Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
February 2025
Prepared for:
Coronado Global Resources Inc.
100 Bill Baker Way
Beckley, West Virginia 25801
Prepared by:
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
582 Industrial Park Road
Bluefield, Virginia 24605
www.mma1.com
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
Statement of Use and Preparation
This Technical Report Summary (
TRS
) was prepared by
Marshall Miller & Associates, Inc. (
MM&A
)
for the sole use of
Coronado Global Resources Inc. (
Coronado
)
and its affiliated and subsidiary
companies and advisors. Copies or references to information in this report may not be used without
the written permission of Coronado.
This report provides a statement of coal resources and coal reserves for Coronado, as defined under
the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(
JORC Code
) as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by
the
United States Securities and Exchange Commission (
SEC
)
.
report was also prepared in accordance with the
Australasian Code for Public Reporting of
Technical Assessments and Valuations of Mineral Assets
(
VALMIN Code
).
The statement is based on information provided by Coronado and reviewed by
Qualified Persons
(
QPs
) who are full-time employees of MM&A.
As noted above, this report is a “Public Report” for the purposes of the VALMIN Code. However, in
accordance with paragraph 12.1 of the VALMIN Code, it is noted that this report is not a “Valuation
of Mineral Assets”, and it also does not comply with the following requirements that apply to
“Technical Assessments” (as defined in the VALMIN Code):
This report does not include a determination of the status of tenure (as required by paragraph
7.2 of the VALMIN Code) on the basis that tenure was separately reviewed by Coronado’s legal
advisors.
This report does not include separate commentary on the reasonableness and quality of the
Resources and Reserves estimates and the basis on which they have been reported (as required by
paragraph 7.3 of the VALMIN Code). MM&A did not consider that this was appropriate in
circumstances where MM&A was engaged for the specific purpose of preparing those estimates.
However, MM&A notes that, in accordance with its usual practice, a separate team of MM&A
employees undertook a peer review of this report and confirmed that both the process followed by
the authors of this report and the estimates prepared were reasonable and comply with the
requirements of the JORC Code.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
The information in this TRS related to coal resources and reserves is based on, and fairly represents,
information compiled by the QPs. At the time of reporting, MM&A’s QPs have sufficient experience
relevant to the style of mineralization and type of deposit under consideration and to the activity
they are undertaking to qualify as a QP as defined by Regulation S-K 1300 and the JORC Code. Each
QP consents to the inclusion in this report of the matters based on their information in the form
and context in which it appears.
Marshall Miller & Associates, Inc. (
MM&A
)
contained in this report dated December 31, 2024, relating to estimates of coal resources and coal
reserves controlled by Coronado.
Qualified Person:
/s/ Marshall Miller & Associates, Inc.
Date:
February 1, 2025
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
i
Table of Contents
1
Executive Summary ................................................................ ................................ ........... 1
1.1
Property Description ............................................................................................. 1
1.2
Ownership ............................................................................................................. 2
1.3
Geology .................................................................................................................. 3
1.4
Exploration Status ................................................................................................. 3
1.5
Operations and Development ............................................................................... 3
1.6
Mineral Resource .................................................................................................. 4
1.7
Mineral Reserve ..................................................................................................... 4
1.8
Capital Summary ................................................................................................... 5
1.9
Operating Costs ..................................................................................................... 6
1.10
Economic Evaluation ............................................................................................. 7
1.10.1
Discounted Cash Flow Analysis ............................................................. 10
1.10.2
Sensitivity Analysis ................................................................................ 10
1.11
Permitting ............................................................................................................ 11
1.12
Conclusion and Recommendations ..................................................................... 11
2
Introduction ................................ ................................ ................................ .................... 12
2.1
Registrant and Terms of Reference ..................................................................... 12
2.2
Information Sources ............................................................................................ 13
2.3
Personal Inspections ............................................................................................ 14
3
Property Description ................................ ................................ ................................ ....... 14
3.1
Location ............................................................................................................... 14
3.2
Titles, Claims or Leases ........................................................................................ 15
3.3
Mineral Rights ..................................................................................................... 15
3.4
Encumbrances ..................................................................................................... 16
3.5
Other Risks ........................................................................................................... 16
4
Accessibility, Climate, Local Resources, Infrastructure and Physiography ......................... 16
4.1
Topography, Elevation, and Vegetation .............................................................. 16
4.2
Access and Transport .......................................................................................... 16
4.3
Proximity to Population Centers ......................................................................... 17
4.4
Climate and Length of Operating Season ............................................................ 17
4.5
Infrastructure ...................................................................................................... 17
5
History ................................................................ ................................ ............................ 17
5.1
Previous Operation .............................................................................................. 17
5.2
Previous Exploration ............................................................................................ 18
6
Geological Setting, Mineralization and Deposit ................................................................ 18
6.1
Regional, Local and Property Geology ................................................................ 18
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
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SSOCIATES
,
I
NC
.
ii
6.2
Mineralization ..................................................................................................... 19
6.3
Deposits ............................................................................................................... 20
7
Exploration................................ ................................ ................................ ...................... 21
7.1
Nature and Extent of Exploration ........................................................................ 21
7.2
Non-Drilling Procedures and Parameters ........................................................... 23
7.3
Drilling Procedures .............................................................................................. 23
7.4
Mine Data ............................................................................................................ 24
7.5
Hydrology ............................................................................................................ 24
7.5.1
Hydrogeologic Evaluation of Potential Mine Pools Above Deep
Mineable Areas ..................................................................................... 25
7.6
Geotechnical Data ............................................................................................... 26
8
Sample Preparation, Analyses and Security ................................ ................................ ..... 26
8.1
Prior to Sending to the Lab .................................................................................. 26
8.2
Lab Procedures .................................................................................................... 27
9
Data Verification ................................ ................................ ................................ ............. 28
9.1
Procedures of Qualified Person ........................................................................... 28
9.2
Limitations ........................................................................................................... 28
9.3
Opinion of Qualified Person ................................................................................ 28
10
Mineral Processing and Metallurgical Testing ................................ ................................ .. 29
10.1
Testing Procedures .............................................................................................. 29
10.2
Relationship of Tests to the Whole ..................................................................... 29
10.3
Lab Information ................................................................................................... 29
10.4
Relevant Results .................................................................................................. 31
11
Mineral Resource Estimates ................................ ................................ ............................ 31
11.1
Assumptions, Parameters and Methodology ...................................................... 31
11.1.1
Geostatistical Analysis ........................................................................... 33
11.2
Qualified Person’s Estimates ............................................................................... 36
11.3
Resources Exclusive of Reserves ......................................................................... 37
11.3.1
Initial Economic Assessment ................................................................. 37
11.4
Resources Inclusive of Reserves .......................................................................... 38
11.5
Qualified Person’s Opinion .................................................................................. 38
12
Mineral Reserve Estimates ................................ ................................ .............................. 39
12.1
Assumptions, Parameters and Methodology ...................................................... 39
12.2
Mineral Reserves ................................................................................................. 40
12.2.1
Surface Reserves ................................................................................... 41
12.2.2
Underground Reserves.......................................................................... 42
12.2.2.1
Upper Winifrede (No 8) Seam .............................................. 43
12.2.2.2
Lower Winifrede ................................................................... 43
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
iii
12.3
Qualified Person’s Estimates ............................................................................... 44
12.4
Qualified Person’s Opinion .................................................................................. 45
13
Mining Methods ................................ ................................ ................................ .............. 46
13.1
Geotech and Hydrology ....................................................................................... 46
13.2
Production Rates ................................................................................................. 46
13.3
Mining Related Requirements ............................................................................. 47
13.3.1
Underground ......................................................................................... 47
13.3.2
Surface Mine ......................................................................................... 48
13.3.3
HWM ..................................................................................................... 48
13.4
Required Equipment and Personnel ................................................................... 48
13.4.1
Underground Mines .............................................................................. 48
13.4.1.1
Powellton No. 1 ..................................................................... 48
13.4.1.2
Lower War Eagle ................................................................... 49
13.4.1.3
Eagle No. 1/Toney Fork #1 .................................................... 49
13.4.1.4
Muddy Bridge ........................................................................ 50
13.4.1.5
Elklick Chilton ........................................................................ 50
13.4.1.6
Camp Branch Chilton ............................................................ 51
13.4.1.7
Lower Winifrede ................................................................... 52
13.4.1.8
Upper Winifrede ................................................................... 52
13.4.1.9
Lower Powellton ................................................................... 53
13.4.2
Surface Mines and Highwall Miners ..................................................... 54
13.4.2.1
Toney Fork............................................................................. 55
13.4.2.2
Buffalo Creek South .............................................................. 55
13.4.2.3
Sugar Camp ........................................................................... 55
14
Processing and Recovery Methods ................................ ................................ ................... 57
14.1
Description or Flowsheet .................................................................................... 57
14.2
Requirements for Energy, Water, Material and Personnel................................. 57
15
Infrastructure ................................ ................................ ................................ .................. 58
16
Market Studies ................................ ................................ ................................ ................ 59
16.1
Market Description .............................................................................................. 59
16.2
Price Forecasts ..................................................................................................... 60
16.3
Contract Requirements ....................................................................................... 60
17
Environmental Studies, Permitting and Plans, Negotiations or Agreements with Local
Individuals ................................ ................................ ................................ .............. 60
17.1
Results of Studies ................................................................................................ 60
17.2
Requirements and Plans for Waste Disposal ...................................................... 61
17.3
Permit Requirements and Status ........................................................................ 61
17.4
Local Plans, Negotiations or Agreements ........................................................... 64
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
iv
17.5
Mine Closure Plans .............................................................................................. 64
17.6
Qualified Person’s Opinion .................................................................................. 64
18
Capital and Operating Costs ................................ ................................ ............................. 64
18.1
Capital Cost Estimate ........................................................................................... 64
18.2
Operating Cost Estimate ...................................................................................... 65
19
Economic Analysis ................................................................ ................................ ........... 66
19.1
Assumptions, Parameters and Methods ............................................................. 66
19.2
Results ................................................................................................................. 68
19.3
Sensitivity ............................................................................................................ 71
20
Adjacent Properties ................................ ................................ ................................ ......... 72
20.1
Information Used ................................................................................................ 72
21
Other Relevant Data and Information ................................................................ .............. 72
22
Interpretation and Conclusions ................................ ................................ ........................ 73
22.1
Conclusion ........................................................................................................... 73
22.2
Risk Factors .......................................................................................................... 73
22.2.1
Governing Assumptions ........................................................................ 74
22.2.2
Limitations ............................................................................................. 74
22.2.3
Methodology ......................................................................................... 74
22.2.4
Development of the Risk Matrix ........................................................... 75
22.2.4.1
Probability Level Table .......................................................... 75
22.2.4.2
Consequence Level Table ...................................................... 75
22.2.5
Categorization of Risk Levels and Color Code Convention ................... 77
22.2.6
Description of the Coal Property .......................................................... 77
22.2.7
Summary of Residual Risk Ratings ........................................................ 78
22.2.8
Risk Factors............................................................................................ 78
22.2.8.1
Geological and Coal Resource ............................................... 78
22.2.8.2
Environmental ....................................................................... 79
22.2.8.3
Regulatory Requirements ..................................................... 80
22.2.8.4
Market and Transportation ................................................... 80
22.2.8.5
Mining Plan ........................................................................... 81
23
Recommendations ................................ ................................ ................................ .......... 84
24
References ................................ ................................ ................................ ...................... 85
25
Reliance on Information Provided by the Registrant ................................ ........................ 85
F
IGURES
(
IN
R
EPORT
)
Figure 1-1: Coronado Logan Property Location Map .......................................................................... 2
Figure 1-2: CAPEX ................................................................................................................................ 6
Figure 1-3: OPEX .................................................................................................................................. 7
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
v
Figure 1-4: Sensitivity of NPV ............................................................................................................ 11
Figure 3-1: Logan Property Location ................................................................................................. 14
Figure 6-1: Coal Basins & Logan Property Location .......................................................................... 18
Figure 6-2: Logan Stratigraphic Column ............................................................................................ 20
Figure 7-1: Logan Cross-Section ........................................................................................................ 22
Figure 11-1: Histogram of the Total Seam Thickness for the No. 2 Gas Seam Present in the Logan
Complex .......................................................................................................................... 34
Figure 11-2: Scatter plot of the Total Seam Thickness for the No. 2 Gas Seam Present in the Logan
Complex .......................................................................................................................... 34
Figure 11-3: Variogram of the Total Seam Thickness for the No. 2 Gas Seam Present in the Logan
Complex .......................................................................................................................... 35
Figure 11-4: Result of DHSA for the No. 2 Gas Seam Present in the Logan Complex ....................... 36
Figure 11-5: Results of Initial Economic Assessment ........................................................................ 38
Figure 15-1: Logan Surface Facilities ................................................................................................. 59
Figure 18-1: CAPEX ............................................................................................................................ 65
Figure 19-1: Cash Costs per Tonne ................................................................................................... 68
Figure 19-2: Sensitivity of NPV .......................................................................................................... 72
T
ABLES
(
IN
R
EPORT
)
Table 1-1: Coal Resources Summary as of December 31, 2024 (Mt) ................................................. 4
Table 1-2: Coal Summary (ROM Basis (Moist)) as of December 31, 2024 (Mt).................................. 5
Table 1-3: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2024 (Mt) ........... 5
Table 1-4: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000) .............................................. 8
Table 1-5: Project Cash Flow Summary ($000) ................................................................................... 9
Table 2-1: Information Provided to MM&A by Coronado ................................................................ 13
Table 7-1: Reserve Area Located South of Buffalo Creek and North of Huff Creek ......................... 25
Table 7-2: Reserve Area Located North of Buffalo Creek Near Elsie Hollow .................................... 26
Table 7-3: Resource Area Located Near Head of Toney Fork ........................................................... 26
Table 7-4: Resource Area Located Near Head of Sycamore Creek Extending North to Buffalo Creek
Table 11-1: General Reserve & Resource Criteria ............................................................................ 32
Table 11-2: DHSA Results Summary for Radius from a Central Point .............................................. 36
Table 11-3: Coal Resources Summary as of December 31, 2024 (Mt) ............................................. 37
Table 11-4: Results of Initial Economic Assessment ($/tonne) ........................................................ 38
Table 12-1: Coal Summary (ROM Basis (Moist)) as of December 31, 2024 (Mt) ............................. 45
Table 12-2: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2024 (Mt) ....... 45
Table 13-1: Underground Summary of Production by Year (Tonnes x 1,000).................................. 56
Table 13-2: Surface Summary of Production by Year (Tonnes x 1,000) ........................................... 56
Table 13-3: Highwall Summary of Production by Year (Tonnes x 1,000) ......................................... 57
Table 16-1: Quality Specifications by Product .................................................................................. 59
Table 17-1: Logan Mining Permits .................................................................................................... 63
Table 18-1: Estimated Coal Production Taxes and Sales Costs ......................................................... 66
Table 18-2: Logan Operating Costs ................................................................................................... 66
Table 19-1: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000) .......................................... 69
Table 19-2: Summary of Logan Key Financial Performance Metrics (2025-2032) ........................... 69
Table 19-3: Project Cash Flow Summary ($000) ............................................................................... 70
Table 22-1: Probability Level Table ................................................................................................... 75
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
vi
Table 22-2: Consequence Level Table ............................................................................................... 76
Table 22-3: Risk Matrix ..................................................................................................................... 77
Table 22-4: Risk Assessment Matrix ................................................................................................. 78
Table 22-5: Geological and Coal Resource Risk Assessment (Risks 1 and 2) .................................... 79
Table 22-6: Environmental (Risks 3, 4 and 5) .................................................................................... 80
Table 22-7: Regulatory Requirements (Risk 6) ................................................................................. 80
Table 22-8: Market and Transportation (Risk 7) ............................................................................... 81
Table 22-9: Market and Transportation (Risk 8) ............................................................................... 81
Table 22-10: Methane Management (Risk 9) ................................................................................... 82
Table 22-11: Mine Fires (Risk 10) ...................................................................................................... 82
Table 22-12: Highwall Failure (Risk 11) ............................................................................................. 83
Table 22-13: Availability of Supplies and Equipment (Risk 12) ......................................................... 83
Table 22-14: Labor – Work Stoppage (Risk 13) ................................................................................. 84
Table 22-15: Labor – Retirement (Risk 14) ....................................................................................... 84
Table 22-16: Other (Risk 15) ............................................................................................................. 84
Table 25-1: Information from Registrant Relied Upon by MM&A ................................................... 85
Appendices
A .......................................................................................................................... MM&A Qualifications
B .................................................................................................................................................... Maps
C ................................................................................................................................ Glossary of Terms
D ..................................................... Initial Economic Assessment for Resources Exclusive of Reserves
E ......................................................................................................................................... JORC Table 1
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
1
Executive Summary
1.1 Property Description
Coronado Global Resources Inc. (
Coronado
)
authorized Marshall Miller & Associates, Inc. (
MM&A
)
to prepare this Technical Report Summary (
TRS
) of its controlled coal resources and reserves located
at the
Logan County Complex (
Logan
)
Property
). This TRS updates the TRS titled, "
Coronado Global Resources Inc. Statement of Coal
Resources and Reserves for the Logan County Complex in Accordance with the JORC Code and United
States SEC Regulation S-K 1300 as of December 31, 2023 Central Appalachian Coal Basin West
Virginia, USA February 2024
," dated February 16, 2024, due to material differences in the key
financial modifying factors including coal sales price assumptions, operating costs and capital costs
from December 31, 2023 to December 31, 2024. Coal sales price assumptions are discussed in
Sections 12 and 16
Sections 18
and 19
reserves as discussed in
Section 11
of the current TRS. In addition, one sublease containing
resources and reserves in the February 2024 TRS has expired, therefore those leased tonnages were
removed from the current TRS. The report provides a statement of coal resources and coal reserves
for Coronado, as defined under the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves
(
JORC Code
) as well as under Subpart 1300 of Regulation S-K
(Regulation S-K 1300) promulgated by the
United States Securities and Exchange Commission
(
SEC
)
.
Australasian Code for Public Reporting
of Technical Assessments and Valuations of Mineral Assets
(
VALMIN Code
).
Coal resources and coal reserves are herein reported in metric units of measurement and are
rounded to millions of metric tonnes (
Mt
).
Surface facilities for the operations are located along Buffalo Creek and a
CSX Corporation (
CSX
)
line about 21 kilometers north-northeast of Man, West Virginia (see
Figure 1-1
). The Property is
composed of 12,735 total hectares, 12,666 of which are leased from private landholders under
approximately 14 individual leases, and 69 hectares are owned by Coronado. Subject to Coronado
exercising its renewal rights thereunder, a majority of the leases, covering a majority of the Logan
reserves, expire upon exhaustion of the relevant coal reserves, which is expected to occur in 2057.
One lease expires in 2032; however, Coronado is projected to have previously exhausted the
reserves covered thereby.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
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NC
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2
Figure 1-1: Coronado Logan Property Location Map
1.2 Ownership
The Logan properties started mining in 1945 by
Lorado Mining Company
. The properties
were sold
to
Buffalo Mining Company
Pittston Coal Company (
Pittston
)
operated the properties until the early 1990’s when it idled the mine complex and then in 2004 sold
them to
Addington Resources
. Production resumed in 2005.
Imagin Natural Resources
the properties in 2007 and then sold them to
Cleveland-Cliffs Inc. (
Cliffs
)
the properties to Coronado in 2014.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
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SSOCIATES
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3
1.3 Geology
The coal-bearing formation of interest at Logan is primarily the Kanawha Formation of Lower
Pennsylvanian System, which comprises a major portion of the exposed ridges. The Kanawha
Formation is a coal bearing sequence of sandstones, siltstones, shales, and mudstones with minor
occurrences of siderite, limestone and flint clay.
Coronado
mines several coal horizons within the Kanawha formation. The horizons are as follows:
Upper Clarion Rider, Clarion, Lower Clarion, Upper Stockton, Lower Stockton, Upper Coalburg,
Lower Coalburg, Lower Dorothy, Chilton-A, Chilton, Buffalo Creek, Upper Winifrede, Lower
Winifrede, Upper Cedar Grove, Middle Cedar Grove, Lower Cedar Grove, Upper Powellton, Lower
Powellton, Eagle, No. 2 Gas and Lower War Eagle. Operations at the Logan Mine Complex extract
multiple coal seams by both underground and surface mining methods.
1.4 Exploration Status
The Property has been extensively explored, largely by drilling with continuous coring methods and
rotary drilling, often supported by downhole geophysical methods. In addition to exploration
means, coal measurements from mine exposures have supplemented the database. The majority
of the data was acquired or generated by previous owners of the Property. These sources comprise
the primary data used in the evaluation of the coal resources and coal reserves on the Property.
MM&A examined the data available for the evaluation and incorporated all pertinent information
into this TRS. Where data was anomalous or not representative, that data was not honored within
the digital databases and for subsequent processing by MM&A.
Ongoing exploration has been carried out by Coronado since acquiring the Logan Complex.
Exploration data collected by Coronado has been consistent with past drilling activities.
1.5 Operations and Development
As of December 31, 2024, underground mine operations were active at Powellton No. 1, Lower War
Eagle, Eagle No. 1 and Muddy Bridge Mines with one, three, three and two active mining sections,
respectively, using the room-and-pillar method. Annual deep mine production peaks at
approximately 2.45 Mt in 2034. Two active surface mines, Toney Fork and Middle Fork Surface
(Buffalo Creek South), were also operating. Surface production is projected to peak at 0.62 Mt in
2037. Highwall miner production is also projected for 2025 with a peak in 2049 at 0.55 Mt. Overall
production will continue until 2057 with peak production occurring in 2034 at 3.41 Mt.
The Logan County Complex includes the Saunders Preparation Plant in addition to the mines. The
plant site includes raw coal storage, clean coal storage, a railroad loadout, and refuse disposal area.
The plant has a feed rate capacity of 1,088 raw tonnes per hour.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
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NC
.
4
Table 1-1: Coal Resources Summary as of December 31, 2024 (Mt)
1.6 Mineral Resource
Mineral resources, representing in-situ coal from a portion of which reserves are derived, are
presented below. A coal resource estimate, summarized in
Table 1-1
, was prepared as of December
31, 2024, for property controlled by Coronado.
Coal Resource (Dry Tonnes, In Situ, MT)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserves
97.4
61.6
0.0
159.0
17
1.0
31
Exclusive of Reserves
30.0
40.5
3.0
73.5
19
1.2
28
Total 12/31/2024
127.3
102.1
3.0
232.5
17
1.0
31
Note 1: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal reserves are
derived.
Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.
Note 3: The Property has 70.5 Mt of dry, in-place measured and indicated resource tonnes exclusive of reserves as of December 31, 2024.
1.7 Mineral Reserve
Reserve tonnage estimates provided herein report coal reserves derived from the in-situ resource
tons presented in
Table 1-1
, and not in addition to coal resources. Proven and probable coal
reserves were derived from the defined coal resource considering relevant mining, processing,
infrastructure, economic (including estimates of capital, revenue, and cost), marketing, legal,
environmental, socio-economic and regulatory factors. The Resource estimate has been used as
the basis for this Reserve calculation, which utilizes a reasonable Preliminary Feasibility Study, a Life-
of Mine (
LOM
) Mine Plan and practical recovery factors. Production modeling was completed with
an effective start date of October 1, 2024. Additions and depletion have been used to bring the
Reserve estimate forward to December 31, 2024.
Factors that would typically preclude conversion of a coal resource to coal reserve, which include
the following: inferred resource classification; absence of coal quality; poor mine recovery; lack of
access; geological encumbrances associated with overlying and underlying strata; seam thinning;
structural complication; and insufficient exploration, have all been considered. Reserve
consideration excludes those portions of the resource area which exhibit the aforementioned
geological and operational encumbrances. Coal reserves are presented on a run-of-mine (
ROM
)
basis in
Table 1-2.
In 2024, two additional mine planning revisions were made in evaluating the highwall mines of the
Property. MM&A first evaluated the hydrologic risk of highwall miner panels mining up-dip in a given
seam due to potential long-term water quality concerns. The second criteria evaluated was highwall
miner penetration depths. Additional discussion of the topic is found below in
Section 12.2
.
Furthermore, four additional mine planning modifications were made related to the underground
mines of the Property. The modifications included: reduction in retreat mining recoveries as a result
of overlying mine pools based on recent concerns raised by MSHA; a study of overlying utility towers
requested by
American Electric Power (
AEP
)
voltage line support towers; a review of seam sulfur data to avoid extracting areas of high sulfur
(>1.6%) coal; and a mine cutting height study instigated by areas of difficult mining conditions
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 1-2: Coal Summary (ROM Basis (Moist)) as of December 31, 2024 (Mt)
Table 1-3: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2024 (Mt)
experienced recently by Coronado. The effect of these criteria resulted in a reduction of reserve of
various amounts by seam.
Demonstrated Coal Reserves (Mt, Moist ROM)
Quality (Dry)
By Reliability Category
By Mining Type
By Control Type
Area / Mine
Proved
Probable
Total
Surface
UG
Owned
Leased
Ash%
Sulfur%
Vol%
Logan Mine Complex
62.5
36.8
99.3
36.5
62.7
0.4
98.9
39
0.9
24
Proven and probable coal reserves were derived from the defined in-situ coal resource considering
relevant processing, economic (including technical estimates of capital, revenue and cost),
marketing, legal, environmental, socio-economic, and regulatory factors. The proven and probable
coal reserves on the Property are summarized below in
Table 1-3.
Demonstrated Coal Reserves (Wet Ton nes, Washed or Direct Shipped, MT)
Quality (Dry Basis)
By Reliability Category
By Mining Type
By Control Type
Property
Proven
Probable
Total
Surface
UG
Owned
Leased
Ash%
Sulfur%
VM%
Logan County Complex
39.9
22.5
62.4
31.6
30.8
0.3
62.2
8
0.9
35
Note: Marketable reserve tonnes are reported on a moist basis, including a combination of surface and inherent moisture. The combination of
surface and inherent moisture is modeled between 4.5 and 6-percent, depending upon mining method. Actual product moisture is
dependent upon multiple geological factors, operational factors, and product contract specifications and can exceed 8-percent. As such, the
modeled moisture values provide a level of conservatism for reserve reporting.
In summary, Coronado controls a total of 62.4 Mt (moist basis) of marketable coal reserves at Logan
as of December 31, 2024. Of that total, 64 percent are proven, and 36 percent are probable. Of the
62.4 Mt, 62.2 Mt are leased coal reserves and 0.3 Mt are owned. All tonnage is assigned.
Approximately 54.1 Mt of reserves are considered suitable for the metallurgical coal market and 8.4
Mt are projected to be sold into the thermal coal market.
1.8 Capital Summary
Coronado provided MM&A with an inventory of operating equipment available at Logan. MM&A’s
capital schedules assume that major equipment rebuilds occur over the course of each machine’s
remaining assumed operating life. Replacement equipment was scheduled based on MM&A’s
experience and knowledge of mining equipment and industry standards with respect to the useful
life of such equipment. A summary of the estimated capital for the Property is provided in
Figure
1-2
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 1-2: CAPEX
1.9 Operating Costs
Coronado provided historical and preliminary 5-year projections of operating costs for its active
mines for MM&A’s review. MM&A used the historical and/or budget cost information as a
reference and developed personnel schedules for each mine. Hourly labor rates and salaries were
based upon information contained in Coronado’s financial summaries. Fringe benefit costs were
developed for vacation and holidays, federal and state unemployment insurance, retirement,
workers’ compensation and pneumoconiosis, casualty and life insurance, healthcare and bonuses.
For the underground operations, a cost factor for mine supplies was developed that relates
expenditures to mine advance rates for roof control costs and other mine supply costs at
underground mines. Other factors were developed for maintenance and repair costs, rentals, mine
power, outside services and other direct mining costs.
Surface mine direct operating costs were developed as a function of overburden ratio for repair and
maintenance supplies, diesel fuel, explosives and blasting, and miscellaneous supplies and services.
Operating costs for highwall mines are based on costs per ROM tonne estimates.
Operating costs factors were also developed for the coal preparation plant processing, refuse
handling, coal loading, property taxes, and insurance and bonding.
Appropriate royalty rates were assigned for production from leased coal lands and sales taxes were
calculated for state severance taxes, the federal black lung excise tax, and federal and state
reclamation fees.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 1-3: OPEX
A summary of the projected operating costs for the Property is provided in
Figure 1-3
.
1.10 Economic Evaluation
The pre-feasibility financial model prepared for this TRS was developed to test the economic viability
of the coal resource area. The results of this financial model are not intended to represent a
bankable feasibility study, required for financing of any current or future mining operations
contemplated for the Coronado properties, but are intended to establish the economic viability of
the estimated coal reserves. Cash flows are simulated on an annual basis in year-end 2024 nominal
dollars assuming a 2.0% inflation rate based on projected production from the coal reserves. The
discounted cash flow analysis presented herein is based on an effective date of January 1, 2025.
On an un-levered basis, the net present value (
NPV
) of the project cash flow after taxes represents
the Enterprise Value of the project. The project cash flow, excluding debt service, is calculated by
subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct
costs include labor, operating supplies, maintenance and repairs, facilities cost for materials
handling, coal preparation, refuse disposal, coal loading, reclamation and general and
administrative costs. Indirect costs include statutory and legally agreed upon fees related to direct
extraction of the mineral. The indirect costs are the Federal black lung tax, Federal and State
reclamation taxes, property taxes, coal production royalties, and income taxes.
Table 1-4
P&L
), and earnings before income tax, depreciation &
amortization (
EBITDA
) for Logan.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 1-4: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)
LOM
LOM
P&L
LOM
EBITDA
Tonnes
Pre Tax P&L
Per Tonne
EBITDA
Per Tonne
Deep Mines
Camp Br Chilton
1,296
$44,036
$33.98
$58,291
$44.98
Eagle No. 1 (Toney Fork)
8,247
$161,979
$19.64
$295,687
$35.85
Elk Lick Chilton
3,063
$132,352
$43.21
$169,419
$55.31
Lower Powellton
4,616
$272,306
$58.99
$346,573
$75.08
Lower War Eagle
4,328
$19,444
$4.49
$112,913
$26.09
Powellton No. 1
2,680
$55,081
$20.55
$118,933
$44.38
Muddy Br No.2 Gas
1,390
$33,680
$24.22
$55,282
$39.76
Toney Fork No.2 Gas
1,639
$14,376
$8.77
$47,309
$28.86
Upper Winifrede
1,438
$75,935
$52.81
$87,094
$60.57
Lower Winifrede
2,091
$37,994
$18.17
$68,678
$32.84
Consolidated Deep Mines
30,788
$847,183
$27.52
$1,360,180
$44.18
Surface Mines
Toney Fork Surf
6,339
$83,917
$13.24
$234,177
$36.94
Buffalo Cr South Area
7,259
$(30,546)
$(4.21)
$107,723
$14.84
Sugar Camp Area 1
4,912
$(40,284)
$(8.20)
$89,192
$18.16
Surface Mines Consolidated
18,510
$13,086
$0.71
$431,092
$23.29
HWM Operations
Toney Fork HWM
Buffalo Cr South HWM
Sugar Camp HWM
HWM Consolidated
Grand Total
As shown in
Table 1-4,
Coronado consolidated operations show positive LOM P&L and LOM EBITDA of $2.0 billion and $3.0
billion, respectively.
