Note 3 - Property, Plant and Equipment

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

3.

       Property, Plant and Equipment

The Company

’s property, plant and equipment consist of the following:

	September 30, 2017			December 31, 2016
Plant and equipment	$	36,764,824		$	19,201,550
Construction in process		47,984,431			11,847,904
Capitalized mine development costs		19,848,745			15,635,956
Less: accumulated depreciation, depletion and amortization		(1,586,667	)		(251,684	)
Total property, plant and equipment, net	$	103,011,333		$	46,433,726

In the quarter ended

September 30, 2017,

depreciation expense related to the Company’s plant and equipment totaled

$754,450

and amortization of its capitalized development expenses totaled

$113,518.

Depreciation expense related to the Company’s plant and equipment for the

nine

months ended

September 30, 2017

totaled

$1,118,656

and amortization of its capitalized development expenses totaled

$216,327.

The Company began commercial mining operations in

January 2017.

On

March 29, 2017,

the Company acquired approximately

14,762

acres of coal properties in Tazewell and Buchanan Counties, Virginia and McDowell County, West Virginia. As part of the transaction, the Company acquired several coal leaseholds adjacent to its

Knox Creek operations. The Company paid

$125,000

for the properties, a portion of which is recoupable from future production, and agreed to pay an overriding royalty on production from properties

not

already subleased.