EX-96.3 76 ex963.htm EX-96.3 ex963
ex963p1i0.jpg
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300
 
as of December
31, 2021
Central Appalachian Coal Basin
West Virginia, USA
February 2022
Prepared for:
Coronado Global Resources Inc.
 
100 Bill Baker Way
 
Beckley, West
 
Virginia 25801
Prepared by:
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
582 Industrial Park Road
Bluefield, Virginia
 
24605
www.mma1.com
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
Statement of Use and Preparation
This Technical
 
Report Summary (
TRS
) was prepared by
Marshall Miller & Associates, Inc.
(
MM&A
)
 
for the sole
 
use of
Coronado Global Resources
 
Inc. (
Coronado
)
and its affiliated
and
 
subsidiary
 
companies
 
and
 
advisors.
 
Copies
 
or
 
references
 
to
 
information
 
in
 
this
 
report
may not be used without the written permission of Coronado.
This report provides
 
a statement
 
of coal resources
 
and coal reserves
 
for Coronado, as
 
defined
under
 
the
Australasian Code
 
for
 
Reporting of
 
Exploration
 
Results, Mineral
 
Resources
and
 
Ore
 
Reserves
(
JORC
 
Code
)
 
as
 
well
 
as
 
under
 
Subpart
 
1300
 
of
 
Regulation
 
S-K
(Regulation
 
S-K
 
1300)
 
promulgated
 
by
the
United
 
States
 
Securities
 
and
 
Exchange
Commission
 
(
SEC
)
.
 
Subject
 
to
 
the
 
comments
 
below,
 
this
 
report
 
was
 
also
 
prepared
 
in
accordance with
 
the
Australasian Code for
 
Public Reporting
 
of Technical
 
Assessments
and Valuations of Mineral Assets
(
VALMIN Code
).
 
The
 
statement
 
is
 
based
 
on
 
information
 
provided
 
by
 
Coronado
 
and
 
reviewed
 
by
 
John
 
W.
Eckman, CPG; and Justin S. Douthat, PE, MBA.
As
 
noted
 
above,
 
this
 
report
 
is
 
a
 
“Public
 
Report”
 
for
 
the
 
purposes
 
of
 
the
 
VALMIN
 
Code.
 
However,
 
in accordance with paragraph 12.1
 
of the VALMIN
 
Code, it is noted
 
that this report
is
 
not
 
a
 
“Valuation
 
of
 
Mineral
 
Assets”,
 
and
 
it
 
also
 
does
 
not
 
comply
 
with
 
the
 
following
requirements that apply to “Technical
 
Assessments” (as defined in the VALMIN Code):
This report does not include a determination of the status of tenure (as required by
paragraph 7.2 of the VALMIN Code) on the basis that tenure was separately reviewed by
Coronado’s legal advisors.
This report does
 
not include
 
separate commentary on
 
the reasonableness and
 
quality of the
Resources
 
and
 
Reserves
 
estimates
 
and
 
the
 
basis
 
on
 
which
 
they
 
have
 
been
 
reported
 
(as
required
 
by
 
paragraph
 
7.3
 
of
 
the
 
VALMIN
 
Code).
 
MM&A
 
did
 
not
 
consider
 
that
 
this
 
was
appropriate in circumstances
 
where MM&A was
 
engaged for the
 
specific purpose of
 
preparing
those estimates
 
and the
 
Resource estimates
 
were prepared
 
by John
 
Eckman and
 
the Reserve
estimates were prepared
 
by Justin
 
Douthat, both
 
of whom
 
are authors
 
of this
 
report.
 
However,
MM&A notes that, in
 
accordance with its
 
usual practice, a separate
 
team of MM&A
 
employees
undertook
 
a
 
peer
 
review of
 
this
 
report
 
and
 
confirmed
 
that
 
both
 
the process
 
followed
 
by
 
the
authors
 
of
 
this
 
report
 
and
 
the
 
estimates
 
prepared
 
were
 
reasonable
 
and
 
comply
 
with
 
the
requirements of the JORC Code.
 
Justin Douthat
 
is a
 
licensed Professional
 
Engineers and
 
Registered Member
 
of the
Society
of Mining Engineers (
SME
)
, Golden, Colorado, USA.
 
John Eckman is
 
a Registered Member
of
 
the
American
 
Institute
 
of
 
Professional
 
Geologists
(
AIPG
)
.
 
SME
 
and
 
AIPG
 
are
Recognized Professional Organizations (
RPOs
)
.
 
Both are full-time employees of Marshall
Miller & Associates, Inc. and recognized as a
Qualified Persons
(
QPs
).
The
 
information
 
in
 
this
 
TRS
 
related
 
to
 
coal
 
resources
 
and
 
reserves
 
is
 
based
 
on,
 
and
 
fairly
represents,
 
information
 
compiled
 
by
 
the
 
QPs.
 
At
 
the
 
time
 
of
 
reporting,
 
MM&A’s
 
QPs
 
have
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
sufficient
 
experience
 
relevant
 
to
 
the
 
style
 
of
 
mineralization
 
and
 
type
 
of
 
deposit
 
under
consideration and to
 
the activity
 
they are undertaking
 
to qualify
 
as a
 
QP as defined
 
by the SEC
and the
 
JORC Code.
 
Each QP
 
consents to
 
the inclusion
 
in this
 
report of
 
the matters
 
based
on their information in the form and context in which it appears.
Marshall
 
Miller &
 
Associates,
 
Inc. (
MM&A
)
 
hereby
 
consents to
 
the use
 
of the
 
information
contained in this report dated December 31,
 
2021, relating to estimates of coal resources
 
and
coal reserves controlled by Coronado.
 
 
 
 
ex963p2i0.jpg
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
This report was prepared by:
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
/s/ John W. Eckman
February 18, 2022
John W. Eckman, CPG
Senior Geologist
Direct Line: +1 304 809 0664
Date of Signature
/s/ Justin S. Douthat
February 18, 2022
Justin S. Douthat, PE, MBA
Executive Vice President
Direct Line: +1 304 809 0597
Email:
 
Date of Signature
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
Table
 
of Contents
1
1
1.1
1
1.2
2
1.3
3
1.4
3
1.5
3
1.6
4
1.7
4
1.8
5
1.9
5
1.10
7
1.10.1
10
1.10.2
10
1.11
11
1.12
11
2
12
2.1
12
2.2
12
2.3
13
3
13
3.1
13
3.2
13
3.3
13
3.4
14
3.5
14
4
15
4.1
15
4.2
15
4.3
15
4.4
15
4.5
16
5
16
5.1
16
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
13
36
13.1
36
13.2
36
13.3
37
13.3.1
37
13.3.2
37
13.3.3
38
13.4
38
13.4.1
38
13.4.2
45
14
48
14.1
36
14.2
36
15
49
16
50
16.1
50
16.2
51
16.3
52
17
52
17.1
52
17.2
52
17.3
52
17.4
55
17.5
55
17.6
55
18
55
18.1
56
18.2
56
19
57
19.1
57
19.2
63
19.3
63
20
64
20.1
Information Used
64
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
4
21
64
22
64
22.1
Conclusion
64
22.2
Risk Factors
64
22.2.1
Governing Assumptions
65
22.2.2
Limitations
66
22.2.3
Methodology
66
22.2.4
Development of the Risk Matrix
67
22.2.5
Categorization of Risk Levels and Color Code Convention
69
22.2.6
Description of the Coal Property
69
22.2.7
Summary of Residual Risk Ratings
70
22.2.8
Risk Factors
70
23
77
24
77
25
77
Figures (in Report)
2
5
6
11
18
20
28
28
29
30
32
50
57
60
63
Tables
 
(in Report)
4
4
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
5
5
7
9
26
30
31
32
35
35
464
6
47
48
51
54
57
57
60
61
62
67
68
69
70
71
72
72
73
73
74
75
75
76
76
77
78
Appendices
A
B
C
D
E
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
1
Executive Summary
1.1
 
Property Description
Coronado Global
 
Resources Inc.
 