Coronado’s consolidated Logan cash flow summary in nominal dollars assuming a 2.0% inflation
rate, excluding debt service, is shown in
Table 1-5
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 1-5: Project Cash Flow Summary ($000)
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
Total
2025
2026
2027
2028
2029
Production & Sales tonnes
62,438
2,700
2,776
2,436
2,334
2,476
Total Revenue
$11,559,493
$431,738
$414,877
$369,887
$359,001
$388,428
EBITDA
$3,023,805
$104,376
$72,875
$53,250
$63,977
$77,821
Net Income
$1,708,510
$51,304
$26,202
$8,241
$20,966
$30,793
Net Cash Provided by Operating Activities
$2,596,265
$69,007
$72,009
$54,313
$55,108
$68,042
Purchases of Property, Plant, and Equipment
$(797,293)
$(26,825)
$(30,347)
$(45,357)
$(41,018)
$(33,210)
Net Cash Flow
$1,798,971
$42,183
$41,661
$8,956
$14,091
$34,832
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2030
2031
2032
2033
2034
2035
Production & Sales tonnes
3,178
3,241
3,206
3,216
3,407
2,981
Total Revenue
$522,595
$540,804
$547,027
$561,766
$601,508
$536,244
EBITDA
$128,996
$123,272
$128,562
$139,242
$184,308
$149,352
Net Income
$71,124
$59,690
$62,601
$73,641
$125,576
$96,230
Net Cash Provided by Operating Activities
$103,811
$111,267
$114,927
$122,301
$149,815
$137,874
Purchases of Property, Plant, and Equipment
$(46,464)
$(59,042)
$(40,956)
$(48,790)
$(21,108)
$(30,380)
Net Cash Flow
$57,347
$52,225
$73,971
$73,511
$128,708
$107,494
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2036
2037
2038
2039
2040
2041
Production & Sales tonnes
2,422
2,195
2,086
2,094
2,062
1,841
Total Revenue
$441,553
$405,706
$389,964
$399,270
$401,241
$360,027
EBITDA
$101,941
$100,869
$115,479
$118,895
$116,255
$95,902
Net Income
$55,393
$53,624
$73,056
$74,273
$70,685
$53,621
Net Cash Provided by Operating Activities
$100,344
$91,144
$101,078
$103,612
$102,638
$89,669
Purchases of Property, Plant, and Equipment
$(47,299)
$(38,083)
$(24,640)
$(25,550)
$(26,054)
$(19,556)
Net Cash Flow
$53,046
$53,062
$76,438
$78,063
$76,585
$70,113
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2042
2043
2044
2045
2046
2047
Production & Sales tonnes
1,661
1,090
1,160
1,157
1,158
1,160
Total Revenue
$326,871
$209,419
$228,128
$232,187
$236,950
$242,091
EBITDA
$81,691
$49,813
$67,980
$68,889
$70,442
$72,127
Net Income
$43,521
$25,278
$45,785
$45,141
$45,354
$46,293
Net Cash Provided by Operating Activities
$76,376
$51,747
$54,738
$59,137
$60,568
$61,806
Purchases of Property, Plant, and Equipment
$(9,390)
$(5,221)
$(8,200)
$(13,786)
$(20,107)
$(13,417)
Net Cash Flow
$66,986
$46,525
$46,537
$45,351
$40,460
$48,390
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2048
2049
2050
2051
2052
2053
Production & Sales tonnes
1,162
1,162
1,157
1,155
1,160
1,162
Total Revenue
$247,466
$252,289
$256,353
$261,045
$267,422
$273,086
EBITDA
$73,922
$75,432
$76,606
$78,203
$80,656
$82,085
Net Income
$47,205
$47,208
$46,830
$46,927
$48,499
$49,978
Net Cash Provided by Operating Activities
$62,898
$64,224
$65,488
$67,015
$68,989
$70,267
Purchases of Property, Plant, and Equipment
$(12,605)
$(14,109)
$(14,635)
$(17,169)
$(16,012)
$(15,676)
Net Cash Flow
$50,293
$50,115
$50,853
$49,845
$52,977
$54,591
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2054
2055
2056
2057
2058
2059
Production & Sales tonnes
1,160
1,027
829
425
-
-
Total Revenue
$278,086
$252,544
$208,610
$115,312
$-
$-
EBITDA
$84,068
$73,616
$57,658
$55,247
$-
$-
Net Income
$50,995
$42,312
$30,438
$45,262
$(2,988)
$(1,383)
Net Cash Provided by Operating Activities
$71,658
$65,937
$54,221
$34,925
$(21,866)
$(9,263)
Purchases of Property, Plant, and Equipment
$(14,537)
$(13,484)
$(4,267)
$-
$-
$-
Net Cash Flow
$57,121
$52,454
$49,954
$34,925
$(21,866)
$(9,263)
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2060
2061
2062
2063
2064
2065
Production & Sales tonnes
-
-
-
-
-
-
Total Revenue
$-
$-
$-
$-
$-
$-
EBITDA
$-
$-
$-
$-
$-
$-
Net Income
$(714)
$(373)
$(79)
$(0)
$(0)
$(0)
Net Cash Provided by Operating Activities
$(4,724)
$(3,836)
$(1,002)
$-
$-
$-
Purchases of Property, Plant, and Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$(4,724)
$(3,836)
$(1,002)
$-
$-
$-
Consolidated cash flows are driven by annual sales tonnage, which at steady-state level ranges from
a peak of 3.4 million tonnes in 2034 to a low of 0.4 million tonnes in 2057. Projected consolidated
revenue ranges from $115.6 million to $601.5 million at a steady state. Revenue totals $11.6 billion
for the project’s life.
Consolidated cash flow from operations is positive throughout the projected operating period, with
the exception of post -production years, due to end-of-mine reclamation spending. Consolidated
cash flow from operations peaks at $149.8 million in 2034 and totals $2.6 billion over the project’s
life. Capital expenditures total $176.8 million from 2025 through 2029 and $797.3 million over the
project’s life.
1.10.1 Discounted Cash Flow Analysis
Cash flow after tax, but before debt service, generated over the life of the project was discounted
to NPV at a 10.0% discount rate, which represents Coronado’s estimate of the nominal dollar, risk
adjusted weighted average cost of capital (
WACC
) for likely market participants if the subject
reserves were offered for sale. On an un-levered basis, the NPV of the project cash flows represents
the Enterprise Value of the project and amounts to $525.6 million. The pre-feasibility financial
model (+/- 20 percent in accuracy) prepared for the TRS was developed to test the economic viability
of each coal resource area. A 5% operating cost contingency was included in the economic analysis.
The NPV estimate was made for the purpose of confirming the economics for classification of coal
reserves and not for purposes of valuing Coronado or its Logan assets. Mine plans were not
optimized, and actual results of the operations may be different, but in all cases, the mine
production plan assumes the properties are under competent management.
1.10.2 Sensitivity Analysis
Sensitivity of the NPV results to changes in the key drivers is presented in the chart below. The
sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating
costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 1-4: Sensitivity of NPV
As shown, NPV is quite sensitive to changes in sales price and operating cost estimates, and slightly
sensitive to changes in capital cost estimates.
1.11 Permitting
Coronado has obtained all mining and discharge permits to operate its active mines and processing,
loadout or related support facilities. MM&A is unaware of any obvious or current Coronado
permitting issues that are expected to prevent the issuance of future permits. Logan, along with all
coal producers, is subject to a level of uncertainty regarding future clean water permits due to
United States Environmental Protection Agency
(
EPA
)
United States Fish and Wildlife (
USFW
)
involvement with state programs.
1.12 Conclusion and Recommendations
Sufficient data has been obtained through various exploration and sampling programs and mining
operations to support the geological interpretations of seam structure and thickness for coal
horizons situated on the Logan Property. The data is of sufficient quantity and reliability to
reasonably support the coal resource and coal reserve estimates in this TRS.
The geological data and preliminary feasibility study, which consider mining plans, revenue, and
operating and capital cost estimates are sufficient to support the classification of coal reserves
provided herein.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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This geologic evaluation conducted in conjunction with the preliminary feasibility study concludes
that the 62.4 Mt of marketable coal reserves identified on the Property are economically mineable
under reasonable expectations of market prices for metallurgical coal products, estimated
operation costs, and capital expenditures.
2
Introduction
2.1 Registrant and Terms of Reference
This report was prepared for the sole use of
Coronado Global Resources Inc. (
Coronado
)
and its
affiliated and subsidiary companies and advisors. This TRS updates the TRS titled, "
Coronado Global
Resources Inc. Statement of Coal Resources and Reserves for the Logan County Complex in
Accordance with the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
Central Appalachian Coal Basin West Virginia, USA February 2024
," dated February 16, 2024, due
to material differences in the key financial modifying factors including coal sales price assumptions,
operating costs and capital costs from December 31, 2023 to December 31, 2024. Coal sales price
assumptions are discussed in
are discussed in
Sections 18 and 19
and coal reserves for Coronado, as defined under the
Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves
(
JORC Code
) as well as under Subpart
1300 of Regulation S-K (Regulation S-K 1300) promulgated by the
United States Securities and
Exchange Commission (
SEC
)
.
Australasian
Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets
(
VALMIN
Code
).
The report provides a statement of coal resources and coal reserves for Coronado at Logan.
Exploration results and Resource calculations were used as the basis for the mine planning and the
preliminary feasibility study completed to determine the extent and viability of the reserve.
Coal resources and coal reserves are herein reported in metric units of measurement and are
rounded to millions of metric tonnes (
Mt
).
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 2-1: Information Provided to MM&A by Coronado
2.2 Information Sources
This TRS is based on information provided by Coronado and reviewed by MM&A. Sources of data
and information are listed below in
Table 2-1
:
Information Provided by Coronado
Report Section
Geological
Geologic data including digital databases and original source data including
geologist logs, driller’s logs, geophysical logs, as well as in-seam mine data.
9.1
Coal Quality
Database of coal quality information supplemented with original source
laboratory sheets where available
10.1
Mining
Historical productivities and manpower from operating and future Coronado
mines
7.4, 13.2, 13.4
Coal Preparation
Flow sheet and other information representing current and future methods of
coal processing
14.1
Waste Disposal
Engineering data and estimates representing remaining capacities for coarse
and fine coal waste disposal
17.2
Costs
Historical and budgetary operating cost information used to derive cost drivers
for reserve financial modeling
18.2
Economic
WACC and inflation rate used in discounted cash flow analysis
19.1, 19.2, 19.3
Note: While the sources of data listed in Table 2-1 are not exhaustive, they represent a significant portion of information which supports this TRS.
MM&A reviewed the provided data and found it to be reasonable prior to incorporating it into the TRS. The TRS contains “forward-looking
information” including forecasts of productivity and annual coal production, operating and capital cost estimates, coal sales price forecasts, the
assumption that Coronado will continue to acquire necessary permits, and other assumptions. The TRS statements and conclusions are not a
guarantee of future performance and undue reliance should not be placed on them. The ability of Coronado to recover the estimated coal reserves
is dependent on multiple factors beyond the control of MM&A including, but not limited to geologic factors, mining conditions, regulatory
approvals, and changes in regulations. In all cases, the plans assume the Property is under competent management.
Coronado engaged MM&A to conduct a coal resource and reserve evaluation of the Coronado coal
properties as of September 30, 2024. In the process, additions (mine data) and depletion (mine)
have been used to bring the Resource and Reserve estimates forward to December 31, 2024, the
effective date of this TRS for Logan. For the evaluation, the following tasks were to be completed:
>
Conduct site visits of the mines and mine infrastructure facilities
(Note – MM&A has fulfilled this
requirement by visiting the Property on many occasions and for various purposes over the past
several years
);
>
Process the information supporting the estimation of coal resources and reserves into geological
models;
>
Develop life-of-reserve mine (
LOM
) plans and financial models;
>
Hold discussions with Coronado company management; and
>
Prepare and issue a TRS providing a statement of coal resources and reserves which would
include:
-
A description of the mines and facilities.
-
A description of the evaluation process.
-
An estimation of coal resources and reserves with compliance elements as stated under the
JORC Code and the SEC Regulation S-K 1300.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 3-1: Logan Property Location
2.3 Personal Inspections
MM&A is very familiar with Logan, having provided a variety of services in recent years and one of
the QP’s involved in this TRS has conducted multiple site visits.
3
Property Description
3.1 Location
The Logan County Complex is located in Logan, Boone, and Wyoming Counties in southern West
Virginia. The Property encompasses the towns of Lorado and Pardee in the northern portion and
Lacoma and Cyclone in the southern portion (approximately 6 kilometers between the northern and
southern towns). The nearest major population centers are Huntington, West Virginia (145
kilometers northwest) and Charleston, West Virginia (129 kilometers north).
The Logan property is composed of 12,735 total leased and owned hectares located in Logan,
Boone, and Wyoming Counties. Furthermore, the Property is situated on the following
United
States Geological Survey
(
USGS
) Quadrangles: Lorado, Mallory, Amherstdale, and Oceana. Current
mining projections fall within portions of all four quadrangles. The coordinate system and datum
used for the model of the Logan County Complex and the subsequent maps were produced in the
West Virginia State Plane South system, NAD 27.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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3.2 Titles, Claims or Leases
Of the Properties 12,735 total hectares, 12,666 are leased from private landholders under
approximately 14 individual leases, and 69 hectares are owned by Coronado. The latest Coronado
lease of 45 hectares was obtained in 2022. A Ramaco sublease, included in the February 2024 TRS,
expired and has been removed from the current TRS. Subject to Coronado exercising its renewal
rights thereunder, a majority of the leases that cover a majority of the Logan reserves, expire upon
exhaustion of the relevant coal reserves, which is expected to occur in 2057. One lease expires in
2032; however, Coronado is projected to have previously exhausted the reserves covered thereby.
MM&A has not carried out a separate title verification for the coal properties and has not verified
leases, deeds, surveys, or other property control instruments pertinent to the subject resources.
Property tenure was separately reviewed by Coronado’s legal advisors. Coronado has represented
to MM&A that it controls the mining rights to the reserves as shown on its property maps, and
MM&A has accepted these as being a true and accurate depiction of the mineral rights controlled
by Coronado. The TRS assumes the properties are developed under responsible and experienced
management.
3.3 Mineral Rights
Coronado supplied property control maps to MM&A related to properties for which mineral and/or
surface property are controlled by Coronado. While MM&A accepted these representations as
being true and accurate, MM&A has no knowledge of past property boundary disputes or other
concerns, through past knowledge of the Property, that would signal concern over future mining
operations or development potential.
Property control in Appalachia can be intricate. Coal mining properties are typically composed of
numerous property tracts which are owned and/or leased from both land holding companies and
private individuals or companies. It is common to encounter severed ownership, with different
entities or individuals controlling the surface and mineral rights. Mineral control in the region is
typically characterized by leases or ownership of larger tracts of land, with surface control generally
comprised of smaller tracts, particularly in developed areas.
Legal mining rights may reflect a combination of in fee or mineral ownership and in fee or mineral
leases of coal lands through various surface and mineral lease agreements. There is also a relatively
small amount of area where the coal is partially-owned and/or partially leased on a limited number
of individual tracts.
Control of the surface property is necessary to conduct surface mining but is not necessary to
conduct underground mining.
Upon acquisition of mineral control for desired coal seams of surface-mineable economic interest,
it is typical practice in the region for operators to delay the acquisition of surface control for
purposes of surface mining and other surface development until plans are established for near-
future development. Therefore, it is common for an operator to control mineral for proposed areas
of mining for which they have not established the legal right to surface mine due to the lack of
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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surface control. Acquisition of these rights is typically delayed in order to limit cost and royalty
payments for areas not under consideration for near-future development. Coronado’s executive
management team has a history of surface mining in Central Appalachia and has conveyed to
MM&A that it has been successful in acquiring surface rights where needed for past operations.
3.4 Encumbrances
No Title Encumbrances are known. By assignment, MM&A did not complete a query related to Title
Encumbrances.
3.5 Other Risks
There is always risk involved in property control. As is common practice, Coronado, and its
predecessors, have had their legal teams examine the deeds and title control in order to minimize
the risk. Historically, property control has not posed any significant challenges related to Logan’s
operations.
4
Accessibility, Climate, Local Resources,
Infrastructure and Physiography
4.1 Topography, Elevation, and Vegetation
Topography of the area surrounding the Logan County Complex is typical of the Central Appalachian
Plateau, being rugged and deeply dissected by v-shaped river valleys, and generally flanked by
steeply sided upland regions, with occasional gentle slopes in select areas such as river valleys. The
drainage system in the region tends to be mostly dendritic in nature. Topographic surface
elevations near the mine complex range from approximately 823 meters above sea level in upland
regions to roughly 338 meters at stream level. The Property is moderately to heavily vegetated,
with oak-hickory forests as the dominant forest type and northern hardwood forest being less
prominent. The Property is not situated near any major urban centers, and the surrounding area is
rural.
4.2 Access and Transport
Access to the Logan Mine property consists of primary, secondary, and unimproved roads, forming
a well-developed transportation network. Highway 119 is the primary highway in the area running
southwest to northeast from the Kentucky-West Virginia line through Mingo, Logan, and Boone
Counties. Secondary roads Route 16 and Route 10 provide the most direct access through the
Property running east-west across the leased area. Numerous other secondary and unimproved
roads provide direct access to the mine property, some being state- and county-maintained. These
roads typically stay open throughout the year. Additionally, private access roads to existing mines
provide transport corridors, and more such roads may be developed as needed. The Coronado-
owned Saunders Preparation Plant services the mines. The ROM coal is delivered from the Lower
War Eagle Mine via overland conveyor, all remaining production is or will be delivered to the plant
site by truck.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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4.3 Proximity to Population Centers
The Logan property lies near the town of Lorado in Logan County, West Virginia, approximately 145
kilometers southeast of Huntington, West Virginia and 129 kilometers south-southwest of
Charleston, West Virginia. As of 2023, Logan County had a population of approximately 30,827
residents, Boone County had 20,576 residents, and Wyoming County had 20,277 residents.
4.4 Climate and Length of Operating Season
The region’s climate is classified as humid, sub-tropical with four distinct seasons: warm summers,
cold winters, and moderate fall and spring seasons. Precipitation in the region occurs throughout
the year with the most rain falling in spring and the early months of summer. The average yearly
rainfall is 67.69 centimeters. Summer months typically begin in late May and end in early September
and range in average temperature from 53 to 84 degrees Fahrenheit (or 11.6 to 28.9 degrees
Celsius). Winters typically begin in mid to late November and run until mid to late March with
average temperatures ranging from 26 to 57 degrees Fahrenheit (or -3.3 to 13.9 degrees Celsius).
Precipitation in the winter typically comes in the form of snowfall or as a wintery mix (sleet and
snow) with severe snowfall events occurring occasionally. Seasonal variations in climate typically
do not affect underground mining in West Virginia. However, weather events could potentially
incumber surface mining and preparation plant operations on a very limited basis, typically lasting
less than a few days.
4.5 Infrastructure
The Logan Mine Complex has sources of water, power, personnel, and supplies readily available for
use. Personnel have historically been sourced from the surrounding communities in Logan, Boone,
Wyoming, and Mingo counties, and have proven to be adequate in numbers to operate past and
current mines. As mining is common in the surrounding areas, the workforce is generally familiar
with mining practices and is comprised of a strong talent pool of experienced miners. Water is
sourced locally from Buffalo Creek Public Service District and electricity is sourced from
American
Electric Power (
AEP
)
. The service industry in the areas surrounding the mine complex has
historically provided supplies, equipment repairs and fabrication, etc. The Coronado-owned
Saunders Preparation plant services the mines and has a feed rate capacity of 1,088 raw tonnes per
hour. The Coronado-owned Elk Lick Loadout serves as the primary means of shipment and is
connected to a CSX rail line, which either serves the domestic market directly, or transports the coal
to the Pier 9 and Dominion terminals at Norfolk, Virginia for overseas shipment.
5
History
5.1 Previous Operation
The Logan County properties were started in 1945 by
Lorado Mining Company
, were sold to
Buffalo
Mining Company
Pittston Coal Company (
Pittston
)
the properties until the early 1990’s. After being idle for a period, the properties were then sold to
Addington Resources
Imagin Natural Resources
subsequently sold them to Cliffs in 2011, which in turn sold the properties to Coronado in 2014.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 6-1: Coal Basins & Logan Property Location
Coronado produced approximately 1.8 Mt in 2016, 2.6 Mt in 2017, 2.6 Mt in 2018, 2.7 Mt in 2019,
1.6 Mt in 2020, 1.9 Mt in 2021, 2.1 Mt in 2022, and 2.5 Mt in 2023 and 2.1 Mt in 2024.
5.2 Previous Exploration
The Properties have been extensively explored by subsurface drilling efforts carried out by
numerous entities, most of which were completed prior to acquisition by Coronado.
Drill records indicate that independent contract drilling operators have typically been engaged to
carry out drilling on the Properties. Geophysical logging was typically performed by outside logging
firms. MM&A, via its Geophysical Logging Systems subsidiary, has in the past logged a significant
number of exploration holes and gas wells, and currently logs most of the recently drilled holes.
6
Geological Setting, Mineralization and Deposit
6.1 Regional, Local and Property Geology
The Property lies in the Central Appalachian Coal basin in the Appalachian Plateau physiographic
province.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Coal deposits in the eastern USA are the oldest and most extensively developed in the country. The
coal deposits on the Properties are Carboniferous in age, being of the Pennsylvanian system.
Overall, these Carboniferous coals contain two-fifths of the USA’s bituminous coal deposits and
extend over 1,448 kilometers from northern Alabama to Pennsylvania and are part of what is known
as the
Appalachian Basin
. The Appalachian Basin is more than 402 kilometers wide and, in some
portions, contains over 60 coal seams of varying economic significance.
Within the Central Appalachian Basin, seams of economic significance typically range between 0.3
meters and 1.8 meters in thickness, with relatively little structural deformation. Regional structure
is typically characterized by gently dipping strata to the northwest at less than one percent.
The coal-bearing formations of interest at Logan is of the lower section of the Kanawha Formation,
which comprises a major portion of the exposed ridges. The coal-bearing Formation includes
sedimentary sequences of sandstones, siltstones, shales, and mudstones with minor occurrences of
siderite, limestone and flint clay.
Coronado
mines several coal seams within the Kanawha formation. The seams are as follows: Upper
Clarion Rider, Clarion, Lower Clarion, Upper Stockton, Lower Stockton, Upper Coalburg, Lower
Coalburg, Lower Dorothy, Chilton-A, Chilton, Buffalo Creek, Upper Winifrede, Lower Winifrede,
Upper Cedar Grove, Middle Cedar Grove, Lower Cedar Grove, Upper Powellton, Lower Powellton,
Eagle, No. 2 Gas and Lower War Eagle seams demonstrate mining potential on this property.
In 2024, Logan had two active surface mines and four active underground mines. Limited surface
mining occurred in a few seams of both the Buffalo Creek South and Toney Fork areas. The four
underground mines include the Eagle No. 1, Muddy Bridge, Lower War Eagle and Powellton No. 1
Mines.
The active Toney Fork surface mine has historically mined multiple seams including the Upper
Clarion Rider, Upper Clarion, Lower Clarion, Upper Stockton, Lower Stockton, Upper Coalburg,
Lower Coalburg, Lower Dorothy , Chilton-A, Buffalo Creek and Upper Winifrede, Lower Winifrede
seams.
Future surface mine reserve production at Logan is anticipated to focus on those seams having the
best opportunity for sale into the metallurgical coal markets, namely the Lower Coalburg seam and
below. In addition, from underground reserve production, the Powellton No. 1 Mine is projected
to access and extract Upper Powellton seam, and through outcrop access. Lower Powellton seam
extraction is projected in an area not overmined by the Upper Powellton. The Eagle No. 1 and
Muddy Bridge Mines are projected to extract the No. 2 Gas seam. The Lower War Eagle mine is
projected to extract the Lower War Eagle seam.
6.2 Mineralization
The generalized stratigraphic columnar section in
Figure 6-1
of the principal coal seams and rock formations on the Property.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 6-2: Logan Stratigraphic Column
(not to scale)
6.3 Deposits
The coal produced at Logan Mine complex is typically high-volatile (typically 28 percent or greater
volatile matter content) bituminous coal. Seam quality varies with distance from the cropline, so
some seams will be shipped into both the thermal and metallurgical markets depending on mining
method and ultimate quality. Saleable product from the surface operations is projected to be sold
primarily into the metallurgical coal market; however, some production is planned to be sold into
the thermal coal market due to quality limitations. Underground coal is sold almost exclusively in
the metallurgical markets.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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7
Exploration
7.1 Nature and Extent of Exploration
The Properties have been extensively explored by subsurface drilling efforts carried out by
numerous entities, most of which were completed prior to acquisition by Coronado.
Diamond core, rotary, and gas well drilling are the three primary types of exploration on the
Property. Drill hole collar elevations and total depths vary by hole due to the hilly terrain of the
Property. Data for correlation and mining conditions are derived from core descriptions and
geophysical logging (e-logging). Coal quality analyses were also employed during the core
exploration process. A total of 1,160 core holes, rotary holes and outcrop sites have been drilled or
prospected for exploration purposes on and around the leased property.
For the 2024 TR update, Coronado provided records for 12 new exploration holes on the property
(drilled in 2023 & 2024). One or more of the new drillholes intercepted underground mineable
seams including Chilton (Camp Branch), Upper Powellton, Lower Powellton, No. 2 Gas (Eagle No. 1)
and Lower War Eagle. Drill records and seam data from the new holes have been incorporated
herein, including coal quality analysis.
Drill records indicate that independent contract drilling operators have typically been engaged to
carry out drilling on the Property. Geophysical logging was typically performed by outside logging
firms. MM&A, via its Geophysical Logging Systems subsidiary, has logged a significant number of
past exploration holes and gas wells, and currently logs most of the recently drilled holes.
The location of the drilling is shown on the maps included in
Appendix B
.
The concentration of exploration varies slightly across the Property. Drilling on the Property is
typically sufficient for delineation of potential surface, highwall miner, and deep mineable benches.
Core logging is performed by professional geologists in cases where roof and floor strata are of
particular interest and in cases where greater resolution and geologic detail are needed. Even so,
most of the drill hole data is from more simplified driller’s logs, which often lack specific details
regarding geotechnical conditions and specific geology, making correlations and floor and roof
conditions more difficult to determine. Geophysical logging (e-logging) techniques, by contrast,
document specific details useful for geologic interpretation and mining conditions. Given the
variability of data -gathering methods,
definitive
possible, but projections and assumptions can be made within a
reasonable
significant effort was put into verifying the integrity of the database records. Once the data was
verified, stratigraphic columnar sections were generated using cross-sectional analysis to establish
or confirm coal seam correlations.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 7-1: Logan Cross-Section
A typical cross-section is shown in
Figure 7-1
.
Due to the long history of exploration by various parties on the Property, a wide variety of survey
techniques exist for documentation of data point locations. Many of the older exploration drill holes
appear to have been located by survey and more recently completed drill holes are often located
by high-resolution Global Positioning System (
GPS
) units. However, some holes appear to have been
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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approximately located using USGS topography maps or other methods which are less accurate.
Therefore, discretion by MM&A had to be used regarding the accuracy for the location and ground
surface elevation of some of these older drill holes. In instances where a drill hole location (or
associated coal seam elevations) appeared to be inconsistent with the overall structural trend (or
surface topography for surface-mineable areas), the data point was not honored for geological
modeling. Other drill holes with apparent minor variances were logically adjusted and then used by
MM&A.
Surveying of the underground and surface mined areas has been performed by the mine operators
and/or their consulting surveyors. By assignment, MM&A did not verify the accuracy or
completeness of the supplied mine maps but accepted this information as being the work of
responsible engineers and surveyors, as required by both State and Federal Law.
MM&A compiled comprehensive topographic map files by selecting the best available aerial
mapping for each area, surface mine resources and reserves, and filled any gaps with digital USGS
topographic mapping.
7.2 Non-Drilling Procedures and Parameters
Some analyses, specifically ultimate ash and sulfur types are not as prevalent as others in the testing
done on samples recovered by drilling. To supplement the information database, samples have
been collected from mine stockpiles and either truck or train shipment samples.
7.3 Drilling Procedures
Core drilling methods utilize NX-size (5.4 centimeters) or similar-sized core cylinders to recover core
samples, which can be used to delineate geologic characteristics, and for coal quality testing and
geotechnical logging. For the core holes, geophysical logs are especially useful in verifying the core
recovery of both the coal samples (for assurance that a sample is representative of the full seam)
and of the roof and floor rock samples (for evaluating ground control characteristics of deep
mineable coal seams). In addition to the core holes, rotary drilled holes also exist on most of the
Properties. Data for the rotary drilled holes is mainly derived from downhole geophysical logs,
which are used to interpret coal and rock thickness and depth since logging of the drill cuttings is
not reliable.
A wide variety of core-logging techniques exist for the properties. For many of the core holes, the
primary data source is a generalized lithology description by the driller, typically supplemented by
a more detailed core log completed by a geologist. The Logan drilling logs were provided to MM&A
as a geological database. MM&A geologists were not involved in the production of original core
logs but did perform a basic check of information within the provided database. Where geophysical
logs for such holes are available, they were used by MM&A geologists to verify the coal thickness
and core recovery of each seam.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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7.4 Mine Data
Mine data from underground mines was supplied to supplement the exploration drillhole records,
by seam. In-seam mine data was provided from Coronado through Microsoft® Excel files or from
coal section measurements recorded within maps of several mines. The mine data was processed
for seam thickness and coal thickness, by seam and then appended to the Carlson model database
for seam model updates. Seam thickness data excluded roof and floor strata records above and
below the measured seam. In 2024, active underground mines that included supplemental mine
data included Muddy Bridge and Eagle No. 1 Mine in the Lower No. 2 Gas (Eagle) seam and the
Lower War Eagle mine.
In-mine seam measurements were taken by mine survey workers with a tape measure to record
coal and parting(s) thicknesses and data locations. Subsequently, the thickness and location records
were transferred into digital format and AutoCAD maps. Seam section data of these records were
then used with drill hole seam data to update geologic models. Anomalous seam thickness data, of
which there were only a few, were not honored for the update. Coal quality samples were not
collected by surveyors with seam thickness measurements. The spacing of the in-mine
measurements is tighter than that of the drill hole data. In general, the mine data fit thickness
trends of the surrounding drill holes and emphasized existing thickness trends as seen from
surrounding drill hole data. In a few places the in-mine data showed local thinning or thickening
thickness trends of limited extent.
In-Mine seam measurement counts by seam are as follows:
>
Lower Winifrede seam includes 51 in-mine data locations taken from the adjacent, inactive
deep mine.
>
Lower War Eagle seam includes 550 in-mine data locations, mainly located beside remaining
mineable sections of the active deep mine.
>
Lower No. 2 Gas seam includes 1,971 in-mine data locations. Of the 1,971 mine data locations,
478 are from the Muddy Bridge deep mine and 1,496 are from the Eagle No. 1 Mine. The
Lower No. 2 Gas update displays a seam thickness differential between the thicker Muddy
Bridge mine area and the thinner Eagle No. 1 Mine which is represented with the mine data.
7.5 Hydrology
Hydrologic testing and forecasting are necessary parts of the permitting process and as such are
routinely considered in the mine planning process.
Logan has a lengthy history of operation and four currently active mines with no significant
hydrologic concerns or material issues experienced in its history. Future mining is projected to occur
in areas exhibiting similar hydrogeological conditions as past mining, including stream undermining
and undermining of aquifers. Based upon the successful history of the operation with regards to
hydrogeological features, MM&A assumes that the operation will not be hindered by such issues in
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 7-1: Reserve Area Located South of Buffalo Creek and North of Huff Creek
the future; however, areas where suspected mine pools may be present in overlying deep mine
works were evaluated and reserves were adjusted accordingly by MM&A, as described below.
7.5.1 Hydrogeologic Evaluation of Potential Mine Pools Above Deep Mineable Areas
Inactive mine works overlying the potential reserve and resource areas were evaluated to
determine the potential for pooled mine water that could potentially hydrologically impact second
mining (i.e. retreat mining) in underlying coal seams. Potential mine pools in active overlying mine
workings were not evaluated as those mines are pumped to prevent water accumulation. The
potential reserve areas are separated into two non-contiguous areas: 1) the smaller reserve area
north of Buffalo Creek in the area of Elsie Hollow; and 2) the larger reserve area south of Buffalo
Creek, extending southward to Huff Creek. The potential resource areas are also separated into
two non-contiguous areas: 1) the area near the head of Toney Fork; and 2) the area near the head
of Sycamore Creek and extending north and south of Buffalo Creek near the Lee Fork area. Second
mining tonnages were excluded from the mineable tonnages in areas where mine pools were
identified to overlie the projected No. 2 Gas mineable areas. Deep mineable seams evaluated for
potential influence from overlying mine pools include the Lower No. 2 Gas, Chilton, Upper
Powellton, and Lower Powellton.
In determining potential mine pool areas within inactive deep mine workings, available mine
mapping was reviewed and potential water discharge points identified. In some instances, the mine
maps were of poor quality and discharge locations were difficult to ascertain. In such cases, a more
conservative approach was taken to eliminate those points as discharges such that the potential
areas of pooled water may be overestimated. Publicly available structural seam contours were
obtained from the
West Virginia Geological and Economic Survey (
WVGES
) for each evaluated coal
seam
to aid in the delineation of potential mine pools within each respective mine. Where there is
a potential for impounded mine water within an overlying deep mine, MM&A calculated
reserve/resource tonnages on a first mining basis only. A summary of hectares excluded from
second mining reserve/resource calculations follows:
Hectares Affected by Potential Overlying Mine Pools
Mine
Seam
Affected Hectares
(first mining, hectares only)
Eagle No. 1 Mine
Lower No.2 Gas
140.5
Muddy Bridge
Lower No.2 Gas
16.8
Camp Branch
Chilton
47.8
Elk Lick
Chilton
101.7
Lower Powellton
Lower Powellton
105.9
Powellton No. 1
Upper Powellton
92.9
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 7-2: Reserve Area Located North of Buffalo Creek Near Elsie Hollow
Table 7-3: Resource Area Located Near Head of Toney Fork
Table 7-4: Resource Area Located Near Head of Sycamore Creek Extending North to Buffalo Creek
Acreages Affected by Potential Overlying Mine Pools
Mine
Seam
Affected Hectares
(first mining, hectares only)
Toney Fork No. 2
Lower No.2 Gas
0.0
Acreages Affected by Potential Overlying Mine Pools
Mine
Seam
Affected Hectares
(first mining, hectares only)
Pardee No. 2 Gas
Lower No.2 Gas
0.2
Acreages Affected by Potential Overlying Mine Pools
Mine
Seam
Affected Hectares
(first mining, hectares only)
Pardee No. 2 Gas
Lower No.2 Gas
63.9
7.6 Geotechnical Data
Mining plans for potential underground mines were developed by Coronado and modified by
MM&A to fit current property constraints. Coal pillar stability was tested by MM&A using the
Analysis of Coal Pillar Stability (ACPS)
analysis and considered it in the development of the LOM plan. Coal and rock strengths from core
testing are used to verify the empirical assumptions integral to ACPS.
