Note 3 - Property, Plant and Equipment

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

PROPERTY, PLANT AND EQUIPMENT

NOTE 3—PROPERTY, PLANT AND EQUIPMENT

Property, plant, and equipment consisted of the following:

(In thousands)	September 30, 2023		December 31, 2022
Plant and equipment	$	276,813	$	232,885
Mining property and mineral rights		120,532		120,760
Construction in process		17,554		34,698
Capitalized mine development costs		168,646		153,436
Less: accumulated depreciation, depletion, and amortization		(126,833)		(111,937)
Total property, plant and equipment, net	$	456,712	$	429,842

On July 10, 2022, the Company experienced a methane ignition at the Berwind No. 1 mine, which was one of the active mines at our Berwind mining complex. The other mines resumed production while the Berwind No. 1 mine was idled until a full investigation could be conducted. There were no personnel in the mine at the time of the incident and no injuries or fatalities occurred. Production from the Berwind No. 1 mine restarted in the first quarter of 2023. The Company received $6.0 million of insurance proceeds during the nine months ended September 30, 2023 related to this matter, which have been reported as other investing activities on the statement of cash flows, and recognized a $4.9 million gain in other income as the Company had previously accrued a $1.1 million loss recovery asset at December 31, 2022.

On September 30, 2023, the Company updated its estimates of the amount and timing of future spending related to asset retirement obligations. The adjustment resulted in a $1.3 million decrease to capitalized mine development costs and a corresponding decrease to the Company’s asset retirement obligations liabilities ($1.4 million decrease to noncurrent liabilities and a $0.1 million increase to current liabilities).

Depreciation, depletion, and amortization included:

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2023		2022		2023		2022
Depreciation of plant and equipment	$	8,063	$	5,903	$	22,492	$	15,928
Amortization of right of use assets (finance leases)		2,432		1,710		6,312		3,806
Amortization and depletion of capitalized
mine development costs and mineral rights		3,948		3,822		11,046		10,164
Total depreciation, depletion, and amortization	$	14,443	$	11,435	$	39,850	$	29,898