(
Coronado
)
authorized Marshall
 
Miller &
 
Associates,
Inc. (
MM&A
)
 
to prepare this
 
Technical Report Summary (TRS) of its
 
controlled coal resources
and reserves located at
 
the
Logan County Complex
 
(
Logan
)
 
in Boone, Logan and
 
Wyoming
Counties, West Virginia (the
Property
).
 
The report provides
 
a statement of
 
coal resources
 
and
coal
 
reserves
 
for
 
Coronado,
 
as
 
defined
 
under
 
the
Australasian
 
Code
 
for
 
Reporting
 
of
Exploration Results,
 
Mineral Resources and
 
Ore Reserves
(
JORC Code
) as well
 
as under
Subpart
 
1300
 
of
 
Regulation
 
S-K
 
(Regulation
 
S-K
 
1300)
 
promulgated
 
by
 
the
United
 
States
Securities and
 
Exchange Commission
 
(
SEC
)
.
 
This report
 
was also
 
prepared in
 
accordance
with
 
the
Australasian
 
Code
 
for
 
Public
 
Reporting
 
of
 
Technical
 
Assessments
 
and
Valuations of Mineral Assets
(
VALMIN Code
).
Coal resources and coal reserves are herein
 
reported in metric units of measurement and
 
are
rounded to millions of metric tonnes (
Mt
).
Surface facilities for
 
the operations are
 
located along Buffalo
 
Creek and a
CSX Corporation
(
CSX
)
 
rail
 
line
 
about
 
21
 
kilometers
 
north-northeast
 
of
 
Man,
 
West
 
Virginia
 
(see
Figure
 
1-1
).
 
The Property
 
is composed
 
of 13,138
 
total hectares,
 
13,069 of
 
which are
 
leased from
 
private
landholders
 
under
 
approximately
 
15
 
individual
 
leases,
 
and
 
69
 
hectares
 
are
 
owned
 
by
Coronado.
 
Subject
 
to
 
Coronado
 
exercising
 
its
 
renewal
 
rights
 
thereunder,
 
a
 
majority
 
of
 
the
leases, covering a majority
 
of the Logan reserves, expire
 
upon exhaustion of the
 
relevant coal
reserves, which is expected to
 
occur in 2053.
 
One lease expires in
 
2032; however, Coronado
is projected to have previously exhausted the reserves covered thereby.
 
 
ex963p2i0.jpg ex963p11i1.jpg
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
Figure 1-1:
 
Coronado Logan Property Location Map
1.2
 
Ownership
The Logan
 
properties started
 
mining in
 
1945 by
Lorado Mining
 
Company
.
 
The properties
were
 
sold
 
to
Buffalo
 
Mining
 
Company
 
in
 
1964
 
and
 
then
 
to
Pittston
 
Coal
 
Company
(
Pittston
)
 
in
 
1971.
 
Pittston
 
operated
 
the
 
properties
 
until
 
the
 
early
 
1990’s
 
when
 
it
 
idled
 
the
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
mine complex and then sold them to
Addington Resources
 
in 2004.
 
Production resumed in
2005.
 
Imagin
 
Natural
 
Resources
 
acquired
 
the
 
properties
 
in
 
2007
 
and
 
sold
 
to
Cleveland-
Cliffs Inc. (
Cliffs
)
 
in 2011, which in turn sold the properties to Coronado in 2014.
1.3
 
Geology
Operations at the Logan Mine Complex extract multiple coal seams by both underground and
surface
 
mining
 
methods.
 
The
 
coal-bearing
 
formation
 
of
 
interest
 
at
 
Logan
 
is
 
primarily
 
the
Kanawha Formation, which
 
comprises a major
 
portion of the
 
exposed ridges.
 
The Kanawha
Formation is a coal
 
bearing sequence of sandstones,
 
siltstones, shales, and mudstones
 
with
minor occurrences of siderite, limestone and flint clay.
Coronado
mines several horizons
 
within the Kanawha
 
formation.
 
The horizons are
 
as follows:
 
Buffalo Creek, Upper Clarion Rider, Clarion, Lower Clarion,
 
Upper Stockton, Lower Stockton,
Upper Coalburg, Lower Coalburg, Lower Dorothy, Upper Winifrede, Lower Winifrede,
 
Chilton-
A,
 
Chilton,
 
Upper
 
Cedar
 
Grove,
 
Middle
 
Cedar
 
Grove,
 
Lower
 
Cedar
 
Grove,
 
2
 
Gas,
 
Upper
Powellton, Lower Powellton, Eagle, and Lower War Eagle.
1.4
 
Exploration Status
The
 
Property
 
has
 
been
 
extensively
 
explored,
 
largely
 
by
 
drilling
 
using
 
continuous
 
coring
methods,
 
rotary
 
drilling
 
but
 
also
 
by
 
obtaining
 
coal
 
measurements
 
at
 
mine
 
exposures.
 
The
majority of
 
the data
 
was acquired
 
or generated
 
by previous
 
owners of
 
the Property.
 
These
sources
 
comprise
 
the
 
primary
 
data
 
used
 
in
 
the
 
evaluation
 
of
 
the
 
coal
 
resources
 
and
 
coal
reserves
 
on
 
the
 
Property.
 
MM&A
 
examined
 
the
 
data
 
available
 
for
 
the
 
evaluation
 
and
incorporated all
 
pertinent information
 
into this
 
TRS.
 
Where data
 
appeared to
 
be anomalous
or
 
not
 
representative,
 
that
 
data
 
was
 
excluded
 
from
 
the
 
digital
 
databases
 
and
 
subsequent
processing by MM&A.
 
Ongoing exploration
 
has been
 
carried out
 
by Coronado
 
since acquiring
 
the Logan
 
Complex.
 
The Coronado acquired exploration data has been consistent with past drilling activities.
1.5
 
Operations and Development
As of December 31, 2021, underground
 
mine operations were active at the Lower
 
War Eagle,
Eagle
 
No.
 
1
 
and
 
Muddy
 
Bridge
 
Mines
 
with
 
three,
 
three
 
or
 
two
 
active
 
mining
 
sections,
respectively using the room-and-pillar
 
method.
 
In addition, Coronado operates
 
a single active
underground
 
room-and-pillar
 
section
 
in
 
the
 
Powellton
 
No.
 
1
 
Mine.
 
Annual
 
deep
 
mine
production peaks at approximately 2.5
 
Mt in 2027.
 
One active surface mine, Toney Fork, was
also
 
operating.
 
Surface
 
production
 
is
 
projected
 
to
 
peak
 
at
 
1.4
 
Mt
 
in
 
2034.
 
Highwall
 
miner
production
 
is
 
also
 
projected
 
to
 
resume
 
in
 
2023
 
with
 
a
 
peak
 
in
 
2033
 
at
 
0.74
 
Mt.
 
Overall
production will continue until 2053 with peak production occurring in 2033 at 4.2 Mt.
The Logan County Complex
 
includes the Saunders
 
Preparation Plant in addition
 
to the mines.
 
The
 
plant
 
site
 
includes raw
 
coal
 
storage,
 
clean
 
coal
 
storage,
 
a
 
railroad
 
loadout,
 
and
 
refuse
disposal area.
 
The plant has a feed rate capacity of 1,088 raw tonnes per hour.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
4
1.6
 
Mineral Resource
Mineral
 
resources,
 
representing
 
in-situ
 
coal
 
in
 
which
 
a
 
portion
 
of
 
reserves
 
are
 
derived,
 
are
presented
 
below.
 
A
 
coal
 
resource
 
estimate,
 
summarized
 
in
Table
 
1-1
,
 
was
 
prepared
 
as
 
of
December 31, 2021, for property controlled by Coronado.
Table 1-1:
 
Coal Resources Summary as of December 31, 2021
 
(Mt)
 
Coal Resource (Dry Tonnes, In Situ, MT)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserves
129.6
47.7
0.0
177.3
24
1.0
28
Exclusive of Reserves
45.8
37.0
3.4
86.2
Total 12/31/2021
175.4
84.7
3.4
263.5
Note:
 
Resource tonnes are inclusive of reserve
 
tonnes since they include the in-situ tonnes from
 
which recoverable coal
reserves are derived.
Note 2:
 
Coal resources are reported on a dry basis.
 
