INVENTORIES

6 Months Ended

Jun. 30, 2020

INVENTORIES

INVENTORIES

7.INVENTORIES

Inventories consist of the following:

	June 30,		December 31,
	2020		2019
	(in thousands)
Coal	$	51,418	$	63,645
Supplies (net of reserve for obsolescence of $5,762 and $5,555, respectively)		36,975		37,660
Total inventories, net	$	88,393	$	101,305

During the six months ended June 30, 2020, we recorded lower of cost or net realizable value adjustments of $16.9 million to our coal inventories as a result of lower coal sale prices and higher cost per ton due to the impact of lower production on our fixed costs per ton in addition to the impact of challenging market conditions on our production levels.  The lower of cost or net realizable value adjustments reflect the impacts of the challenging market conditions and were primarily attributable to the Hamilton and MC Mining complexes.