Note 3 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

PROPERTY, PLANT, AND EQUIPMENT

NOTE 3—PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment consisted of the following:

	December 31,
(In thousands)	2024		2023
Plant and equipment	$	331,899	$	290,060
Mining property and mineral rights		120,532		120,532
Construction in process		31,048		13,984
Capitalized mine development costs		199,595		174,260
Less: accumulated depreciation, depletion, and amortization		(201,055)		(139,745)
Total property, plant, and equipment, net	$	482,019	$	459,091

Capitalized amounts related to coal reserves at properties where we are not currently engaged in mining operations totaled $16.2 million as of December 31, 2024 and $17.4 million as of December 31, 2023.

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. The overall impact to pre-tax earnings in 2022 was immaterial except for idle mine costs of $9.5 million recognized during the year. Production from the Berwind No. 1 mine restarted in the first quarter of 2023. The Company received $9.2 million of insurance proceeds during 2023 related to this matter, which have been reported as part of Insurance proceeds related to property, plant, and equipment in the investing activities section of the Consolidated Statements of Cash Flows, and recognized a gain of $8.1 million in Other income (expense), net on the Consolidated Statement of Operations in 2023 as the Company had previously accrued a $1.1 million recovery asset at December 31, 2022.

Mining property and mineral rights are made up primarily of significant asset acquisitions occurring in previous years, including those discussed in Note 4.

Capitalized mine development costs amortization expense was approximately $1.1 million higher in 2024 compared to 2023 for the Knox Creek Jawbone mine. The Jawbone mine was closed in the later part of 2024 as the mine was experiencing higher production costs and nearing end of life.

Depreciation, depletion, and amortization included:

	Year ended December 31,
(In thousands)	2024		2023		2022
Depreciation of plant and equipment	$	37,283	$	30,913	$	24,132
Amortization of right of use assets (finance leases)		10,414		8,547		4,846
Amortization and depletion of capitalized
mine development costs and mineral rights		17,918		14,792		12,216
Total depreciation, depletion, and amortization	$	65,615	$	54,252	$	41,194