Note 3 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE

3

—PROPERTY, PLANT AND EQUIPMENT

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

	December 31,
(In thousands)	2018			2017
Plant and equipment	$	109,911		$	80,455
Construction in process		12,066			7,626
Capitalized mine development cost		43,037			30,776
Less accumulated depreciation and amortization		(15,809	)		(3,406	)
Total property, plant and equipment, net	$	149,205		$	115,451

Depreciation expense related to the Company’s property, plant and equipment totaled

$9.7

million,

$2.6

million and

$0.3

million for

2018,

2017

and

2016,

respectively. Amortization of capitalized development expenses totaled

$2.7

million and

$0.5

million for

2018

and

2017,

respectively. 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 

$5.5

million as of

December 31, 2018

and

$8.7

million as of 

December 

31,

2017.

On

March 29, 2017,

we acquired approximately

14,800

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

$125,000

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.