Surface moisture and inherent moisture are excluded.
Note 3: The Property has 82.8 Mt of dry, in-place measured and indicated resource
 
tonnes exclusive of reserves as of December
31, 2021.
1.7
 
Mineral Reserve
Reserve
 
tonnage
 
estimates
 
provided
 
herein
 
report
 
coal
 
reserves
 
derived
 
from
 
the
 
in-situ
resource
 
tons
 
presented
 
in
Table
 
1-1
,
 
and
 
not
 
in
 
addition
 
to
 
coal
 
resources.
 
Proven
 
and
probable
 
coal
 
reserves
 
were
 
derived
 
from
 
the
 
defined
 
coal
 
resource
 
considering
 
relevant
mining,
 
processing,
 
infrastructure,
 
economic
 
(including
 
estimates
 
of
 
capital,
 
revenue,
 
and
cost), marketing, legal, environmental, socio-economic and regulatory factors.
 
The Resource
estimate has been used as the basis for this Reserve calculation, which utilizes a
 
reasonable
Preliminary Feasibility Study,
 
a Life-of Mine
 
(
LOM
) Mine
 
Plan and practical
 
recovery factors.
 
Production modeling was completed
 
with an effective start
 
date of October 1,
 
2021.
 
Additions
and depletion have been used to bring the Reserve estimate forward to December 31, 2021.
Factors
 
that
 
would
 
typically
 
preclude
 
conversion
 
of
 
a
 
coal
 
resource
 
to
 
coal
 
reserve,
 
which
include
 
the
 
following:
 
inferred
 
resource
 
classification;
 
absence
 
of
 
coal
 
quality;
 
poor
 
mine
recovery; lack of
 
access; geological encumbrances
 
associated with overlying
 
and underlying
strata;
 
seam
 
thinning;
 
structural
 
complication;
 
and
 
insufficient
 
exploration
 
have
 
all
 
been
considered.
 
Reserve consideration
 
excludes those
 
portions of
 
the resource
 
area which
 
exhibit
the aforementioned geological
 
and operational encumbrances.
 
Coal reserves are presented
on a run-of-mine (
ROM
) basis in
Table
 
1-2.
Table 1-2:
 
Coal Summary (ROM Basis (Moist)) as of December
 
31, 2021 (Mt)
 
Demonstrated Coal Reserves (Mt, Moist ROM)
Quality (Dry)
 
By Reliability Category
By Mining Type
By Control Type
Area / Mine
Proved
Probable
Total
Surface
UG
Owned
Leased
Ash
Sulfur
Vol
Logan Mine
Complex
94.9
42.0
136.9
38.5
98.4
0.0
136.9
49
0.9
20
Proven
 
and
 
probable
 
coal
 
reserve
 
were
 
derived
 
from
 
the
 
defined
 
in-situ
 
coal
 
resource
considering relevant
 
processing, economic
 
(including technical
 
estimates of
 
capital, revenue
and cost),
 
marketing, legal,
 
environmental, socioeconomic,
 
and regulatory
 
factors.
 
The proven
and probable coal reserves on the Property are summarized below in
Table
 
1-3.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ex963p14i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
5
Table 1-3:
 
Coal Reserves Summary (Marketable Sales Basis) as of
 
December 31, 2021 (Mt)
 
Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipped, MT)
Quality (Dry Basis)
 
By Reliability Category
By Mining Type
By Control Type
Property
Proven
Probable
Total
Surface
UG
Owned
Leased
Ash%
Sulfur%
VM%
Logan County
Complex
53.4
20.1
73.4
33.4
40.1
0.0
73.4
8
0.9
35
Note: Marketable reserve tonnes are reported on
 
a moist basis, including a combination of surface
 
and inherent moisture.
 
The
combination of surface and inherent moisture is
 
modeled between 4.5 and 6-percent, depending
 
upon mining method.
 
Actual
product moisture is dependent upon multiple geological
 
factors, operational factors, and product contract
 
specifications and can
exceed 8-percent.
 
As such, the modeled moisture values provide a level
 
of conservatism for reserve reporting.
In summary, Coronado controls a total of 73.4 Mt (moist basis) of marketable coal
 
reserves at
Logan
 
as
 
of
 
December 31,
 
2021.
 
Of
 
that
 
total,
 
73
 
percent
 
are
 
proven,
 
and
 
27
 
percent
 
are
probable.
 
All 73.4
 
Mt are leased
 
coal reserves and
 
are assigned.
 
Approximately 68.7
 
Mt of
reserves are considered suitable for the metallurgical coal market and 4.8 Mt are projected to
be sold into the thermal coal market.
 
1.8
 
Capital Summary
Coronado
 
provided
 
MM&A
 
with
 
an
 
inventory
 
of
 
operating
 
equipment
 
available
 
at
 
Logan.
 
MM&A’s
 
capital
 
schedules
 
assume
 
that
 
major
 
equipment
 
rebuilds
 
occur
 
over
 
the
 
course
 
of
each machine’s
 
remaining assumed
 
operating life.
 
Replacement equipment
 
was scheduled
based
 
on
 
MM&A’s
 
experience
 
and
 
knowledge
 
of
 
mining
 
equipment
 
and
 
industry
 
standards
with respect to
 
the useful life of
 
such equipment.
 
A summary of
 
the estimated capital for
 
the
Property is provided in
Figure 1-2
 
below.
Figure 1-2:
 
CAPEX
1.9
 
Operating Costs
Coronado provided
 
historical and
 
preliminary 5-year
 
projections of
 
operating costs
 
for its
 
active
mines
 
for
 
MM&A’s
 
review.
 
MM&A
 
used
 
the
 
historical
 
and/or
 
budget
 
cost
 
information
 
as
 
a
reference and developed personnel schedules for each mine.
 
Hourly labor rates and salaries
 
 
ex963p2i0.jpg ex963p15i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
6
were
 
based
 
upon
 
information
 
contained
 
in
 
Coronado’s
 
financial
 
summaries.
 
Fringe
 
benefit
costs were developed
 
for vacation and
 
holidays, federal and
 
state unemployment insurance,
retirement,
 
workers’
 
compensation
 
and
 
pneumoconiosis,
 
casualty
 
and
 
life
 
insurance,
healthcare and bonuses.
For the
 
underground operations,
 
a
 
cost factor
 
for
 
mine
 
supplies was
 
developed
 
that relates
expenditures
 
to
 
mine
 
advance
 
rates
 
for
 
roof
 
control
 
costs
 
and
 
other
 
mine
 
supply
 
costs
 
at
underground mines.
 
Other factors were developed for maintenance and repair
 
costs, rentals,
mine power, outside services and other direct mining costs.
 
Surface mine
 
direct operating
 
costs were
 
developed as
 
a function
 
of overburden
 
ratio for
 
repair
and maintenance
 
supplies, diesel
 
fuel, explosives
 
and blasting,
 
and miscellaneous
 
supplies
and services.
Operating costs for highwall mines are based on costs per ROM tonne estimates.
Operating costs factors were also developed for the coal preparation plant processing, refuse
handling, coal loading, property taxes, and insurance and bonding.
Appropriate royalty rates
 
were assigned for
 
production from leased
 
coal lands and sales
 
taxes
were calculated for
 
state severance taxes,
 
the federal black
 
lung excise tax, and
 
federal and
state reclamation fees.
A summary of the projected operating costs for the Property is provided in
Figure 1-3
.
Figure 1-3:
 
OPEX
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
7
1.10
 
Economic Evaluation
The pre-feasibility financial model
 
prepared for this TRS was
 
developed to test the economic
viability
 
of
 
the
 
coal
 
resource
 
area.
 
The
 
results
 
of
 
this
 
financial
 
model
 
are
 
not
 
intended
 
to
represent
 
a
 
bankable feasibility
 
study,
 
required for
 
financing of
 
any current
 
or future
 
mining
operations
 
contemplated
 
for
 
the
 
Coronado
 
properties,
 
but
 
are
 
intended
 
to
 
establish
 
the
economic
 
viability
 
of
 
the
 
estimated
 
coal
 
reserves.
 
