5.PROPERTY, PLANT AND EQUIPMENT


	Net Book Value of Property, Plant and Equipment at December 31, 2020
(thousands of dollars)	Alabama		Corporate		Total
Mineral rights and properties	$	8,972	$	-	$	8,972
Other property, plant and equipment		-		13		13
Total Property, Plant and Equipment	$	8,972	$	13	$	8,985


	Net Book Value of Property, Plant and Equipment at December 31, 2019
(thousands of dollars)	Texas		Alabama		New Mexico		Corporate		Total
Uranium plant	$	3,112	$	-	$	-	$	-	$	3,112
Mineral rights and properties		-		8,972		7,806		-		16,778
Other property, plant and equipment		424		-		-		23		447
Total Property, Plant and Equipment	$	3,536	$	8,972	$	7,806	$	23	$	20,337
(Less) property, plant and equipment included in assets held for sale		(3,536)				(7,806)				(11,342)
Net Property, Plant and Equipment	$	-	$	8,972	$	0	$	23	$	8,995

Graphite Properties

(Note: Acreage amounts are unaudited.)

Coosa Project

The Coosa graphite project is situated in east-central Alabama, near the western end of Coosa County. The project is located near the southwestern-most extent of the Alabama graphite belt. The Coosa project is comprised of a lease and option of privately-owned mineral rights from a single land owner covering an overall area of approximately 45,000 acres (approximately 70.31 square miles). The various property parcels that comprise the lease are contiguous with each other, except for a few small and isolated parcels which are situated in the far south part of the project area. The lease has a series of five-year terms (commencing August 1, 2012) that are not to exceed 70 years in total. Under the terms of the lease the Company is required to make annual payments of $10,000 for the original lease and $16,179.10 for the optioned lands (the option has been exercised) in order to maintain the Company’s property rights. The Company is obligated to pay the owner of the mineral estate a net smelter returns royalty of 2.00% for any production and sale of graphite, vanadium and other minerals derived from the leased lands. There is a further obligation to pay a 0.50% net smelter return royalty, not to exceed $150,000, and make payments of $100,000 at the time of completion of a “bankable feasibility study” and an additional $150,000 upon completion of “full permitting” of the leased property. These payments are payable to an unaffiliated third-party. The Company does not hold any surface rights in the project area.

Impairment of Property, Plant and Equipment

The Company recorded the following impairment charges for 2020 and 2019 related to its uranium projects and processing facilities:


	For the years ended December 31,
	2020		2019
	(thousands of dollars)
Kingsville Dome project	$	101	$	143
Rosita project		1,161		—
Cebolleta/Juan Tafoya project		3,938		—
Total Impairment	$	5,200	$	143

Estimates and assumptions used to assess recoverability of the Company’s long-lived assets and measure fair value of its mineral properties are subject to risk uncertainty. Changes in these estimates and assumptions could result in the impairment of the Company’s long-lived assets. Events that could result in the impairment of the Company’s long-lived assets include, but are not limited to, decreases in the future mineral prices, decreases in the estimated recoverable minerals and any event that might otherwise have a material adverse effect on its costs.

Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization that is not part of the measured, indicated or inferred resource base, are included when determining the fair value of uranium properties upon acquisition and, subsequently, in determining whether the assets are impaired. The term “recoverable minerals” refers to the estimated amount of minerals that will be obtained after taking into account losses during processing and treatment. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups.

The Company reviews and evaluates its long-lived assets for impairment on an annual basis or more frequently when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. On September 1, 2020, the Company signed a binding LOI to sell its U.S. uranium assets to enCore Energy Corp. At September 30, 2020 an interim impairment review was performed in anticipation of the sale of Westwater’s uranium business to enCore. As a result, $5.2 million in impairment expense related to the Company’s long-lived uranium assets in south Texas and New Mexico was recognized in the third quarter of 2020.

Mineral Property Expenses

During the years ending December 31, 2020 and 2019, the Company’s total mineral property expense was $2.6 and $2.7 million, respectively. Included within mineral property costs are standby, land maintenance and holding, exploration and evaluation costs for all properties. The Company spent the following amounts for each of its material properties:


	For the year ended December 31,
	2020		2019
	(thousands of dollars)
Kingsville Dome project, Texas	$	907	$	716
Rosita project, Texas		464		530
Vasquez project, Texas		600		495
Other projects		20		(4)
Total Texas projects		1,991		1,737

Cebolleta project, New Mexico		390		440
Juan Tafoya project, New Mexico		224		223
West Largo		—		13
Total New Mexico projects		614		676

Columbus Basin project, Nevada		—		126
Total Nevada projects		—		126

Sal Rica project, Utah		1		111
Total Utah projects		1		111

Coosa project, Alabama		34		86
Total Alabama projects		34		86

Total mineral property expenses for the period	$	2,640	$	2,736

(Less) Mineral Property expenses from discontinued operations		(2,606)		(2,416)

Mineral property expenses for continued operations	$	34	$	320