What changed in this filing

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Item 2. Properties

2024-03-06 compared with 2023-03-15 · 52 added, 61 removed, 585 unchanged (16% of the section changed)

11 unchanged sentences

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, readers 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.

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

6 unchanged sentences

Coteau, Falkirk, Coyote Creek and MLMC, each wholly-owned subsidiaries of NACCO, operate surface coal mines under long-term contracts with power generation companies pursuant to a service-based business model.

The Company operates additional surface coal mines where the customer owns or controls the coal tonnages.

The Company conducts activities to extract these customer-owned coal tonnages pursuant to long-term contracts.

The Company has determined these properties are not subject to subpart 1300 of Regulation S-K reporting and has not estimated mineral resources or reserves for these properties in accordance with subpart 1300 of Regulation S-K.

Locations of the properties subject to SEC Section 1300 reporting are shown in Figure 1.1 Surface Coal Mines Operational During 2023 Subject to SEC Section 1300 Reporting.

24 unchanged sentences

All production from the mine is delivered to its customer's Red Hills Power Plant.

On December 18, 2023, MLMC received a force majeure event notice from its customer related to an issue that began on December 15, 2023 and impacted one of two boilers at the Red Hills Power Plant.

The notice did not provide a timeline for resolution of the issue.

As of March 6, 2024, the impacted boiler is still not operational.

The prolonged mechanical issue is expected to result in a reduction in customer demand and will have a significant impact on the Company's results of operations during 2024.

The Red Hills Mine, operated by MLMC, is located approximately 120 miles northeast of Jackson, Mississippi (Figure 2.1).

11 unchanged sentences

The Red Hills Mine sources power for mine office facilities and operations from 4-County Electric Power Association, and water for the mine office facilities from the Choctaw Water Association.

Fuel for equipment is supplied by Dickerson

Petroleum located in Kosciusko.

Fuel for equipment is supplied by Dickerson Petroleum located in Kosciusko.

The Red Hills Mine has, or is currently constructing, all supporting infrastructure for mining operations.

4 unchanged sentences

Alternatively, the Golden Triangle Regional Airport is a smaller airport approximately 50 miles from the Red Hills Mine by means of Highway 82 west, Highway 15 south, and Highway 9 north.

The Red Hills Mine is in close proximately to river ports of the Tennessee-Tombigbee Waterway and the Mississippi River.

The Red Hills Mine is in close proximity to river ports of the Tennessee-Tombigbee Waterway and the Mississippi River.

The Lowndes County Port is approximately 60 miles east of the mine.

24 unchanged sentences

Figure 2.1 – Red Hills Mine Location

Mineral resources and reserves have been summarized from the TRS for MLMC and have been included as Table 2.2 and Table 2.3.

Qualities are being reported on an as-received moisture basis.

Prices in Table 2.2 are based on economic cut-off grades of $29.66 per ton at MLMC.

Prices in Table 2.3 are based on economic cut-off grades of $36.06 per ton at MLMC.

Mineral Resources and Reserves have been summarized from the December 31, 2022 TRS for MLMC and have been modified from mining depletion.

The Mineral Resources and Mineral Reserves as of December 31, 2023 are included as Table 2.2 and Table 2.3.

Coal qualities are reported on an as-received moisture basis.

Based on the December 31, 2022 TRS, prices in Table 2.2 are based on economic cut-off grades of $29.66 per ton at MLMC and prices in Table 2.3 are based on economic cut-off grades of $36.06 per ton at MLMC.

Material assumptions and criteria used in the determination of Mineral Resource and Mineral Reserves reported herein are provided within the filed TRS for the Mississippi Lignite Mining Company – Red Hills Mine dated December 31, 2022.

14 unchanged sentences

Economic factors to support the Mineral Reserve estimates are described in Section 18.0 Capital and Operating Costs and 19.0 Economic Analyses.

The Mineral Resources presented in Table 2.2 below have been estimated by applying a series of geologic and physical limits as well as high-level mining and economic constraints.

The Mineral Resources as of December 31, 2023 presented in Table 2.2 below have been estimated by applying a series of geologic and physical limits as well as high-level mining and economic constraints.

The mining and economic constraints were limited to a level sufficient to support reasonable prospect for future economic extraction of the estimated Mineral Resources.