Cash
 
flows
 
are
 
simulated
 
on
 
an
 
annual
basis in nominal dollars assuming a
 
2% inflation rate based on projected production
 
from the
coal reserves.
 
The discounted
 
cash flow analysis
 
presented herein
 
is based
 
on an effective
date of January 1, 2022.
 
On
 
an
 
un-levered
 
basis,
 
the
 
net
 
present
 
value
 
(
NPV
)
 
of
 
the
 
project
 
cash
 
flow
 
after
 
taxes
represents the Enterprise Value of the project.
 
The project cash flow, excluding debt service,
is calculated
 
by subtracting
 
direct and
 
indirect operating
 
expenses and
 
capital expenditures
from
 
revenue.
 
Direct
 
costs
 
include
 
labor,
 
operating
 
supplies,
 
maintenance
 
and
 
repairs,
facilities
 
costs
 
for
 
materials
 
handling,
 
coal
 
preparation,
 
refuse
 
disposal,
 
coal
 
loading,
reclamation and general and administrative costs.
 
Indirect costs include statutory and legally
agreed upon fees
 
related to direct
 
extraction of the
 
mineral.
 
The indirect costs
 
are the Federal
black lung tax, Federal and State reclamation taxes, property
 
taxes, coal production royalties,
and income taxes.
 
Table
 
1-4
 
shows
 
LOM
 
tonnage,
 
profit
 
&
 
loss
 
(
P&L
),
 
and
 
earnings
 
before
 
income
 
tax,
depreciation & amortization (
EBITDA
) for Logan.
Table 1-4:
 
Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)
 
LOM
LOM
P&L
LOM
EBITDA
 
Tonnes
*
Pre-Tax P&L
Per Tonne
EBITDA
Per Tonne
Deep Mines
 
 
 
 
 
Camp Br Chilton
 
1,607
 
 
$32,285
 
 
$20.08
 
 
$54,357
 
 
$33.82
 
Eagle No. 1 (Toney Fork)
 
12,504
 
 
$91,928
 
 
$7.35
 
 
$205,032
 
 
$16.40
 
Elk Lick Chilton
 
3,809
 
 
$116,111
 
 
$30.48
 
 
$150,035
 
 
$39.39
 
Lower Powellton
 
5,095
 
 
$102,826
 
 
$20.18
 
 
$164,666
 
 
$32.32
 
Lower War Eagle
 
7,105
 
 
$207,728
 
 
$29.24
 
 
$308,368
 
 
$43.40
 
Powellton No. 1
 
3,677
 
 
$97,593
 
 
$26.54
 
 
$151,180
 
 
$41.12
 
Muddy Br No.2 Gas
 
4,188
 
 
$270,115
 
 
$64.50
 
 
$313,447
 
 
$74.85
 
Upper Winifrede
 
1,794
 
 
$57,593
 
 
$32.11
 
 
$78,591
 
 
$43.82
 
Winifrede (Chilton Rider)
 
278
 
 
$1,052
 
 
$3.79
 
 
$5,158
 
 
$18.58
 
Consolidated Deep Mines
 
40,057
 
 
$977,232
 
 
$24.40
 
 
$1,430,834
 
 
$35.72
 
 
Surface Mines
Toney Fork Surf
 
6,698
 
 
$30,295
 
 
$4.52
 
 
$142,924
 
 
$21.34
 
Buffalo Cr South Area
 
8,728
 
 
$97,428
 
 
$11.16
 
 
$221,170
 
 
$25.34
 
Sugar Camp Area 1
 
5,221
 
 
$32,688
 
 
$6.26
 
 
$148,325
 
 
$28.41
 
Surface Mines Consolidated
 
20,646
 
 
$160,411
 
 
$7.77
 
 
$512,419
 
 
$24.82
 
 
Highwall Miner (HWM)
Operations
Toney Fork HWM
 
4,705
 
 
$254,021
 
 
$53.99
 
 
$256,385
 
 
$54.49
 
Buffalo Cr South HWM
 
6,532
 
 
$439,179
 
 
$67.23
 
 
$440,183
 
 
$67.39
 
Sugar Camp HWM
 
1,501
 
 
$98,208
 
 
$65.43
 
 
$98,208
 
 
$65.43
 
HWM Consolidated
 
12,738
 
 
$791,408
 
 
$62.13
 
 
$794,775
 
 
$62.39
 
 
Grand Total
 
73,441
 
 
$1,929,050
 
 
$26.27
 
 
$2,738,028
 
 
$37.28
 
* The Financial model includes 0.03 million tonnes of inferred coal production.
 
Inferred coal
represents 0.04% of the total production, and none of this coal was included in the estimate of
reserves.
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
8
As shown in
Table
 
1-4,
 
the Logan operations
 
show positive EBITDA
 
over the LOM.
 
Overall,
the
 
Coronado
 
consolidated
 
operations
 
show
 
positive
 
LOM
 
P&L
 
and
 
LOM
 
EBITDA
 
of
 
$1.9
billion and $2.7 billion, respectively.
 
Coronado’s consolidated
 
Logan cash
 
flow summary
 
in nominal
 
dollars assuming
 
a 2%
 
inflation
rate, excluding debt service, is shown in
Table
 
1-5
 
below.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
9
Table 1-5:
 
Project Cash Flow Summary ($000)
*
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
Total
2022
2023
2024
2025
2026
Production & Sales tonnes
73,441
2,250
2,919
2,903
3,213
3,067
Total
 
Revenue
$9,980,224
$420,654
$344,156
$337,534
$394,845
$389,424
EBITDA
$2,738,028
$200,726
$78,732
$78,233
$110,802
$107,624
Net Income
$1,610,525
$120,459
$34,650
$29,605
$61,436
$59,748
Net Cash Provided by Operating Activities
$2,372,457
$125,587
$89,779
$70,664
$90,037
$94,643
Purchases of Property, Plant, and
Equipment
$(709,361)
$(54,793)
$(27,441)
$(27,989)
$(17,357)
$(13,652)
Net Cash Flow
$1,663,096
$70,794
$62,338
$42,674
$72,680
$80,991
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2027
2028
2029
2030
2031
2032
Production & Sales tonnes
3,396
3,661
3,579
3,326
2,950
3,438
Total
 
Revenue
$431,154
$451,609
$445,987
$420,670
$376,614
$440,781
EBITDA
$117,770
$119,515
$116,897
$111,475
$78,018
$87,218
Net Income
$65,436
$69,828
$70,242
$65,713
$34,306
$33,521
Net Cash Provided by Operating Activities
$100,542
$104,726
$104,191
$100,196
$77,188
$77,404
Purchases of Property, Plant, and
Equipment
$(59,598)
$(28,735)
$(27,081)
$(31,232)
$(48,753)
$(71,927)
Net Cash Flow
$40,944
$75,991
$77,110
$68,964
$28,435
$5,477
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2033
2034
2035
2036
2037
2038
Production & Sales tonnes
4,156
4,105
3,468
3,753
2,854
3,015
Total
 
Revenue
$537,477
$534,901
$465,163
$514,566
$405,973
$421,828
EBITDA
$142,816
$161,080
$119,812
$148,790
$92,000
$117,900
Net Income
$89,651
$103,843
$69,446
$91,589
$53,041
$76,624
Net Cash Provided by Operating Activities
$113,575
$136,352
$113,896
$123,326
$92,161
$99,895
Purchases of Property, Plant, and
Equipment
$(23,808)
$(29,414)
$(13,377)
$(19,641)
$(50,095)
$(29,180)
Net Cash Flow
$89,767
$106,938
$100,519
$103,685
$42,066
$70,715
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2039
2040
2041
2042
2043
2044
Production & Sales tonnes
2,436
2,201
1,845
1,459
1,180
1,112
Total
 
