Asset Impairment Review

12 Months Ended

Dec. 31, 2017

Asset Impairment Review [Abstract]

Asset Impairment Review

(2)Asset Impairment Review

Carlisle Mine

In December 2016, the deterioration of the North End of the Carlisle Mine (the North End),, coupled with lower coal prices led us to determine that the Northern End could no longer could be mined safely and profitably.   The sealing of the North End was completed in March 2017.  In connection therewith, we identified specific assets totaling $16.6 million ($15.1 million of property and equipment and $1.5 million of advanced royalties) that were written off in 2016. 

With the Carlisle Mine remaining in hot idle status, we conducted a review of the Carlisle Mine assets as of December 31, 2017, based on estimated future net cash flows, and determined that no further impairment was necessary. 

The Carlisle Mine assets had an aggregate net carrying value of $110 million at December 31, 2017.  .If, in future periods, we reduce our estimate of the future net cash flows attributable to the Carlisle Mine, it may result in future impairment of such assets and such charges could be significant. 

Bulldog Reserves

In October 2017, we entered into an agreement to sell land associated with the Bulldog Mine for $4.9 million.  As part of the transaction, we will hold the rights to repurchase the property for 8 years.  Because of the likelihood of exercising the repurchase option, we are accounting for the sale as a financing transaction. The Bulldog Mine assets had an aggregate net carrying value of $15 million at December 31, 2017.  Also in October 2017, the Illinois Department of Natural Resources (ILDNR) notified us that our mine application, along with modifications, was acceptable. The permit will be issued upon submittal of a fee and bond which are required within 12 months of the notification. We have determined that no impairment is necessary. If estimates inherent in the assessment change, it may result in future impairment of the assets.