22 unchanged sentences

Table 2.2 Mineral Resources Summary as of December 31, 2023

The Mineral Reserves presented in Table 2.3 below were determined to be the economically mineable portion of the measured and indicated Mineral Resources after the consideration of modifying factors related to the mining process.

The Mineral Reserves as of December 31, 2023 presented in Table 2.3 below were determined to be the economically mineable portion of the measured and indicated Mineral Resources after the consideration of modifying factors related to the mining process.

Inferred Mineral Resources were not considered for Mineral Reserves.

17 unchanged sentences

Table 2.4 describes the difference between the Mineral Reserves and Mineral Resources reported as of December 31, 2022 and December 31, 2023.

Resource Classification December 31, 2021 Tonnage (Kt) December 31, 2022 Tonnage (Kt) Percent Change

Resource Classification December 31, 2022 Tonnage (Kt)

December 31, 2023 Tonnage (Kt)

Percent Change

Measured 4,300 4,300 —%

1 unchanged sentence

Measured + Indicated 4,800 4,800 —%

Inferred — 1,600 N/A

Reserve Classification December 31, 2021 Tonnage (Kt) December 31, 2022 Tonnage (Kt) Percent Change

Inferred 1,600 1,600 —%

Reserve Classification December 31, 2022 Tonnage (Kt)

December 31, 2023 Tonnage (Kt)

Percent Change

Proven 18,000 15,100 (16)%

2 unchanged sentences

Net difference of reported Mineral Resources and Mineral Reserves from previous reporting period to current reporting period.

The Mineral Resources and Mineral Reserves as of December 31, 2022 reflect an update to the life of mine ("LOM") plan and economic assessment.

The methodology used to determine the Mineral Resource classification has been revised by the mineral resource QP.

The change in methodology included revised estimates of quality and thickness cutoff assumptions as well as the removal of minor seams and the exclusion of certain areas that are no longer considered to contain recoverable coal.

The Mineral Resources and Mineral Reserves as of December 31, 2023 reflect modifications from mining extraction of Mineral Reserves.

No updates to Mineral Resources were made for 2023.

Mineral Reserves have been exhausted in Mine Area 1 and mining extraction is occurring in Mine Area 3.

Additionally, MLMC delivered 2.9 million tons during 2023.

39 unchanged sentences

Instead, these contracts are accounted for as equity method investments.

The income before income taxes associated with these VIEs is reported as Earnings of unconsolidated operations on the Consolidated Statements of Operations, and the Company’s investment is reported on the line Investments in Unconsolidated Subsidiaries in the Consolidated Balance Sheets

The income before income taxes associated with these VIEs is reported as Earnings of unconsolidated operations on the

Consolidated Statements of Operations, and the Company’s investment is reported on the line Investments in unconsolidated subsidiaries in the Consolidated Balance Sheets.

The Freedom Mine, operated by Coteau, generally produces between 12.5 million and 13.5 million tons of lignite coal annually.

3 unchanged sentences

The Synfuels Plant is a coal gasification plant that manufactures synthetic natural gas and produces fertilizers, solvents, phenol, carbon dioxide, and other chemical products for sale.

Although the term of the existing lignite sales agreement terminates in 2027, the term may be extended for two additional periods of five years, or until 2037, at the option of Coteau.

The Freedom Mine is located approximately 90 miles northwest of Bismarck, North Dakota (Figure 2.2).

14 unchanged sentences

Travel to the Freedom Mine by rail is possible using the Amtrak Network, which runs through northern North Dakota mostly along the US Highway 2 corridor, and passes through the larger cities of Williston, Minot, Grand Forks, and Fargo, and smaller cities of Stanley, Rugby, and Devils Lake.

From these locations, the mine can be accesses via ground transportation on Interstate 29 or Interstate 94 and various highways.

From these locations, the mine can be accessed via ground transportation on Interstate 29 or Interstate 94 and various highways.

The main highways are US Highway 2, US Highway 83, US Highway 85, US Highway 200, and US Highway 281.

15 unchanged sentences

Mining operations will typically occur in a sequence of seven events:

SPGM removal, overburden removal, coal removal, overburden replacement, final grading, SPGM replacement, and revegetation.

suitable plant growth material removal, overburden removal, coal removal, overburden replacement, final grading, suitable plant growth material replacement, and revegetation.

The mine office facilities and original equipment fleets at the Freedom Mine were constructed, acquired, or purchased new during the development stage of the mine.

