Note 3 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2020

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)	2020		2019
Plant and equipment	$	155,173	$	142,773
Construction in process		7,245		11,986
Capitalized mine development costs		74,279		58,773
Less: accumulated depreciation and amortization		(56,242)		(35,330)
Total property, plant and equipment, net	$	180,455	$	178,202

Capitalized amounts related to coal reserves at properties where we are not currently engaged in mining operations totaled $15.4 million as of December 31, 2020 and $12.7 million as of December 31, 2019.

Depreciation and amortization included:

	Years ended December 31,
(In thousands)	2020		2019		2018
Depreciation of plant and equipment	$	17,094	$	14,219	$	9,751
Amortization of capitalized
mine development costs		3,818		5,302		2,672
Total depreciation and amortization	$	20,912	$	19,521	$	12,423

In the fourth quarter of 2019, we acquired multiple permits from various affiliates of Omega Highwall Mining, LLC. Consideration for the transaction included assumption of approximately $0.6 million of ARO liability, curing minor lease defaults, and paying advance royalties under two assumed lease instruments. The total out-of-pocket consideration was less than $0.1 million, most of which is recoupable against future royalty payments. These permits are in close proximity to our Knox Creek preparation plant and loadout infrastructure, and provide immediate access to two separate mining areas in Southwestern Virginia.

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. This lease adds more than 21 million proven and probable reserves in approximately 20 different coal seams to our Elk Creek reserve base.