8
Sample Preparation, Analyses and Security
8.1 Prior to Sending to the Lab
Most of the coal samples have been obtained from the Property by subsurface exploration using
core drilling techniques. The protocol for preparing and testing the samples has varied over time
and is not well documented for the older holes drilled on the Property. Following a process, typical
USA core drilling sampling technique involves the coal core sample, once recovered from the core
barrel, be described (logged) then wrapped in a sealed plastic sleeve and placed into a wooden core
box, which is the length of the sample and covered with a lid so that the core can be delivered to a
laboratory in relatively intact condition and with inherent moisture content. Each core sample box
is identified with the seam, hole identification number and the sample interval depth scribed on the
sample box lid. This process has been the norm for both historical and ongoing exploration activities
at Logan.
This work is typically performed by the supervising driller, geologist or company personnel. Samples
are most often delivered to the company by the driller after each shift or acquired by company
personnel or representatives. Most of the coal core samples were obtained by previous or current
operators on the Property. MM&A did not participate in the sample collection and analysis of the
core samples. However, it is reasonable to assume, given the sophistication level of the previous
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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operators, that these samples were generally collected and processed under industry best-
practices. This assumption is based on MM&A’s familiarity with the operating companies and the
companies used to perform the analysis.
8.2 Lab Procedures
Coal quality testing has been performed over a large number of years by operating companies using
different laboratories and testing regimens. Some of the samples have raw analyses and
washabilities of the full seam (with coal and rock parting layers co-mingled) and are mainly useful
for characterizing the coal quality for projected production from underground and highwall mine
operations. Other samples have coal and rock analyzed separately, the results of which can be
manipulated to forecast either surface or underground mine quality. Care has been taken to use
only those analyses that are representative of the coal quality parameters for the appropriate
mining type for each sample.
Standard procedure upon receipt of core samples by the testing laboratory is to log the depth and
thickness of the sample, then perform testing as specified by a representative of the operating
company. Each sample is then analyzed in accordance with procedures defined under
ASTM
International (
ASTM
)
D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865); volatile matter (ASTM D3175); Free Swell
Index (
FSI
) (ASTM D720).
Since 1957 (the earliest coal quality information available), the Property has been controlled by
various mining companies utilizing their own corporate laboratories including:
Buffalo Mining
Company
(Lorado, West Virginia),
Pittston Coal Group
(Lyburn, West Virginia), and
Clinchfield Coal
Company
(Clinchfield, Virginia).
Since 1985 to the present, additional laboratories
not
provided analytical data for the Property include:
>
Mineral Labs, Inc.
(Salyersville, Kentucky)
accredited by the
Perry Johnson Laboratory
Accreditation, Inc.
(
PJLA
).
>
Standard Laboratories, Inc
(South Charleston, West Virginia)
accredited by the
ANSI National
Accreditation Board (
ANAB
).
>
Standard Laboratories, Inc
(Whitesburg, Kentucky)
accredited by the ANAB.
>
Commercial Testing & Engineering Company
operation.
>
Gallagher Coal Research Center
(Crab Orchard, West Virginia) – no longer in operation.
>
Standard Laboratories, Inc.
(Scott Depot, West Virginia) – accredited by the ANAB
.
>
SGS North America
(Sophia, West Virginia) – a leading accredited body and a
Nationally
Recognized Test Laboratory
NRTL
); currently utilized by Coronado for sample analysis.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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9
Data Verification
9.1 Procedures of Qualified Person
MM&A reviewed the digital geologic database supplied by Coronado. The database consists of data
records, which include drill hole information for holes that lie within and adjacent to the Property
and records for numerous supplemental coal seam thickness measurements. For supplemental
record verification, copies of each entry were printed, and cross referenced to the original
document for verification. Once the initial integrity of the database was established, stratigraphic
columnar sections were generated using cross-sectional analysis to establish or confirm coal seam
correlations. Geophysical logs were used wherever available to assist in confirming the seam
correlation and to verify proper seam thickness measurements and recovery of intercepted coal
sections and collected samples.
After establishing and/or verifying proper seam correlation, seam data control maps and geological
cross-sections were generated and again used to verify seam correlations and data integrity. Once
the database was fully vetted, seam thickness, base of seam elevation, roof and floor lithology, and
overburden maps were independently generated for use in the mine planning process.
In 2024, for the 700 series of drill holes affecting the Eagle No. 1 and Muddy Bridge Mines, lithologic
information from geophysical logs was appended to existing holes in the Logan database. In these
holes, lithologic information was substituted for non-descriptive ‘rock’ lithology. The appended roof
and floor lithologic information was observed for a seam cutting height review discussed below in
Section 12.2.2
.
9.2 Limitations
As with any exploration program, localized anomalies cannot always be discovered. Ideally, the
greater the density of the samples taken, the less risk. Once an area is identified as being of interest
for inclusion in the mine plan, additional samples are taken to help reduce the risk in those specific
areas. In general, provision is made in the mine planning portion of the study to allow for localized
anomalies that are typically classed more as a nuisance than a hinderance.
9.3 Opinion of Qualified Person
Sufficient data has been obtained through various exploration and sampling programs and mining
operations to support the geological interpretations of seam structure and thickness for coal
horizons situated on the Property. The data is of sufficient quantity and reliability to reasonably
support the coal resource and coal reserve estimates in this TRS.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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10
Mineral Processing and Metallurgical Testing
10.1 Testing Procedures
Separate tabulations have been compiled for basic chemical analyses (both raw and washed
quality), petrographic data, rheological data and chlorine, ash, ultimate and sulfur analysis. Some
of the data categories from the analyses are not as prevalent and have been supplemented by
samples collected from mine stockpiles and either truck or train shipment samples.
Available coal quality data were tabulated by resource area in a Microsoft® EXCEL workbook and
the details of that work are maintained on file at the offices of Coronado and MM&A. These tables
also provide basic statistical analyses of the coal quality attributes, including average value;
maximum and minimum values; and the sample count (number of samples) available to represent
each quality parameter of the seam. Coal samples that were deemed by MM&A geologists to be
unrepresentative were not used for statistical analysis of coal quality, as documented in the
tabulations. A representative group of drill hole samples from the Properties were then checked
against the original drill laboratory reports to verify accuracy and correctness.
The amount and areal extent of coal sampling for geological data is generally sufficient to represent
the quality characteristics of the coal horizons and allow for proper market placement of the subject
coal seams. For some of the coal deposits, there are considerable laboratory data from core
samples that are representative of the full extent of the resource area; and for others there are
more limited data to represent the resource area. For example, in the active operations with
considerable previous mining, there may be limited quality data within some of the remaining
resource areas; however, in those cases the core sampling data can be supplemented with
operational data from mining and shipped quality samples representative of the resource area.
10.2 Relationship of Tests to the Whole
The extensive sampling and testing procedures typically followed in the coal industry result in an
excellent correlation between samples and marketable product. Shipped analyses of the coal from
Logan were reviewed to verify that the coal quality and characteristics were as expected. The Logan
properties have a long history of saleable production, under various owners, in the high-volatile
metallurgical and thermal markets, confirming exploration results.
10.3 Lab Information
Each sample is analyzed at area Laboratories that operate in accordance with procedures defined
under ASTM standards including, but not limited to the following (not all analytical tests identified
in this list have been run on each sample):
>
ASTM D 4371
>
ASTM D 3174
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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>
ASTM D 4239
Temperature Tube Furnace Combustion Methods
>
ASTM D 5865
>
ASTM D 3175
>
ASTM D 3176
– Standard Practice for Ultimate Analysis of Coal and Coke
>
ASTM D 3178
– Test Method for Carbon and Hydrogen in Coal and Coke
>
ASTM D 3179
– Test Method for Nitrogen in Coal and Coke
>
ASTM D 720
FSI
) of Coal
>
ASTM D 5515
– Test Method for Determination of the Swelling Properties of Bituminous Coal
Using a Dilatometer (Arnu)
>
ASTM D 2639
>
ASTM D 3683
– Trace Elements in Coal and Coke Ash by the Atomic Absorption Method
>
ASTM D 1857
– Standard Test Method for Fusibility of Coal and Coke Ash
>
ASTM D 2798
– Microscopical Determination of the Reflectance of Vitrinite in a Polished
Specimen of Coal
Ultimate analysis is a process typically used which gives the composition of coal in terms of carbon,
hydrogen, nitrogen, oxygen, ash, and sulfur without regard to origin. The sum of the carbon,
hydrogen, nitrogen, sulfur, and ash are subtracted from 100 percent to calculate oxygen percent.
Heating value or calorific value is a measure of the heat produced from a unit weight of coal. In the
United States, it is commonly expressed in British thermal units per pound (
Btu/lb.
). Other units are
kilocalories per kilogram (
Kcal/kg
) and kilojoules per gram (
KJ/g
). Heating value is generally
determined by burning a weighed coal sample, in oxygen, in a calorimeter.
As noted previously, since 1957 (the earliest coal quality information available), the Property has
been controlled by various mining companies utilizing their own corporate laboratories including:
Buffalo Mining Company
(Lorado, West Virginia),
Pittston Coal Group
(Lyburn, West Virginia), and
Clinchfield Coal Company
(Clinchfield, Virginia).
Since 1985 to the present, additional laboratories
not
provided analytical data for the Property include:
>
Mineral Labs, Inc. (Salyersville, Kentucky)
accredited by the PJLA .
>
Standard Laboratories, Inc.
(South Charleston, West Virginia)
accredited by the ANAB
.
>
Standard Laboratories, Inc.
(Whitesburg, Kentucky)
accredited by the ANAB.
>
Commercial Testing & Engineering Company (Charleston, West Virginia) – no longer in operation.
>
Gallagher Coal Research Center (Crab Orchard, West Virginia) – no longer in operation.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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>
Standard Laboratories, Inc. (Scott Depot, West Virginia) – accredited by the ANAB.
>
SGS North America (Sophia, West Virginia) – a leading accredited body and a NRTL; currently
utilized by Coronado for sample analysis.
10.4 Relevant Results
No critical factors have been found that would adversely affect the recovery of the Reserve.
11
Mineral Resource Estimates
MM&A independently created geologic models to define the coal resources of Logan. Coal
resources were estimated as of December 31, 2024.
11.1 Assumptions, Parameters and Methodology
Geological and mine data was imported into Carlson Mining
®
resource estimates. The imported data, form atted in Microsoft
®
collar elevations, seam and thickness picks, bottom seam elevations and raw and washed coal
quality. These data files were validated prior to importing into the software. Once imported, a
geologic model was created, reviewed, and verified with a key element being a gridded model of
coal seam thickness. Resource tonnes were estimated by using the seam thickness grid based on
each valid point of observation and by defining resource confidence arcs around the points of
observation. Points of observation for Measured and Indicated confidence arcs were defined for all
valid drill holes that intersected the seam using standards deemed acceptable by MM&A based on
a detailed geologic evaluation and a statistical analysis of all drill holes within the projected reserve
areas as described in
Section 11.1.1
. The geological evaluation incorporated an analysis of seam
thickness related to depositional environments, adjacent roof and floor lithologies, and structural
influences.
After establishing seam correlations, validated coal seam data, including seam thickness and
elevation for seams of economic interest, were used to generate a geologic model. Due to the
relative structural simplicity of the deposits and the reasonable continuity of the tabular coal beds,
the principal geological interpretation necessary to define the lateral extent of the coal deposits is
the proper modeling of seam thickness and elevation. Both coal thickness and quality data are
deemed by MM&A to be reasonably sufficient within the resource areas. Therefore, there is a
reasonable level of confidence in the geologic interpretations required for coal resource
determination based on the available data and the techniques applied to the data.
Table 11-1
coal resource and reserve evaluation. These cut-off parameters have been developed by MM&A
based on its experience with the Coronado properties and are typical of mining operations in the
Central Appalachian coal basin. This experience includes technical and economic evaluations of
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 11-1: General Reserve & Resource Criteria
numerous properties in the region for the purposes of determining the economic viability of the
subject coal reserves.
Item
Parameters
Technical Notes & Exceptions*
• General Criteria
Reserve Classification
Reserve and Resource
Coal resources as reported are inclusive of coal reserves.
Reliability Categories
Reserve (Proven and Probable)
Resource (Measured, Indicated & Inferred)
To better reflect geological conditions of the coal
deposits, distance between points of observation is
standard USGS (in meters), respectively, for measured
and indicated and inferred.
Effective Date of Resource Estimate
December 31, 2024
Coal resources were updated for depletion and non-
material resource additions based on information from
Coronado. Effective date for coal resources is as of
December 31, 2024.
Effective Date of Reserve Estimate
December 31, 2024
Coal reserves were updated for depletion and non-
material reserve additions based on information from
Coronado. Effective date for coal reserves is as of
December 31, 2024.
Seam Density
Variable, dependent upon seam characteristics
(based on available drill hole quality). In the
absence of laboratory data, estimated by (1)
assuming specific gravity of 1.30 for coal and 2.25
to 2.5 for rock parting, or (2) 1280 kg/m
3
to 1324
kg/m
3
• Underground-Mineable Criteria
Map Thickness
Total seam thickness
Minimum Seam Thickness
0.76 meters (thermal coal); 0.68 meters
(metallurgical coal)
Minimum Mining Thickness
1.37 to 2.29 meters
Minimum Total Coal Thickness
0.76 meters (thermal coal); 0.68 meters
(metallurgical coal)
Minimum In-Seam Wash Recovery
50 percent; 40 percent where coal is belted
directly to preparation plant
Wash Recovery Applied to Coal
Reserves
Based on average yield for drill holes within
reserve area, or in the absence of laboratory
washability data, based on estimated visual
recovery using specific gravities noted above and
95 percent yield on “clean” coal
Out-of-Seam Dilution Thickness for
Run-of-Mine Tonnes Applied to Coal
Reserves
Greater of 0.05 meters or 1.37 to 2.29-meter
minimum cutting height less seam thickness
2243 kg/m³ density used for dilution tonnage estimate
Mine Barrier
60.96-meter distance from abandoned mines and
sealed or pillared areas; 30.4-meter distance from
planned highwall miner panels
Minimum Reserve Tonnage
226,796 recoverable tonnes for individual area
(logical mining unit)
Minimum Overburden Depth
30.48 meters
Minimum Interval to Rider Coal
Considered on a case-by-case basis, depending on
interval lithology, etc.
<1.5 meters are resource
Minimum Interval to Overlying or
Underlying Reserves
Considered on a case-by-case basis, depending on
interval lithology, extent and type of extraction,
etc.
Typically, 12.19 meters
Minimum Interval to Overlying or
Underlying Mined Areas
Considered on a case-by-case basis, depending on
interval lithology, extent and type of extraction,
etc.
Adjustments Applied to Coal Reserves
6 percent moisture increase; 5 percent loss for
preparation plant inefficiency
Surface Mineable Criteria
Topographic Map Source
Reserves estimated based on aerial topography,
where available, and best available aerial
topography for other areas. Pre-law highwalls
also based on aerial topography, where available
Map Thickness
Total mineable seam thickness (excluding removal
partings)
Mine Recovery Applied to Coal
Reserves
90 percent; 25 percent for previously
underground mined areas.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Item
Parameters
Technical Notes & Exceptions*
Wash Recovery
Not Applicable for most reserves estimated on a
direct-ship basis. Where surface mineable coal is
projected to be washed, based on average yield
for drill holes within reserve area, or in the
absence of laboratory washability data, based on
estimated visual recovery using specific gravities
noted above and 95 percent yield on “clean” coal
Minimum Thickness
0.3 meter for principal seam (principal seam is any
that is >0.76 meters from another mineable coal
bench)
0.15 meters for a split of a principal seam (split is
within 0.76 meters of another mineable coal
bench)
Minimum thickness of recoverable
coal within single seam
CTR/Area/HWM areas
0.6 meters
Minimum HWM Cutting Height
0.8 meters
Removable Rock Parting Thickness
0.07 meters
Maximum Cumulative Area Mining
Strip Ratio
30:1 bcm/t – Area
15:1 bcm/t – CTR
Exceptions considered for metallurgical grade coal
products if deemed economical
Design Bench Width for
Contour/HWM Areas
38.1 meters (Contour reserves estimated in
conjunction with potential HWM reserves)
Adjustments Applied to Marketable
Coal Reserves
4.5 percent moisture increase
Out-of-Seam Dilution Thickness
Applied to Coal Reserves
NA
2% adjustment (addition) made to product coal quality
ash to account for dilution
Surface Property Control
Reserves considered where surface is controlled;
tonnage not estimated or classified as resource
where surface is uncontrolled.
Highwall Miner Reserves
Penetration Depth
91.4 – 243.8 meters
Seam Density & Wash Recovery
Similar to underground-mineable reserves
Mine Recovery Applied to Coal
Reserves
40 percent
Minimum Coal Thickness
0.6 meter
Minimum Mining Height
0.9 meter
Adjustments Applied to Marketable
Coal Reserves
6 percent moisture increase and 5 percent loss for
preparation plant inefficiency
Out-of-Seam Dilution Thickness
Applied to Coal Reserves
0.9 meter less seam height
2242 to 2402 kg/m
3
estimate
Note: Exceptions for application of these criteria to resource and reserve estimation are made as warranted and demonstrated by either actual mining
experience or detailed data that allows for empirical evaluation of mining conditions. Final classification of coal reserve is made based on the pre-
feasibility evaluation.
11.1.1 Geostatistical Analysis
MM&A completed a geostatistical analysis on drill holes within the reserve boundaries to determine
the applicability of the common United States classification system for measured and indicated and
inferred coal resources. Historically, the United States has assumed that coal within 0.4-kilometer
of a point of observation represents a measured resource whereas coal between 0.4 kilometer and
1.2 kilometer from a point of observation is classified as indicated. Inferred resources are commonly
assumed to be located between 1.2 kilometers and 4.8 kilometers from a point of observation. Per
SEC and JORC regulations, only measured and indicated resources may be considered for reserve
classification, respectively as proven and probable reserves.
MM&A performed a geostatistical analysis test of the Logan data set using the Drill Hole Spacing
Analysis (
DHSA
) method. This method attempts to quantify the uncertainty of applying a
measurement from a central location to increasingly larger square blocks and provides
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 11-1: Histogram of the Total Seam
Thickness for the No. 2 Gas Seam Present in the
Logan Complex
Figure 11-2: Scatter plot of the Total Seam
Thickness for the No. 2 Gas Seam Present in
the Logan Complex
recommendations for determining the distances between drill holes for measured, indicated, and
inferred resources.
To perform DHSA the data set was processed to remove any erroneous data points, clustered data
points, as well as directional trends. This was achieved through the use of histograms, as seen in
Figure 11-1
, color coded scatter plots showing the geospatial positioning of the borings,
Figure 11-
2
, and trend analysis.
Following the completion of data processing, a variogram of the data set was created,
Figure 11-3
.
The variogram plots average square difference against the separation distance between the data
pairs. The separation distance is broken up into separate bins defined by a uniform lag distance
(e.g., for a lag distance of 152 meters the bins would be 0 – 152 meters, 153 – 305 meters, etc.).
Each pair of data points that are less than one lag distance apart are reported in the first bin. If the
data pair is further apart than one lag distance but less than two lag distances apart, then the
variance is reported in the second bin. The numerical average for differences reported for each bin
is then plotted on the variogram. Care was taken to define the lag distance in such a way as to not
overestimate any nugget effect present in the data set. Lastly, modeled equations, often spherical,
gaussian, or exponential, are applied to the variogram in order to represent the data set across a
continuous spectrum.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 11-3: Variogram of the Total Seam Thickness for the No. 2 Gas Seam
Present in the Logan Complex
The estimation variance is then calculated using information from the modeled variogram as well
as charts published by Journel and Huijbregts (1978). This value estimates the variance from
applying a single central measurement to increasingly larger square blocks. Care was taken to
ensure any nugget effect present was added back into the data. This process was repeated for each
test block size.
The final step of the process is to calculate the global estimation variance. In this step, the number
of square blocks that would fit inside the selected study area is determined for each block size that
was investigated in the previous step. The estimation variance is then divided by the number of
blocks that would fit inside the study area for each test block size. Following this determination,
the data is then transformed back to represent the relative error in the 95
th
-percentile range.
Figure 11-4
shows the results of the DHSA performed on the No. 2 Gas seam data for the Logan
Complex. DHSA provides hole to hole spacing values, these distances need to be converted to radius
from a central point in order to compare to the historical standards. A summary of the radius data
is shown in
Table 11-2
. DHSA prescribes measured, indicated, and inferred drill hole spacings be
determined at the 10-percent, 20-percent, and 50-percent levels of relative error, respectively.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 11-4: Result of DHSA for the No. 2 Gas Seam Present in the Logan Complex
Table 11-2: DHSA Results Summary for Radius from a Central Point
Model:
Measured Radial Distance
(10% Relative Error)
Indicated Radial Distance
(20% Relative Error)
Inferred Radial Distance
(50% Relative Error)
(km)
(km)
(km)
Gaussian:
0.99
1.66
3.94
Spherical:
0.87
1.53
3.53
Exponential:
0.87
1.53
3.53
Comparing the results of the DHSA to the historical standards, it is evident that the historical
standards are more conservative than even the most conservative DHSA model with regards to
determining measured resources. The Exponential and Spherical models recommend using a radius
of 0.87 kilometers for measured resources compared to the historical value of 0.4 kilometers. With
respect to indicated resources, the Spherical and Exponential models recommend using a radius of
1.53 kilometers. The historical radius of 1.2 kilometers is therefore also more conservative than the
DHSA results for indicated resources. These results have led the QPs to report the data following
the historical classification standards, rather than use the results of the DHSA.
11.2 Qualified Person’s Estimates
Mineral resources representing in-situ coal are estimated Inclusive of Reserve and Exclusive of
Reserves. Based on the work and methods described above and detailed geologic modelling of the
areas considering all defined parameters, a coal resource estimate, summarized in
Table 11-3
, was
prepared as of December 31, 2024, for property controlled by Coronado.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 11-3: Coal Resources Summary as of December 31, 2024 (Mt)
Coal Resource (Dry Tonnes, In Situ, MT)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserves
97.4
61.6
0.0
159.0
17
1.0
31
Exclusive of Reserves
30.0
40.5
3.0
73.5
19
1.2
28
Total 12/31/2024
127.3
102.1
3.0
232.5
17
1.0
31
Note 1: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal reserves are
derived.
Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.
Note 3: The Property has 70.5 Mt of dry, in-place measured and indicated resource tonnes exclusive of reserves as of December 31, 2024.
11.3 Resources Exclusive of Reserves
The Property contains multiple resource blocks which were not deemed to exhibit reserve potential
at the time of the study. These underground-mineable resources, formally identified as resources
exclusive of reserves, are from the No. 2 Gas, Lower Powellton, Peerless, Lower Winifrede, Middle
Cedar Grove and Beckley coal seams. There are also surface mineable resources exclusive of
reserves in various seams. Reasons which may preclude elevation of resources to reserves include,
but are not limited to:
1. Unfavorable economics at the PFS level, yet economics could become attractive in the future
under different market conditions.
2. Exclusion from LOM planning by mining operator due to remaining resource blocks which are
relatively small, isolated blocks and not currently attractive from an operational perspective.
11.3.1 Initial Economic Assessment
MM&A completed an initial economic assessment to determine the potential economic viability of
resources exclusive of reserves. Unlike the economic analysis presented in
Section 19
test reserves, the initial economic assessment below is presented on a real basis in 2024 dollars.
MM&A applied relevant technical factors to estimate potential saleable tonnes without the
resource blocks, should the resources be extracted via deep, continuous mining methods or surface
area methods. MM&A developed cash cost profiles for the resource blocks, including direct cash
costs (labor, supplies, roof control, maintenance and repair, power, and other); washing, trucking,
materials handling, general and administrative, and environmental costs; and indirect cash costs
(royalties, production taxes, property tax, insurance). Costs were developed based off relevant cost
drivers (per-meter, per-bank cubic meter, per-raw-tonne, per-clean-tonne). Additionally, MM&A
estimated capital costs to extract resources. Capital costs associated with mine development were
amortized across the resource’s potential saleable tonnages. Additional non-cash items
(depreciation of equipment and depletion) and cash costs were compared to an assumed sale price
of $176 per tonne (FOB loadout) for underground -mineable resources, representing the long-term
average price forecast for HVB provided by Coronado. Surface resources were assessed at a sales
price of $99 per tonne (FOB loadout) based on estimated historical pricing for Coronado’s surface
operations. The results of the analysis are shown below and demonstrate potential profitability on
a fully loaded cost basis. Detailed summaries are shown in
Appendix D
.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 11-4: Results of Initial Economic Assessment ($/tonne)
Figure 11-5: Results of Initial Economic Assessment
Mine
Resource
Block
Direct
Cash
Transportation,
Washing, Enviro,
G&A
Indirect
Non
Cash
Total
Cost
Fully
Loaded
P&L
Pardee
N2G
$99.36
$29.12
$22.45
$11.72
$162.65
$13.72
Sugar Camp
N2G
$111.91
$31.75
$22.45
$9.05
$175.16
$1.21
Lower Powellton Block A3/A4
LPOW
$70.38
$22.98
$22.45
$7.15
$122.96
$53.41
Lower Powellton Block B
LPOW
$72.15
$23.57
$22.45
$18.96
$137.13
$39.24
N2G Peerless
Peer
$91.57
$20.93
$22.45
$14.77
$149.72
$26.65
Beckley
Bec
$62.08
$20.95
$22.45
$15.13
$120.62
$55.75
Middle Cedar Grove
MCG
$65.88
$22.31
$22.45
$35.38
$146.03
$30.34
Elklick
CH
$97.26
$27.36
$22.45
$7.15
$154.22
$22.15
Lower Winifrede
LWIN
$35.23
$14.85
$22.45
$42.46
$114.99
$61.38
Powellton No. 1
UPOW
$66.96
$27.81
$22.45
$7.15
$124.38
$51.99
Eagle No. 1
N2G
$90.73
$23.27
$22.45
$7.15
$143.61
$32.76
Thermal Area Mines (S)
S
$65.92
$7.66
$17.80
$7.15
$98.54
$0.67
11.4 Resources Inclusive of Reserves
The
Inclusive of Reserves
estimated in-situ resource. Recoverable reserves for both surface and underground mine methods
are derived from the
Inclusive of Reserve
discussed further in
Section 12
, Mineral Reserve Estimates below.
11.5 Qualified Person’s Opinion
While there is some level of stratigraphically controlled seam-thickness variability due to seam
splitting, sand channels, etc., the coal seams on the mine property in Logan County demonstrate
reasonable thickness consistency according to the classification system of
measured
kilometer),
indicated
inferred
Coronado Global Resources Inc.
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Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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and engineers modeled the deposit and delineated mineable regions to reflect the nature of each
seam and the practicality of mining constraints. Based on MM&A’s geostatistical analysis, it would
be possible to extend the measured, indicated and inferred arcs slightly beyond historically
accepted practices due to consistent geological settings. The QP’s have elected not to extend arc
distances, introducing a level of conservatism in measured and indicated coal classification.
Based on the data review, the attendant work done to verify the data integrity and the creation of
an independent geologic model, the QPs believe
Logan coal resources. Moreover, the QPs opine that additional exploration, mine planning and
financial analysis could result in conversion of additional resources to reserves in the future;
however, there is no guarantee that such will be the case until such time as that additional work is
completed.
12
Mineral Reserve Estimates
12.1 Assumptions, Parameters and Methodology
Coal Reserves are classified as
proven
probable
metallurgical, economic, marketing, legal, environmental, social and governmental factors.
>
Proven Coal Reserves
for diluting materials and allowances for losses when the material is mined. It is based on
appropriate assessment and studies in consideration of and adjusted for reasonably assumed
modifying factors. These assessments demonstrate that extraction could be reasonably justified
at the time of reporting.
>
Probable Coal Reserves
some circumstances a measured coal resource, adjusted for diluting materials and allowances
for losses when the material is mined. It is based on appropriate assessment and studies in
consideration of and adjusted for reasonably assumed modifying factors. These assessments
demonstrate that extraction could be reasonably justified at the time of reporting.
Upon completion of delineation and calculation of coal resources, MM&A generated a LOM plan for
Logan. The footprint of each reserve area is shown on the maps in
Appendix B
. The Mine plan was
generated based on the forecast mine plan and permit plan provided by Coronado with
modifications by MM&A where necessary due to current property control limits, modifications to
geologic mapping, or other factors determined during the evaluation.
Carlson Mining software was used to generate the LOM plan for Logan. The mine plan was
sequenced based on productivity schedules provided by Coronado. MM&A judged the productivity
estimates and plans to be reasonable based on experience and current industry practice.
Raw, ROM production data outputs from LOM plan sequencing were processed into Microsoft
®
EXCEL spreadsheets and summarized on an annual basis for processing into the economic model.
Average seam densities were estimated to determine raw coal tonnes produced from the LOM plan.
Average mine recovery and wash recovery factors were applied to determine coal reserve tonnes.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Coal reserve tonnes in this evaluation are reported at a 4.5 percent to 6.0 percent moisture and
represent the saleable product from the Property.
Pricing data as provided by Coronado is described in
Section 16.2
. The pricing data assumes
respective HVA, HVB and thermal FOB-mine prices of approximately $171, $151, and $80 per metric
tonne for calendar year 2025. HVA, HVB, and thermal prices respectively decrease to approximately
$162, $144, and $83 per metric tonne through year 2027, and then increase to $306, $271, and
$150 per metric tonne through year 2057.
The coal resource mapping and estimation process, described in this report was used as a basis for
the coal reserve estimate. Proven and probable coal reserves were derived from the defined coal
resource considering relevant processing, economic (including technical estimates of capital,
revenue, and cost), marketing, legal, environmental, socio-economic, and regulatory factors and are
presented on a moist, recoverable basis.
As is customary in the US, the categories for proven and probable coal reserves are based on the
distances from valid points of measurement as determined by the QPs for the area under
consideration. For this evaluation, measured resource, which may convert to a proven reserve, is
based on a 0.4-kilometer radius from a valid point of observation.
Points of observation include exploration drill holes, gas wells, and mine measurements which have
been fully vetted and processed into a geologic model. The geologic model is based on seam
depositional modeling, the interrelationship of overlying and underlying strata on seam mineability,
seam thickness trends, the impact of seam structure (i.e., faulting), intra-seam characteristics, etc.
Once the geologic model was completed, a statistical analysis, described in
Section 11.1.1
conducted and a 0.4-kilometer radius from a valid point of observation was selected to define
Measured Resources.
Likewise, the distance between 0.4 and 1.2 of a kilometer radius was selected to define Indicated
Resources. Indicated Resources may convert to Probable Reserves.
Inferred Resources (greater than a 1.2-kilometer radius from a valid point of observation) have been
excluded from Reserve consideration.
12.2 Mineral Reserves
Logan reserves were derived from multiple coal seams located on the Property and shown in
Figure
7.1
. Reserves are estimated for both surface and underground mine methods. Surface reserves
were estimated for three designated mine areas: Toney Fork, Buffalo Creek South, and Sugar Camp.
Underground reserves were derived from five seams including the Lower Winifrede, Chilton
(Williamson), Upper Powellton, Lower Powellton, No. 2 Gas-Lower (Eagle) and Lower War Eagle.
The 62.4 Mt of demonstrated marketable reserves are sited in the discussion below.
Table 12-2
shows the demonstrated tonnage by Proven and Probable category .
Individual seam maps are included in
Appendix B
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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12.2.1 Surface Reserves
Surface coal reserves of the Property include an estimated 31.7 Mt. Each surface mine area – Tony
Fork, Buffalo Creek South and Sugar Camp – includes coal reserves from multiple seams. Two of the
three surface reserve areas, Toney Fork and Buffalo Creek South, include both permitted and non-
permitted tonnages, where Sugar Camp tonnage is not permitted. The Property has eight surface
mine permits for contour and highwall mining. Even so, in 2024 there was minor surface mine
activity on the Property.
In 2024, two additional criteria were used to evaluate the highwall mines of the Property. The first
criteria was to evaluate the hydrologic risk of highwall miner panels mining up-dip in a given seam
due to potential long-term water quality concerns. With up-dip mining, water draining from the
mine more easily exits in the direction of the outcrop. This may require long term monitoring of
discharged water. For this reason, highwall miner panels oriented in an up-dip mining direction have
been assigned to the
probable reserve
penetration depths. In general, Property surface mine plans include high wall miner panels for 244
meters (800 feet) of highwall miner penetration depth. However, Coronado’s mining operations on
the Property have not always achieved 800 feet. Therefore, based on mining experience, reserves
associated with highwall mining penetration depths beyond 152 meters (500 feet), from 152 meters
to 244 meters, are now assigned to the
probable reserve
12.2.1.1 Toney Fork Surface
Toney Fork surface area is located north of Buffalo Creek on the north side of the Property. The
Toney Fork drainage bisects much of the area which includes contour and highwall miner reserve
from six seams. Mine depletion from surface and/o r underground mining, seam dependent, exists
in all seams of the Toney Fork reserve which include the Upper Coalburg, Lower Coalburg, Lower
Dorothy, Chilton A, Upper Winifrede and Lower Winifrede seams.