Revenue
$355,369
$338,176
$268,754
$214,586
$172,885
$150,118
EBITDA
$87,011
$83,646
$68,092
$62,920
$44,089
$34,328
Net Income
$55,313
$54,058
$44,925
$45,801
$29,936
$22,534
Net Cash Provided by Operating Activities
$83,815
$71,639
$61,735
$55,327
$42,764
$32,618
Purchases of Property, Plant, and
Equipment
$(15,349)
$(9,482)
$(14,390)
$(5,290)
$(14,378)
$(3,690)
Net Cash Flow
$68,466
$62,157
$47,345
$50,037
$28,386
$28,928
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2045
2046
2047
2048
2049
2050
Production & Sales tonnes
1,047
1,570
1,449
1,206
435
546
Total
 
Revenue
$152,705
$241,778
$219,387
$188,710
$76,217
$101,030
EBITDA
$31,080
$76,832
$69,847
$62,067
$19,753
$38,469
Net Income
$16,163
$53,074
$44,398
$39,304
$4,857
$21,379
Net Cash Provided by Operating Activities
$28,550
$56,069
$60,773
$54,739
$27,203
$29,794
Purchases of Property, Plant, and
Equipment
$(33,303)
$(3,327)
$(23,807)
$(5,664)
$(5,458)
$(1,150)
Net Cash Flow
$(4,752)
$52,742
$36,967
$49,075
$21,745
$28,645
 
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
10
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2051
2052
2053
2054
2055
2056
Production & Sales tonnes
564
318
21
-
-
-
Total
 
Revenue
$102,990
$60,217
$3,964
$-
$-
$-
EBITDA
$42,382
$26,401
$1,703
$-
$-
$-
Net Income
$24,434
$24,120
$1,383
$(164)
$(84)
$(43)
Net Cash Provided by Operating Activities
$35,071
$18,199
$3,510
$(1,729)
$(882)
$(899)
Purchases of Property, Plant, and
Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$35,071
$18,199
$3,510
$(1,729)
$(882)
$(899)
* The Financial model includes 0.03 million tonnes of inferred coal production.
 
Inferred coal represents 0.04% of the total
production, and none of this coal was included in the estimate of reserves.
Consolidated
 
cash
 
flows
 
are
 
driven
 
by
 
annual
 
sales
 
tonnage,
 
which
 
at
 
steady-state
 
level
ranges
 
from
 
a
 
peak
 
of
 
4.2
 
million
 
tonnes
 
in
 
2033
 
to
 
a
 
low
 
of
 
1.0
 
million
 
tonnes
 
in
 
2045.
 
Projected consolidated revenue
 
ranges from $150.1
 
million to $537.5
 
million at steady
 
state.
 
Revenue totals $10.0 billion for the project’s life.
Consolidated cash flow from operations is positive throughout the projected operating period,
with
 
the
 
exception
 
of
 
post-production
 
years,
 
due
 
to
 
end-of-mine
 
reclamation
 
spending.
 
Consolidated cash flow from operations peaks at $136.5 million
 
in 2034 and totals $2.4 billion
over the project’s
 
life.
 
Capital expenditures total
 
$141.2 million from
 
2022 through 2026
 
and
$709.4 million over the project’s life.
 
1.10.1
 
Discounted Cash Flow Analysis
Cash
 
flow
 
after
 
tax,
 
but
 
before
 
debt
 
service,
 
generated
 
over
 
the
 
life
 
of
 
the
 
project
 
was
discounted
 
to
 
NPV
 
at
 
a
 
10.0%
 
discount
 
rate,
 
which
 
represents
 
Coronado’s
 
estimate
 
of
 
the
nominal
 
dollar,
 
risk
 
adjusted
 
weighted
 
average
 
cost
 
of
 
capital
 
(
WACC
)
 
for
 
likely
 
market
participants if the subject reserves were offered for sale.
 
On an un-levered basis, the NPV of
the project
 
cash flows represents
 
the Enterprise Value
 
of the project
 
and amounts
 
to $611.3
million.
 
The
 
pre-feasibility
 
financial
 
model
 
prepared
 
for
 
the
 
TRS
 
was
 
developed
 
to
 
test
 
the
economic viability of
 
each coal resource area.
 
The NPV estimate was
 
made for purposes
 
of
confirming
 
the economics
 
for
 
classification of
 
coal reserves
 
and not
 
for purposes
 
of
 
valuing
Coronado
 
or
 
its
 
Logan
 
assets.
 
Mine
 
plans
 
were
 
not
 
optimized,
 
and
 
actual
 
results
 
of
 
the
operations may be different, but
 
in all cases, the
 
mine production plan assumes
 
the properties
are under competent management.
1.10.2
 
Sensitivity Analysis
Sensitivity of
 
the NPV
 
results to
 
changes in
 
the key
 
drivers is
 
presented in
 
the chart
 
below.
 
The sensitivity study
 
shows the NPV
 
at the 10.0%
 
discount rate when
 
Base Case sales
 
prices,
operating costs, and
 
capital costs are increased
 
and decreased in increments
 
of 5% within a
+/- 15% range.
 
 
ex963p2i0.jpg ex963p20i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
11
Figure 1-4:
 
Sensitivity of NPV
As shown, NPV
 
is quite sensitive
 
to change in
 
sales price and
 
operating cost estimates,
 
and
slightly sensitive to changes in capital cost estimates.
1.11
 
Permitting
Coronado
 
has
 
obtained
 
all
 
mining
 
and
 
discharge
 
permits
 
to
 
operate
 
its
 
active
 
mines
 
and
processing, loadout or related support
 
facilities.
 
MM&A is unaware of any obvious
 
or current
Coronado
 
permitting
 
issues
 
that
 
are
 
expected
 
to
 
prevent
 
the
 
issuance
 
of
 
future
 
permits.
 
Logan, along with all coal producers, is subject to a level
 
of uncertainty regarding future clean
water permits
 
due to
United States Environmental
 
Protection Agency
(
EPA
)
 
involvement
with state programs.
1.12
 
Conclusion and Recommendations
Sufficient
 
data
 
has
 
been
 
obtained
 
through
 
various
 
exploration
 
and
 
sampling
 
programs
 
and
mining operations to
 
support the geological
 
interpretations of seam
 
structure and thickness
 
for
coal horizons situated on the
 
Logan Property.
 
The data is of sufficient
 
quantity and reliability
to reasonably support the coal resource and coal reserve estimates in this TRS.
The geological
 
data and
 
preliminary feasibility
 
study,
 
which consider
 
mining plans,
 
revenue,
and
 
operating
 
and
 
capital
 
cost
 
estimates
 
are
 
sufficient
 
to
 
support
 
the
 
classification
 
of
 
coal
reserves provided herein.
This
 
geologic
 
evaluation
 
conducted
 
in
 
conjunction
 
with
 
the
 
preliminary
 
feasibility
 
study
concludes
 
that
 
the
 
73.4
 
Mt
 
of
 
marketable
 
coal
 
reserves
 
identified
 
on
 
the
 
Property
 
are
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
12
economically mineable under reasonable
 
expectations of market prices
 
for metallurgical coal
products, estimated operation costs, and capital expenditures.
2
Introduction
2.1
 
Registrant and Terms of Reference
This report was prepared
 
for the sole use
 
of
Coronado Global Resources
 
Inc. (
Coronado
)
and its affiliated and
 
subsidiary companies and advisors.
 
The report provides a statement of
coal resources and coal reserves for Coronado, as defined under the
Australasian Code for
Reporting of
 
Exploration Results,
 
Mineral Resources
 
and Ore
 
Reserves
(
JORC
 
Code
)
as well as
 
under Subpart 1300
 
of Regulation S-K
 
(Regulation S-K 1300)
 
promulgated by the
United States
 
Securities and
 
Exchange Commission
 
(
SEC
)
.
 
This report
 
was also
 
prepared
in accordance
 
with the
Australasian Code
 
for Public
 
Reporting of
 
Technical Assessments
and Valuations of Mineral Assets
(
VALMIN Code
).
The report provides a
 
statement of coal resources
 
and coal reserves for
 
Coronado at Logan.
 
