Note 3 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

PROPERTY, PLANT AND EQUIPMENT

NOTE 3—PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	December 31,
(In thousands)	2021		2020
Plant and equipment	$	167,019	$	155,173
Mining property and mineral rights		26,064		76
Construction in process		9,972		7,245
Capitalized mine development costs		104,291		74,279
Less: accumulated depreciation and amortization		(80,269)		(56,242)
Total property, plant and equipment, net	$	227,077	$	180,531

Capitalized amounts related to coal reserves at properties where we are not currently engaged in mining operations totaled $25.1 million as of December 31, 2021 and $15.4 million as of December 31, 2020.

Depreciation and amortization included:

	Year ended December 31,
(In thousands)	2021		2020		2019
Depreciation of plant and equipment	$	17,945	$	17,094	$	14,219
Depreciation of right of use assets		1,109		—		—
Amortization of capitalized
mine development costs		7,151		3,818		5,302
Total depreciation and amortization	$	26,205	$	20,912	$	19,521

On January 3, 2020, we entered into a mineral lease with the McDonald Land Company for coal reserve tracts which, in many cases, are located immediately adjacent to our Elk Creek complex.

In December 2021, we acquired what are referred to as the “Amonate Assets” from Coronado, pursuant to an asset purchase agreement. The acquisition, for a total cash consideration of $30 million, included a mine complex located in McDowell County, West Virginia and Tazewell County, Virginia adjacent and contiguous to the Company’s existing Berwind Complex. The acquisition primarily consists of high quality, low and mid-vol metallurgical coal reserves and resources, much of which will be mined from the Company’s Berwind Complex. Also purchased were several additional permitted mines and a currently idled 1.3-million-ton per annum capacity coal preparation plant.