The Toney Fork reserve includes 11.2 Mt of both permitted and not-permitted status. There is one
active permit – Toney Fork Mine No 3 (S-5007-09). In 2024, minimal tons were mined from this
permit during the fourth quarter. The mined seams include the Upper Stockton, Lower Stockton
and Upper Coalburg seams. Each was extracted from resource classified tons, designated as
resource herein due to a lack of available seam quality data. Therefore, the surface mine depletion
of 2024 did not affect the Tony Fork reserve.
12.2.1.2 Buffalo Creek South
Buffalo Creek South surface area includes an estimated 14.2 Mt from projected contour and
highwall mines. The reserve total includes both permitted and not-permitted tonnages. Permitted
tonnages are estimated from four surface mine permits – North Fork Winifrede Contour (S-5004-
17), Middle Fork Surface (S-5004-22), and two at Elk Lick (S-5014-10 & S-5008-22). In 2024, seams
were surface mined only at Middle Fork Surface. They include the Buffalo Creek through the Upper
Stockton seams, with highwall mining in the Buffalo Creek seam.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Highwall mineable tonnage is estimated for six seams with adequate seam heights which include
the Lower Coalburg, Lower Dorothy, Chilton, Chilton A, Buffalo Creek and the Upper Winifrede.
Contour mine tonnage is derived from the highwall mine seams, along with four additional seams
with acceptable seam thickness. They include the Lower Clarion, Upper Stockton, Lower Stockton
and Upper Coalburg. Mine depletion at the Buffalo Creek South seams exist in varying extents.
12.2.1.3 Sugar Camp Surface
Sugar Camp surface area is a ridge above Sugar Camp Branch tributary of Huff Creek. The Sugar
Camp reserve includes 6.2 Mt with a suitable surface mine strip ratio. Proposed surface mining
includes reserve from 12 seams beginning with the Chilton A seam down to the S80 seam, each with
an acceptable seam height. The seams included are Chilton A, Upper Winifrede, Lower Winifrede,
Chilton, Upper Cedar Grove, Middle Cedar Grove, Lower Cedar Grove, S132, S120, S110 seam, S84
and S80. No previous mine depletion exists in the seams of the reserve at Sugar Camp.
12.2.2 Underground Reserves
Underground coal reserves of the Property include an estimated 30.8 Mt derived from the small
above-drainage deposits in the Upper Winifrede and Lower Winifrede seams along with larger seam
deposits of the deeper Chilton, Upper Powellton, Lower Powellton, No. 2 Gas Lower (Eagle) and
Lower War Eagle seams. Active underground mines are operating in the Upper Powellton, No. 2
Gas Lower and the Lower War Eagle seams.
In 2024, four additional criteria were used to evaluate the underground mines of the Property. The
four criteria included: a study of overlying mine pools requested by
MSHA
; a study of overlying
utility towers requested by
AEP
; a review of seam sulfur data to avoid extracting areas of high sulfur
(>1.6%) coal; and a mine cutting height study instigated by areas of difficult mining conditions
experienced recently by Coronado. The effect of these criteria resulted in a reduction in reserve of
various amounts by seam.
Where there is a potential for impounded mine water within an overlying deep mine, MM&A
calculated reserve/resource tonnages on a first mining basis only. A summary of acreages excluded
from second mining reserve/resource calculations is discussed in
Section 7.5.1
.
A study of overlying utility towers requested by AEP was conducted to prevent retreat mining
beneath high-voltage line support towers within a 25-degree angle of draw of a 9.1-meter offset
from v-guy anchors and 6.1-meter offset from h-brace structures.
In recent mining, Logan encountered an area of the Lower War Eagle mine where the sulfur content
was high (i.e. >1.6%). From this encounter, seam product quality was difficult to manage after
mining. A discussion of the percent sulfur review follows below in the
Lower War Eagle
Logan has experienced areas of difficult and slow mining from sandy shale or sandstone roof and/or
floor rock within the cutting heights of the mine equipment. Therefore, underground cutting heights
based on mine roof and floor lithology from drillhole records were reviewed for future reserves. A
minimum cutting height of 1.37 to 2.29 meters, based on current mining equipment, was used for
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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this evaluation. Evaluations identified mine areas of no cutting due to insufficient height for mine
equipment currently utilized by Coronado and areas of slow cutting with some sandy shale roof or
floor rock. These cutting zones were mapped on a seam-by-seam basis.
Underground cutting height evaluations affect two underground seams, the Chilton (Elk Lick Mine)
and the No 2 Gas-Lower (Eagle No. 1 mine and future reserve/resource). The impact on each reserve
is: in areas of slow cutting the scheduled production rate is decreased and the reserve estimates are
categorized as Probable Reserve; in areas of no cutting, due to sandstone roof and floor, tonnage
estimates are reassigned to Probable Resource and eliminated from reserves.
12.2.2.1 Upper Winifrede (No 8) Seam
The Upper Winifrede seam includes an estimated 1.4 Mt underground reserves from the not-
permitted, proposed Upper Winifrede mine, located along Sugar Camp Branch. On the Property,
the Upper Winifrede seam has been extensively mined from both surface and underground mining
including the former North Fork Winifrede Mine, which was fully depleted in 2023.
12.2.2.2 Lower Winifrede
The Lower Winifrede seam reserve includes an estimated 2.1 Mt from one proposed mine situated
north of the Toney Fork drainage. The average seam height for the area is 1.37 meters thick. On
the Property, the Lower Winifrede seam has been mined, mainly by underground mining,
immediately east of the proposed underground mine area.
12.2.2.3 Chilton (Williamson) Seam
The Chilton seam reserve includes an estimated 4.4 Mt from two proposed mine areas: Camp
Branch and Elklick. The average seam height for the two areas is 1.19 meters and 0.98 meters,
respectively. On the Property, the Chilton seam has been extensively mined, mainly by
underground mining. In 2024, the Camp Branch reserve was updated with information from one
drill hole from 2023 exploration.
A review of the Elklick Mine, Chilton seam cuttable mine height identified several areas of
potentially slow cutting and therefore a reduction of production rates was assumed in those areas.
12.2.2.4 Upper Powellton (Upper Alma)
The Powellton No. 1 Mine permit provides access to the remaining 2.7 Mt of the Upper Powellton
reserve. The seam has an average thickness of nearly 1.13 meters. The mine is bound by the
property extent to the northeast and thin coal from a seam split to the west. The south end of Mine
No. 1 is mined out. Elsewhere, no prior Upper Powellton seam mining is noted on the Property. In
2024, the Upper Powellton reserve was updated with 2023 exploration drill hole information.
12.2.2.5 Lower Powellton (Lower Alma)
The Lower Powellton seam reserve includes an estimated 4.6 Mt from a proposed mine area
situated north of Toney Fork. Here, the Lower Powellton reserve underlays the Upper Powellton
seam albeit where the Upper Powellton seam splits and thins and therefore will not be mined. The
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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interval separating the overlying Upper Powellton with the Lower Powellton seam is in a range of
5.1 to 7.2 meters, an interval too thin for a Lower Powellton mine to be developed beneath areas
of overmining. Therefore, where the two seams overlap and the Upper Powellton seam is deep
mined, the Lower Powellton seam becomes resources (exclusive of reserves).
The Lower Powellton seam has an average reserve thickness of 0.92 meters and is bound by
property control to the north, by low coal to the west and south and from overmining in the Upper
Powellton seam to the east. No prior Lower Powellton seam mining is noted on the Property. In
2024, the Lower Powellton reserve was updated with 2023 exploration drill hole information.
12.2.2.6 No. 2 Gas Lower (Eagle)
The No. 2 Gas Lower seam reserve includes an estimated 11.3 Mt. The demonstrated total includes
both permitted and not permitted tonnes. Two active mines access the reserve – the Eagle No. 1 /
Toney Fork Mine (U-5013-11) from Toney Fork Drainage and the Muddy Bridge 1 & 2 Mine (U-5034-
96, U-5035-96) from Muddy Bridge Branch of Huff Creek. Mine boundaries of the two mines are
immediately adjacent to one another and mine plans maximize the mineable area. The average
seam height is 1.08 meters and 1.37 meters for the Eagle No. 1 and Muddy Bridge mines,
respectively. On the Property, the No. 2 Gas Lower reserve is limited by low coal thickness to the
east and seam outcrop along large drainages elsewhere. Previous underground mining of the seam
is mapped immediately west of the Property.
In 2024, the No 2 Gas Lower reserve was updated with 2023 exploration drill hole information and
new in-mine data. The Eagle No. 1 mine evaluation of cuttable mine height identified areas of slow
cutting and other areas where the minimum mining height of 1.37 meters could not be achieved
and thus were eliminated from reserves. The presence of overlying mine pools and electric power
support structures also resulted in a decrease in retreat mine recoveries and therefore reserves in
the No. 2 Gas Lower seams.
12.2.2.7 Lower War Eagle
The Lower War Eagle seam reserve includes an estimated 4.3 Mt. One underground Lower War
Eagle mine (U-4002-99B) provides seam access from the portal located along Huff Creek. Mapped
mine depletion is from within the existing mine. The Lower War Eagle reserve extent is limited to
the north by low coal. In 2024, the Lower War Eagle reserve was updated with 2023 exploration
drill hole information and new in-mine data.
The Lower War Eagle seam percent sulfur data was mapped and modeled in 2024. The resultant
1.6 percent isopleth of the grid model was used as a guide to avoid areas of high percent sulfur.
Relatively small areas of the remaining reserve located on the fringes of the mine were observed.
Within those projected high sulfur areas, future mine panels were excluded.
12.3 Qualified Person’s Estimates
Reserve tonnage estimates provided herein report coal reserves derived from the in-situ resource
tonnes presented in
Table 11-3
, and not in addition to coal resources. Proven and probable coal
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 12-1: Coal Summary (ROM Basis (Moist)) as of December 31, 2024 (Mt)
Table 12-2: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2024 (Mt)
reserves were derived from the defined coal resource considering relevant mining, processing,
infrastructure, economic (including estimates of capital, revenue, and cost), marketing, legal,
environmental, socio-economic and regulatory factors. The coal reserves, as shown in
Table 12-2
,
are based on a technical evaluation of the geology and a preliminary feasibility study of the coal
deposits. The extent to which the coal reserves may be affected by any known environmental,
permitting, legal, title, socio-economic, marketing, political, or other relevant issues has been
reviewed rigorously. Similarly, the extent to which the estimates of coal reserves may be materially
affected by mining, metallurgical, infrastructure and other relevant factors has also been
considered. Coal reserves are presented on a ROM basis in
Table 12-1.
Demonstrated Coal Reserves (Mt, Moist ROM)
Quality (Dry)
By Reliability Category
By Mining Type
By Control Type
Area / Mine
Proved
Probable
Total
Surface
UG
Owned
Leased
Ash%
Sulfur%
Vol%
Logan Mine Complex
62.5
36.8
99.3
36.5
62.7
0.4
98.9
39
0.9
24
In the financial analysis some of the projected mines were not economically viable. The tonnes
projected to be mined from these locations have not been included in the Reserve Base.
Demonstrated Coal Reserves (Wet Ton nes, Washed or Direct Shipped, MT)
Quality (Dry Basis)
By Reliability Category
By Mining Type
By Control Type
Property
Proven
Probable
Total
Surface
UG
Owned
Leased
Ash%
Sulfur%
VM%
Logan County Complex
39.9
22.5
62.4
31.6
30.8
0.3
62.2
8
0.9
35
Note: Marketable reserve tonnes are reported on a moist basis, including a combination of surface and inherent moisture. The combination of
surface and inherent moisture is modeled between 4.5 and 6-percent, depending upon mining method. Actual product moisture is
dependent upon multiple geological factors, operational factors, and product contract specifications and can exceed 8-percent. As such, the
modeled moisture values provide a level of conservatism for reserve reporting.
The results of this TRS define an estimated 62.4 Mt of proven and probable marketable coal
reserves. Of that total, 64 percent are proven, and 36 percent are probable. Of the 62.4 Mt, 62.2
Mt are leased coal reserves and 0.3 Mt are owned. All tonnage is assigned. Approximately 54.1 Mt
of reserves are considered suitable for the metallurgical coal market and 8.4 Mt are projected to be
sold into the thermal coal market.
12.4 Qualified Person’s Opinion
The estimate of coal reserves was determined in accordance with the JORC Code along with SEC
Regulation S-K 1300.
The LOM mining plan for Logan was prepared to the level of preliminary feasibility. Mine projections
were prepared, and timing scheduled to match production with coal seam characteristics.
Production timing was carried out from current locations to depletion of the coal reserve area. Coal
reserve estimates could be materially affected by the risk factors described in
Section 22.2
.
Based on the Preliminary Feasibility Study and the attendant Economic Review, the QPs believe this
is a fair and accurate calculation of the Logan coal reserves.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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13
Mining Methods
Ten underground and three surface mining areas were modeled and tested economically. Once the
Resources were calculated, mine plans were created to project operating each resource area to
depletion, with crews and equipment scheduled to move to subsequent mining areas as depletion
occurs. Underground mine operations are projected to be exhausted in 2043, surface mines deplete
in 2056 and the highwall miners finish in 2057.
13.1 Geotech and Hydrology
Mining plans for potential underground mines were developed by Coronado and MM&A. Coal pillar
stability was tested by MM&A using the
Analysis of Coal Pillar Stability (ACPS)
MM&A reviewed the results from the ACPS analysis and considered them in the development of
the LOM plan.
For the HWM operation, Mining cuts are approximately 2.9 meters wide, and cuts are typically laid
out on approximately 5.03-meter centers. A 2.1-meter to 2.4-meter solid coal fender is left in place
between cuts. The mining plan provides that larger barrier pillars be provided periodically,
depending on overburden depth and characteristics and the immediate roof composition, typically
after 15 to 20 cuts. Although this plan, with minor variations, is common throughout Appalachia,
specific rock and coal strength information is used to verify whether or not this plan provided a
sufficient factor of safety.
Hydrology has not been an issue of concern at Logan. Based on numerous site visits to both the
surface and underground portions of the Property by the QPs, it has been determined that this is
not a significant concern. Mining of future reserves is projected to occur in areas which exhibit
similar hydrogeological characteristics as those formerly mined areas.
13.2 Production Rates
Operations at Logan by Coronado and its predecessors have been on-going for many years. The
mine plan and productivity expectations reflect historical performance and efforts have been made
to adjust the plan to reflect future conditions. MM&A is confident that the mine plan is reasonably
representative to provide an accurate estimation of coal reserves. Mine development and
operation have not been optimized within the TRS.
Carlson Mining software was used by MM&A to generate mine plans for the mineable coal seams.
Mine plans were sequenced based on productivity schedules provided by Coronado, which were
based on historically achieved productivity levels. All production forecasting ties assumed
production rates to geological models as constructed by MM&A’s team of geologists and mining
engineers.
The projected underground mines are set up similarly to the four currently active operations. Each
mine is scheduled to operate one to three production sections. All sections are configured as full
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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supersections with two continuous miners per section. In all cases, mines are forecasted to produce
coal two or three shifts each day. In most cases the third shift is reserved for maintenance and belt
and power moves. Production is scheduled Monday through Friday each week, and every other
Saturday.
Three surface resource areas were modeled. Mining operations are projected to utilize area mining
as well as contour mining (
CTR
) methods with an emphasis on creating highwall for highwall mining
activity.
The models assume that the operations will work two, 10-hour production shifts, 5 days per week
plus every other Saturday, with sufficient staffing to float vacation during the year.
Coals from the surface operations are hauled to the loadout for direct ship or to the preparation
plant for washing ultimately to be blended to shipment’s specifications. Saleable product from the
surface operations is projected to be sold primary into the thermal coal market on a raw basis;
however, some production is planned to be washed for the metallurgical coal market.
The three areas planned for highwall mining are assumed to be mined by a contractor; therefore,
the contractor costs included in the financial model assume that the contractor is responsible for
staffing those operations along with providing necessary equipment capital.
Spoil for final highwall reclamation is expected to come from strategic placement of spoil on pre-
existing benches by haul trucks such that they are within the push distance of the reclamation dozer.
13.3 Mining Related Requirements
13.3.1 Underground
A mine plan with sequenced mining projections was prepared for each logical mining unit. For each
mine plan, the appropriate number of production units is selected for the resource area, and a
productivity level assigned, expressed in meters of advance per unit-shift of production. The
productivity is based on the equipment and personnel configuration, mining height and expected
physical conditions.
At the underground mines, ventilation fans are installed to provide a sufficient volume of air to
ventilate production sections, coal haulage and transport entries, battery charging stations, and
transformers in accordance with approved plans. High-voltage cables deliver power throughout the
mine where transformers reduce voltage for specific equipment requirements.
The Mine
Improvement and New Emergency Response Act of 2006
MINER Act
) requires that carbon
monoxide detection systems be installed along mine conveyor belts and that electronic two-way
tracking and communications systems be installed throughout underground mines. Water is
required to control dust at production sections and along conveyor belts, and to cool electric
motors. Water is available from nearby sources and is distributed within the mine by pipelines as
required.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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13.3.2 Surface Mine
A mine plan with sequenced mining projections was prepared for each logical mining unit. The
mobile equipment spreads selected are representative of Coronado’s equipment fleets and deemed
to be appropriate for the local mining conditions.
13.3.3 HWM
Contract HWM units are available for assignment to contour surface mining pits in the Logan County
Division. HWM substantially increases coal recovery from contour mining benches and is ideally
suited for coal resource areas characterized by thin coal seams and irregular or narrow boundaries
that are not well-suited for underground mining. The contour mining bench will extend into the
highwall to the maximum overburden stripping ratio that is economically feasible or the minimum
bench requirement for operation of the HWM unit.
13.4 Required Equipment and Personnel
13.4.1 Underground Mines
13.4.1.1 Powellton No. 1
The Powellton No. 1 Mine is active with one continuous mining section; however, a second
production section is projected to be initiated in 2027. The Upper Powellton seam is accessed via a
shallow slope and crop. This mine produces metallurgical coal from leased mineral.
Production is scheduled for approximately 242 days each year, which represents production on
Monday through Friday. On each day, the production section is scheduled to produce coal on two
shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The
production section is configured as a full super section with two continuous miners. Productivity is
planned at an average rate of 67.5 meters of advance and retreat per shift of operation. A total of
55 employees are assigned to the mine, with a total of 109 employees projected when the second
production section begins.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars,
and two scoops. Coal is extracted from the production face with the continuous miner and hauled
to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from the shuttle
cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal to the
outside, where it is transported via overland conveyor to the preparation plant and load-out.
The Powellton No. 1 Mine was active as of December 2024 and all necessary infrastructure and
utilities remain in place. All necessary permits have been obtained. Estimated expenditures for site
closure and reclamation are included in the financial model for this site. Expected annual
production averages approximately 302,000 marketable tonnes. The mine is scheduled to
terminate during 2033.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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13.4.1.2 Lower War Eagle
The Lower War Eagle Mine is active with three production sections. The Lower War Eagle seam is
accessed via an existing slope. This mine is a metallurgical coal operation with all remaining
production on leased mineral property.
Production is scheduled for approximately 242 days each year, which represents production on
Monday through Friday. On each day, three production sections are scheduled to produce coal on
two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves.
The sections are configured as super sections with two continuous miners available for production.
Productivity is planned at the rate of 73.8 meters of advance and retreat per shift of operation. A
total of 174 employees are assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars,
and two scoops for each operating section. Coal is extracted from the production face with the
continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is
discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The
conveyors carry the coal outside, where it is transported to the preparation plant and load-out via
overland conveyor.
The Lower War Eagle Mine is an operating facility; all necessary infrastructure and utilities are in
place. All necessary permits have been obtained. Estimated expenditures for site closure and
reclamation are included in the financial model for this site. Expected annual production averages
approximately 508,000 marketable tonnes. The mine is scheduled to terminate during 2033.
13.4.1.3 Eagle No. 1/Toney Fork #1
The Eagle No. 1 (Toney Fork #1) Mine is an active mine in the Eagle (No. 2 Gas Lower) seam with
three production sections. This mine is a metallurgical coal operation on leased mineral property
and is accessed via drift entries from the outcrop.
Production is scheduled for approximately 242 days each year, which represents production on
Monday through Friday. On each day, three production sections are scheduled to produce coal on
two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves.
Two sections are full super sections with two continuous miners per section. The remaining sections
is a walk-between section with two continuous miners. Productivity is planned at the rate of 75.6
meters of advance per shift (87.8 meters of retreat) for the super sections and 57.9 meters of
advance per shift (70.1 meters of retre at) for the walk-between section. A total of 172 employees
are assigned to the mine.
The principal production equipment per section includes two continuous miners, two roof bolters,
four shuttle cars, and two scoops. Coal is extracted from the production face with the continuous
miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged
onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside, where
it is stacked on the ground to await truck transport to the preparation plant and load-out.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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The Eagle No. 1 Mine is an operating facility; all necessary infrastructure and utilities are in place.
All necessary permits have been obtained; the underground footprint area expansion is pending
final approval. Estimated expenditures for mine closure and site reclamation are included in the
financial model.
Expected annual production averages approximately 675,000 marketable tonnes.
The mine is scheduled to terminate during 2038.
13.4.1.4 Muddy Bridge
The Muddy Bridge Mine is an active mine in the Eagle (No. 2 Gas Lower) seam. This mine is a
metallurgical coal operation on leased mineral property and is accessed via drift entries from the
outcrop.
Production is scheduled for approximately 242 days each year, which represents production on
Monday through Friday. On each day, two production sections are scheduled to produce coal on
two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves.
The sections are configured as full super sections with two continuous miners available for
production on each section. Productivity is planned at the rate of 73.8 meters of advance and
retreat per shift of operation. A total of 119 employees are assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars,
and two scoops for each operating section. Coal is extracted from the production face with the
continuous miner and hauled to the mine conveyor via shuttle cars. At the conveyor belt, the coal
is discharged from the haulage units onto a feeder breaker for transfer onto the conveyor. The
conveyors carry the coal to the outside, where it is stacked on the ground to await truck transport
to the Lower War Eagle mine for placement onto the overland conveyor leading to the preparation
plant and load-out.
The Muddy Bridge Mine is an operating facility; all necessary infrastructure and utilities are in place.
All necessary permits have been obtained. Coal mining permits are routinely obtained. Estimated
expenditures for mine closure and site reclamation are included in the financial model.
Expected annual production averages approximately 509,000 marketable tonnes at steady state
production levels.
The mine is scheduled to terminate during 2027.
13.4.1.5 Elklick Chilton
The proposed Elklick Chilton Mine is scheduled to begin production in 2032. The Chilton seam is
accessed via drift entry. The seam is above drainage. This mine is projected to be a metallurgical
coal operation on leased mineral property.
Production is scheduled for approximately 265 days each year, which represents production on
Monday through Friday plus every other Saturday. On each day, one production section is
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
I
NC
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51
scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine
conveyor belt and power moves. The section is configured as a full super section with two
continuous miners available for production on the section. Productivity is planned at the rate of
73.2 meters of advance (109.8 meters of retreat) per shift of operation. A total of 76 employees
are assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars,
and two scoops. Coal is extracted from the production face with the continuous miner and hauled
to the mine conveyor via shuttle cars. At the conveyor belt, the coal is discharged from the haulage
units onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside,
where it is stacked on the ground to await truck transport to the preparation plant and load-out.
The Elklick Chilton mine is a permitted mine with surface infrastructure in place. The proposed mine
is located in an area with a long history of coal mining, with numerous permitted operations in close
proximity. Estimated expenditures for mine closure and site reclamation are included in the
financial model.
Expected annual production averages approximately 291,000 marketable tonnes at steady state
production levels.
The mine is scheduled to begin production in 2032 and terminate during 2043.
13.4.1.6 Camp Branch Chilton
The Camp Branch Chilton Mine is proposed mine in the Chilton seam which is accessed via drift
entry from the outcrop and is scheduled to begin production in 2031. This mine is a metallurgical
coal operation on leased mineral property.
Production is scheduled for approximately 265 days each year, which represents production on
Monday through Friday plus every other Saturday. On each day, one production section is
scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine
conveyor belt and power moves. The section is configured as a full super section with two
continuous miners available for production on the section. Productivity is planned at the rate of
73.2 meters of advance (109.8 meters of retrea t) per shift of operation. A total of 76 employees
are assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars,
and two scoops. Coal is extracted from the production face with the continuous miner and hauled
to the mine conveyor via shuttle cars. At the conveyor belt, the coal is discharged from the haulage
units onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside,
where it is stacked on the ground to await truck transport to the preparation plant and load-out.
Due to the projected starting date for the Camp Branch Chilton Mine, no detailed design of
infrastructure or surface facilities has been completed to date. The proposed mine is located in the
Appalachian Basin, which has an extensive history (>100 years) of coal mining. There is a sufficient
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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population base within commuting distance of the proposed operation; no Camp or Town
construction will be required. Estimated mine access and utility capital expenditures are included
in the financial model for the mine.
The proposed Camp Branch Chilton Mine has an existing permit. Estimated expenditures for mine
closure and site reclamation are included in the financial model.
Expected annual production averages approximately 320,000 marketable tonnes at steady state
production levels.
The mine is scheduled to begin production in 2031 and terminate during 2035.
13.4.1.7 Lower Winifrede
The Lower Winifrede Mine is a proposed mine in the Lower Winifrede seam which is accessed via
drift entry from the outcrop and is scheduled to begin production in 2027. This mine is a
metallurgical coal operation on leased mineral property.
Production is scheduled for approximately 242 days each year, which represents production on
Monday through Friday. On each day, two production sections are scheduled to produce coal on
two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves.
The sections are configured as full super sections with two continuous miners available for
production on each section. Productivity is planned at the rate of 73.2 meters of advance per shift
of operation. A total of 122 employees are assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars,
and two scoops for each section. Coal is extracted from the production face with the continuous
miner and hauled to the mine conveyor via shuttle cars. At the conveyor belt, the coal is discharged
from the haulage units onto a feeder breaker for transfer onto the conveyor. The conveyors carry
the coal outside, where it is stacked on the ground to await truck transport to the preparation plant
and load-out.
Due to the projected starting date for the Lower Winifrede Mine, no detailed design of
infrastructure or surface facilities has been completed to date. The proposed mine is located in the
Appalachian Basin, which has an extensive history (>100 years) of coal mining. There is a sufficient
population base within commuting distance of the proposed operation; no Camp or Town
construction will be required. Estimated mine access and utility capital expenditures are included
in the financial model for the mine.
The mine is scheduled to begin production in 2027 and terminate during 2032.
13.4.1.8 Upper Winifrede
The proposed Upper Winifrede Mine is scheduled to begin production in 2033. The Upper Winifrede
seam is accessed via a proposed drift along the outcrop. This mine is projected to be a metallurgical
coal operation on leased mineral property.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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Production is scheduled for approximately 265 days each year, which represents production on
Monday through Friday plus every other Saturday. On each day, one production section is
scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine
conveyor belt and power moves. The section is configured as a full super section with two
continuous miners available for production on the section. Productivity is planned at the rate of
73.2 meters of advance per shift of operation. A total of 76 employees are assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle cars,
and two scoops. Coal is extracted from the production face with the continuous miner and hauled
to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from the shuttle
cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal outside,
where it is stacked on the ground to await truck transport to the preparation plant and load-out.
Due to the projected starting date for the Upper Winifrede Mine, no detailed design of
infrastructure or surface facilities has been completed to date. The proposed mine is located in the
Appalachian Basin, which has an extensive history (>100 years) of coal mining. There is a sufficient
population base within commuting distance of the proposed operation; no Camp or Town
construction will be required. Estimated mine access and utility capital expenditures are included
in the financial model for the mine.
Due to the projected start-up date of the Upper Winifrede Mine, no permit work has been
completed to date. The proposed mine is located in an area with a long history of coal mining, with
numerous permitted operations in close proximity. Coal mining permits are routinely obtained.
Estimated expenditures for mine closure and site reclamation are included in the financial model
for each mine or plant site.
Expected annual production averages approximately 495,000 marketable tonnes at steady state
levels.
The mine is scheduled to begin production in 2033 and terminate during 2036.
13.4.1.9 Lower Powellton
The proposed Lower Powellton Mine is scheduled to begin production in 2032. The Lower
Powellton seam is accessed via a proposed drift along the outcrop. This mine is projected to be a
metallurgical coal operation on leased mineral property.
Production is scheduled for approximately 265 days each year, which represents production on
Monday through Friday plus every other Saturday. On each day, two production sections are
scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine
conveyor belt and power moves. Both sections are configured as a super section with two
continuous miners per section available for production. Productivity is planned at 73.2 meters of
advance per shift (85.3 meters of retreat per shift). A total of 122 employees are assigned to the
mine during steady state production.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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Principal production equipment per section includes two continuous miners, two roof bolters, four
shuttle cars, and one scoop. Coal is extracted from the production face with the continuous miner
and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged from
the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal
outside, where it is stacked on the ground to await truck transport to the preparation plant and
load-out.
Due to the projected starting date for the Lower Powellton Mine, no detailed design of
infrastructure or surface facilities has been completed to date. The proposed mine is located in the
Appalachian Basin, which has an extensive history (>100 years) of coal mining. There is a sufficient
population base within commuting distance of the proposed operation; no Camp or Town
construction will be required. Estimated mine access and utility capital expenditures are included
in the financial model for the mine.
Due to the projected start-up date of the Lower Powellton Mine, no permit work has been
completed to date. The proposed mine is located in an area with a long history of coal mining, with
numerous permitted operations in close proximity. Coal mining permits are routinely obtained.
Estimated expenditures for mine closure and site reclamation are included in the financial model
for each mine or plant site.
Expected annual production averages approximately 500,000 marketable tonnes at steady state
levels.
The mine is scheduled to begin production in 2032 and terminate during 2042.
13.4.2 Surface Mines and Highwall Miners
Three surface resource areas were modeled. Mining operations are projected to utilize area mining
as well as contour mining (
CTR
) methods with an emphasis on creating highwall for highwall mining
activity. The projected operations will employ a Komatsu PC2000 hydraulic backhoe and a
Caterpillar 993K front-end loader capable of a combined production rate of approximately 1,162
bank cubic meters per hour (
bcm/hr
) with supplemental assistance of 6 dozers that can generate
approximately an additional 700 bcm/hr providing their spoil placement does not interfere with
planned highwall mining activity. Dozer contribution is expected to be limited to contours that
have lower benches available for placement of spoil. To encourage its usage, contour and highwall
mining activity is generally expected to be mined from lower to upper seams. Larger area mining
boundaries offer greater opportunities for dozers to contribute to production. Since the majority
of the mining boundaries during the initial budget years are primarily contours, dozers will
supplement production on a periodic basis. They, however, will likely also be used to help feed
loading machines and reclaim highwalls when not directly contributing to production. Sufficient
reserves allow mining to continue to the year 2056.
The models assume that the operations will work two, 10-hour production shifts, 5 days per week
plus every other Saturday, with sufficient staffing to float vacation during the year. A total of 86
employees are assumed for the surface mines at full production. It is assumed that most of the spoil
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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movement goes through a shovel or loader bucket and is eventually returned to the pit for final
reclamation. The dozer’s primary responsibility is cutting the initial benches for the drill and shaping
the reclaimed contour highwall.
All highwall mining is assumed to be performed by a contractor. The contractor is responsible for
staffing those operations along with providing necessary equipment capital. One highwall miner
will be used until 2027 then an additional highwall miner will be introduced beginning in 2030. In
2043, a third highwall miner will be introduced to keep the miners in close proximity to the surface
mining activity.
Spoil for final highwall reclamation is expected to come from strategic placement of spoil on pre-
existing benches by haul trucks such that they are within the push distance of the reclamation dozer.
13.4.2.1 Toney Fork
Toney Fork surface mining operations are projected to be completed in 2056, with emphasis placed
on preparing space for HWM operations. Expected production for the operations averages
approximately 238,000 marketable tonnes annually.
The Toney Fork HWM is projected to be completed in 2057 and mines an additional 177,000
marketable tonnes annually at steady state levels.
13.4.2.2 Buffalo Creek South
The Buffalo Creek South surface and/or HWM mining operations are projected to operate between
2025 and 2057, with emphasis placed on preparing space for HWM operations. Expected surface
production for the operations totals approximately 232,000 marketable tonnes annually at steady
state levels. The Buffalo Creek HWM mines an additional 209,000 marketable tonnes annually at
steady state levels.
13.4.2.3 Sugar Camp
Sugar Camp surface mining operations are projected to be mined from 2030 to 2056. Expected
production for the operations averages approximately 191,000 marketable tonnes annually.
The Sugar Camp HWM operates from 2039 to 2057 and mines an additional 47,000 marketable
tonnes per year.
