Gain on Property Insurance Recovery Related to Mountain Laurel Longwall

3 Months Ended

Mar. 31, 2020

Gain on Property Insurance Recovery Related to Mountain Laurel Longwall

Gain on Property Insurance Recovery Related to Mountain Laurel Longwall

4. Gain on Property Insurance Recovery Related to Mountain Laurel Longwall

During the quarter, the Company recorded a $9.0 million gain related to a property insurance recovery on the longwall shields at its Mountain Laurel operation. As a result of geologic conditions in the final longwall panel, Mountain Laurel was unable to recover 123 of the longwall system’s 176 hydraulic shields; this longwall system will be used at the Company’s new Leer South mine. The Company has filed a claim under its insurance policy that will cover the amount of capital required for the new shields, and anticipates recovering $20 to $25 million after deductibles and self-insurance. The $9.0 million represents an initial payment on the insurance recovery, the Company anticipates receiving the remaining amount during the second quarter.