Exploration results
 
and Resource
 
calculations were
 
used as
 
the basis
 
for the
 
mine planning
and
 
the
 
preliminary
 
feasibility
 
study
 
completed
 
to
 
determine
 
the
 
extent
 
and
 
viability
 
of
 
the
reserve.
Coal resources and coal reserves are herein
 
reported in metric units of measurement and
 
are
rounded to millions of metric tonnes (
Mt
).
2.2
 
Information Sources
This TRS
 
is based
 
on information
 
provided by
 
Coronado and
 
reviewed by
 
John Eckman,
 
CPG;
and Justin S. Douthat, PE, MBA.
 
Coronado engaged MM&A
 
to conduct a
 
coal resource
 
and reserve
 
evaluation of
 
the Coronado
coal properties as
 
of September 30,
 
2021.
 
Additions and depletion
 
have been used
 
to bring
the Resource and Reserve estimates forward
 
to December 31, 2021, the
 
effective date of this
TRS for Logan.
 
For the evaluation, the following tasks were to be completed:
 
>
 
Conduct site visits of the mines and mine infrastructure facilities;
 
>
 
Process the information supporting the estimation of coal resources and reserves into
geological models;
 
>
 
Develop life-of-reserve mine (
LOM
) plans and financial models;
>
 
Hold discussions with Coronado company management; and
 
>
 
Prepare and issue a TRS providing a statement of coal resources and reserves which
would include:
-
 
A description of the mines and facilities.
 
-
 
A description of the evaluation process.
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
13
-
 
An estimation of coal resources and reserves with compliance
 
elements as stated under the JORC Code
and the SEC Regulation S-K 1300.
2.3
 
Personal Inspections
MM&A is
 
very familiar
 
with Logan,
 
having provided
 
a variety
 
of services
 
in recent
 
years and
one of the QP’s involved in this TRS has conducted multiple site visits.
3
Property Description
3.1
 
Location
The Logan County
 
Complex is located
 
in Logan, Boone,
 
and Wyoming
 
Counties in southern
West
 
Virginia.
 
The Property
 
encompasses the
 
towns of
 
Lorado and
 
Pardee in
 
the northern
portion and Lacoma
 
and Cyclone in the
 
southern portion (approximately
 
6 kilometers between
the northern
 
and southern
 
towns).
 
The nearest
 
major population
 
centers are
 
Huntington, West
Virginia
 
(145
 
kilometers
 
northwest)
 
and
 
Charleston,
 
West
 
Virginia
 
(129
 
kilometers
 
north-
northeast).
The Logan property is composed of 13,138 total leased and
 
owned hectares and is located in
Logan,
 
Boone,
 
and
 
Wyoming
 
Counties.
 
The
 
Property
 
is
 
located
 
on
 
the
 
following
United
States Geological
 
Survey
(
USGS
) Quadrangles:
 
Lorado, Mallory, Amherstdale,
 
and Oceana.
 
Current mining projections fall within portions of all four quadrangles.
 
The coordinate system
and datum used for the model of the Logan County Complex and the subsequent maps were
produced in the West Virginia State Plane South system, NAD 27.
3.2
 
Titles, Claims or Leases
The Property
 
is composed
 
of 13,138
 
total hectares,
 
13,069 of
 
which are
 
leased from
 
private
landholders
 
under
 
approximately
 
15
 
individual
 
leases,
 
and
 
69
 
hectares
 
are
 
owned
 
by
Coronado.
 
Subject
 
to
 
Coronado
 
exercising
 
its
 
renewal
 
rights
 
thereunder,
 
a
 
majority
 
of
 
the
leases, covering a majority
 
of the Logan reserves, expire
 
upon exhaustion of the
 
relevant coal
reserves, which is expected to
 
occur in 2053.
 
One lease expires in
 
2032; however, Coronado
is
 
projected
 
to
 
have
 
previously
 
exhausted
 
the
 
reserves
 
covered
 
thereby.
 
MM&A
 
has
 
not
carried
 
out
 
a
 
separate
 
title
 
verification
 
for
 
the
 
coal
 
properties
 
and
 
has
 
not
 
verified
 
leases,
deeds,
 
surveys
 
or
 
other
 
property
 
control
 
instruments
 
pertinent
 
to
 
the
 
subject
 
resources.
 
Tenure
 
was separately reviewed by
 
Coronado’s legal advisors.
 
Coronado has represented to
MM&A that
 
it controls
 
the mining
 
rights to
 
the reserves
 
as shown
 
on its
 
property maps,
 
and
MM&A
 
has
 
accepted
 
these
 
as
 
being
 
a
 
true
 
and
 
accurate
 
depiction
 
of
 
the
 
mineral
 
rights
controlled by Coronado.
 
The TRS assumes
 
the properties are
 
developed under responsible
and experienced management.
3.3
 
Mineral Rights
Coronado
 
supplied
 
property
 
control
 
maps
 
to
 
MM&A
 
related
 
to
 
properties
 
for
 
which
 
mineral
and/or
 
surface
 
property
 
are
 
controlled
 
by
 
Coronado.
 
While
 
MM&A
 
accepted
 
these
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
14
representations
 
as
 
being
 
true
 
and
 
accurate,
 
MM&A
 
has
 
no
 
knowledge
 
of
 
past
 
property
boundary
 
disputes
 
or
 
other
 
concerns,
 
through
 
past
 
knowledge
 
of
 
the
 
Property,
 
that
 
would
signal concern over future mining operations or development potential.
Property control
 
in Appalachia can
 
be intricate.
 
Coal mining properties
 
are typically
 
composed
of numerous property
 
tracts which
 
are owned
 
and/or leased from
 
both land holding
 
companies
and
 
private
 
individuals
 
or
 
companies.
 
It
 
is
 
common
 
to
 
encounter
 
severed
 
ownership,
 
with
different entities or individuals
 
controlling the
 
surface and mineral
 
rights.
 
Mineral control in
 
the
region is
 
typically characterized
 
by leases
 
or ownership
 
of larger
 
tracts of
 
land, with
 
surface
control generally comprised of smaller tracts, particularly in developed areas.
Legal mining rights may
 
reflect a combination of
 
fee or mineral ownership
 
and fee or mineral
leases of coal
 
lands through various
 
surface and mineral
 
lease agreements.
 
There is also
 
a
relatively small amount
 
of area where
 
the coal is
 
partially-owned and/or
 
partially leased on
 
a
limited number of individual tracts.
 
Control of the surface property is necessary to
 
conduct surface mining but is not necessary
 
to
conduct underground mining.
Upon
 
acquisition
 
of
 
mineral
 
control
 
for
 
desired
 
coal
 
seams
 
of
 
surface-mineable
 
economic
interest,
 
it
 
is
 
typical
 
practice
 
in
 
the
 
region
 
for
 
operators
 
to
 
delay
 
the
 
acquisition
 
of
 
surface
control
 
for
 
purposes
 
of
 
surface
 
mining
 
and
 
other
 
surface
 
development
 
until
 
plans
 
are
established for
 
near-future development.
 
Therefore, it
 
is common
 
for an
 
operator to
 
control
mineral
 
for
 
proposed
 
areas
 
of
 
mining
 
for
 
which
 
they
 
have
 
not
 
established
 
the
 
legal
 
right
 
to
surface mine due to the lack of surface
 
control.
 
Acquisition of these rights is typically delayed
in
 
order to
 
limit cost
 
and
 
royalty payments
 
for areas
 
not under
 
consideration
 
for near-future
development.
 
Coronado’s
 
executive
 
management
 
team
 
has
 
a
 
history
 
of
 
surface
 
mining
 
in
Central
 
Appalachia
 
and
 
has
 
conveyed
 
to
 
MM&A
 
that
 
it
 
has
 
been
 
successful
 
in
 
acquiring
surface rights where needed for past operations.
3.4
 
Encumbrances
No Title
 
Encumbrances are known.
 
By assignment, MM&A did
 
not complete a query related
to Title Encumbrances.
 
3.5
 
Other Risks
There is
 
always risk
 
involved in
 
property control.
 
