2,460
32.24
97.85
—
32.24
97.85
Rockhouse Eagle Deep Mine
4,065
19.62
89.07
35
19.62
89.07
4,100
19.62
89.07
—
19.62
89.07
Moorfork Mine
2,390
15.49
82.24
360
15.49
82.24
2,750
15.49
82.24
—
15.49
82.24
Bens Creek Deep Mine
15,510
25.83
93.81
24,425
25.83
93.81
39,935
25.83
93.81
—
25.83
93.81
Lower War Eagle
4,965
21.76
90.64
2,870
21.76
90.64
7,835
21.76
90.64
70
21.76
90.64
Glenalum Tunnel #1 Deep Mine
9,295
4.80
81.13
10,855
4.80
81.13
20,150
4.80
81.13
815
4.80
81.13
Gilbert Deep Mine
2,085
23.56
92.66
2,565
23.56
92.66
4,650
23.56
92.66
85
23.56
92.66
Ram
Ram Mine
3,724
6.00
81.12
7,716
6.00
81.12
11,440
6.00
81.12
—
—
—
Grand Total
652,434
116,336
768,770
5,465
Notes:
● Mineral Resources reported above are not Mineral Reserves and do not meet the threshold for reserve modifying factors, such as estimated economic viability, that would allow for conversion to mineral reserves. There is no certainty that any part of the Mineral Resources estimated will be converted into Mineral Reserves. Mineral Resources reported here are exclusive of Mineral Reserves.
● Resource probable economic mineability is based on underground minable resources with 2.0 feet minimum seam thickness, surface and highwall mines with 1.0 feet minimum seam thickness, area mining with a cutoff stripping ratio of 20:1, and primarily metallurgical low and mid-volatile coal at the Berwind/Knox Creek Complex realizing a sales price of $142 per ton at a cash cost of $77 per clean ton (FOB Mine) and primarily a metallurgical high-volatile A and high-volatile B coal at the Elk Creek Complex realizing a sales price of $131 per ton at a cash cost of $77 per clean ton (FOB Mine).
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● Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding.
Table 2. Summary Mineral Reserves at end of Fiscal Year ended December 31, 2021
Proven Mineral Reserves
Probable Mineral Reserves
Proven + Probable Mineral Reserves
Coal Quality (Dry Basis) Raw
Coal Quality (Dry Basis) Raw
Coal Quality (Dry Basis) Raw
Amount
(000 Tons)
Ash (%)
Relative Density
(Lbs./Cu.Ft.)
Amount
(000 Tons)
Ash (%)
Relative Density
(Lbs./Cu.Ft.)
Amount
(000 Tons)
Ash (%)
Relative Density
(Lbs./Cu.Ft.)
Area
Berwind/Knox Creek Complex
Berwind Property
Pocahontas No. 1 Deep Mine
9,295
23.39
92.58
25
23.39
92.58
9,320
23.39
92.58
Triad Pocahontas 4 Deep Mine
90
23.02
92.35
—
—
—
90
23.02
93.25
Knox Creek Property
Big Creek Surface and Highwall Mine
450
18.36
89.73
10
18.36
89.73
450
18.36
89.73
Jawbone
670
10.91
93.39
—
—
—
670
10.91
93.39
Elk Creek Complex
Ram Surface and Highwall Mine
1,965
15.10
87.10
35
15.10
87.10
2,000
15.10
87.10
Ram Surface 3 and Highwall Mine
2,760
15.80
87.80
440
15.80
87.80
3,200
15.80
87.80
Crucible Deep
4,305
10.40
84.10
645
10.40
84.10
4,950
10.40
84.10
Stonecoal No. 2 Alma Deep Mine
5,010
23.80
84.60
290
23.80
84.60
5,300
23.80
84.60
Michael Powellton Mine
60
42.80
104.60
—
—
—
60
42.80
104.60
Rockhouse Eagle Deep Mine
2,045
16.30
87.80
495
16.30
87.80
2,540
16.30
87.80
No. 2 Gas Deep Mine
2,085
27.90
94.40
455
27.90
94.40
2,540
27.90
94.40
Eight-Kay
1,390
12.30
85.70
240
12.30
85.70
1,630
12.30
85.70
Bens Creek Deep Mine
1,670
28.60
95.80
170
28.60
95.80
1,840
28.60
95.80
Glenalum Tunnel #1 Deep Mine
2,380
5.90
81.80
2,190
5.90
81.80
4,570
5.90
81.80
Grand Total
34,175
4,985
39,160
Notes:
● Clean recoverable reserve tonnage based on underground mining recovery of 50 to 80 percent (contingent upon retreat mining capability), 90 percent for surface mining, 40 percent for highwall mining, theoretical preparation plant yield, and a 95 percent preparation plant efficiency.
● Mineral Reserves estimated for the Berwind/Knox Creek Complex are based primarily on metallurgical low and mid-volatile coal at the Berwind/Knox Creek Complex realizing a sales price of $142 per ton at a cash cost of $77 per clean ton (FOB Mine) and primarily a metallurgical high-volatile A and high-volatile B coal at the Elk Creek Complex realizing a sales price of $131 per ton at a cash cost of $77 per clean ton (FOB Mine).
● Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding.