As shown in
Tables 13-1 through 13-3
, the areas planned for underground production continue until
2043, whereas surface and auger/HWM production is projected to finish in 2056 and 2057,
respectively. Clean coal production varies directly with coal thickness in the case of the
underground mines, and overburden removal for the surface mines.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 13-1: Underground Summary of Production by Year (Tonnes x 1,000)
Table 13-2: Surface Summary of Production by Year (Tonnes x 1,000)
Mine Name
2025
2026
2027
2028
2029
2030
2031
2032
Camp Br Chilton
0
0
0
0
0
0
183
272
Eagle No. 1 (Toney Fork)
736
672
679
690
742
759
759
711
Elk Lick Chilton
0
0
0
0
0
0
0
124
Lower Powellton
0
0
0
0
0
0
0
190
Lower War Eagle
611
666
497
461
426
448
467
487
Powellton No. 1
194
191
326
401
431
428
302
209
Muddy Br No.2 Gas
567
558
266
0
0
0
0
0
Lower Winifrede
0
0
64
316
309
581
569
252
Upper Winifrede
0
0
0
0
0
0
0
0
Winifrede (Chilton Rider)
0
0
0
0
0
0
0
0
2,108
2,087
1,832
1,868
1,908
2,217
2,280
2,245
Mine Name
2033
2034
2035
2036
2037
2038
2039
2040
Camp Br Chilton
317
371
154
0
0
0
0
0
Eagle No. 1 (Toney Fork)
592
694
653
413
144
0
0
0
Elk Lick Chilton
224
306
264
219
287
339
346
307
Lower Powellton
521
553
481
487
493
482
486
499
Lower War Eagle
265
0
0
0
0
0
0
0
Powellton No. 1
198
0
0
0
0
0
0
0
Muddy Br No.2 Gas
0
0
0
0
0
0
0
0
Lower Winifrede
0
0
0
0
0
0
0
0
Upper Winifrede
138
523
468
309
0
0
0
0
Winifrede (Chilton Rider)
0
0
0
0
0
0
0
0
2,255
2,446
2,020
1,428
924
822
832
805
Mine Name
2041
2042
2043
2044
2045
2046
2047
2048
Camp Br Chilton
0
0
0
0
0
0
0
0
Eagle No. 1 (Toney Fork)
0
0
0
0
0
0
0
0
Elk Lick Chilton
315
297
33
0
0
0
0
0
Lower Powellton
291
135
0
0
0
0
0
0
Lower War Eagle
0
0
0
0
0
0
0
0
Powellton No. 1
0
0
0
0
0
0
0
0
Muddy Br No.2 Gas
0
0
0
0
0
0
0
0
Lower Winifrede
0
0
0
0
0
0
0
0
Upper Winifrede
0
0
0
0
0
0
0
0
Winifrede (Chilton Rider)
0
0
0
0
0
0
0
0
607
432
33
0
0
0
0
0
Mine Name
2025
2026
2027
2028
2029
2030
2031
2032
Toney Fork Surf
0
0
0
0
0
233
233
233
Buffalo Cr South Area
485
513
395
466
568
181
181
181
Sugar Camp Area 1
0
0
0
0
0
188
188
188
485
513
395
466
568
601
601
601
Mine Name
2033
2034
2035
2036
2037
2038
2039
2040
Toney Fork Surf
233
233
233
240
239
239
238
239
Buffalo Cr South Area
181
181
181
181
185
184
184
184
Sugar Camp Area 1
188
188
188
193
192
192
191
192
601
601
601
613
616
615
614
615
Mine Name
2041
2042
2043
2044
2045
2046
2047
2048
Toney Fork Surf
239
239
239
239
238
239
239
240
Buffalo Cr South Area
184
184
184
184
184
184
184
184
Sugar Camp Area 1
192
192
192
192
191
192
192
193
615
615
615
615
614
615
615
617
Mine Name
2049
2050
2051
2052
2053
2054
2055
2056
Toney Fork Surf
239
238
238
240
239
239
164
233
Buffalo Cr South Area
185
184
184
184
185
184
184
64
Sugar Camp Area 1
192
191
191
193
192
192
134
7
616
614
613
616
616
615
482
304
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 13-3: Highwall Summary of Production by Year (Tonnes x 1,000)
Mine Name
2025
2026
2027
2028
2029
2030
2031
2032
Toney Fork HWM
0
0
0
0
0
138
138
138
Buffalo Cr South HWM
107
176
209
0
0
184
184
184
Sugar Camp HWM
0
0
0
0
0
37
37
37
107
176
209
0
0
359
359
359
Mine Name
2033
2034
2035
2036
2037
2038
2039
2040
Toney Fork HWM
138
138
138
142
142
142
141
142
Buffalo Cr South HWM
184
184
184
184
188
188
188
187
Sugar Camp HWM
37
37
37
37
38
38
38
38
359
359
359
363
369
368
367
367
Mine Name
2041
2042
2043
2044
2045
2046
2047
2048
Toney Fork HWM
142
142
213
213
212
213
213
214
Buffalo Cr South HWM
188
188
188
274
274
273
274
274
Sugar Camp HWM
38
38
38
57
57
57
57
57
368
368
439
544
544
543
544
545
Mine Name
2049
2050
2051
2052
2053
2054
2055
2056
Toney Fork HWM
213
212
212
214
213
213
213
193
Buffalo Cr South HWM
275
274
273
273
275
274
274
274
Sugar Camp HWM
58
57
57
57
58
57
57
57
546
544
542
544
546
544
544
525
Mine Name
2057
2058
2059
2060
2061
2062
2063
2064
Toney Fork HWM
138
0
0
0
0
0
0
0
Buffalo Cr South HWM
236
0
0
0
0
0
0
0
Sugar Camp HWM
51
0
0
0
0
0
0
0
425
0
0
0
0
0
0
0
14
Processing and Recovery Methods
14.1 Description or Flowsheet
The Logan County Division includes the Saunders Preparation Plant in addition to the mines. The
plant site includes raw coal storage, clean coal storage, a railroad loadout, and refuse disposal area.
The plant has a feed rate capacity of 1,088 raw tonnes per hour. Primary separation equipment
includes a heavy media vessel, heavy media cyclones, classifying cyclones, spirals, flotation cells,
and column flotation, supported by the requisite screens, centrifuges, vacuum filters, sumps,
pumps, and distribution systems. Coarse and fine refuse are disposed separately in an adjacent
refuse area which incorporates slurry cells.
Processes and equipment are typical of those used in the coal industry and are in use in nearly all
plants in the Central Appalachian Basin.
14.2 Requirements for Energy, Water, Material and Personnel
Personnel have historically been sourced from the surrounding communities in Logan, Boone,
Wyoming, and Mingo counties, and have proven to be adequate in numbers to operate past and
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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current mines. As mining is common in the surrounding areas, the workforce is generally familiar
with mining practices and is comprised of a strong talent pool of experienced miners.
Water is sourced locally from Buffalo Creek Public Service District and/or locally from streams via
water withdrawal permits, and electricity is sourced from AEP. The service industry in the areas
surrounding the mine complex has historically provided supplies, equipment repairs and fabrication,
etc.
15
Infrastructure
The Coronado-owned Saunders Preparation Plant services the mines. The ROM coal is delivered
from the Lower War Eagle Mine via overland conveyor, all remaining production is or will be
delivered to the plant site by truck.
The CSX rail line serves as the main means of transport from the mine complex/loadout.
As an active operation, the necessary support infrastructure for Logan is in place.
As new areas are developed, the infrastructure requirements will change. These changes have been
considered in the LOM plans and financial model.
A few of the seams lie below drainage; however, a substantial number of metallurgical coal seams
are situated above drainage. The underground mining resource areas which are located above-
drainage require an access road and mine access development along the outcrop, whereas below-
drainage mines are accessed based on other proposed surface infrastructure locations and/or
surface property control. In some cases, the access and face-up may be developed as part of surface
mining activities. A mine transformer and water tank are located at the face-up, along with the
mine fan, stacker conveyor, supply facilities, shop, office, and bath house.
The surface mining mobile equipment spreads advance the contour and area mining pits while
systematically reclaiming the trailing side of pits where coal has been removed. The coal haul roads
are extended and maintained as the pits advance. Support facilities are maintained nearby but away
from the active mining, and include storage areas for blasting agents, fuel and lubricants, and mine
supplies along with maintenance facilities and offices.
The HWM equipment advances along with the contour mining pits. The rate of advance of contour
mining is somewhat constrained by the advancement rate of the HWM. A diesel-powered generator
trails the highwall miner and powers the continuous mining unit. Other support facilities are
provided along with the contour mining support facilities.
A map of the existing facilities in
Figure 15-1
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Figure 15-1: Logan Surface Facilities
Table 16-1: Quality Specifications by Product
16
Market Studies
16.1 Market Description
The quality characteristics for the subject coal resources and coal reserves have been reviewed in
detail by MM&A. The drill hole data was utilized to develop average coal quality characteristics for
the mining site. These average coal quality characteristics were then utilized as the basis for
determining the various markets into which the saleable coal will likely be placed.
The projected quality specifications for the Logan products are as shown in
Table 16-1
.
HVA
HVB
Thermal
(A/R)
Moisture (%)
7.50
8.00
7.50
Ash (%)
7.50
8.00
12.50
Sulfur (%)
0.90
0.95
1.00
Volatile Matter (%)
32.5
37.0
36.0
Btu/lb.
N/A
N/A
12,300
Fluidity (ddpm)
30,000
25,000
N/A
MMR (%)
1.04
0.93
N/A
CSR
62
58
N/A
FSI
8.00
8.00
N/A
Note: All Specs are dry basis except Moisture and Thermal
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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The mine production serves both the high-volatile metallurgical and thermal markets.
16.2 Price Forecasts
Coronado provided MM&A with price forecasts for the various coal markets supplied by its active
and future operations in terms of 2025 (January) real dollars. MM&A applied a 2.0% annual
inflation rate to the Coronado price forecast in order to estimate revenues in nominal dollars.
Customer coal pricing is derived from market observed forward estimates based on global economic
supply and demand analysis which is applied to mine plan sales volumes and product mix and is
supplemented with Coronado’s in-house knowledge of applicable rail transportation charges, ocean
freight charges and port charges. MM&A utilized this data for price forecasting in financial
modeling. Concurrent with aforementioned-quality parameters in the preceding section,
production from the proposed operations is assumed to be primarily sold in metallurgical markets
with limited thermal sales. Pricing was provided through calendar year 2057. The pricing data
assumes respective HVA, HVB and thermal FOB-mine prices of approximately $171, $151, and $80
per metric tonne for calendar year 2025. HVA, HVB, and thermal prices respectively decrease to
approximately $162, $144, and $83 per metric tonne through year 2027, and then increase to $306,
$271, and $150 per metric tonne through year 2057.
16.3 Contract Requirements
Some contracts are necessary for successful marketing of the coal. For Logan, since all mining,
preparation and marketing is done in-house, the remaining contracts required are:
>
Transportation
domestic customers or to the Pier 9 and Dominion terminals at Norfolk, Virginia for overseas
shipment.
>
Sales
– Sales contracts are a mix of spot and contract sales. With the volatility of the market,
long-term contracts are not typically written.
17
Environmental Studies, Permitting and Plans,
Negotiations or Agreements with Local Individuals
17.1 Results of Studies
MM&A completed a Limited Phase I Environmental Site Assessment (
ESA
) on the Logan Property in
May 2017 on behalf of Coronado. Coronado reports not having conducted such a study since the
MM&A studies. The ESA
records, a database search of State and Federal regulatory records and interviews to identify
1
years of the forecast. Beyond the first 5 years, Coronado’s forecast is based on sales price information from AME Group adjusted for transportation
costs to an FOB Mine basis.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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potential recognized environmental conditions (
RECs
) that may create environmental liability for
the sites. MM&A concluded that no long-term liabilities existed at the time of these ESAs.
Based on these former ESAs completed by MM&A, it is the QPs’
typical coal industry record of compliance with applicable mining, water quality, and environmental
laws. Estimated costs for mine closure, including water quality monitoring during site reclamation,
are included in the financial models.
17.2 Requirements and Plans for Waste Disposal
The original design for the North Fork Refuse Area (
North Fork
) at the Logan Property projected a
crest to elevation 686 meters. The present elevation of the deck is ±685meters. In 2018 MSHA
approved an expansion plan to raise the cross-valley crest to elevation 802 meters, and from there
converting to a sidehill fill. This will allow for a total volume of 50 million CM which would be
sufficient capacity for all the refuse generated by the LOM plan that underpins the current Logan
County Division reserves. Further plans for the North Fork site call for conversion of the fill to a total
cross-valley configuration, predicated on completion of surface mining on the ridge between North
Fork and Middle Fork. This has the potential of providing an additional 10 million CM of capacity.
17.3 Permit Requirements and Status
All mining operations are subject to federal and state laws and must obtain permits to operate
mines, coal preparation and related facilities, haul roads, and other incidental surface disturbances
necessary for mining to occur. Permits generally require that the permittee post a performance
bond in an amount established by the regulatory program to provide assurance that any disturbance
or liability created during mining operations is properly restored to an approved post-mining land
use and that all regulations and requirements of the permits are fully satisfied before the bond is
returned to the permittee. Significant penalties exist for any permittee who fails to meet the
obligations of the permits including cessation of mining operations, which can lead to potential
forfeiture of the bond. Any company, and its directors, owners and officers, which are subject to
bond forfeiture can be denied future permits under the program.
New permits or permit revisions will occasionally be necessary to facilitate the expansion or addition
of new mining areas on the properties, such as amendments to existing permits and new permits
for mining of reserve areas. Exploration permits also are required. Property under lease includes
provisions for exploration among the terms of the lease. New or modified mining permits are
subject to a public advertisement process and comment period, and the public is provided an
opportunity to raise objections to any proposed mining operation. MM&A is not aware of any
specific prohibition of mining on the subject property and given sufficient time and planning,
Coronado should be able to secure new permits to maintain its planned mining operations within
the context of current regulations. Necessary permits are in place to support current production on
the properties, but future permits are required to maintain and expand production. Portions of the
properties are located near local communities. Regulations prohibit mining activities within 91.4
2
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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meters of a residential dwelling, school, church, or similar structure unless written consent is first
obtained from the owner of the structure. Where required, such consents have been obtained
where mining is proposed beyond the regulatory limits.
Coronado has obtained all mining and discharge permits to operate its mines and processing,
loadout or related facilities. MM&A is unaware of any obvious or current Coronado permitting
issues that are expected to prevent the issuance of future permits. Logan, along with all coal
producers, is subject to a level of uncertainty regarding future clean water permits due to
United
States Environmental Protection Agency
(
EPA
)
and
United States Fish and Wildlife (
USFW
)
involvement with state programs.
The Mining permits currently held by Logan are shown in
Table 17-1.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 17-1: Logan Mining Permits
Type
Permit ID
Permit Name
$ Bond
Current Status
Issued Date
Expiration Date
Hectares
NPDES
Other
O001984
North Fork Refuse
1
$1,033,200
Renewed
4/11/1984
4/11/2029
116.03
WV0095699
Other – Loadout Only
O009283
Elk Lick Dock
$33,000
Renewed
6/10/1983
6/10/2028
13.31
WV1023071
Other
O009883
Saunders Prep Plant
$223,200
Renewed
6/24/1983
6/24/2028
36.36
WV0095699
Other – Refuse Disposal
O012383
Middle Fork Refuse
1
$364,800
Renewed
9/27/1983
9/27/2028
46.13
WV0096156
Other – Loadout Only
O500513
Toney Fork Loadout
$32,000
Renewed
9/11/2014
9/11/2029
12.67
WV1028081
Other – Refuse Disposal
O501108
Elklick Branch Haulroad/Refuse
1
$38,000
Renewed
11/13/2008
11/13/2028
15.14
WV1029843
Coal Surface Mine
S500417
North Fork Winifrede Contour Mine
$78,000
Not Started
2/13/2018
2/13/2028
50.59
WV1028430
Coal Surface Mine
S500615
Toney Fork A-Ridge Surface Mine
$80,000
Phase 1 Released
2/24/2016
2/24/2026
15.80
WV1028278
Coal Surface Mine
S500709
Toney Fork Surface Mine No. 3
$2,625,000
Renewed
11/20/2013
11/20/2028
340.83
WV1019902
Coal Surface Mine
S501210
Toney Fork West Surface Mine
$1,660,000
Active Rec. Only
2/29/2012
12/7/2026
134.29
WV1024990
Coal Surface Mine
S501410
Elklick Surface Mine
$2,767,600
Renewed
8/16/2013
8/16/2028
328.42
WV1025015
Coal Surface Mine
S503395
Toney Fork Surface #2
$5,605,000
Renewed
5/28/1998
5/22/2028
453.62
WV1016750
Coal Underground
U004485
Dingess Br. No. 1
$0
Inactive
6/12/1985
PHII Released
4.05
WV1008340
Coal Underground
U400299
Paynter Branch Mine No. 1
$73,000
Renewed
4/5/2002
4/5/2027
10.03
WV1018728
Coal Underground
U500109
Chilton Deep Mine No. 1
$30,800
Inactive
1/31/2011
1/31/2026
5.53
WV1019821
Coal Underground
U500789
WA #1 Mine
$0
Completely Released
7/31/1990
PHII Released
0.00
WV0096385
Coal Underground
U500919
North Fork Winifrede Deep Mine
$18,360
Active Rec. Only
3/3/2020
3/3/2025
3.58
WV1030990
Coal Underground
U501311
Eagle No. 1 Mine
$143,520
Renewed
5/20/2013
5/20/2028
20.68
WV1025139
Coal Underground
U502008
Dingess Br-Chilton Mine No. 2
$22,570
Phase 2 Released
10/10/2008
PHII Released
11.62
WV1029908
Coal Underground
U505392
ALMA NO. 1 MINE
$286,160
Renewed
3/3/1995
3/3/2025
39.43
WV1013408
Coal Underground
U506686
Camp Branch Deep Mine
$96,200
Rec., Chem. Water Treatment
1/26/1987
1/26/1997
26.24
WV0093122
Coal Underground
U501015
CB Chilton #1 Mine
$10,600
Not Started
12/28/2016
12/28/2026
1.68
WV1028316
Coal Underground
U503496
Muddy Bridge Branch #1
$33,040
Renewed
8/4/1997
8/4/2027
5.46
WV1016954
Coal Underground
U503596
Muddy Bridge Branch #2
$65,520
Renewed
8/4/1997
8/4/2027
10.35
WV1016954
River Dock
810-8037
Big Sandy Dock
$222,200
Active
5/11/2015
7/10/2026
3.35
KYGE40032
Coal Surface Mine
S500422
Middle Fork Surface Mine
$520,800
Renewed
12/9/2022
12/9/2027
82.13
WV1031198
Coal Surface Mine
S500822
Elklick Contour Surface mine
$1,307,520
Not Started
2/27/2023
2/27/2028
182.45
WV1031228
Notes:
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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17.4 Local Plans, Negotiations or Agreements
MM&A found no indication of agreements beyond the scope of Federal or State Regulations.
17.5 Mine Closure Plans
Applicable regulations require that mines be properly closed, and reclamation commenced
immediately upon abandonment. In general, site reclamation includes removal of structures,
backfilling, regrading, and revegetation of disturbed areas. For surface mines, the majority of the
expense for backfilling and regrading is completed as part of ongoing mining operations, with only
reclamation of final pits and HWM benches required at end-of-mine life. Sediment control is
required during the establishment of vegetation, and bond release generally requires a minimum
five-year period of site maintenance, water sampling, and sediment control following mine
completion. This requirement is reduced to two years for certain operations involving re -mining.
Reclamation of underground mines includes closure and sealing of mine openings such as portals
and shafts in addition to the items listed above.
Estimated costs for mine closure, including water quality monitoring during site reclamation, are
included in the financial models. As with all mining companies, an accretion calculation is performed
annually so the necessary Asset Retirement Obligations (
ARO
) can be shown as a Liability on the
Balance Sheet.
17.6 Qualified Person’s Opinion
The Logan complex is an operating facility; all necessary permits for current production have been
obtained. The QPs know
obtained.
Estimated expenditures for site closure and reclamation are included in the financial model for this
site.
18
Capital and Operating Costs
18.1 Capital Cost Estimate
The production sequence selected for a property must consider the proximity of each reserve area
to coal preparation plants, river docks and railroad loading points, along with suitability of
production equipment to coal seam conditions. The in-place infrastructure was evaluated, and any
future needs were planned to a level suitable for a Preliminary Feasibility Study and included in the
Capital Forecast.
Coronado provided MM&A with an inventory of operating equipment available at Logan. MM&A’s
capital schedules assume that major equipment rebuilds occur over the course of each machine’s
remaining assumed operating life. Replacement equipment was scheduled based on MM&A’s
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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ILLER
&
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Figure 18-1: CAPEX
experience and knowledge of mining equipment and industry standards with respect to the useful
life of such equipment. As one mine is depleted, the equipment is moved to its replacement.
A summary of the estimated capital for the Property is provided in
Figure 18-1
18.2 Operating Cost Estimate
Coronado provided historical and a preliminary 5-year projection of operating costs for MM&A’s
review. MM&A used the historical and/or budget cost information as a reference and developed a
personnel schedule for the mine. Hourly labor rates and salaries were based upon information
contained in Coronado’s financial summaries. Fringe benefit costs were developed for vacation and
holidays, federal and state unemployment insurance, retirement, workers’ compensation and
pneumoconiosis, casualty and life insurance, healthcare and bonuses. A cost factor for mine
supplies was developed that relates expenditures to mine advance rates for roof control costs and
other mine supply costs experienced at underground mines. Other factors were developed for
maintenance and repair costs, rentals, mine power, outside services and other direct mining costs.
Other cost factors were developed for coal preparation plant processing, refuse handling, coal
loading, property taxes, and insurance and bonding. Appropriate royalty rates were assigned for
production from leased coal lands and sales taxes were calculated for state severance taxes, the
federal black lung excise tax, and federal and state reclamation fees.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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Table 18-1: Estimated Coal Production Taxes and Sales Costs
Table 18-2: Logan Operating Costs
Mandated Sales Related Costs such as Black Lung Excise are summarized in
Table 18-1
.
Description of Tax or Sales Cost
Basis of Assessment
Cost
Federal Black Lung Excise Tax – Underground
Per Tonne
$1.21
Federal Black Lung Excise Tax – Surface
Per Tonne
$0.61
Federal Black Lung Excise Tax – Highwall Miner
Per Tonne
$0.61
Federal Reclamation Fees – Underground
Per Tonne
$0.13
Federal Reclamation Fees – Surface
Per Tonne
$0.31
Federal Reclamation Fees – Highwall Miner
Per Tonne
$0.31
West Virginia Reclamation Tax – Underground
Per Tonne
$0.308
West Virginia Reclamation Tax – Surface
Per Tonne
$0.308
West Virginia Reclamation Tax – Highwall Miner
Per Tonne
$0.308
West Virginia Severance Tax
Percentage of Revenue
1 to 5%
Royalties – Underground
Percentage of Revenue
5 to 8.5%
Royalties – Surface
Percentage of Revenue
9%
Royalties – Highwall Miner
Percentage of Revenue
8 to 9%
Notes: 1. Federal black lung excise tax is paid only on coal sold domestically. MM&A estimated a
weighted average black lung excise tax of $0.53 per tonne in the economic analysis below.
A summary of the projected Operating Costs is in
Table 18-2
.
Total
YE 12/31
2025
YE 12/31
2026
YE 12/31
2027
YE 12/31
2028
YE 12/31
2029
YE 12/31
2030
YE 12/31
2031
YE 12/31
2032
Remaining
LOM
Average
ROM Production
Tonnes
118.0
7.4
7.7
6.5
6.2
6.4
7.5
7.6
7.1
2.4
Yield
52.92%
36.48%
36.08%
37.29%
37.72%
38.77%
42.45%
42.81%
44.93%
65.10%
Saleable Production
Tonnes
62.4
2.7
2.8
2.4
2.3
2.5
3.2
3.2
3.2
1.5
Thermal Tonnes
5.04
0.16
0.17
0.13
0.16
0.19
0.16
0.16
0.16
0.14
Domestic Met Tonnes
57.39
2.54
2.60
2.30
2.18
2.29
3.02
3.08
3.05
1.40
Export Met Tonnes
-
-
-
-
-
-
-
-
-
-
Total Saleable Tonnes
62.44
2.70
2.78
2.44
2.33
2.48
3.18
3.24
3.21
1.5
Cash Costs per Tonne:
Mining Costs
$87.31
$74.42
$76.69
$84.63
$80.65
$78.66
$76.67
$80.44
$82.88
$91.75
Processing and
Transport
$17.82
$20.58
$21.70
$20.07
$19.43
$20.22
$18.85
$19.29
$19.11
$16.68
Sales Related Costs
$21.74
$16.98
$15.67
$15.91
$16.85
$17.28
$19.11
$19.64
$19.00
$23.99
G&A
$3.33
$3.49
$3.28
$3.17
$3.44
$3.33
$3.33
$3.33
$3.33
$3.33
$130.20
$115.47
$117.34
$123.79
$120.36
$119.48
$117.96
$122.70
$124.33
$135.75
19
Economic Analysis
19.1 Assumptions, Parameters and Methods
A pre-feasibility LOM plan was prepared by MM&A for the Logan operations. MM&A prepared mine
projections and production timing forecasts based on coal seam characteristics. Production timing
was carried out from 2025 to depletion (exhaustion) of the coal reserve areas, which is projected
for the year 2057. All costs and prices are based on year-end 2024 nominal United States dollars.
The Mine plan, productivity expectations and cost estimates generally reflect historical performance
by Coronado and efforts have been made to adjust plans and costs to reflect future conditions.
MM&A is confident that the mine plan and financial model are reasonably representative to provide
an accurate estimation of coal reserves.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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SSOCIATES
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67
Capital schedules were developed by MM&A for mine development, infrastructure, and on-going
capital requirements for the life of the mine. Staffing levels were prepared, and operating costs
estimated by MM&A. MM&A utilized historical cost data provided by Coronado and its own
knowledge and experience to estimate direct and indirect operating costs.
The preliminary feasibility financial model, prepared for this TRS, was developed to test the
economic viability of the coal reserve area. The results of this financial model are not intended to
represent a bankable feasibility study, required for financing of any current or future mining
operations, but are intended to prove the economic viability of the estimated coal reserves. All
costs and prices are based on year-end 2024 nominal United States dollars assuming a 2.0% inflation
rate.
On an unlevered basis, the NPV of the project cash flows after taxes was estimated for the purpose
of classifying coal reserves. The project cash flows, excluding debt service, are calculated by
subtracting direct and indirect operating expenses and capital expenditures from revenue. Direct
costs include labor, drilling and blasting, operating supplies, maintenance and repairs, facilities costs
for materials handling, coal preparation, refuse disposal, coal loading, sampling and analysis
services, reclamation and general and administrative costs. Indirect costs include statutory and
legally agreed upon fees related to direct extraction of the mineral. The indirect costs are the
Federal black lung tax, Federal and State reclamation taxes, property taxes, local transportation
prior to delivery at rail or barge loading sites, coal production royalties, sales and use taxes, income
taxes and State severance taxes. Coronado’s historical costs provided a useful reference for
MM&A’s cost estimates.
Sales revenue is based on the metallurgical coal price information provided to MM&A by Coronado.
Projected debt service is excluded from the P&L and cash flow model in order to determine
Enterprise Value.
The financial model expresses coal sales prices, operating costs, and capital expenditures in current
day dollars without adjustment for inflation. Capital expenditures and reclamation costs are
included based on engineering estimates for each mine by year. The Coronado division’s existing
allocations of administrative costs are continued in the future projections.
Coronado will pay royalties for the various current and projected operations. The royalty rates vary
by mining method and location. The royalty rates for Logan are estimated to be 5 to 9% of the sales
revenue.
The projection model also includes consolidated income tax calculations at the Coronado level,
incorporating statutory depletion calculations, as well as state income taxes, and a federal tax rate
of 21%. To the extent the mine generates net operating losses for tax purposes, the losses are
carried over to offset future taxable income. The terms “cash flows” and “project cash flows” used
in this report refer to after tax cash flows.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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Figure 19-1: Cash Costs per Tonne
Consolidated cash flows are driven by annual sales tonnage, which at steady-state level ranges from
a peak of 3.4 million tonnes in 2034 to a low of 0.4 million tonnes in 2057. Projected consolidated
revenue ranges from $115.6 million to $601.5 million at a steady state. Revenue totals $11.6 billion
for the project’s life.
Consolidated cash flow from operations is positive throughout the projected operating period, with
the exception of post -production years, due to end-of-mine reclamation spending. Consolidated
cash flow from operations peaks at $149.8 million in 2034 and totals $2.6 billion over the project’s
life. Capital expenditures total $176.8 million from 2025 through 2029 and $797.3 million over the
project’s life.
Coal price forecasts for coal products were prepared by Coronado for its proposed operations. Such
prices were used for the revenue input into the financial model. Sales variable costs such as
production royalties and severance taxes were based upon the revenue input.
19.2 Results
The pre-feasibility financial model, prepared by MM&A for this TRS, was developed to test the
economic viability of each coal resource area. The results of this financial model are not intended
to represent a bankable feasibility study, as may be required for financing of any current or future
mining operations contemplated but are intended to prove the economic viability of the estimated
coal reserves. Optimization of the LOM plan was outside the scope of the engagement.
Figure 19-1
Table 19-1
and EBITDA for Logan.
As shown above, Logan’s average cash cost ranges between approximately $121 and $182 per tonne
for most of the operating period.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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Table 19-1: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)
Table 19-2: Summary of Logan Key Financial Performance Metrics (2025-2032)
LOM
LOM
P&L
LOM
EBITDA
Tonnes
Pre Tax P&L
Per Tonne
EBITDA
Per Tonne
Deep Mines
Camp Br Chilton
1,296
$44,036
$33.98
$58,291
$44.98
Eagle No. 1 (Toney Fork)
8,247
$161,979
$19.64
$295,687
$35.85
Elk Lick Chilton
3,063
$132,352
$43.21
$169,419
$55.31
Lower Powellton
4,616
$272,306
$58.99
$346,573
$75.08
Lower War Eagle
4,328
$19,444
$4.49
$112,913
$26.09
Powellton No. 1
2,680
$55,081
$20.55
$118,933
$44.38
Muddy Br No.2 Gas
1,390
$33,680
$24.22
$55,282
$39.76
Toney Fork No.2 Gas
1,639
$14,376
$8.77
$47,309
$28.86
Upper Winifrede
1,438
$75,935
$52.81
$87,094
$60.57
Lower Winifrede
2,091
$37,994
$18.17
$68,678
$32.84
Consolidated Deep Mines
30,788
$847,183
$27.52
$1,360,180
$44.18
Surface Mines
Toney Fork Surf
6,339
$83,917
$13.24
$234,177
$36.94
Buffalo Cr South Area
7,259
$(30,546)
$(4.21)
$107,723
$14.84
Sugar Camp Area 1
4,912
$(40,284)
$(8.20)
$89,192
$18.16
Surface Mines Consolidated
18,510
$13,086
$0.71
$431,092
$23.29
HWM Operations
Toney Fork HWM
Buffalo Cr South HWM
Sugar Camp HWM
HWM Consolidated
Grand Total
As shown in
Table 19-1,
Coronado’s consolidated operations show positive LOM P&L and LOM EBITDA of $2.0 billion and
$3.0 billion, respectively. A summary of the key financial performance metrics projected through
2032 is provided below in
Table 19-2
.
Total
YE
12/31
2025
YE
12/31
2026
YE
12/31
2027
YE
12/31
2028
YE
12/31
2029
YE
12/31
2030
YE
12/31
2031
YE
12/31
2032
Remaining
LOM
Average
ROM Production Tonnes
118.0
7.4
7.7
6.5
6.2
6.4
7.5
7.6
7.1
2.4
Yield
52.92%
36.48%
36.08%
37.29%
37.72%
38.77%
42.45%
42.81%
44.93%
65.10%
Saleable Production Tonnes
62.4
2.7
2.8
2.4
2.3
2.5
3.2
3.2
3.2
1.5
Thermal Tonnes
5.04
0.16
0.17
0.13
0.16
0.19
0.16
0.16
0.16
0.14
Domestic Met Tonnes
57.39
2.54
2.60
2.30
2.18
2.29
3.02
3.08
3.05
1.40
Export Met Tonnes
-
-
-
-
-
-
-
-
-
-
Total Saleable Tonnes
62.44
2.70
2.78
2.44
2.33
2.48
3.18
3.24
3.21
1.5
Cash Costs per Tonne:
Mining Costs
$87.31
$74.42
$76.69
$84.63
$80.65
$78.66
$76.67
$80.44
$82.88
$91.75
Processing and Transport
$17.82
$20.58
$21.70
$20.07
$19.43
$20.22
$18.85
$19.29
$19.11
$16.68
Sales Related Costs
$21.74
$16.98
$15.67
$15.91
$16.85
$17.28
$19.11
$19.64
$19.00
$23.99
G&A
$3.33
$3.49
$3.28
$3.17
$3.44
$3.33
$3.33
$3.33
$3.33
$3.33
Total Cash Costs
$130.20
$115.47
$117.34
$123.79
$120.36
$119.48
$117.96
$122.70
$124.33
$135.75
EBITDA per Tonne
$48.43
$38.66
$26.25
$21.86
$27.41
$31.43
$40.59
$38.04
$40.11
$56.64
Expansion CapEx ($M)
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
Maintenance CapEx ($M)
Total CapEx
After Tax Cash Flows were developed in order to calculate the NPV for this Property. The NPV is
estimated to be $525.6 million at a discount rate of 10.0%. The pre-feasibility financial model (+/-
20 percent in accuracy) prepared for the TRS was developed to test the economic viability of each
coal resource area. A 5% operating cost contingency was included in the economic analysis. The
NPV estimate was made for the purpose of confirming the economics for classification of coal
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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SSOCIATES
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Table 19-3: Project Cash Flow Summary ($000)
reserves and not for purposes of valuing Coronado or its Logan assets. Mine plans were not
optimized, and actual results of the operations may be different, but in all cases, the mine
production plan assumes the properties are under competent management.
