Note 3 - Property, Plant and Equipment

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

PROPERTY, PLANT AND EQUIPMENT

NOTE 3—PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

(In thousands)	September 30, 2022		December 31, 2021
Plant and equipment	$	203,529	$	167,019
Mining property and mineral rights		120,708		26,064
Construction in process		38,932		9,972
Capitalized mine development costs		145,304		104,291
Less: accumulated depreciation and amortization		(105,343)		(80,269)
Total property, plant and equipment, net	$	403,130	$	227,077

Capitalized amounts related to coal reserves at properties where we are not currently developing or actively engaged in mining operations totaled $46.2 million as of September 30, 2022 and $25.1 million as of December 31, 2021.

In addition to the amounts discussed above, on July 10, 2022, we experienced a material methane ignition at our Berwind mining complex. The cause of the ignition is presently unknown. We, in conjunction with the appropriate state and federal regulatory authorities, have been conducting a full investigation into the incident, which is still ongoing. The mine was idle at the time of the incident, and there were no personnel in the mine nor any injuries or fatalities. Due to regulatory oversight related to safety conditions, the Company has not yet inspected the area of the mine where the ignition event occurred. Accordingly, we have not yet estimated the damages incurred or determined a remediation and restart plan. As a result, no entries have been recorded for a potential loss relating to this matter. Production from the Berwind Complex is expected to be impacted for an indeterminant period of time. We will provide additional information regarding plans for both the rehabilitation and restarting of the mine as it becomes available.

Depreciation and amortization included:

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2022		2021		2022		2021
Depreciation of plant and equipment	$	6,763	$	4,484	$	16,864	$	13,354
Depreciation of right of use assets (financing leases)		1,710		413		3,806		540
Amortization of capitalized
mine development costs		2,962		1,854		9,228		4,967
Total depreciation and amortization	$	11,435	$	6,751	$	29,898	$	18,861