● Mineral Reserves are reported exclusive of Mineral Resources.
Our coal resource and reserve estimates at December 31, 2021, were prepared by a qualified person (“QP”) and have a basis in periodic, historical reserve studies completed by third-party geological engineering firms. Our coal resource and reserve estimates are based on data obtained from our drilling activities and other available geologic data. Acquisitions or sales of coal properties will change these estimates. Changes in mining methods or the utilization of new technologies may increase or decrease the recovery basis for a coal seam. The most recent studies of our coal reserves for the Elk Creek Complex, Berwind/Knox Creek Complex and RAM Mine were prepared by an independent engineering firm, Weir International, Inc. (“Weir”). In periods between third party updates, we update reserves utilizing our internal staff of engineers and geologists based upon production data. We intend to continue to periodically retain outside experts to assist management with the verification of our estimates of our coal reserves going forward.
In our most recent reserve studies, Weir prepared our reserve reporting in compliance with the Regulation S-K 1300 requirements. Weir initiated this process with us by completing a historical project review as well as its validation of our complete drill hole database. Weir validated that property control is accurately reflected in reserve modeling, verifying the latest property boundaries, including control by each individual seam. Weir also examined reserve boundaries to ensure agreement with mining parameters, such as minimum thickness, minimum yield and minimum inter-burden between seams. Resource classification is determined based on the expectation of our meeting these mining parameters. Weir also conducted mining integrity checks to ensure each reserve area is minable.
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In determining whether our reserves meet this standard, we take into account, among other things, our potential ability to obtain a mining permit, the possible necessity of revising a mining plan, changes in estimated future costs, changes in future cash flows caused by changes in costs required to be incurred to meet regulatory requirements and obtaining or renewing mining permits, variations in quantity and quality of coal, and varying levels of demand and their effects on selling prices. Further, the economic recoverability of our reserves is based on market conditions including contracted pricing, market pricing and overall demand for our coal. Thus, the actual value at which we no longer consider our reserves to be economically recoverable varies depending on the length of time in which the specific market conditions are expected to last. We consider our reserves to be economically recoverable at a price in excess of our cash costs to mine the coal and fund our ongoing replacement capital. The reserves in this Annual Report are classified by reliability or accuracy in decreasing order of geological assurance as Proven (Measured) and Probable (Indicated).
Summaries of the Berwind/Knox Creek Complex’s and Elk Creek Complex’s mineral resources and mineral reserves as of December 31, 2021 and December 31, 2020 are shown below. Weir served as the QP and prepared the estimates of mineral resources and mineral reserves at the Berwind/Knox Creek Complex and Elk Creek Complex. A copy of the QP’s TRS with respect to the mineral resource and reserve estimates at the Berwind/Knox Creek Complex, dated February 7, 2022, with an effective date of December 31, 2021 (the “Berwind TRS”), is filed as Exhibit 96.1 and at the Elk Creek Complex, dated February 7, 2022, with an effective date of December 31, 2021 (the “Elk Creek TRS”), is filed as Exhibit 96.2 hereto.
Year ended December 31,
2021
2020
(in millions)
Measured + Indicated In-Place Resources
Proven + Probable Clean Recoverable Reserves
Proven + Probable Clean Recoverable Reserves
Area
Berwind/Knox Creek Complex
534
10
144
Elk Creek Complex
223
29
113
Total
757
39
257
The combined measured and indicated resources were previously not reported in the fiscal year ending December 31, 2020 but have been included for fiscal year ending December 31, 2021 as a result of changes in reporting requirements. The combined proven and probable reserves at the Berwind/Knox Creek Complex and the Elk Creek Complex decreased by approximately 92.7 percent and 74.7 percent, respectively. The decreases in proven and probable reserves were primarily the result of changes in determination of reserve classifications under requirements of subpart 1300 of Regulation S-K and to a lesser extent due to acquisition of upper seams at the Berwind property at the Berwind/Knox Creek Complex, acquisition of the Big Creek property at the Berwind/Knox Creek Complex, improved coal sales prices, and depletion from production activity.
Key assumptions and parameters relating to the mineral resources and mineral reserves at the Berwind/Knox Creek Complex and the Elk Creek Complex are discussed in Sections 11 and 12 of the Berwind TRS and the Elk Creek TRS, respectively.
Internal Controls
In our exploration and mineral resource and reserve estimation efforts, we utilize an American National Standards Institute certified third-party laboratory, which has in-house quality control and assurance procedures. Once in possession of the samples, the laboratory standard sample preparation and security procedures are followed. After the sample has been tested, reviewed, and accepted, the disposal of the sample is done in accordance with local, state and EPA approved methods.
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Weir has determined the sample preparation, security and analysis procedures used for our drillhole samples meet current coal industry standards and practices for quality testing, with laboratory results suitable to use for geological modeling, mineral resource estimation and economic evaluation.
Year-end reserve estimates are and will continue to be reviewed by our Chief Executive Officer and other senior management, and revisions are communicated to our board of directors. Inaccuracies in our estimates of our coal reserves could result in decreased profitability from lower than expected revenue or higher than expected costs. Actual production recovered from identified reserve areas and properties, and revenue and expenditures associated with our mining operations, may vary materially from estimates.