11 unchanged sentences

Coal Creek Station was owned by GRE until May 1, 2022 when it was purchased by Rainbow Energy.

The initial production period is expected to run through May 1, 2032, but the coal sales agreement may be extended or terminated early under certain circumstances.

In 2014, Falkirk began delivering coal to Spiritwood Station, another electric power generating station owned by GRE.

39 unchanged sentences

The mine began delivering coal in 2016 to the Coyote Station owned by Otter Tail Power Company, Northern Municipal Power Agency, Montana-Dakota Utilities Company and Northwestern Corporation.

The term of the existing lignite sales agreement terminates in 2040.

The Coyote Creek Mine is located approximately 70 miles northwest of Bismarck, North Dakota (Figure 2.4).

13 unchanged sentences

Travel to the Coyote Creek Mine by rail is possible using the Amtrak Network, which runs through northern North Dakota mostly along the US Highway 2 corridor, and passes through the larger cities of Williston, Minot, Grand Forks, and Fargo, and smaller cities of Stanley, Rugby, and Devils Lake.

From these locations, the mine can be accesses via ground transportation on Interstate 29 or Interstate 94 and various highways.

From these locations, the mine can be accessed via ground transportation on Interstate 29 or Interstate 94 and various highways.

The main highways are US Highway 2, US Highway 83, US Highway 85, US Highway 200, and US Highway 281.

40 unchanged sentences

Mine planning decisions are determined and agreed upon by Company management.

Management adjusts forward-looking models by reference to historic mining results, including by reviewing actual versus predicted levels of production from the mineral deposit, and if necessary, re-evaluating mining

methodologies if production outcomes were not realized as predicted.

Ongoing mining of the mineral deposit, coupled with product quality validation pursuant to Company and customer expectations, provides further empirical evidence as to the homogeneity, continuity and characteristics of the deposit.

Geologic modeling assumptions are evaluated to historic mining results and are adjusted if necessary to better reflect actual mining results.

Geologic modeling assumptions are evaluated to historic mining

results and are adjusted if necessary to better reflect actual mining results.

Ongoing quality validation of production also provides a means to monitor for any potential changes in quality.

6 unchanged sentences

1 Mine — The Sabine Mining Company

The South Hallsville No.

1 Mine generally produces between 1.5 million and 2.0 million tons of lignite annually.

The mine began delivering coal in 1985.

All production from the mine is delivered to Southwestern Electric Power Company's ("SWEPCO") Henry W.

The Sabine Mining Company (“Sabine”) operated the Sabine Mine in Texas.

All production from Sabine was delivered to Southwestern Electric Power Company's (“SWEPCO”) Henry W.

Pirkey Plant (the “Pirkey Plant”).

SWEPCO is an American Electric Power (“AEP”) company.

The mine's coal tonnages are owned and controlled by AEP.

The Company conducts activities to extract these customer-owned and controlled coal tonnages.

The South Hallsville No.

1 Mine, operated by Sabine, is located approximately 150 miles east of Dallas, Texas on FM 968.

The entrance to the mine is by means of a paved road.

Sabine has no title, claim, lease or option to acquire any of the reserves at the South Hallsville No.

Southwestern Electric Power Company controls all of the reserves within the South Hallsville No.

AEP intends to retire the Pirkey Plant during 2023.

Sabine expects deliveries to cease in March 2023.

Sabine expects to begin final reclamation on April 1, 2023.

Funding for mine reclamation is the responsibility of SWEPCO.

As a result of the early retirement of the Pirkey Plant, Sabine ceased deliveries in the first quarter of 2023 and final reclamation began on April 1, 2023.

Funding for mine reclamation is the responsibility of SWEPCO, and Sabine receives compensation for providing mine reclamation services.

During the third quarter of 2023, Sabine and SWEPCO entered into an agreement under which Sabine will provide mine reclamation services through September 30, 2026.

On October 1, 2026, SWEPCO will take over and complete the remaining mine reclamation services by acquiring all of the capital stock of Sabine.

5.0 Facilities and Equipment

12 unchanged sentences

Falkirk Mine — The Falkirk Mining Company Dragline operation with 4 draglines $ 58.4

South Hallsville No.

1 Mine — The Sabine Mining Company Dragline operation with 4 draglines $ 15.0

Coyote Creek Mine — Coyote Creek Mining Company, LLC Dragline operation with 1 dragline $ 114.6

3 unchanged sentences

NAMining provides contract mining services for independently owned mines and quarries, primarily operating and maintaining draglines at limestone quarries and utilizing other mining equipment at sand and gravel quarries.