A summary of the Logan after-tax cash flow is shown in
Table 19-3
.
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
Total
2025
2026
2027
2028
2029
Production & Sales tonnes
62,438
2,700
2,776
2,436
2,334
2,476
Total Revenue
$11,559,493
$431,738
$414,877
$369,887
$359,001
$388,428
EBITDA
$3,023,805
$104,376
$72,875
$53,250
$63,977
$77,821
Net Income
$1,708,510
$51,304
$26,202
$8,241
$20,966
$30,793
Net Cash Provided by Operating Activities
$2,596,265
$69,007
$72,009
$54,313
$55,108
$68,042
Purchases of Property, Plant, and Equipment
$(797,293)
$(26,825)
$(30,347)
$(45,357)
$(41,018)
$(33,210)
Net Cash Flow
$1,798,971
$42,183
$41,661
$8,956
$14,091
$34,832
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2030
2031
2032
2033
2034
2035
Production & Sales tonnes
3,178
3,241
3,206
3,216
3,407
2,981
Total Revenue
$522,595
$540,804
$547,027
$561,766
$601,508
$536,244
EBITDA
$128,996
$123,272
$128,562
$139,242
$184,308
$149,352
Net Income
$71,124
$59,690
$62,601
$73,641
$125,576
$96,230
Net Cash Provided by Operating Activities
$103,811
$111,267
$114,927
$122,301
$149,815
$137,874
Purchases of Property, Plant, and Equipment
$(46,464)
$(59,042)
$(40,956)
$(48,790)
$(21,108)
$(30,380)
Net Cash Flow
$57,347
$52,225
$73,971
$73,511
$128,708
$107,494
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
71
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2036
2037
2038
2039
2040
2041
Production & Sales tonnes
2,422
2,195
2,086
2,094
2,062
1,841
Total Revenue
$441,553
$405,706
$389,964
$399,270
$401,241
$360,027
EBITDA
$101,941
$100,869
$115,479
$118,895
$116,255
$95,902
Net Income
$55,393
$53,624
$73,056
$74,273
$70,685
$53,621
Net Cash Provided by Operating Activities
$100,344
$91,144
$101,078
$103,612
$102,638
$89,669
Purchases of Property, Plant, and Equipment
$(47,299)
$(38,083)
$(24,640)
$(25,550)
$(26,054)
$(19,556)
Net Cash Flow
$53,046
$53,062
$76,438
$78,063
$76,585
$70,113
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2042
2043
2044
2045
2046
2047
Production & Sales tonnes
1,661
1,090
1,160
1,157
1,158
1,160
Total Revenue
$326,871
$209,419
$228,128
$232,187
$236,950
$242,091
EBITDA
$81,691
$49,813
$67,980
$68,889
$70,442
$72,127
Net Income
$43,521
$25,278
$45,785
$45,141
$45,354
$46,293
Net Cash Provided by Operating Activities
$76,376
$51,747
$54,738
$59,137
$60,568
$61,806
Purchases of Property, Plant, and Equipment
$(9,390)
$(5,221)
$(8,200)
$(13,786)
$(20,107)
$(13,417)
Net Cash Flow
$66,986
$46,525
$46,537
$45,351
$40,460
$48,390
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2048
2049
2050
2051
2052
2053
Production & Sales tonnes
1,162
1,162
1,157
1,155
1,160
1,162
Total Revenue
$247,466
$252,289
$256,353
$261,045
$267,422
$273,086
EBITDA
$73,922
$75,432
$76,606
$78,203
$80,656
$82,085
Net Income
$47,205
$47,208
$46,830
$46,927
$48,499
$49,978
Net Cash Provided by Operating Activities
$62,898
$64,224
$65,488
$67,015
$68,989
$70,267
Purchases of Property, Plant, and Equipment
$(12,605)
$(14,109)
$(14,635)
$(17,169)
$(16,012)
$(15,676)
Net Cash Flow
$50,293
$50,115
$50,853
$49,845
$52,977
$54,591
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2054
2055
2056
2057
2058
2059
Production & Sales tonnes
1,160
1,027
829
425
-
-
Total Revenue
$278,086
$252,544
$208,610
$115,312
$-
$-
EBITDA
$84,068
$73,616
$57,658
$55,247
$-
$-
Net Income
$50,995
$42,312
$30,438
$45,262
$(2,988)
$(1,383)
Net Cash Provided by Operating Activities
$71,658
$65,937
$54,221
$34,925
$(21,866)
$(9,263)
Purchases of Property, Plant, and Equipment
$(14,537)
$(13,484)
$(4,267)
$-
$-
$-
Net Cash Flow
$57,121
$52,454
$49,954
$34,925
$(21,866)
$(9,263)
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2060
2061
2062
2063
2064
2065
Production & Sales tonnes
-
-
-
-
-
-
Total Revenue
$-
$-
$-
$-
$-
$-
EBITDA
$-
$-
$-
$-
$-
$-
Net Income
$(714)
$(373)
$(79)
$(0)
$(0)
$(0)
Net Cash Provided by Operating Activities
$(4,724)
$(3,836)
$(1,002)
$-
$-
$-
Purchases of Property, Plant, and Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$(4,724)
$(3,836)
$(1,002)
$-
$-
$-
19.3 Sensitivity
Sensitivity of the NPV results to changes in the key drivers is presented in the chart below. The
sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices, operating
costs, and capital costs are increased and decreased in increments of 5% within a +/- 15% range.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
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Figure 19-2: Sensitivity of NPV
As shown, NPV is quite sensitive to changes in sales price and operating cost estimates, and slightly
sensitive to changes in capital cost estimates.
20
Adjacent Properties
20.1 Information Used
No Proprietary information associated with neighboring properties was used as part of this study.
21
Other Relevant Data and Information
MM&A performed a previous audit of all the Properties in year 2017 for Coronado based on SEC
Industry Guide 7 standards. In addition, MM&A completed a Limited Phase I Environmental Site
Assessment (
ESA
) on the Property in 2017 on behalf of Coronado. MM&A has subsequently
conducted Joint Ore Reserve Committee (
JORC
) compliant resource and reserve assessments of the
Logan County assets as of: (1) December 31, 2017, (2) December 31, 2020, (3) December 31, 2021
(4) December 31, 2022 and (5) December 31, 2023. By assignment, the JORC assessment included
a preliminary feasibility level study of the subject coal reserves, encompassing detailed mine
planning and cost analysis through depletion of Logan’s JORC-compliant coal reserves. MM&A
utilized these former preliminary feasibility studies as the basis of an updated study which meets
those standards set forth by the SEC in Regulation S-K 1300.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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22
Interpretation and Conclusions
22.1 Conclusion
Sufficient data has been obtained through various exploration and sampling programs and mining
operations to support the geological interpretations of seam structure and thickness for coal
horizons situated on the Property. The data is of sufficient quantity and reliability to reasonably
support the coal resource and coal reserve estimates in this TRS.
The geological data and preliminary feasibility study, which consider mining plans, revenue, and
operating and capital cost estimates are sufficient to support the classification of coal reserves
provided herein.
This geologic evaluation conducted in conjunction with the preliminary feasibility study is sufficient
to conclude that the 62.4 Mt of marketable coal reserves identified on the Property are
economically mineable under reasonable expectations of market prices for metallurgical coal
products, estimated operation costs, and capital expenditures.
22.2 Risk Factors
Risks have been identified for operational, technical and administrative subjects addressed in the
Pre-Feasibility Study. A risk matrix has been constructed to present the risk levels for all the risk
factors identified and quantified in the risk assessment process. The risk matrix and risk assessment
process are modelled to that presented in the Australian and New Zealand Standard on Risk
Management (AS/NZS 4360).
The purpose of the characterization of the project risk components is to inform the project
stakeholders of key aspects of the Coronado projects that can be impacted by events whose
consequences can affect the success of the venture. The significance of an impacted aspect of the
operation is directly related to both the probability of occurrence and the severity of the
consequences. The initial risk for a risk factor is herein defined as the risk level after the potential
impact of the risk factor is addressed by competent and prudent management utilizing control
measures readily available. Residual risk for a risk factor is herein defined as the risk level following
application of special mitigation measures if management determines that the initial risk level is
unacceptable. Initial risk and residual risk can be quantified numerically, derived by the product of
values assigned to probability and consequence ranging from very low risk to very high risk.
The probability and consequence parameters are subjective numerical estimates made by practiced
mine engineers and managers. Both are assigned values from 1 to 5 for which the value 1 represents
the lowest probability and least consequence, and the value 5 represents the highest probability
and greatest consequence. The products which define the Risk Level are classified from very low to
very high.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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Risk Level Table (R = P x C)
Risk Level (R)
Very Low (1 to 2)
Low (3 to 5)
Moderate (6 to 11)
High (12 to 19)
Very High (20 to 25)
Risk aspects identified and evaluated during this assignment total 15. No residual risks are rated
Very High. One (1) residual risk is rated High. Eight (8) of the risk aspects could be associated with
Moderate residual risk. Four (4) of the risk aspects were attributed Low or Very Low residual risks.
22.2.1 Governing Assumptions
The listing of the aspects is not presumed to be exhaustive. Instead that listing is presented based
on the experiences of the contributors to the TRS.
1. The probability and consequence ratings are subjectively assigned, and it is assumed that
this subjectivity reasonably reflects the condition of the active and projected mine
operations.
2. The Control Measures shown in the matrices presented in this chapter are not exhaustive.
They represent a condensed collection of activities that the author of the risk assessment
section has observed to be effective in coal mining scenarios.
3. Mitigation Measures listed for each risk factor of the operation are not exhaustive. The
measures listed, however, have been observed by the author to be effective.
4. The monetary values used in ranking the consequences are generally-accepted quantities for
the coal mining industry.
22.2.2 Limitations
The risk assessment proposed in this report is subject to the limitations of the information currently
collected, tested, and interpreted at the time of the writing of the report.
22.2.3 Methodology
The numerical quantities (i.e., risk levels) attributable to either “initial” or “residual” risks are
derived by the product of values assigned to probability and consequence ranging from very low
risk to very high risk.
R = P x C
Where:
R = Risk Level
P = Probability of Occurrence
C = Consequence of Occurrence
The Probability (P) and Consequence (C) parameters recited in the formula are subjective numerical
estimates made by practiced mine engineers and managers. Both P and C are assigned integer
values ranging from 1 to 5 for which the value 1 represents the lowest probability and least
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
75
Table 22-1: Probability Level Table
consequence, and the value 5 represents the highest probability and greatest consequence. The
products (R = P x C) which define the Risk Level, are thereafter classified from very low to very high.
Risk Level Table
Risk Level (R)
Very Low (1 to 2)
Low (3 to 5)
Moderate (6 to 11)
High (12 to 19)
Very High (20 to 25)
Very high initial risks are considered to be unacceptable and require corrective action well in
advance of project development. In short, measures must be applied to reduce very high initial risks
to a tolerable level.
As shown and discussed above, after taking into account the operational, technical, and
administrative actions that have been applied or are available for action when required, the residual
risk can be determined. The residual risk provides a basis for the management team to determine
if the residual risk level is acceptable or tolerable. If the risk level is determined to be unacceptable,
further actions should be considered to reduce the residual risk to acceptable or tolerable levels to
provide justification for continuation of the proposed operation.
22.2.4 Development of the Risk Matrix
Risks have been identified for the technical, operational, and administrative subjects addressed in
the TRS. The risk matrix and risk assessment process are modelled to that presented in the
Australian and New Zealand Standard on Risk Management (AS/NZS 4360).
22.2.4.1 Probability Level Table
Category
Probability Level (P)
1
Remote
Not likely to occur except in exceptional circumstances.
<10%
2
Unlikely
Not likely to occur; small in degree.
10 - 30%
3
Possible
Capable of occuring.
30 - 60%
4
Likely
High chance of occurring in most circumsta nces.
60 - 90%
5
Almost Certain
Event is expected under most circumstances; impossible to
avoid.
>90%
The lowest rated probability of occurrence is assigned the value of 1 and described as remote, with
a likelihood of occurrence of less than ten percent. Increasing values are assigned to each higher
probability of occurrence, culminating with the value of 5 assigned to incidents considered to be
almost certain to occur.
22.2.4.2 Consequence Level Table
Table 22-2
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
76
Table 22-2: Consequence Level Table
Correlation of Events in Key Elements of the Project Program to Event Severity Category
Category
Severity of
the Event
Financial Impact
of the Event
Unplanned
Loss of
Production
(Impact on
Commercial
Operations)
Events Impacting
on the Environment
Events Affecting th’ Program's
Social and Community
Relations
Resultant Regulatory /
Sovereign Risk
Events Affecting Occupational Health &
Safety
1
Insignificant
< USD $0.5
million
≤ 12 hours
Insignificant loss of
habitat; no
irreversible effects
on water, soil and
the environment.
Occasional nuisance impact on
travel.
-
Event recurrence avoided by corrective
action through established procedures
(Engineering, guarding, training).
2
Minor
USD $0.5 million
to $2.0 million
≤ 1 day
No significant
change to species
populations; short-
term reversible
perturbation to
ecosystem function.
Persistent nuisance impact on
travel. Transient adverse media
coverage.
-
First aid – lost time.
avoided by corrective action through
established procedures.
3
Moderate
USD $2.0 million
to $10.0 million
≤ 1 week
Appreciable change
to species
population;
medium-term (≤10
years) detriment to
ecosystem function.
Measurable impact on travel
and water/air quality.
Significant adverse media
coverage / transient public
outrage.
Uncertainty securing or
retaining essential
approval / license.
Medical Treatment –
permanent
incapacitation. Avoiding event
recurrence requires modification to
established corrective action procedures
.
Change to regulations
(tax; bonds; standards).
4
Major
USD $10.0
million to $50.0
million
1 to 2 weeks
Change to species
population
threatening
viability; long-term
(>10 years)
detriment to
ecosystem function.
Long-term, serious impact on
travel and use of water
resources; degradation of air
quality; sustained and effective
public opposition.
Suspension / long-delay
in securing essential
approval / license.
Fatality.
requires modification to established
corrective action procedures and staff
retraining.
Change to laws (tax;
bonds; standards).
5
Critical
>USD $50.0
million
>1 month
Species extinction;
irreversible damage
to ecosystem
function.
Loss of social license.
Withdraw / failure to
secure essential
approval / license.
Multiple fatalities.
Avoiding event
recurrence requires major overhaul of
policies and procedures.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
77
Table 22-3: Risk Matrix
The lowest rated consequence is assigned the value of 1 and is described as an Insignificant
Consequence, parameters of which include non-reportable safety incidents with zero days lost
accidents, no environmental damage, loss of production or systems for less than 12 hours and cost
of less than USD $0.5 million. Increasing values are assigned to each higher consequence,
culminating with the value of 5 assigned to critical consequences, the parameters of which include
multiple-fatality accidents, major environmental damage, and loss of production or systems for
longer than one month and cost of greater than USD $50.0 million.
Composite Risk Matrix R = P x C and Color-Code Convention
The risk level, defined as the product of probability of occurrence and consequence, ranges in value
from 1 (lowest possible risk) to 25 (maximum risk level). The values are color-coded to facilitate
identification of the highest risk aspects.
P x C = R
Consequence (C)
Insignificant
Minor
Moderate
Major
Critical
1
2
3
4
5
Probability Level (P)
Remote
1
1
2
3
4
5
Unlikely
2
2
4
6
8
10
Possible
3
3
6
9
12
15
Likely
4
4
8
12
16
20
Almost
Certain
5
5
10
15
20
25
22.2.5 Categorization of Risk Levels and Color Code Convention
Very high risks are considered to be unacceptable and require corrective action. Risk reduction
measures must be applied to reduce very high risks to a tolerable level.
22.2.6 Description of the Coal Property
The Logan Mine Complex (
Logan
) is located in Logan, Boone, and Wyoming Counties, West Virginia
–is an active operation with four underground mines and two surface mines. Active underground
operations within the Logan Mine Complex all utilize continuous mining production sections. Large
mining operations are conducted at the Powellton No. 1 Mine, Muddy Bridge Mine, Eagle No. 1
Mine and Lower War Eagle Mine. Other operations are projected on relatively small reserve blocks
to be developed sequentially to sustain production levels as each reserve is depleted. The method
provides continuity, preserving skilled work groups and enabling effective utilization of production
equipment. Mines located above drainage have access via drift entries. A few of the coal seams
are below drainage and are accessed with slopes and shafts or box cuts.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
78
Table 22-4: Risk Assessment Matrix
The Logan Mine Complex also includes two active surface mines: Toney Fork and Elklick (Buffalo
Creek South). Both area and contour surface mining are employed. Highwall mining is conducted
by contract operators. The surface operations are relatively small and developed sequentially to
sustain production levels. Similar to the underground operations, the method provides continuity
while preserving skilled work groups and enabling effective utilization of production equipment.
The surface mining methods selected utilize hydraulic shovels, front-end loaders, large tractors and
rock trucks for overburden removal.
22.2.7 Summary of Residual Risk Ratings
Each risk factor is numbered, and a risk level for each is determined by multiplying the assigned
probability by the assigned consequence. The risk levels are plotted on a risk matrix to provide a
composite view of the Coronado risk profile. The average risk level is 7.7, which is defined as
Moderate.
Consequence
Critical
>$50 MM
9, 10
Major
$10-50MM
7
Moderate
$2-10 MM
13
15
1, 2, 3, 4
Minor
$0.5-$2 MM
14
6, 11
5, 8
Low
<$0.5 MM
12
<10%
10-30%
30-60%
60-90%
>90%
Remote
Unlikely
Possible
Likely
Almost
Certain
22.2.8 Risk Factors
A high-level approach is utilized to characterize risk factors that are generally similar across a
number of the active and proposed mining operations. Risk factors that are unique to a specific
operation or are particularly noteworthy are addressed individually.
22.2.8.1 Geological and Coal Resource
Coal mining is accompanied by risk that, despite exploration efforts, mining areas will be
encountered where geological conditions render extraction of the resource to be uneconomic, or
that coal quality characteristics disqualify the product for sale into target markets.
Offsetting the geological and coal resource risk are the massive size of the controlled property which
allows large areas to be mined sufficiently away from areas where coal quality and mineability may
be less favorable. In addition, several mines are designed to operate with multiple production
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
79
Table 22-5: Geological and Coal Resource Risk Assessment (Risks 1 and 2)
sections, which lessens the immediate impact when one section encounters difficulties. The large
reserve areas also provide a mitigation strategy of developing an additional (spare) section at each
mine, or additional mines, which can be activated when adverse conditions are encountered,
thereby maintaining consistent production and quality. The spare section or mines require
additional mine extension cost but increase flexibility and performance consistency.
The larger reserve areas will be developed with multiple production sections and the small,
replacement production reserve areas provide ready access to alternative locations if geological and
coal resource characteristics require abandonment of an active production area.
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Recoverable coal tonnes
recognized to be
significantly less than
previously estimated.
Reserve base is adequate to
serve market commitments and
respond to opportunities for
many years. Local adverse
conditions may increase
frequency and cost of
production unit relocations.
Previous and ongoing
exploration and extensive
regional mining history
provide a high level of
confidence of coal seam
correlation, continuity of the
coal seams, and coal
resource tonnes.
4
4
16
Optimize mine plan
to increase resource
recovery; develop
mine plan to provide
readily available
alternate mining
locations to sustain
expected production
level.
3
3
9
Coal quality locally proves
to be lower than initially
projected.
If uncontrolled, production and
sale of coal that is out of
specification can result in
rejection of deliveries,
cancellation of coal sales
agreements and damage to
reputation.
Exploration and vast
experience and history in
local coal seams provide
confidence in coal quality;
limited excursions can be
managed with careful
product segregation and
blending.
3
5
15
Develop mine plan to
provide readily
available alternate
mining locations to
sustain expected
production level;
modify coal sales
agreements to reflect
coal quality.
3
3
9
22.2.8.2 Environmental
MM&A completed a Limited Phase I Environmental Site Assessment (
ESA
) on the Logan County
Property in May 2017 on behalf of Coronado. MM&A concluded that no long-term liabilities existed
at the time of this ESA.
Water quality and other permit requirements are subject to modification and such changes could
have a material impact on the capability of the operator to meet modified standards or to receive
new permits and modifications to existing permits. Permit protests may result in delays or denials
to permit applications.
HWM panels that are not mined along strike or down-dip may face additional permitting challenges
and require more costly water sampling and analysis due to concerns over potential post-mining
water quality issues.
Environmental standards and permit requirements have evolved significantly over the past 50 years
and to-date, mining operators and regulatory bodies have been able to adapt successfully to
evolving environmental requirements.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
80
Table 22-6: Environmental (Risks 3, 4 and 5)
Table 22-7: Regulatory Requirements (Risk 6)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Environmental
performance standards
are modified in the future.
Delays in receiving new
permits and modifications to
existing permits; cost of testing
and treatment of water and
soils
Work with regulatory
agencies to understand and
influence final standards;
implement testing,
treatment and other actions
to comply with new
standards.
3
4
12
Modify mining and
reclamation plans to
improve compliance
with new standards
while reducing cost
of compliance.
3
3
9
New permits and permit
modifications are
increasingly delayed or
denied.
Interruption of production and
delayed implementation of
replacement production from
new mines.
Comply quickly with testing,
treatment and other actions
required; continue excellent
compliance performance
within existing permits.
3
4
12
Establish and
maintain close and
constructive working
relationships with
regulatory agencies,
local communities
and community
action groups.
3
3
9
Up-dip HWM reserves are
difficult to permit and
extract.
HWM production is limited to
only those panels that are on-
strike or down-dip.
Work with regulatory
agencies to understand
water quality standards;
implement sampling and
testing actions to
understand specific areas
and/or seams with potential
water quality problems.
5
3
15
Modify mining and
water management
plans to address
agency concerns
over post-mining
treatment problem
areas.
5
2
10
22.2.8.3 Regulatory Requirements
Federal and state health and safety regulatory agencies occasionally amend mine laws and
regulations. The impact is industry-wide. Mining operators and regulatory agencies have been able
to adapt successfully to evolving health and safety requirements.
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Federal and state mine
safety and health
regulatory agencies
amend mine laws and
regulations.
Cost of training, materials,
supplies and equipment;
modification of mine
examination and production
procedures; modification of
mining plans.
Participate in hearings and
workshops when possible to
facilitate understanding and
implementation; work
cooperatively with agencies
and employees to facilitate
implementation of new laws
and regulations.
4
3
12
Familiarity and
experience with new
laws and regulations
results in reduced
impact to operations
and productivity and
improved supplies
and equipment
options.
4
2
8
22.2.8.4 Market and Transportation
Most of the current and future production is expected to be directed to domestic and international
metallurgical markets. Historically the metallurgical markets have been cyclical and highly volatile.
Thermal coal markets are also cyclical and domestic markets have been adversely affected by
competition from natural gas and subsidized renewable energy sources and regulation.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
81
Table 22-8: Market and Transportation (Risk 7)
Table 22-9: Market and Transportation (Risk 8)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Volatile coal prices drop
precipitously.
Loss of revenue adversely
affects profitability; reduced
cash flow may disrupt capital
expenditures plan.
Cost control measures
implemented; capital
spending deferred.
4
5
20
High-cost operations
closed, and
employees
temporarily
furloughed.
4
4
16
Occasional delay or interruption of rail, river and terminals service may be expected. The operator
can possibly minimize the impact of delays by being a preferred customer by fulfilling shipment
obligations promptly and maintaining close working relationships.
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Rail or river transport is
delayed; storage and
shipping access at river
and ocean terminals is not
available.
Fulfillment of coal sales
agreements delayed; limited
coal storage at mines may
increase cost of rehandling;
production may be temporarily
idled.
Provide adequate storage
capacity at mines;
coordinate continuously with
railroad and shipping
companies to respond
quickly and effectively to
changing circumstances.
5
3
15
Provide back-up
storage facility along
with personnel,
equipment and
rehandle plan to
sustain production
and fulfill sales
obligations timely.
5
2
10
22.2.8.5 Mining Plan
Occupational health and safety risks are inherent in mining operations. Comprehensive training and
retraining programs, internal safety audits and examinations, regular mine inspections, safety
meetings, along with support of trained fire brigades and mine rescue teams are among activities
that greatly reduce accident risks. Employee health monitoring programs coupled with dust and
noise monitoring and abatement reduce health risks to miners.
As underground and surface mines are developed and extended, observation of geological,
hydrogeological and geotechnical conditions leads to modification of mine plans and procedures to
enable safe work within the mine environments.
Highlighted below are selected examples of safety and external factors relevant to Coronado
operations.
22.2.8.5.1 Methane Management
Coalbed methane is present in coal operations below drainage. Often the methane concentration
in shallow coal seams is at such low levels that it can be readily managed with frequent testing and
monitoring, vigilance and routine mine ventilation. Very high methane concentrations may be
present at greater depths. High methane concentrations may require degasification of the coal
seam to assure safe mining. Due to the seams being targeted and their depths, excessive methane
is not expected to be encountered at Logan.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
82
Table 22-10: Methane Management (Risk 9)
Table 22-11: Mine Fires (Risk 10)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Methane hazard is present
in mines operating below
drainage.
Injury or loss of life; possible
ignition of gas and mine
explosion; potential loss of
mine and equipment
temporarily or permanently;
additional mine fan, mine
power, ventilation, monitoring
and examination requirements.
Low to moderate levels can
be managed with frequent
examinations, testing and
monitoring within the mine
ventilation system.
Excellent rock dust
maintenance minimizes
explosion propagation risk
should an ignition occur.
1
5
5
Very high-level
methane
concentrations may
require coal seam
degasification and
gob degasification if
longwall or pillar
extraction methods
are employed.
1
5
5
22.2.8.5.2 Mine Fires
Mine fires, once common at mine operations, are rare today. Most active coal miners have not
encountered a mine fire. Vastly improved mine power and equipment electrical systems, along with
safe mine practices reduce mine fire risks. Crew training and fire brigade support and training
improve response for containment and control if a fire occurs. Spontaneous combustion within coal
mines, which is the source of most fires that occur today, is not expected to commonly occur at the
Logan property. When spontaneous combustion conditions are present, monitoring systems are
employed for early detection and mine plans are designed to facilitate isolation, containment and
rapid extinguishment.
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Mine fire at underground
or surface mine operation.
Injury or loss of life; potential
loss of mine temporarily or
permanently; damage to
equipment and mine
infrastructure.
Inspection and maintenance
of mine power, equipment
and mine infrastructure;
good housekeeping;
frequent examination of
conveyor belt entries;
prompt removal of
accumulations of
combustible materials.
1
5
5
If spontaneous
combustion
conditions are
present, enhanced
monitoring and
examination
procedures will be
implemented; mine
design will
incorporate features
to facilitate isolation,
containment and
extinguishment of
spontaneous
combustion
locations.
1
5
5
22.2.8.5.3 Highwall Failure
Contour surface mining, area surface mining and highwall mining all expose miners and production
equipment to the risk of highwall failure. The highwall can be designed to incorporate safety
precautions to address geotechnical and hydrogeological concerns. Drilling and blasting design can
be modified to fit soil and strata conditions to enhance highwall stability. Foremen and crews are
trained to examine the highwalls frequently to observe changes and indications of failure. Highwall
designs incorporate adequate web thickness and safety pillar width to assure highwall stability.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
83
Table 22-12: Highwall Failure (Risk 11)
Table 22-13: Availability of Supplies and Equipment (Risk 12)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Highwall failure occurs at
surface or highwall mining
operations.
Injury or loss of life;
catastrophic damage to
equipment; production
interruption.
Regular inspection for
change and signs of failure;
conservative design of HWM
web thickness and safety
pillar width; conservative
wall slope and bench width
in design.
4
3
12
Optimize drilling and
blasting plan;
increase safety
factors for wall slope
and bench width;
install
instrumentation and
frequent survey to
detect movement;
dewater to reduce
wall pressure.
4
2
8
22.2.8.5.4 Availability of Supplies and Equipment
The industry has periodically experienced difficulty receiving timely delivery of mine supplies and
equipment. Availability issues often accompanied boom periods for coal demand. Any future
delivery of supplies and equipment delays are expected to be temporary with limited impact on
production.
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Disruption of availability
for supplies and
equipment.
Temporary interruption of
production.
Force majeure provision in
coal sales agreements to
limit liability for delayed or
lost sales.
3
2
6
Work closely with
customers to assure
delayed coal delivery
rather than cancelled
sales; monitor
external conditions
and increase
inventory of critical
supplies; accelerate
delivery of
equipment when
possible.
3
1
3
22.2.8.5.5 Labor
Work stoppage due to labor protests are considered to be unlikely and accompanied by limited
impact should it occur. Excellent employee relations and communications limit the exposure to
outside protesters. Loss of supervisors and skilled employees to retirement is inevitable; the impact
can be lessened with succession planning and training and training and mentorship of new
employees.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
84
Table 22-14: Labor – Work Stoppage (Risk 13)
Table 22-15: Labor – Retirement (Risk 14)
Table 22-16: Other (Risk 15)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Work stoppage due to
strikes, slowdowns or
secondary boycott activity.
Loss of production and coal
sales; damaged customer and
employee relations; reputation
loss.
Maintain excellent employee
relations and
communications; maintain
frequent customer
communications.
2
3
6
Develop plan for
employee
communications and
legal support to
minimize impact of
secondary boycott
activities.
1
3
3
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation Measures
Residual Risk
Level
P
C
R
P
C
R
Retirement of supervisors
and skilled employees.
Loss of leadership and
critical skills to sustain
high levels of safety,
maintenance and
productivity.
Monitor demographics closely
and maintain communications
with employees who are
approaching retirement age;
maintain employee selection
and training programs.
3
3
9
Maintain selection of
candidates and
implementation of in-house
or third-party training for
electricians and
mechanics; develop
employee mentoring
program.
3
2
6
22.2.8.5.6 Other Operational Challenges
Additional operational challenges recently encountered by Coronado include hard cutting zones
within the Eagle No. 1 and Muddy Bridge mines. In addition, recent discussions between Coronado
and AEP have revealed recovery impacts in areas beneath towers supporting high-voltage electrical
lines that cross some of Logan’s reserves. Other potential challenges include flooded overlying mine
workings from previous operations. All of these additional challenges have the potential to impact
overall recovery of the reserves.
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Challenges associated
with hard cutting zones,
presence of electrical
distribution lines and
flooded overlying mine
works.
Reduction in overall reserve
recovery; increased mine cost.
Exploration data and mine
mapping provide confidence
in data control.
3
3
9
Develop mine plan to
provide readily
available alternate
mining locations to
sustain expected
production level;
collect rock
mechanics data in
advance of mining.
2
3
6
23
Recommendations
Coronado is continuing to work both internally and with outside assistance to further define their
Resource Base and to Optimize the LOM Plan.
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2024
Central Appalachian Coal Basin
West Virginia, USA
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Table 25-1: Information from Registrant Relied Upon by MM&A
24
References
Publicly available information from various State and Federal agencies was used where relevant.
25
Reliance on Information Provided by the Registrant
A summary of the information provided by Coronado relied upon by MM&A for the purposes of this
TRS is provided in
Table 25-1
.
Information Provided by Coronado
Report
Section
Marketing
Long-term price forecast used in financial projections
16.2
Legal
Mineral control and surface control rights as shown on maps
3.2, 3.3
Environmental
Permit and bonding information
17.3
APPENDIX
A
MM&A QUALIFICATIONS
APPENDIX
B
MAPS
APPENDIX
C
Appendix C
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Glossary of Abbreviations and Definitions
Abbreviation
Definition
ACPS
Analysis of Coal Pillar Stability
ANAB
ANSI National Accreditation Board
ASTM
ASTM International
AVS
Applicant Violator System
bcm
Bank cubic meters
bcm/hr
Bank cubic meters per hour
Btu/lb.
British Thermal Unit per pound
Carlson
Carlson Mining – formerly SurvCADD
®
modeling in the Appalachian region
CFR
Code of Federal Regulations
Coronado
Coronado Global Resources Inc.
CSR
Coke strength after reaction
CSX
CSX Corporation, a rail-based freight transportation company
CTR
Contour mining
Demonstrated
reserves
Demonstrated reserves are the sum of proven and probable reserves.
