Note 4 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE

4

—PROPERTY, PLANT AND EQUIPMENT

The Company

’s property, plant and equipment consist of the following:

	December 31,
	2017			2016
Plant and equipment at cost	$	80,454,977		$	19,201,550
Construction in process		7,625,855			11,847,904
Capitalized mine development cost		30,775,765			15,635,956
Less accumulated depreciation and amortization		(3,405,756	)		(251,684	)
Total property, plant and equipment, net	$	115,450,841		$	46,433,726

Depreciation expense related to the Company

’s plant and equipment totaled

$2.6

million and

$252

thousand for

2017

and

2016,

respectively. Amortization of capitalized development expenses totaled

$536

thousand for

2017.

The Company began commercial mining operations in

January 2017.

Depreciation and amortization begin when assets are placed in service. Capitalized amounts related to coal reserves at properties where we are

not

currently engaged in mining operations totaled 

$8.7

million as of 

December 

31,

2017

 and 

$15.6

million as of 

December 

31,

2016.

On

March 29, 2017,

we acquired approximately

14.8

thousand acres of coal properties in Tazewell and Buchanan Counties, Virginia and McDowell County, West Virginia including several coal leaseholds adjacent to our Knox Creek operations. The Company paid

$125

thousand for the properties, a portion of which is recoupable from future production, and agreed to pay an overriding royalty on production from properties

not

already subleased.