As is
 
common practice,
 
Coronado, and
 
its
predecessors,
 
have
 
had
 
their
 
legal
 
teams
 
examine
 
the
 
deeds
 
and
 
title
 
control
 
in
 
order
 
to
minimize
 
the
 
risk.
 
Historically,
 
property
 
control
 
has
 
not
 
posed
 
any
 
significant
 
challenges
related to Logan’s operations.
 
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
15
4
Accessibility, Climate, Local Resources,
Infrastructure and Physiography
4.1
 
Topography,
 
Elevation, and Vegetation
Topography
 
of
 
the
 
area
 
surrounding
 
the
 
Logan
 
County
 
Complex
 
is
 
typical
 
of
 
the
 
Central
Appalachian
 
Plateau,
 
being
 
rugged
 
and
 
deeply
 
dissected
 
by
 
v-shaped
 
river
 
valleys,
 
and
generally
 
flanked
 
by
 
steeply
 
sided
 
upland
 
regions,
 
with
 
occasional
 
gentle
 
slopes
 
in
 
select
areas.
 
The
 
drainage
 
system
 
in
 
the
 
region
 
tends
 
to
 
be
 
mostly
 
dendritic
 
in
 
nature.
 
Surface
elevations
 
near the
 
mine
 
complex range
 
from approximately
 
823 meters
 
above sea
 
level in
upland regions to
 
roughly 338 meters
 
at stream level.
 
The Property is moderately
 
to heavily
vegetated, with oak-hickory forests as the dominant forest type and northern hardwood forest
being
 
less
 
prominent.
 
The
 
Property
 
is
 
not
 
situated
 
near
 
any
 
major
 
urban
 
centers,
 
and
 
the
surrounding area is rural.
4.2
 
Access and Transport
Access
 
to
 
the
 
Logan Mine
 
property
 
consists of
 
primary,
 
secondary,
 
and
 
unimproved
 
roads,
forming a well-developed transportation
 
network.
 
Highway 119
 
is the primary highway in
 
the
area
 
running
 
southwest
 
to
 
northeast
 
from
 
the
 
Kentucky-West
 
Virginia
 
line
 
through
 
Mingo,
Logan, and Boone
 
Counties.
 
Secondary roads
 
Route 16
 
and Route
 
10 provide
 
the most
 
direct
access
 
through
 
the
 
Property
 
running
 
east-west
 
across
 
the
 
leased
 
area.
 
Numerous
 
other
secondary
 
and
 
unimproved
 
roads
 
provide
 
direct
 
access
 
to
 
the
 
mine
 
property,
 
some
 
being
state-
 
and
 
county-maintained.
 
These
 
roads
 
typically
 
stay
 
open
 
throughout
 
the
 
year.
 
Additionally, private access roads
 
to existing
 
mines provide
 
transport corridors,
 
and more
 
such
roads
 
may
 
be
 
developed
 
as
 
needed.
 
The
 
Coronado-owned
 
Saunders
 
Preparation
 
Plant
services the mines.
 
The ROM coal is
 
delivered from the Powellton
 
No. 1, Eagle No.
 
1, Muddy
Bridge and Lower
 
War Eagle
 
Mines via overland
 
conveyor, all
 
remaining production is or
 
will
be delivered to the plant site by truck.
 
4.3
 
Proximity to Population Centers
 
The
 
Logan
 
property
 
lies
 
near
 
the
 
town
 
of
 
Lorado
 
in
 
Logan
 
County,
 
West
 
Virginia,
approximately
 
145
 
kilometers
 
southeast
 
of
 
Huntington,
 
West
 
Virginia
 
and
 
129
 
kilometers
south-southwest of
 
Charleston, West
 
Virginia.
 
As of
 
the 2020
 
census, Logan
 
County had
 
a
population
 
of
 
32,567
 
residents,
 
Boone
 
County
 
had
 
21,809
 
residents,
 
and
 
Wyoming
 
County
had 21,382 residents.
 
4.4
 
Climate and Length of Operating Season
The
 
region’s
 
climate
 
is
 
classified
 
as
 
humid,
 
sub-tropical
 
with
 
four
 
distinct
 
seasons:
 
warm
summers, cold
 
winters, and
 
moderate fall
 
and spring
 
seasons.
 
Precipitation in
 
the region
 
is
consistent
 
throughout
 
the
 
year
 
with
 
the
 
most
 
rain
 
falling
 
in
 
spring
 
and
 
the
 
early
 
months
 
of
summer.
 
Average yearly rainfall is 67.69 centimeters.
 
Summer months typically begin in late
May and
 
end
 
in early
 
September
 
and range
 
in
 
average temperature
 
from 53
 
to 84
 
degrees
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
16
Fahrenheit (or 11.6 to 28.9 degrees Celsius).
 
Winters typically begin in mid to late November
and
 
run
 
until
 
mid
 
to
 
late
 
March
 
with
 
average
 
temperatures
 
ranging
 
from
 
26
 
to
 
57
 
degrees
Fahrenheit (or -3.3 to 13.9 degrees Celsius).
 
Precipitation in the winter typically comes in the
form of
 
snowfall or
 
as a
 
wintery mix
 
(sleet and
 
snow) with
 
severe snowfall
 
events occurring
occasionally.
 
Seasonal variations
 
in climate
 
typically do
 
not affect
 
underground mining
 
in West
Virginia.
 
However, weather events could potentially incumber surface
 
mining and preparation
plant operations on a very limited basis, typically lasting less than a few days.
4.5
 
Infrastructure
The
 
Logan
 
Mine
 
Complex
 
has
 
sources
 
of
 
water,
 
power,
 
personnel,
 
and
 
supplies
 
readily
available for
 
use.
 
Personnel have
 
historically been
 
sourced from
 
the surrounding
 
communities
in Logan, Boone, Wyoming, and
 
Mingo counties, and have
 
proven to be adequate
 
in numbers
to
 
operate
 
past
 
and
 
current
 
mines.
 
As
 
mining
 
is
 
common
 
in
 
the
 
surrounding
 
areas,
 
the
workforce is
 
generally familiar
 
with mining practices
 
and is
 
comprised of
 
a strong
 
talent pool
of experienced
 
miners.
 
Water is sourced locally
 
from Buffalo Creek
 
Public Service
 
District and
electricity is sourced
 
from
American Electric Power
 
(
AEP
)
.
 
The service industry
 
in the areas
surrounding
 
the
 
mine
 
complex
 
has
 
historically
 
provided
 
supplies,
 
equipment
 
repairs
 
and
fabrication,
 
etc.
 
The
 
Coronado-owned
 
Saunders
 
Preparation
 
plant
 
services
 
the
 
mines
 
and
operates at a
 
rate of 952
 
tph.
 
The Coronado-owned Elk
 
Lick Loadout serves
 
as the primary
means
 
of
 
shipment
 
and
 
is
 
connected
 
to
 
a
 
CSX
 
rail
 
line,
 
which
 
either
 
serves
 
the
 
domestic
market directly, or transports the coal to the Pier 6
 
and Dominion terminals at Norfolk, Virginia
for overseas shipment.
5
History
5.1
 
Previous Operation
The Logan
 
County properties
 
were started
 
in 1945
 
by
Lorado Mining
 
Company
, were
 
sold
to
Buffalo Mining Company
 
in 1964 and
 
then to
Pittston Coal Company
 
(
Pittston
)
 
in 1971.
 
Pittston
 
operated
 
the
 
properties
 
until
 
the
 
early
 
1990’s.
 
After
 
being
 
idle
 
for
 
a
 
period,
 
the
properties
 
were
 
then
 
sold
 
to
Addington
 
Resources
 
in
 
2004.
 
Imagin
 
Natural
 
Resources
acquired the properties in 2007, and sold to Cliffs in 2011,
 
which in turn sold the properties to
Coronado in 2014.
Coronado produced
 
approximately 1.8
 
Mt in
 
2016, 2.6
 
Mt in
 
2017, 2.6
 
Mt in
 
2018, 2.7
 
Mt in
2019, 1.6 Mt in 2020 and 1.9 Mt in 2021.
5.2
 
Previous Exploration
The
 
Properties
 
have
 
been
 
extensively
 
explored
 
by
 
subsurface
 
drilling
 
efforts
 
carried
 
out
 
by
numerous entities, most of which were completed prior to acquisition by Coronado.
Drill records indicate that independent contract drilling
 
operators have typically been engaged
to carry out drilling
 
on the Properties.
 