EBITDA
Earnings before Interest, Taxes, Depreciation, and Amortization
EOM
End-of-mine reclamation
EPA
United States Environmental Protection Agency
ESA
Limited Phase I Environmental Site Assessment
Feasibility Study
“…comprehensive technical and economic study of the selected development
option for a mineral project, which includes detailed assessments of all applicable
modifying factors together with any other relevant operational factors, and detailed
financial analysis that are necessary to demonstrate, at the time of reporting, that
extraction is economically viable. According to the proposed definition, the results
of the study may serve as the basis for a final decision by a proponent or financial
institution to proceed with, or finance, the development of the project. Thus, a
feasibility study is more comprehensive, with a higher degree of accuracy, and
yielding results with a higher level of confidence, than a pre-feasibility study.”
HWM
Highwall mining
In situ
Its natural position; said specific of a rock, soil, or fossil when in the situation in
which was originally formed or deposited
Indicated
Resources
Indicated resources are those lying between 0.4-kilometer and 1.2-kilometer radius
from such an observation point and reported herein as in-situ mineral resources.
Inferred
Resources
Inferred resources lie more than a 1.2-kilometer radius from a valid point of
measurement but less than 4.8 kilometers from one, and reported herein as in-situ
mineral resources.
JORC Code
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves
lb. SO
2
Pounds per sulfur dioxide per million British thermal units
LOM
Life-of-mine
M&R
Maintenance and repair
Measured
Resources
Measured resources are those lying within 0.4-kilometer radius from a valid point of
measurement and reported herein as in-situ mineral resources.
MINER Act
Mine Improvement and New Emergency Response Act of 2006
Appendix C
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Abbreviation
Definition
Mineral Reserve
“…the economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes dilution materials and allowances for losses, which occur
when the material is mined or extracted and is defined by studies at Preliminary
Feasibility or Feasibility level as appropriate that include Modifying Factors. Such
studies demonstrate that, at the time of reporting, extraction of the mineral reserve
is economically viable under reasonable investment and marketing assumptions”.
Mineral Resource
“…a concentration or occurrence of solid material of economic interest or on the
Earth’s crust in such form, grade or quality that there are reasonable prospects for
eventual economic extraction. The location, quantity, grade, continuity and other
geological characteristics and continuity of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and knowledge, including
sampling.”
MM&A
Marshall Miller & Associates, Inc.
Modifying Factors
“…considerations used to convert Mineral Resources to Mineral Reserves. These
include, but are not restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental compliance, plans, negotiations, or
agreements with local individuals or groups and governmental factors.”
MRMR
Mineral Resources to Mineral Reserves
MSHA
United States Department of Labor Mine Safety and Health Administration
Mt
Million metric tonnes
NRTL
Nationally Recognized Test Laboratory
NS
Norfolk Southern Corporation, a rail-based freight transportation company
O&M
Operating and maintenance
OSD
Out-of-seam dilution
P&L
Profit and loss before tax
P.E.
Professional Engineer
PJLA
Perry Johnson Laboratory Accreditation, Inc.
Preliminary
Feasibility Study
“…as a comprehensive study of a range of options for the technical and economic
viability of a mineral project that has advanced to a stage where a qualified person
has determined (in the case of underground mining) a preferred mining method, or
in the case of surface mining) a pit configuration, and in all cases has determined an
effective method of mineral processing and an effective plan to sell the product. The
study’s financial analysis must have the level of detail necessary to demonstrate, at
the time of reporting, that extraction is economically viable. In addition, as noted in
the proposed definition of a pre-feasibility study, while a pre-feasibility study is less
comprehensive and results in a lower confidence level than a feasibility study, a pre -
feasibility study is more comprehensive and results in a higher confidence level than
an initial assessment.”
Property(ies)
Bituminous coal deposits located in Boone, Logan, and Wyoming Counties, West
Virginia.
QP
Qualified Person
Appendix C
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Abbreviation
Definition
Qualified Person
“…a person who is a mineral industry professional with at least five years of relevant
experience in the type of mineralization and type of deposit under consideration
and in the specific type of activity that person is undertaking on behalf of the
registrant. In addition, the proposed definition requires a qualified person to be an
eligible member or licensee in good standing of a recognized professional
organization at the
time the technical report is prepared”.
RECs
Recognized Environmental Conditions
Resource
Database
The Resource Database is established by the collection, validation, recording, storing
and processing of data and forms the foundation necessary for the estimation of
Mineral Resource and Mineral Reserve.
A quality assurance and quality control program is essential and must be established
to govern the collection of all data. In reporting, a Mineral Resource must meet the
minimum requirement of “reasonable prospects for economic extraction”. This will
require the concurrent collection and storage of preliminary economic, mining,
metallurgical, environmental, legal and social data and other information for use in
the estimation of MRMR.
The Resource Database will include both “primary” (observation and measurement)
and “interpreted” data. It is recommended that data be stored digitally, using a
documented, standard format and a reliable storage medium that allows for easy
and complete retrieval of the data.
ROM
Run-of-mine
S-K 1300
United States Securities and Exchange Commission Regulation S-K 1300
Modernization of Property Disclosures
SEC
U.S. Securities and Exchange Commission
SMCRA
Surface Mining Control and Reclamation Act of 1977 is the primary federal law that
regulates the environmental effects of coal mining in the United States.
Strip Ratio
Represented by bcm of overburden to recoverable coal tonnes
tph
tonnes per hour
TRS
Technical Report Summary
USA
United States of America
USFW
United States Fish and Wildlife
USGS
United States Geologic Survey
VALMIN Code
Australasian Code for Public Reporting of Technical Assessments and Valuations of
Mineral Assets
WVGES
West Virginia Geological and Economic Survey
APPENDIX
D
INITIAL ECONOMIC ASSESSMENT FOR RESOURCES EXCLUSIVE
OF RESERVES
APPENDIX
E
JORC TABLE 1
3 JORC Table 1 is included in accordance with JORC Code standards. Note that all Coronado properties are covered by JORC Table 1 herein, including
Buchanan, Logan, Mon Valley, and Russel.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Section 1 Sampling Techniques and Data
Criteria
JORC Code explanation
Commentary
Sampling techniques
>
Nature and quality of sampling (e.g. cut channels, random chips, or specific
specialised industry standard measurement tools appropriate to the minerals under
investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.).
These examples should not be taken as limiting the broad meaning of sampling.
>
Include reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement tools or systems used.
>
Aspects of the determination of mineralisation that are Material to the Public
Report. In cases where ‘industry standard’ work has been done this would be
relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other
cases, more explanation may be required, such as where there is coarse gold that
has inherent sampling problems. Unusual commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of detailed information.
>
Most of the coal samples have been obtained from the Properties by subsurface exploration
using core drilling techniques and supplemented by collection of channel samples from
active operations. The protocol for preparing and testing the samples has varied over time
and is not well documented for the older holes drilled on the Properties.
>
Typical USA core drilling sampling technique involves the coal core sample, once recovered
from the core barrel, be described (logged) then wrapped in a sealed plastic sleeve and
placed into a covered core box, which is the length of the sample so that the core can be
delivered to a laboratory in relatively intact condition and with original moisture content.
>
It is reasonable to assume, given the sophistication level of the previous operators, that
these samples were generally collected and processed under industry best practices. This
assumption is based on MM&A’s familiarity with the operating companies and the
companies used to perform the analysis.
>
Some of the drill holes were air rotary bored and no coal core samples were collected. Seam
thickness for rotary-drilled bore holes is verified by calibrated downhole gamma -density
logs.
>
Coal samples that were deemed by MM&A geologists to be unrepresentative were not used
for statistical analysis of coal quality, as documented in the tabulations. A representative
group of drill hole samples from the Properties were then checked against the original drill
laboratory reports to verify accuracy and correctness.
Drilling techniques
>
Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger,
Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of
diamond tails, face-sampling bit or other type, whether core is oriented and if so, by
what method, etc.).
>
The Properties have been extensively explored by subsurface drilling efforts carried out by
numerous entities, most of which were completed prior to acquisition by Coronado. The
majority of the drilling was accomplished using vertical continuous (diamond) coring or air
rotary methods.
>
Core drilling methods utilize NX-size (5.4 centimeter) or similar-sized core cylinders to
recover core samples, which can be used to delineate geologic characteristics, and for coal
quality testing and geotechnical logging.
>
Data for the rotary drilled holes is mainly derived from downhole geophysical logs, which
are used to interpret coal and rock thickness and depth since logging of the drill cuttings is
not reliable.
>
Geophysical logging was performed on many of the holes, either by Geological Logging
Systems (a division of MM&A), other geophysical logging contractors, and on those
properties acquired from CONSOL geophysical logging was often performed by CONSOL’s
in-house logging services.
Drill sample
recovery
>
Method of recording and assessing core and chip sample recoveries and results
assessed.
>
Measures taken to maximise sample recovery and ensure representative nature of
the samples.
>
Whether a relationship exists between sample recovery and grade and whether
sample bias may have occurred due to preferential loss/gain of fine/coarse material.
>
Where available, core recovery thickness of coal samples was reconciled with the thickness
interpreted from geophysical logs.
>
Core recovery of the older coal samples lacking geophysical logs is sometimes not well-
documented: however, when the laboratory results for such holes had anomalous values,
the data was disqualified and not used.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Logging
>
Whether core and chip samples have been geologically and geotechnically logged to
a level of detail to support appropriate Mineral Resource estimation, mining studies
and metallurgical studies.
>
Whether logging is qualitative or quantitative in nature. Core (or costean, channel,
etc.) photography.
>
The total length and percentage of the relevant intersections logged.
>
A wide variety of core-logging techniques exist for the properties. For many of the core
holes, the primary data source is a generalized lithology description by the driller, in some
cases supplemented by a more detailed core log completed by a geologist.
>
The logging of core thickness and depth is quantitative. With the exception of the coal
seams, logging of rock strata type is more subjective and best considered as qualitative.
Sub-sampling
techniques and
sample preparation
>
If core, whether cut or sawn and whether quarter, half or all core taken.
>
If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled
wet or dry.
>
For all sample types, the nature, quality and appropriateness of the sample
preparation technique.
>
Quality control procedures adopted for all sub-sampling stages to maximise
representivity of samples.
>
Measures taken to ensure that the sampling is representative of the in situ material
collected, including for instance results for field duplicate/second-half sampling.
>
Whether sample sizes are appropriate to the grain size of the material being
sampled.
>
Typical US practice in the Appalachian Basin is that core samples for deep mineable core
samples are not sawn or subsampled (since seams are not of great thickness and the entire
seam is mined and co-mingled). The entire coal interval drilled is generally analyzed.
>
Oftentimes, core for surface-mineable coal seams are bench sampled separately by the
various coal and rock layers (plies).
>
MM&A has exercised diligence to use only those analyses that are representative of the coal
quality parameters for the appropriate mining type for each sample.
Quality of assay data
and laboratory tests
>
The nature, quality and appropriateness of the assaying and laboratory procedures
used and whether the technique is considered partial or total.
>
For geophysical tools, spectrometers, handheld XRF instruments, etc., the
parameters used in determining the analysis including instrument make and model,
reading times, calibrations factors applied and their derivation, etc.
>
Nature of quality control procedures adopted (e.g. standards, blanks, duplicates,
external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of
bias) and precision have been established.
>
Sample analysis was typically carried out by accredited US laboratories.
>
Standard procedure upon receipt of core samples by the testing laboratory is to log the
depth and thickness of the sample, then perform testing as specified by a representative of
the operating company. Each sample is then analyzed in accordance with procedures
defined under
ASTM International (
ASTM
)
washability (ASTM D4371); ash (ASTM D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865);
volatile matter (ASTM D3175); Free Swell Index (
FSI
) (ASTM D720).
>
Geophysical log parameters commonly include Gamma, Density, Resistivity and caliper.
Geophysical tools are calibrated by the geophysical logging company and where possible,
validated using a calibration hole.
Verification of
sampling and
assaying
>
The verification of significant intersections by either independent or alternative
company personnel.
>
The use of twinned holes.
>
Documentation of primary data, data entry procedures, data verification, data
storage (physical and electronic) protocols.
>
Discuss any adjustment to assay data.
>
All coal intersection data used to generate the geologic model has been cross referenced
with the lithological and geophysical logs by MM&A. Drill hole collars are compared with
topographic elevations to verify depths of downhole records.
>
Laboratory quality was adjusted from dry basis to reflect the anticipated marketable product
moisture.
>
Coal quality results were verified by spot-check with laboratory analysis sheets by MM&A,
to the extent available, before inclusion into the geologic model and use in the resource
estimate.
Location of data
points
>
Accuracy and quality of surveys used to locate drill holes (collar and down-hole
surveys), trenches, mine workings and other locations used in Mineral Resource
estimation.
>
Specification of the grid system used.
>
Quality and adequacy of topographic control.
>
Due to the long history of exploration by various parties on the Properties, a wide variety of
survey techniques exist for documentation of data point locations. Many of the older
exploration drill holes appear to have been located by ground survey; more recently
completed drill holes are often located by high-resolution Global Positioning System (
GPS
)
units.
>
Grid systems used are typically the State Plane Coordinate System pertinent to each
property.
>
Topography is based on either the USGS topographic 7.5-minute quadrangle maps or on
recent aerial photogrammetry as necessary (subject to availability).
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Data spacing and
distribution
>
Data spacing for reporting of Exploration Results.
>
Whether the data spacing and distribution is sufficient to establish the degree of
geological and grade continuity appropriate for the Mineral Resource and Ore
Reserve estimation procedure(s) and classifications applied.
>
Whether sample compositing has been applied.
>
Spacing and distribution of data point information may vary from seam to seam within each
mining area. The areas estimated for coal resource and coal reserve tonnes have been
defined and limited so that the data spacing and distribution is sufficient to establish the
degree of geological continuity appropriate for the estimation and classification of the coal
tonnes.
>
MM&A performed a geostatistical analysis using the Drill Hole Spacing Analysis (
DHSA
)
method. This method attempts to quantify the uncertainty of applying a measurement from
a central location to increasingly larger square blocks and provides recommendations for
determining the distances between drill holes for measured, indicated, and inferred
resources.
>
All of the coal resource tonnes are in the measured, indicated, and inferred categories, and
all of the coal reserve tonnes are in the proved and probable categories in accordance with
the JORC Code and SEC standards.
Orientation of data
in relation to
geological structure
>
Whether the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known, considering the deposit type.
>
If the relationship between the drilling orientation and the orientation of key
mineralised structures is considered to have introduced a sampling bias, this should
be assessed and reported if material.
>
Drill holes have been vertically drilled. No downhole deviation logs have been collected,
and it is therefore not known if the drill holes have deviated away from vertical. Based on
the relatively shallow seam depths, any deviation is expected to be insignificant and
immaterial to the geologic characterization of the Property.
>
The dip of the coal seams is relatively minor, generally 1-2 degrees, and not a material issue
for representation of seam thickness or quality.
Sample security
The measures taken to ensure sample security.
>
Sample handling procedures employed by explorationists follow typical US protocol and
should be adequate to ensure sample security.
Audits or reviews
The results of any audits or reviews of sampling techniques and data.
>
MM&A has reviewed all available geological information for the Properties in developing
the geologic model. Only that data deemed suitable has been used for the purpose of
generating the resource and reserve estimates.
Section 2 Reporting of Exploration Results
Criteria
JORC Code explanation
Commentary
Mineral tenement
and land tenure
status
>
Type, reference name/number, location and ownership including agreements or
material issues with third parties such as joint ventures, partnerships, overriding
royalties, native title interests, historical sites, wilderness or national park and
environmental settings.
>
The security of the tenure held at the time of reporting along with any known
impediments to obtaining a licence to operate in the area.
>
The Coronado coal resources are located within the United States of America in the states
of Virginia; West Virginia; and Pennsylvania. Control of these Properties is governed by
multiple agreements.
>
MM&A has not carried out separate title verification for the coal properties and has not
verified leases, deeds, surveys or other property control instruments pertinent to the
subject resources.
>
Coronado has represented to MM&A that it controls the mining rights to the coal deposits
as shown on its property maps, and MM&A has accepted these as being a true and accurate
depiction of the mineral rights controlled by Coronado. The TRS assumes the properties are
developed under responsible and experienced management.
>
There are no known legal or environmental encumbrances that would impede development
of the subject coal reserves.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Exploration done by
other parties
>
Acknowledgment and appraisal of exploration by other parties.
>
The Properties have been extensively explored by subsurface drilling efforts carried out by
numerous entities, most of which were completed prior to acquisition by Coronado.
>
This exploration work was generally performed to prevailing US best practice standards and
deemed adequate for the purposes of this TRS.
Geology
>
Deposit type, geological setting and style of mineralisation.
>
The Coronado coal resources are located within the Northern and Central Appalachian Coal
Basins.
>
The coal deposits are Carboniferous in age, being of the Pennsylvanian system with.
sedimentary, stratigraphic deposition.
>
Seams of economic significance typically range between 0.3 meters and 1.8 meters in
thickness, with relatively little structural deformation.
>
Regional structure is typically characterized by gently dipping strata to the northwest at less
than one percent.
Drill hole
Information
>
A summary of all information material to the understanding of the exploration
results including a tabulation of the following information for all Material drill holes:
●
easting and northing of the drill hole collar
●
elevation or RL (Reduced Level – elevation above sea level in metres) of the drill
hole collar
●
dip and azimuth of the hole
●
down hole length and interception depth
●
hole length.
>
If the exclusion of this information is justified on the basis that the information is not
Material and this exclusion does not detract from the understanding of the report,
the Competent Person should clearly explain why this is the case.
>
MM&A reviewed and entered all pertinent data into a digital geologic database for each
Coronado property. The database consists of thousands of data records, which include drill
hole and supplemental coal seam thickness measurements from outcrop and underground
mine exposures.
>
All drill holes in the database are provided with a collar elevation and the State Plane
Coordinate System easting and northing coordinate.
>
After MM&A confirmed proper coal seam thickness and correlation, the seam data was
modelled and compiled into coal resource maps.
>
The maps are provided in the TRS and show drill hole locations; however, a tabulation of
the thousands of individual data records is not practical to include.
Data aggregation
methods
>
In reporting Exploration Results, weighting averaging techniques, maximum and/or
minimum grade truncations (e.g. cutting of high grades) and cut-off grades are
usually Material and should be stated.
>
Where aggregate intercepts incorporate short lengths of high grade results and
longer lengths of low grade results, the procedure used for such aggregation should
be stated and some typical examples of such aggregations should be shown in detail.
>
The assumptions used for any reporting of metal equivalent values should be clearly
stated.
>
If a coal seam has been bench sampled, the individual analyses for the coal plies would be
weight-averaged to represent the total of recoverable coal to be included in the quality
model.
>
Coal quality summary results have been documented in the TRS. Average coal quality on a
per-seam basis is used to represent the coal resources within a given mining area.
>
Average coal quality for each Coronado complex is provided in Tables 1-1, 1-2 and 1-3 of
this TRS.
>
No other data aggregations methods are used.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Relationship
between
mineralisation
widths and intercept
lengths
>
These relationships are particularly important in the reporting of Exploration Results.
>
If the geometry of the mineralisation with respect to the drill hole angle is known, its
nature should be reported.
>
If it is not known and only the down hole lengths are reported, there should be a
clear statement to this effect (e.g. ‘down hole length, true width not known’).
>
Coal thickness values from all coal intersections and down hole geophysical logs are
considered to be vertical thicknesses. Seam dip of approximately 2.0 to 3.0 degrees has
little effect on the vertical thickness of the seam.
Diagrams
>
Appropriate maps and sections (with scales) and tabulations of intercepts should be
included for any significant discovery being reported. These should include, but not
be limited to a plan view of drill hole collar locations and appropriate sectional views.
>
Diagrams and maps showing the coal seam intercepts are presented in the TRS.
Balanced reporting
>
Where comprehensive reporting of all Exploration Results is not practicable,
representative reporting of both low and high grades and/or widths should be
practiced to avoid misleading reporting of Exploration Results.
>
All of the available, qualified exploration data has been included within the tabulations,
maps, and diagrams for this TRS.
>
Both coal thickness and quality data are deemed by MM&A to be reasonably sufficient
within the resource areas. Therefore, there is a reasonable level of confidence in the
geologic interpretations required for coal resource determination based on the available
data and the techniques applied to the data.
Other substantive
exploration data
>
Other exploration data, if meaningful and material, should be reported including (but
not limited to): geological observations; geophysical survey results; geochemical
survey results; bulk samples – size and method of treatment; metallurgical test
results; bulk density, groundwater, geotechnical and rock characteristics; potential
deleterious or contaminating substances.
>
Informational material available from the U.S. Geological Survey and the respective State
Surveys was used to assist in the Resource estimate.
Further work
>
The nature and scale of planned further work (e.g. tests for lateral extensions or
depth extensions or large-scale step-out drilling).
>
Diagrams clearly highlighting the areas of possible extensions, including the main
geological interpretations and future drilling areas, provided this information is not
commercially sensitive.
>
Further work is expected to include additional exploration, geotechnical testing, coal quality
analyses, and coal property acquisition.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code explanation
Commentary
Database integrity
>
Measures taken to ensure that data has not been corrupted by, for example,
transcription or keying errors, between its initial collection and its use for Mineral
Resource estimation purposes.
>
Data validation procedures used.
>
MM&A confirmed coal seam thickness and correlations in databases used for coal deposit
modelling. Representative records were spot-checked for data entry validation.
>
Geophysical logs were used wherever available to assist in confirming the seam correlation
and to verify proper seam thickness measurements and recovery of coal samples.
Site
visits
>
Comment on any site visits undertaken by the Competent Person and the outcome of
those visits.
>
MM&A is very familiar with the Properties and has conducted multiple site visits and
evaluations of the Property and adjoining properties throughout the years.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
>
If no site visits have been undertaken indicate why this is the case.
>
A site visit to Mon Valley was conducted as recently as December 2023, although there are
no facilities or surface expression of the coal reserves on the Property. Planned surface areas
for mine facilities were viewed.
Geological
interpretation
>
Confidence in (or conversely, the uncertainty of) the geological interpretation of the
mineral deposit.
>
Nature of the data used and of any assumptions made.
>
The effect, if any, of alternative interpretations on Mineral Resource estimation.
>
The use of geology in guiding and controlling Mineral Resource estimation.
>
The factors affecting continuity both of grade and geology.
>
Due to the relative structural simplicity of the deposits and the reasonable continuity of the
tabular coal beds, the principal geological interpretation necessary to define the geometry of
the coal deposits is the proper modeling of their thickness and elevation.
>
Both coal thickness and quality data are deemed by MM&A to be reasonable within the
resource areas.
>
Therefore, there is a reasonable level of confidence in the geologic interpretations required
for coal resource determination based on the available data and the techniques applied to
the data.
Dimensions
>
The extent and variability of the Mineral Resource expressed as length (along strike or
otherwise), plan width, and depth below surface to the upper and lower limits of the
Mineral Resource.
>
The subject coal resource areas mostly exist in discreet, individual deposits of highly variable
dimensions, shapes and depth below the ground surface.
>
Such factors are best depicted in the maps contained in the TRS.
>
Details of the seam parameters are cited within the TRS and included in the table of Cut-off
Parameters listed in Section 11.1 of the TRS.
Estimation
and
modelling
techniques
>
The nature and appropriateness of the estimation technique(s) applied and key
assumptions, including treatment of extreme grade values, domaining, interpolation
parameters and maximum distance of extrapolation from data points. If a computer
assisted estimation method was chosen include a description of computer software and
parameters used.
>
The availability of check estimates, previous estimates and/or mine production records
and whether the Mineral Resource estimate takes appropriate account of such data.
>
The assumptions made regarding recovery of by-products.
>
Estimation of deleterious elements or other non-grade variables of economic
significance (e.g. sulphur for acid mine drainage characterisation).
>
In the case of block model interpolation, the block size in relation to the average sample
spacing and the search employed.
>
Any assumptions behind modelling of selective mining units.
>
Any assumptions about correlation between variables.
>
Description of how the geological interpretation was used to control the resource
estimates.
>
Discussion of basis for using or not using grade cutting or capping.
>
Geological data was imported into Carlson Mining
®
®
) geological modelling
software in the form of Microsoft
®
thickness picks, bottom seam elevations and raw and washed coal quality. These data files
were validated prior to importing into the software.
>
Once imported, a geologic model was created.
>
The geological model was verified and reviewed with the digital database records.
>
Resources were estimated by defining seam thickness at each point of observation and by
defining resource confidence arcs around the points of observation.
>
Points of observation for Measured and Indicated confidence arcs were defined for all drill
holes that intersected the seam.
>
As prescribed by the common United States classification system the following distances from
points of observation were used to define the corresponding Resource category arcs:
-
Inferred Resources – greater than 3,960 feet (1.2 kilometers) but less than 15,840 feet
(4.8 kilometers)
-
Indicated Resources – 3,960 feet (1.2 kilometers)
-
Measured Resources – 1,320 feet (0.4 kilometers)
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
>
The process of validation, the checking process used, the comparison of model data to
drill hole data, and use of reconciliation data if available.
>
The use of the standards commonly used in the United States are appropriate and customary
for this resource jurisdiction and deposition type.
>
MM&A performed a geostatistical analysis test of the Coronado data sets using the Drill Hole
Spacing Analysis (
DHSA
) method to justify coal resource confidence levels.
>
Based on MM&A’s analysis, it would be possible to extend the measured, indicated and
inferred arcs slightly beyond historically accepted practices due to consistent geological
settings. The QP’s have elected not to extend arc distances, introducing a level of
conservatism in the coal classification.
Moisture
>
Whether the tonnages are estimated on a dry basis or with natural moisture, and the
method of determination of the moisture content.
>
Coal resource tonnes are presented on a dry, in-situ basis.
>
Reserve tonnes are presented on a moist basis at anticipated product moisture ranging from
4.0 to 6.0 percent. Moisture content based on historic analyses of shipped coal from the
region.
Cut-off Parameters
>
The basis of the adopted cut-off grade(s) or quality parameters applied.
>
The cut-off parameters were tailored for each of the Coronado properties to be in accordance
with mining/ processing capabilities and market conditions prevalent at each operation.
>
Examples include minimum recoverable coal thickness, acceptable ash content and wash
recovery, and manageable overburden to coal ratio for surface mineable coal.
>
Details of the parameters are cited within the TRS and included in the table of Cut-off
Parameters listed in Section 11.1 of this TRS.
>
These cut-off parameters have been developed by MM&A based on its experience with the
Coronado properties and other mining operations of the Central and Northern Appalachian
coal basin. This experience includes technical and economic evaluations of numerous
properties in the region for the purposes of determining the economic viability of the subject
coal reserves.
>
A high sulfur grade cutoff was applied to the Lower War Eagle mine deposit at Logan.
Mining factors or
assumptions
>
Assumptions made regarding possible mining methods, minimum mining dimensions
and internal (or, if applicable, external) mining dilution. It is always necessary as part of
the process of determining reasonable prospects for eventual economic extraction to
consider potential mining methods, but the assumptions made regarding mining
methods and parameters when estimating Mineral Resources may not always be
rigorous. Where this is the case, this should be reported with an explanation of the basis
of the mining assumptions made.
>
Mining factors such as dilution, mining and washing recovery are variable and have been
applied to the coal deposits at each operation based on site-specific characteristics.
>
Details of the factors are cited within the TRS.
>
Factors that would typically preclude conversion of a coal resource to coal reserve include the
following: inferred resource classification; absence of coal quality; poor mine recovery; lack
of access; insufficient exploration; or uncontrolled surface property for areas of proposed for
surface mining.
>
While such factors were used to preclude the conversion of a very limited number of coal
resources to coal reserves in this report, the extensive history of mining on the Properties
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
would suggest that there are reasonable prospects for eventual economic extractions of all
coal resources under favorable market conditions.
Metallurgical factors
or assumptions
>
The basis for assumptions or predictions regarding metallurgical amenability. It is always
necessary as part of the process of determining reasonable prospects for eventual
economic extraction to consider potential metallurgical methods, but the assumptions
regarding metallurgical treatment processes and parameters made when reporting
Mineral Resources may not always be rigorous. Where this is the case, this should be
reported with an explanation of the basis of the metallurgical assumptions made.
>
The products mined from coal resources controlled by Coronado can be sold into high-,
mid-, and low-volatile metallurgical coal markets because of their inherent quality
characteristics.
>
Run-of-mine production is washed at the coal preparation plants as needed for quality
control.
>
Coronado may blend production from multiple sources to manage ash and sulfur content
along with the rheological and petrographic characteristics of the shipped products.
Environmental
factors or
assumptions
>
Assumptions made regarding possible waste and process residue disposal options. It is
always necessary as part of the process of determining reasonable prospects for
eventual economic extraction to consider the potential environmental impacts of the
mining and processing operation. While at this stage the determination of potential
environmental impacts, particularly for a greenfields project, may not always be well
advanced, the status of early consideration of these potential environmental impacts
should be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
>
A study completed on behalf of Coronado for Mon Valley has identified a Preferred Site for
refuse disposal at Pangburn with capacity of 22.6 million cubic meters. Estimated
requirements for Pangburn and Shaner combined is 29.7 million tonnes or approximately 13.2
million cubic meters. Permitting for such a facility is anticipated to be achievable.
>
MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the Buchanan
property in April 2016 on behalf of Coronado. Coronado reports not having conducted such
a study since the MM&A studies.
>
The ESAs completed by MM&A included a site inspection, review of historical records, a
database search of State and Federal regulatory records and interviews to identify potential
recognized environmental conditions (RECs) that may create environmental liability for the
sites.
>
Based on these former ESAs completed by MM&A, it is MM&A’s opinion that Coronado has a
generally typical coal industry record of compliance with applicable mining, water quality, and
environmental laws. Estimated costs for mine closure, including water quality monitoring
during site reclamation, are included in the TRS financial models.
Bulk density
>
Whether assumed or determined. If assumed, the basis for the assumptions. If
determined, the method used, whether wet or dry, the frequency of the measurements,
the nature, size and representativeness of the samples.
>
The bulk density for bulk material must have been measured by methods that
adequately account for void spaces (vugs, porosity, etc), moisture and differences
between rock and alteration zones within the deposit.
>
Discuss assumptions for bulk density estimates used in the evaluation process of the
different materials.
>
Laboratory derived seam densities measured in specific gravity were used where available.
As needed, these data were supplemented by estimated seam density values based on the
relative proportion of coal and non-coal material within the seam (typically at 1.30 and 2.25
specific gravity, respectively).
>
Average seam density was determined for each coal deposit and used to convert coal volumes
into coal tonnage estimates.
Classification
>
The basis for the classification of the Mineral Resources into varying confidence
categories.
>
The Resource has been classified based on suitable distances from points of observations
prescribed in the common United States classification system.
>
The use of the United States standards is appropriate and customary for this resource
jurisdiction and deposition type.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
>
Whether appropriate account has been taken of all relevant factors (i.e. relative
confidence in tonnage/grade estimations, reliability of input data, confidence in
continuity of geology and metal values, quality, quantity and distribution of the data).
>
Whether the result appropriately reflects the Competent
>
Person’s view of the deposit.
>
MM&A performed a geostatistical analysis test of the Coronado data sets using the Drill Hole
Spacing Analysis (
DHSA
) method.
>
Based on MM&A’s analysis, it would be possible to extend the measured, indicated and
inferred arcs slightly beyond historically accepted practices due to consistent geological
settings. The QP’s have elected not to extend arc distances, introducing a level of
conservatism in the coal classification.
>
All relevant factors have been accounted for and reflect the Competent Person’s view of the
deposit.
Audits or reviews
>
The results of any audits or reviews of Mineral Resource estimates.
>
MM&A completed prepared a statement of coal resources and reserves for the Properties in
accordance with the JORC Code as of December 31, 2017. MM&A also subsequently updated
the estimate of resources and reserves for depletion as of December 31, 2018, December 31,
2019, December 31, 2020, December 31, 2021, December 31, 2022 and December 31, 2023.
>
MM&A performed a previous audit of the Properties in year 2017 for Coronado based on U.S.
Securities and Exchange Commission (SEC) Industry Guide 7 and USGS Circular 891 standards.
>
Earlier audits were performed by various independent consultants for predecessors-in-title
to Coronado and at various levels of detail depending on the clients concerns and the allotted
time for completion. Previous audits and reviews defined the primary coal resource areas
and estimated the recoverable tonnes for each seam based on the expected mining methods.
>
Additionally, MM&A has performed proprietary evaluations for predecessors-in-title to
Coronado, which encompass portions of the Properties included in this TRS.
Discussion of
relative accuracy/
confidence
>
Where appropriate a statement of the relative accuracy and confidence level in the
Mineral Resource estimate using an approach or procedure deemed appropriate by the
Competent Person. For example, the application of statistical or geostatistical
procedures to quantify the relative accuracy of the resource within stated confidence
limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the
factors that could affect the relative accuracy and confidence of the estimate.
>
The statement should specify whether it relates to global or local estimates, and, if local,
state the relevant tonnages, which should be relevant to technical and economic
evaluation. Documentation should include assumptions made and the procedures used.
>
These statements of relative accuracy and confidence of the estimate should be
compared with production data, where available.
>
The relative accuracy of and confidence in the coal tonnage and quality estimates provided
herein are judged to be in conformance with current industry best-practices.