During 2022, NAMining operated 32 draglines and other equipment at 25 quarries.

At December 31, 2023, NAMining operated 30 draglines and other equipment at 23 quarries.

Of the 30 draglines, 7 are owned by the Company and 23 are owned by customers.

21 unchanged sentences

SDI Aggregates Limestone Florida City FL Blue Water Industries 2018

Queensfield Sand and gravel King William County VA King William Sand and Gravel Company, Inc.

Queenfield Sand and gravel King William County VA King William Sand and Gravel Company, Inc.

Newberry Limestone Alachua County FL Argos USA, LLC 2019

Titan Pennsuco (a)

Limestone Miami FL Titan America 2020

Seven Diamonds Limestone Pasco County FL Seven Diamonds, LLC 2021

Johnson County Sand and gravel Johnson County IN Martin Marietta 2021

Johnson County (a)

Sand and gravel Johnson County IN Martin Marietta 2021

Little River Sand and gravel Ashdown AR Lehigh Hanson 2021

2 unchanged sentences

Ash Grove Limestone Louisville NE Ash Grove 2022

(a) The Titan Pennsuco contract was terminated during the second quarter of 2022.

NAMining mined de minimis amounts of limestone at this location during the 2022 and 2021 periods.

(a) The Johnson County quarry was idled during 2023.

NAMining mined de minimis amounts at this location during the 2023 and 2022 periods.

NAMining's customers control all of the limestone and sand reserves within their respective mines.

16 unchanged sentences

Access to the SDI Aggregates mine is by means of paved road from SW 167 th AVE.

Access to the Queensfield Mine is by means of paved road from Dabney's Mill Road (SR 604).

Access to the Queenfield Mine is by means of paved road from Dabney's Mill Road (SR 604).

Access to the Newberry mine is by means of paved road from NW County Road 235 (CR 235).

Access to the Seven Diamonds mine is by means of a paved road from US-41 S/Broad St.

Access to the Johnson County mine is by means of a paved road from Old State 37/N Waverly Park Road.

Access to the Little River mine is by means of an unpaved road from Little River 60.

25 unchanged sentences

1,194 2,388 1,194 2,388

184,749 63,320 141,391 60,814

The Company may own more than one type of interest in the same tract of land, but the overlap is not significant.

42 unchanged sentences

A copy of Haas Engineering's estimated proved reserve report as of December 31, 2023 is incorporated by reference herein to Exhibit 99.1 to this Form 10-K.

The properties evaluated for proved reserves are located in Alabama, Louisiana, Ohio, Pennsylvania, Texas and Wyoming and represent all of the Company’s oil and gas reserves.

The properties evaluated for proved reserves are located in Alabama, Louisiana, New Mexico, Ohio, Pennsylvania, Texas and Wyoming and represent all of the Company’s oil and gas reserves.

A reserves audit is not the same as a financial audit.

11 unchanged sentences

The maximum remaining reserves life assigned to wells included in this report is 50 years.

Total net proved reserves are defined as those natural gas and hydrocarbon liquid reserves to the Company's interests after deducting all royalties, overriding royalties, and reversionary interests owned by outside parties that become effective upon

payout of specified monetary balances.

All reserves estimates have been prepared using standard engineering practices generally accepted by the petroleum industry and conform to guidelines developed and adopted by the SEC.

50 unchanged sentences

December 31, 2023 665,390 384,370 23,622,530

One stock tank barrel, or 42 U.S.

gallons liquid volume.

One thousand cubic feet of natural gas at the contractual pressure and temperature bases.

(3) Revisions of previous estimates include technical revisions due to changes in commodity prices, historical and projected performance and other factors.

Estimated Proved Undeveloped Reserves ("PUDs")

7 unchanged sentences

Extensions and discoveries 5,786 2,021 14,814

(29,757) (9,172) (1,770,232)

Revisions of previous estimates (3)

8 unchanged sentences

As of December 31, 2023, PUD reserves consists of 45 wells in various stages of drilling or completions.

As of December 31, 2022, approximately 6% of the Company's total proved reserves were classified as PUDs.

As of December 31, 2023, less than 1% of the Company's total proved reserves were classified as PUDs.

Headquarter locations

3 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 2. Properties