>
The representation of average coal quality characteristics should be understood to represent
a reasonably representative sampling that is generally indicative of coal quality and does not
represent a statistically rigorous approach to coal quality modeling.
>
Resource estimation has been completed using standard coal estimation methods which are
deemed appropriate for this deposit.
Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code explanation
Commentary
Mineral Resource
estimate for
>
Description of the Mineral Resource estimate used as a basis for the conversion to an
Ore Reserve.
>
The coal resource estimate was prepared as part of the report Coronado Global Resources
Inc. Statement of Coal Resources and Reserves in Accordance with JORC Code and United
States SEC Standards as of December 31, 2024 – Northern and Central Appalachian Coal
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
conversion to Ore
Reserves
Basins – Virginia, West Virginia and Pennsylvania, USA – February 2025 prepared by
MM&A.
>
The resource estimation criteria were developed by MM&A based on the capabilities of the
mining equipment used within the production model and on industry-accepted standards
to assure that the basic geologic characteristics of the coal resources are in reasonable
conformity with those to be mined and marketed by Coronado.
>
Clear statement as to whether the Mineral Resources are reported additional to, or
inclusive of, the Ore Reserves.
>
Coal resources generally are reported inclusive of the coal reserves. In some cases,
resources are reported in addition to coal reserves. Tables 1-1 and 11-3 of the TRS clearly
identify resources “inclusive of mine plan” from which coal reserves were estimated along
with those resources “exclusive of mine plan” from which no reserves were estimated.
Site visits
>
Comment on any site visits undertaken by the Competent Person and the outcome of
those visits.
>
MM&A is very familiar with the Properties and has conducted multiple site visits and
reserve evaluations throughout the years.
>
A site visit was conducted to Mon Valley as recently as December 2023 to assess proposed
surface mine facilities areas. Currently there are no mine facilities or surface expression of
the coal reserve on the Property.
Study status
>
The type and level of study undertaken to enable Mineral Resources to be converted
to Ore Reserves.
>
A preliminary feasibility LOM plan was prepared by MM&A for active and proposed mines.
>
The Code requires that a study to at least Pre-Feasibility Study level has been
undertaken to convert Mineral Resources to Ore Reserves. Such studies will have
been carried out and will have determined a mine plan that is technically achievable
and economically viable, and that material Modifying Factors have been considered.
>
This geologic evaluation conducted in accordance with JORC and SEC standards and in
conjunction with the preliminary feasibility study is sufficient to conclude that the surface,
highwall miner and underground coal reserves identified on the Properties are
economically mineable under reasonable expectations of market prices for thermal and
metallurgical coal products, estimated operation costs, and capital expenditures.
>
The pre-feasibility financial models, prepared by MM&A for this TRS, was developed to test
the economic viability of each coal resource area.
>
Proved and probable coal reserves were derived from the defined in-situ coal resource
considering relevant processing, economic (including independent estimates of capital,
revenue and cost, marketing, legal, environmental, socioeconomic, and regulatory factors).
Cut-off parameters
>
The basis of the adopted cut-off grade(s) or quality parameters applied.
>
The cut-off parameters were tailored for each of the Coronado properties to be in
accordance with mining/ processing capabilities and market conditions prevalent at each
operation.
>
Examples include minimum recoverable coal thickness, acceptable ash content and wash
recovery, and manageable overburden to coal ratio for surface mineable coal.
>
Details of the parameters are cited within the TRS and included in the table of Cut-off
Parameters listed in Section 11.1 of this TRS.
>
These cut-off parameters have been developed by MM&A based on its experience with the
Coronado properties and are typical of mining operations in the Central and Northern
Appalachian coal basin. This experience includes technical and economic evaluations of
numerous properties in the region for the purposes of determining the economic viability
of the subject coal reserves.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Mining factors or
assumptions
>
The method and assumptions used as reported in the Pre-Feasibility or Feasibility
Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of
appropriate factors by optimisation or by preliminary or detailed design).
>
After validating coal seam data and establishing correlations, the thickness and elevation
for seams of economic interest were used to generate a geologic model.
>
A pre-feasibility LOM plan was prepared by MM&A for active and proposed mines. MM&A
prepared mine projections and production timing forecasts based on coal seam
characteristics. Production timing was carried out from 2025 to depletion (exhaustion) of
the coal reserve areas.
>
The choice, nature and appropriateness of the selected mining method(s) and other
mining parameters including associated design issues such as pre-strip, access, etc.
>
The room-and-pillar mining method was selected to model the underground mining
resources, utilizing continuous miners for coal extraction, shuttle cars for production
section haulage and roof bolters for roof control, with the exception that the Buchanan
Mine also uses longwall shearers, armored face conveyors, and hydraulic self-advancing
roof support. The resource areas located above drainage are relatively small and often
have irregular boundaries.
The Buchanan Mine in Buchanan County, Virginia is the only
active longwall mine currently being operated by Coronado.
>
The Coronado underground mining resource areas which are located above-drainage
require an access road and mine access development along the outcrop, whereas below-
drainage mines are accessed via shaft or slope based on other proposed surface
infrastructure locations and/or surface property control.
>
The surface mining method selected utilizes highly productive hydraulic shovels, front-end
loaders, large tractors and rock trucks for overburden removal. The mobile equipment
spreads adapt readily to winding coal outcrops for contour surface mining and are effective
for point-removal and area mining applications.
>
Application of highwall and auger mining units is an effective method to recover coal
resources not suitable for underground mining and under excessive cover for surface
mining.
>
The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope sizes,
etc.), grade control and pre-production drilling.
>
Mining plans for potential underground mines were developed by MM&A. Coal pillar
stability was tested by MM&A using the
Analysis of Coal Pillar Stability (ACPS
) software
program.
>
Coronado must obtain approved mining plans from
United States Department of Labor
Mine Safety and Health Administration (
MSHA
)
that define safety parameters for the
highwalls developed during contour and area mining. MM&A’s planning model does not
require input of specific highwall design parameters, but provides for timing of mining
within mine plan polygons that is representative of the operation performance attained at
Central Appalachia surface mines.
>
Highwall and auger mining is conducted under highwalls designed and constructed to meet
MSHA permit requirements. To better assure highwall stability and safety during highwall
coal extraction, MSHA requires that coal fenders, or stumps, be left in place between
successive cuts. Periodic barrier pillars must be left in place as an additional safeguard.
MM&A has adjusted the expected mining recovery for highwall and auger mining resources
to reflect highwall stability and safety requirements.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
>
The major assumptions made and Mineral Resource model used for pit and stope
optimisation (if appropriate).
>
Underground Mining Resources: For metallurgical resources, minimum coal seam thickness
extends down to between 0.6 and 1.2 meters and a minimum overburden (depth of cover)
of 30.5 meters. A 61-meter horizontal distance is maintained from abandoned mines and
sealed or pillared areas, and a 30-meter horizontal distance is maintained from planned
highwall miner panels. Mine recovery is reduced when a rider coal seam is present within a
1.5- to 3.0-meter interval above the coal seam. No mining is projected when the interval
between overlying and underlying reserves is less than 12 meters.
>
Surface Mining Resources: For classification as a surface-mineable resource, a seam must
be at least 0.3 meters in thickness as a stand-alone (principal) seam and 0.15 meters in
thickness when less than 0.8 meters from a principal seam. The maximum cumulative area
mining strip ratio is generally 20:1 for thermal coal and 30:1 for metallurgical coal. Some
areas were assessed for their economic viability at higher ratios, and were included as
reserves if deemed economic. For contour surface mining, a minimum of 38-meter bench
is provided to support HWM.
>
HWM and Auger Mining Resources: HWM cut depth (penetration) is established at a
maximum of 244 meters. The minimum mineable coal thickness is limited at 0.6 meters.
For coal seams less than 0.8 meters thick, roof and/or floor characteristics must allow OSD
cutting to maintain a 0.8-meter minimum cutting height.
Auger mining cut depth is
established at an average of 91 meters. The minimum mineable coal thickness is limited at
0.5 meters.
>
The mining dilution factors used.
>
Underground Mining Reserves: The planning model assigns minimum mining heights of 1.4
to 2.3 meters for mains and panel development. At the Buchanan Mine, a minimum mining
height of 1.8 meters was used due to the longwall mining method being employed. For
coal seams thinner than the assigned mining height, the difference between the coal seam
height and assigned mining height consists of OSD. In all cases a minimum of 0.05 meters
of OSD was assumed, with the exception of the Mon Valley mines, where a minimum 0.15
meters of OSD was assumed due to weaker floor strata.
>
Surface Mining Reserves: Area mining is generally limited to a cumulative overburden ratio
of 30:1 and a 15:1 ratio for contour mining. Exceptions were considered for mining of
metallurgical grade coal where deemed economical. It is assumed that careful cleaning of
exposed coal pits will result in minimal OSD.
>
HWM and Auger Mining Reserves: The mining plan assumes that the HWM cutting height
is a minimum of 76 to 99 centimeters for clearance purposes. When the coal seam is less
than 76 to 99 centimeters thick, OSD assumed and included in the ROM product.
Because
the auger has very limited OSD cutting ability, it is assumed that an appropriate auger
diameter will be chosen based on the coal seam thickness and that OSD will be minimal.
>
The mining recovery factors used.
>
Underground Mining Reserves: Mine recovery generally varies between 40 and 60 percent
for continuous mining panels, and 100 percent for longwall.
>
Surface Mining Reserves: Mining recovery is 90 percent for virgin areas. Mining recovery is
reduced where second mining is projected in previously underground and auger mined
areas.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
>
HWM and Auger Mining Reserves: A mine recovery of 40 percent has been applied for
HWM.
A mine recovery of 35 percent has been applied for auger mining.
>
Any minimum mining widths used.
>
Underground Mining Reserves: Typical entry width is 5.8 to 6.1 meters.
>
The manner in which Inferred Mineral Resources are utilised in mining studies and the
sensitivity of the outcome to their inclusion.
>
Proved and probable coal reserve were derived from the defined in-situ coal resource
considering relevant processing, economic (including independent estimates of capital,
revenue and cost, marketing, legal, environmental, socioeconomic, and regulatory factors).
>
The infrastructure requirements of the selected mining methods.
>
Underground Mining Resources: The continuous mining method provides for the
extraction of coal from the production faces using continuous miners (and longwall
shearing machine at Buchanan) and haulage using shuttle cars or battery haulers to a
feeder-breaker located at the tail of the section conveyor belt. The feeder-breaker crushes
large pieces of coal and rock and regulates coal feed onto the mine conveyor. A chain
conveyor is used to remove coal from the longwall face at the Buchanan Mine for
placement onto the conveyor belt which is ultimately delivered to an underground storage
bunker. Roof-bolting machines are used to install roof bolts, and battery scoops are
available to clean the mine entries and assist in delivery of mine supplies to work areas.
Surface ventilation fans are installed as needed to provide a sufficient volume of air to
ventilate production sections, coal haulage and transport entries, battery charging stations,
and transformers in accordance with approved plans.
>
Coronado currently operates two coal preparation plants, one each at the Buchanan and
Logan County Divisions. The Buchanan Plant operates at a feed rate of approximately
1,270 raw tonnes per hour (
tph
), whereas the Saunders Plant (Logan County Division) has a
nominal feed rate of 1,088 tph.
MM&A has included capital estimates for construction of
additional coal preparation plants at the Russell County and Mon Valley Complex for the
purposes of this TRS.
>
Surface Mining Resources: The surface mining mobile equipment spreads advance the
contour and area mining pits while systematically reclaiming the trailing side of pits where
coal has been removed. The coal haul roads are extended and maintained as the pits
advance. Support facilities are maintained nearby but away from the active mining, and
include storage areas for blasting agents, fuel and lubricants, and mine supplies along with
maintenance facilities and offices. Most of the surface mine production is transported to a
loading point for crushing, blending and direct-shipment to customers.
>
HWM and Auger Resources: The HWM equipment advances along with the contour mining
pits. The rate of advance of the contour mining is governed by the advancement rate of
the HWM. A diesel-powered generator trails the highwall miner and powers the
continuous mining unit. Other support facilities are provided along with the contour
mining support facilities. HWM production is all transported by truck to the coal
preparation plant for washing.
>
The metallurgical process proposed and the appropriateness of that process to the
style of mineralisation.
>
Coarse material is washed in a heavy medium vessel. Intermediate-size material is washed
in heavy medium cyclones. Fine material is washed using conventional froth flotation cells.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Commentary
Metallurgical factors
or assumptions
>
Whether the metallurgical process is well-tested technology or novel in nature.
>
Processes are typical of those used in the coal industry and are in use at adjacent coal
processing plants.
>
The nature, amount and representativeness of metallurgical test work undertaken,
the nature of the metallurgical domaining applied and the corresponding
metallurgical recovery factors applied.
>
The quality characteristics for the subject coal resources and coal reserves have been
reviewed in detail by MM&A. The drill hole data were utilized to develop average coal
quality characteristics mining site. These average coal quality characteristics were then
utilized as the basis for determining the various markets into which the saleable coal will
likely be placed.
>
Any assumptions or allowances made for deleterious elements.
>
No significant effects on product quality are anticipated from dilution material; float
product quality was used to model final product quality.
>
The existence of any bulk sample or pilot scale test work and the degree to which
such samples are considered representative of the orebody as a whole
>
No bulk sample or pilot scale work has been completed.
>
For minerals that are defined by a specification, has the ore reserve estimation been
based on the appropriate mineralogy to meet specifications?
>
Notwithstanding the complexity of the coal quality data set, the seams of the central and
northern Appalachian coalfields have a long history of providing both high-Btu thermal
coals and high-, mid- and low-volatile coking coals with favorable metallurgical properties.
Environmental
>
The status of studies of potential environmental impacts of the mining and processing
operation. Details of waste rock characterisation and the consideration of potential
sites, status of design options considered and, where applicable, the status of
approvals for process residue storage and waste dumps should be reported.
>
A study completed on behalf of Coronado has identified a Preferred Site for refuse disposal
at Pangburn with capacity of 22.6 million cubic meters. Estimated requirements for
Pangburn and Shaner combined is 29.7 million tonnes or approximately 13.2 million.
>
MM&A completed a Limited Phase I Environmental Site Assessment (
ESA
) on the Buchanan
property in April 2016, and on the Logan County Properties in May 2017 on behalf of
Coronado.
>
Based on these former ESAs completed by MM&A, it is MM&A’s opinion that Coronado has
a generally typical coal industry record of compliance with applicable mining, water quality,
and environmental laws. Estimated costs for mine closure, including water quality
monitoring during site reclamation, are included in the TRS financial models.
Infrastructure
>
The existence of appropriate infrastructure: availability of land for plant development,
power, water, transportation (particularly for bulk commodities), labour,
accommodation; or the ease with which the infrastructure can be provided or
accessed.
>
Coronado currently operates two surface mines (Toney Fork & Middle Fork Mines at the
Logan Mine Complex).
>
Coronado operates five underground mines as follows: Buchanan Mine at the Buchanan
Mine Complex; Powellton No. 1, Eagle No. 1, Muddy Bridge and Lower War Eagle Mines in
the Logan Mine Complex.
>
All ROM production is currently planned for either truck transportation from the mines to
the processing or shipping facilities, or in some cases there is either a current or planned
mine mouth preparation plant and barge/rail loading facility.
>
There is a network of public highways that provide serviceable coal haul routes and private,
internal roads on the Properties would be developed as may be needed. Rail service to the
Properties is most readily provided by NS and CSX
with connections to both domestic
consumers and international trans-shipment points. NS track is located across the
Monongahela River from the proposed Pangburn Hollow load-out facility. Coal would be
shipped to customers via barge and rail and sold as both metallurgical and thermal
products.
Costs
>
The derivation of, or assumptions made, regarding projected capital costs in the
study.
>
Coronado provided historical and 5-year budget operating costs for its active mines for
MM&A’s review. MM&A used the historical and/or budget cost information as a reference
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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JORC Code explanation
Commentary
>
The methodology used to estimate operating costs.
and developed personnel schedules for each mine. Hourly labor rates and salaries were
based upon information contained in Coronado’s financial summaries. Fringe benefit costs
were developed for vacation and holidays, federal and state unemployment insurance,
retirement, workers’ compensation and pneumoconiosis, casualty and life insurance,
healthcare and bonuses. A cost factor for mine supplies was developed that relates
expenditures to mine advance rates for roof control costs and other mine supply costs at
underground mines. Other factors were developed for maintenance and repair costs,
rentals, mine power, outside services and other direct mining costs.
>
Surface mine direct operating costs were developed as a function of overburden ratio for
repair and maintenance supplies, diesel fuel, explosives and blasting, and miscellaneous
supplies and services. Operating costs for highwall mines are based on costs per ROM
tonne estimates. Other cost factors were developed for coal preparation plant processing,
refuse handling, coal loading, trucking, property taxes, and insurance and bonding.
Appropriate royalty rates were assigned for production from leased coal lands and sales
taxes were calculated for state severance taxes, the federal black lung excise tax, and
federal and state reclamation fees.
>
Capital schedules were developed by MM&A for mine development, infrastructure, and on-
going capital requirements for the life of each projected mine.
>
Staffing levels were prepared and operating costs estimated by MM&A for each projected
mine. MM&A utilized historical cost data provided by Coronado and its own knowledge
and experience to estimate direct and indirect operating costs.
>
Allowances made for the content of deleterious elements.
>
No allowances have been made for deleterious elements; no impact to quality from
deleterious elements is anticipated.
>
The derivation of assumptions made of metal or commodity price(s), for the principal
minerals and co- products.
>
Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is
derived from market observed forward estimates based on global economic supply and
demand analysis which is applied to mine plan sales volumes and product mix and is
supplemented with Coronado’s in-house knowledge of applicable rail transportation
charges, ocean freight charges and port charges. Coal price forecasts for the various
products were provided by Coronado for various coal markets in terms of US real dollars
per metric tonne. MM&A applied a 2% inflation factor in order to estimate the prices in
nominal dollars.
>
Derivation of transportation charges.
>
Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is
derived from market observed forward estimates based on global economic supply and
demand analysis which is applied to mine plan sales volumes and product mix and is
supplemented with Coronado’s in-house knowledge of applicable rail transportation
charges, ocean freight charges and port charges Coal price forecasts for the various
products were provided by Coronado for various coal markets in terms of US real dollars
per metric tonne. MM&A applied a 2% inflation factor in order to estimate the prices in
nominal dollars.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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JORC Code explanation
Commentary
>
The basis for forecasting or source of treatment and refining charges, penalties for
failure to meet specification, etc.
>
MM&A utilized historical cost data provided by Coronado and its own knowledge and
experience to estimate direct and indirect operating costs. All ROM production is currently
planned for either truck transportation from the mines to the processing or shipping
facilities, or in some cases there is either a current or planned mine mouth preparation
plant and barge/rail loading facility.
>
The allowances made for royalties payable, both Government and private.
>
Appropriate royalty rates were assigned for production from leased coal lands and sales
taxes were calculated for state severance taxes, the federal black lung excise tax, and
federal and state reclamation fees.
Revenue factors
>
The derivation of, or assumptions made regarding revenue factors including head
grade, metal or commodity price(s) exchange rates, transportation and treatment
charges, penalties, net smelter returns, etc.
>
Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is
derived from market observed forward estimates based on global economic supply and
demand analysis which is applied to mine plan sales volumes and product mix and is
supplemented with Coronado’s in-house knowledge of applicable rail transportation
charges, ocean freight charges and port charges. Coal price forecasts for the various
products were provided by Coronado for various coal markets in terms of US real dollars
per metric tonne. MM&A applied a 2% inflation factor in order to estimate the prices in
nominal dollars.
>
The derivation of assumptions made of metal or commodity price(s), for the principal
metals, minerals and co-products.
>
Coal sales prices as defined above. All reported reserves are on a marketable basis.
Market assessment
>
The demand, supply and stock situation for the particular commodity, consumption
trends and factors likely to affect supply and demand into the future.
>
Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is
derived from market observed forward estimates based on global economic supply and
demand analysis which is applied to mine plan sales volumes and product mix and is
supplemented with Coronado’s in-house knowledge of applicable rail transportation
charges, ocean freight charges and port charges. Coal price forecasts for the various
products were provided by Coronado for various coal markets in terms of US real dollars
per metric tonne. MM&A applied a 2% inflation factor in order to estimate the prices in
nominal dollars.
>
A customer and competitor analysis along with the identification of likely market
windows for the product.
>
All of the mine production serves metallurgical and thermal markets. The metallurgical coal
is marketed as high-volatile (typically 28 percent or greater volatile matter content); mid-
volatile (typically 23- to 27-percent volatile matter content) and low-volatile (typically less
than 23 percent volatile matter content) products.
>
Raw ROM production that requires washing is currently processed through Coronado
owned and operated coal preparation plants.
>
ROM coal that does not require further processing is delivered directly to the loading points
for sizing and delivery to customers. Coronado has access to two rail-loading points
serviced by the
Norfolk Southern Corporation (
NS
)
CSX Corporation (
CSX
)
.
>
Price and volume forecasts and the basis for these forecasts.
>
Carlson Mining
®
mineable coal seams. Underground mine plans were sequenced based on productivity
schedules provided by Coronado, which were based on historically achieved productivity
levels. Surface mine plans were generated under productivity assumptions (bank cubic
yard per shift) as provided by Coronado and reviewed by MM&A, again based heavily on
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
productivity levels achieved by Coronado. All production forecasting ties assumed
production rates to geological models as constructed independently by MM&A’s team of
geologists and mining engineers.
>
Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is
derived from market observed forward estimates based on global economic supply and
demand analysis which is applied to mine plan sales volumes and product mix and is
supplemented with Coronado’s in-house knowledge of applicable rail transportation
charges, ocean freight charges and port charges. Coal price forecasts for the various
products were provided by Coronado for various coal markets in terms of US real dollars
per metric tonne. MM&A applied a 2% inflation factor in order to estimate the prices in
nominal dollars.
Economic
>
The inputs to the economic analysis to produce the net present value (NPV) in the
study, the source and confidence of these economic inputs including estimated
inflation, discount rate, etc.
>
On an unlevered basis, the NPV of the project cash flows after taxes was estimated for the
purpose of classifying coal reserves. The project cash flows, excluding debt service, are
calculated by subtracting direct and indirect operating expenses and capital expenditures
from revenue. Direct costs include labor, drilling and blasting, operating supplies,
maintenance and repairs, facilities costs for materials handling, coal preparation, refuse
disposal, coal loading, sampling and analysis services, reclamation and general and
administrative costs. Indirect costs include statutory and legally agreed upon fees related
to direct extraction of the mineral. The indirect costs are the Federal black lung tax, Federal
and State reclamation taxes, property taxes, local transportation prior to delivery at rail or
barge loading sites, coal production royalties, sales and use taxes, income taxes and State
severance taxes. Coronado’s historical costs provided a useful reference for MM&A’s cost
estimates.
>
Coronado provided MM&A with price forecasts for all Properties. Customer coal pricing is
derived from market observed forward estimates based on global economic supply and
demand analysis which is applied to mine plan sales volumes and product mix and is
supplemented with Coronado’s in-house knowledge of applicable rail transportation
charges, ocean freight charges and port charges. Coal price forecasts for the various
products were provided by Coronado for various coal markets in terms of US real dollars
per metric tonne. MM&A applied a 2% inflation factor in order to estimate the prices in
nominal dollars.
>
All costs and prices are based on year-end 2024 nominal United States dollars.
>
A pre-feasibility LOM plan was prepared by MM&A for active and proposed mines. MM&A
prepared mine projections and production timing forecasts based on coal seam
characteristics. Production timing was carried out from 2025 to depletion (exhaustion) of
the coal reserve areas, which is projected for the year 2102.
>
The all-mines average cash cost ranges between approximately $88 and $381 per tonne for
most of the operating period.
>
NPV ranges and sensitivity to variations in the significant assumptions and inputs.
>
An estimate of NPV at a base discount rate of 10.0% was included in Section 19 of the TRS.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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JORC Code explanation
Commentary
>
NPV of the Buchanan, Russell, Mon Valley and Logan Properties was estimated to be $1.086
billion, $72.4 million, $365.2 million and $525.6 million, respectively.
>
The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales
prices, operating costs, and capital costs are increased and decreased in increments of 5%
within a +/- 15% range.
Social
>
The status of agreements with key stakeholders and matters leading to social license
to operate.
>
Portions of the properties are located near local communities. Regulations prohibit mining
activities within 91 meters of a residential dwelling, school, church, or similar structure
unless written consent is first obtained from the owner of the structure. Where required,
such consents have been obtained where mining is proposed beyond the regulatory limits.
Other
To the extent relevant, the impact of the following on the project and/or on the
estimation and classification of the Ore Reserves:
>
Any identified material naturally occurring risks.
>
No material naturally occurring risks have been identified.
>
The status of material legal agreements and marketing arrangements.
>
The Coronado coal resources are located in Buchanan, Russell and Tazewell Counties,
Virginia; Logan, Boone and Wyoming Counties, West Virginia; Allegheny, Washington and
Westmoreland Counties, Pennsylvania.
>
MM&A has not carried out separate title verification for the coal properties and has not
verified leases, deeds, surveys or other property control instruments pertinent to the
subject resources.
>
Coronado has represented to MM&A that it controls the mining rights to the reserves as
shown on its property maps, and MM&A has accepted these as being a true and accurate
depiction of the mineral rights controlled by Coronado. The TRS assumes the properties
are developed under responsible and experienced management.
>
The status of government agreements and approvals critical to the viability of the
project, such as mineral tenement status and government and statutory approvals.
There must be reasonable grounds to expect that all necessary Government approvals
will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility
study. Highlight and discuss the materiality of any unresolved matter that is
dependent on a third part on which extraction of the reserve is contingent.
>
Coronado has obtained all mining and discharge permits to operate 13 underground mines,
8 surface mines, and 7 processing, loadout or related facilities. MM&A is unaware of any
obvious or current Coronado permitting issues that are expected to prevent the issuance of
future permits. Coronado, along with all Central and Northern Appalachian basin coal
producers, is subject to a level of uncertainty regarding future clean water permits due to
United States Environmental Protection Agency
(
EPA
)
Classification
>
The basis for the classification of the Ore Reserves into varying confidence categories.
Whether the result appropriately reflects the Competent Person’s view of the deposit.
The proportion of Probable Ore Reserves that have been derived from Measured
Mineral Resources (if any).
>
Measured and indicated resources have been converted to proved and probable reserves,
respectively.
>
None of the probable coal reserves have been derived from measured resources.
>
In a limited number of cases where there was only very limited data available to
demonstrate the metallurgical suitability of a given coal deposit, that deposit was classified
as a probable reserve instead of a proved reserve.
>
The results of this TRS define an estimated total initial ROM recoverable ore (coal) reserve
estimate of 516 million tonnes for Coronado as follows:
a) Buchanan = 169 Mt
b) Logan = 99 Mt
c) Russell = 50 Mt
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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JORC Code explanation
Commentary
d) Mon Valley = 197 Mt
>
Coronado controls a total of 310 Mt (moist basis) of marketable coal reserves for Coronado
as of December 31, 2024 (total may not add due to rounding). Of that total, 71 percent are
proved, and 29 percent are probable. Total reserves by complex are as follows:
a) Buchanan = 83 Mt
b) Logan = 62 Mt
c) Russell = 30 Mt
d) Mon Valley = 134 Mt
Audits or reviews
>
The results of any audits or reviews of Ore Reserve estimates.
>
MM&A completed prepared a statement of coal resources and reserves for the Properties
in accordance with the JORC Code as of December 31, 2017. MM&A also subsequently
updated the estimate of resources and reserves for depletion as of December 31, 2018,
December 31, 2019, December 31, 2020, December 31, 2021, December 31, 2022 and
December 31, 2023.
>
MM&A performed a previous audit of the Properties in year 2017 for Coronado based on
U.S. Securities and Exchange Commission (
SEC
)
were performed by various independent consultants for predecessors-in-title to Coronado
and at various levels of detail depending on the clients concerns and the allotted time for
completion. Previous audits and reviews defined the primary coal resource areas and
estimated the recoverable tonnes for each seam based on the expected mining methods.
>
Additionally, MM&A has performed proprietary evaluations for predecessors-in-title to
Coronado, which encompass portions of the Properties included in this TRS.
Discussion of relative
accuracy/ confidence
>
Where appropriate a statement of the relative accuracy and confidence level in the
Ore Reserve estimate using an approach or procedure deemed appropriate by the
Competent Person. For example, the application of statistical or geostatistical
procedures to quantify the relative accuracy of the reserve within stated confidence
limits, or, if such an approach is not deemed appropriate, a qualitative discussion of
the factors which could affect the relative accuracy and confidence of the estimate.
>
Operations on the Properties by Coronado and its predecessors have been on-going for
many years.
>
MM&A is confident that the mine plans and financial models are reasonably representative
to provide an accurate estimation of coal reserves.
>
Mine development and operation have not been optimized within the TRS.
>
The statement should specify whether it relates to global or local estimates, and, if
local, state the relevant tonnages, which should be relevant to technical and
economic evaluation. Documentation should include assumptions made and the
procedures used.
>
Proved and probable coal reserve were derived from the defined in-situ coal resource
considering relevant processing, economic (including independent estimates of capital,
revenue and cost), marketing, legal, environmental, socioeconomic, and regulatory factors
on a global scale as current local data reflects the global assumptions.
>
Accuracy and confidence discussions should extend to specific discussions of any
applied Modifying Factors that may have a material impact on Ore Reserve viability,
or for which there are remaining areas of uncertainty at the current study stage.
The major risk factors for the active Coronado mines and future resource development are
summarized below:
>
Mine Accidents
>
Highwall Failure. Highwall failures are likely to result in a temporary mine closure and
should not have a material impact on the mine sustainability. The risk is considered to be
probable.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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JORC Code explanation
Commentary
>
Adverse Geological Conditions. Adverse geological conditions include such conditions as
faults and sandstone washouts. The risk is considered to be probable. The impact is
expected to be temporary with little material impact on mine sustainability.
>
Environmental Risk. Numerous federal and state permits are required to operate coal
mines and mine surface facilities. Permitting rules are complex and may change over time,
making compliance difficult or impossible.
>
Water Quality. Permit requirements to fulfill Clean Water Act obligations are subject to
modification. The probability of water quality changes having a material impact on mine
operations is possible. As a contemporary example, the selenium discharge issue that
affects western Canadian and Central Appalachian Basin operators has only recently
emerged as a concern and its ultimate impact has not been determined.
>
New Permits. Permit protests by environmental groups and individuals can contribute to
permit delays or denial and increase the cost of permitting and delay development.
Surface mining activities, coal refuse disposal and construction of access roads in
mountainous terrain often require storage of material in valley fills. Authority to dispose of
fill material into waters of the United States must be granted by the
United States Army
Corps of Engineers (
COE
)
. COE permits are increasingly difficult to obtain.
>
Regulatory Requirements. Adverse impact from regulatory changes is considered to be
probable. The impact will likely affect the broader industry and is not expected to result in
mine closure.
>
Market Risk. Metallurgical and thermal coal markets ultimately depend upon the global
steel and thermal coal demand and are considered to be volatile. Currently, the US coal
market has seen a decline in demand for thermal coal due to thermal plant closures, as a
result of new air and water pollution regulations, and competition from other commodities
used for power generation such as natural gas. This has resulted in an overall decline in
CAPP coal production. Continued regulatory changes and declining demand could result in
material changes in domestic and global coal markets. The impact cannot be predicted at
this time; however, while MM&A expects the coal reserve within this TRS to remain
economically viable throughout the life of the projected mines, the LOM financial model is
very sensitive to changes in coal sales price and therefore market risk is not insignificant.
>
Labor Risk. Work stoppage due to organized labor protests is considered to be unlikely and
not likely to lead to permanent mine closure. The mines are likely to suffer the loss of key
supervisors and skilled employees due to retirement as the workforce ages. The problem is
industry-wide and the impact is expected to be temporary and have no sustained impact
on coal production.
>
Availability of Equipment and Supplies. Risk of equipment and supply availability is likely to
be temporary and should not have a sustained adverse impact on the production of coal.
>
Transportation Delay. Interruption of coal transport services by river or rail is considered to
be probable but unlikely to have a sustained impact on coal production.
Coronado Global Resources
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
The JORC Code and United States SEC Regualtion S-K 1300 as of December 31, 2024
Appendix E: JORC Table 1
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JORC Code explanation
Commentary
>
Other Operational Challenges. Additional operational challenges recently encountered by
Coronado include hard cutting zones within the Eagle No. 1 and Muddy Bridge mines. In
addition, recent discussions between Coronado and AEP have revealed recovery impacts in
areas beneath towers supporting high-voltage electrical lines that cross some of Logan’s
reserves. Other potential challenges include flooded overlying mine workings from
previous operations. All of these additional challenges have the potential to impact overall
recovery of the reserves.
>
It is recognised that this may not be possible or appropriate in all circumstances.
These statements of relative accuracy and confidence of the estimate should be
compared with production data, where available.
>
Mine plans, productivity expectations and cost estimates generally reflect historical
performance and efforts have been made to adjust plans and costs to reflect future
conditions.