Geophysical logging was typically
 
performed by outside
 
 
ex963p26i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
17
logging
 
firms.
 
MM&A,
 
via
 
its
 
Geophysical
 
Logging
 
Systems
 
subsidiary,
 
has
 
logged
 
a
significant number of the past exploration holes
 
and gas wells, and currently logs most of
 
the
recently drilled holes.
6
Geological Setting, Mineralization and Deposit
6.1
 
Regional, Local and Property Geology
The
 
Property
 
lies
 
in
 
the
 
Central
 
Appalachian
 
Coal
 
basin
 
in
 
the
 
Appalachian
 
Plateau
physiographic province.
 
The
 
coal
 
deposits
 
in
 
the
 
eastern
 
USA
 
are
 
the
 
oldest
 
and
 
most
 
extensively
 
developed
 
coal
deposits in the country.
 
The coal deposits on the Properties
 
are Carboniferous in age, being
of
 
the
 
Pennsylvanian
 
system.
 
Overall,
 
these
 
Carboniferous
 
coals
 
contain
 
two-fifths
 
of
 
the
USA’s
 
bituminous coal deposits
 
and extend over
 
1,448 kilometers from
 
northern Alabama to
Pennsylvania and
 
are part
 
of what
 
is known
 
as the
Appalachian Basin
.
 
The Appalachian
 
Basin
is
 
more
 
than
 
402
 
kilometers
 
wide
 
and,
 
in
 
some
 
portions,
 
contains
 
over
 
60
 
coal
 
seams
 
of
varying economic significance.
Seams
 
of
 
economic
 
significance
 
typically
 
range
 
between
 
0.3
 
meters
 
and
 
1.8
 
meters
 
in
thickness,
 
with
 
relatively
 
little
 
structural
 
deformation.
 
Regional
 
structure
 
is
 
typically
characterized by gently dipping strata to the northwest at less than one percent.
The coal-bearing
 
formation of
 
interest at
 
Logan is
 
the lower
 
section of
 
the Allegheny
 
Formation
and
 
the
 
Kanawha
 
Formation,
 
which
 
comprise
 
a
 
major
 
portion
 
of
 
the
 
exposed
 
ridges.
 
The
Formation are a
 
coal bearing sequence
 
of sandstones, siltstones,
 
shales, and mudstones
 
with
minor occurrences of siderite, limestone and flint clay.
Coronado
mines several horizons
 
within the Kanawha
 
formation.
 
The horizons are
 
as follows:
 
Buffalo Creek, Upper Clarion Rider, Clarion, Lower Clarion,
 
Upper Stockton, Lower Stockton,
Lower Coalburg, Lower Dorothy, Upper Winifrede, Lower Winifrede, Chilton-A, Chilton,
 
Upper
Cedar Grove, Middle
 
Cedar Grove, Lower
 
Cedar Grove, No. 2
 
Gas, Upper Powellton, Lower
Powellton, Eagle, and Lower
 
War Eagle seams demonstrate mining
 
potential on this property.
Logan currently has four active underground mines and one
 
active surface mine.
 
The Toney
Fork mine is a
 
surface mine, while the
 
Powellton No. 1, Eagle
 
No. 1, Muddy Bridge
 
and Lower
War Eagle are
 
underground mines.
 
The active
 
Toney Fork surface mine
 
has historically
 
mined
multiple seams
 
including the
 
Upper Winifrede,
 
Lower Winifrede,
 
Upper Clarion
 
Rider,
 
Upper
Clarion,
 
Lower Clarion,
 
Lower
 
Coalburg, Upper
 
Coalburg,
 
Upper Stockton,
 
Lower
 
Stockton,
Chilton-A,
 
and
 
Lower Dorothy
 
Seams.
 
Future surface
 
mine
 
reserve
 
production at
 
Logan
 
is
anticipated to focus on those seams having the best opportunity
 
for sale into the metallurgical
coal
 
markets,
 
namely
 
the
 
Lower
 
Coalburg
 
seam
 
and
 
below.
 
The
 
Powellton
 
No.
 
1
 
Mine
 
is
projected to
 
extract the
 
Lower and
 
Upper Powellton
 
jointly in
 
some areas,
 
while other
 
areas
are projected to extract only the Lower Powellton due to seam splitting.
 
The Eagle No. 1 and
 
 
ex963p2i0.jpg ex963p27i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
18
Muddy Bridge Mines
 
are projected to
 
extract the No.
 
2 Gas seam.
 
The Lower War Eagle
 
mine
is projected to extract the Lower War Eagle seam.
 
6.2
 
Mineralization
The
 
generalized
 
stratigraphic
 
columnar
 
section
 
in
Figure
 
6-1
 
demonstrates
 
the
 
vertical
relationship of the principal coal seams and rock formations on the Property.
Figure 6-1:
 
Logan Stratigraphic Column
(not to scale)
6.3
 
Deposits
The
 
coal
 
produced
 
at
 
Logan
 
Mine
 
complex
 
is
 
typically
 
high-volatile
 
(typically
 
28
 
percent
 
or
greater volatile
 
matter content)
 
bituminous coal.
 
Quality varies
 
with distance
 
from the
 
cropline,
so some seams will be shipped into both the thermal
 
and metallurgical markets depending on
mining method and
 
ultimate quality.
 
Saleable product from
 
the surface
 
operations is projected
to be
 
sold primarily
 
into the
 
metallurgical coal
 
market; however,
 
some production
 
is planned
to
 
be sold
 
into the
 
thermal coal
 
market
 
due
 
to quality
 
limitations.
 
Underground
 
coal is
 
sold
almost exclusively into the metallurgical markets.
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
19
7
Exploration
7.1
 
Nature and Extent of Exploration
The
 
Properties
 
have
 
been
 
extensively
 
explored
 
by
 
subsurface
 
drilling
 
efforts
 
carried
 
out
 
by
numerous entities, most of which were completed prior to acquisition by Coronado.
Diamond core,
 
rotary,
 
and gas
 
well drilling
 
are the
 
three primary
 
types of
 
exploration on
 
the
Property.
 
Data for
 
correlation and
 
mining conditions
 
are derived
 
from core
 
descriptions and
geophysical logging
 
(e-logging).
 
Coal quality
 
analyses
 
were also
 
employed during
 
the core
exploration process.
 
A total
 
of 1,127
 
core and
 
rotary holes
 
have been
 
drilled for
 
exploration
purposes on and around the leased property.
Drill records indicate that independent contract drilling
 
operators have typically been engaged
to carry out
 
drilling on the
 
Property.
 
Geophysical logging was
 
typically performed by
 
outside
logging
 
firms.
 
MM&A,
 
via
 
its
 
Geophysical
 
Logging
 
Systems
 
subsidiary,
 
has
 
logged
 
a
significant number of the past exploration holes
 
and gas wells, and currently logs most of
 
the
recently drilled holes.
The location of the drilling is shown on the maps included in
Appendix B
.
The concentration
 
of exploration
 
varies slightly across
 
the Property.
 
Drilling on
 
the Property
is
 
typically
 
sufficient
 
for
 
delineation
 
of
 
potential
 
surface,
 
highwall miner,
 
and
 
deep
 
mineable
benches.
 
Core logging is carried out by professional geologists in cases where roof and floor
strata are of
 
particular interest and
 
in cases where
 
greater resolution and
 
geologic detail are
needed.
 
However,
 
most
 
drill
 
hole
 
data
 
come
 
from
 
simplified
 
driller’s logs,
 
which
 
often
 
lack
specific
 
details
 
regarding
 
geotechnical
 
conditions
 
and
 
specific
 
geology,
 
making
 
correlations
and
 
floor
 
and
 
roof
 
conditions
 
difficult
 
to
 
determine.
 
Geophysical
 
logging
 
(e-logging)
techniques, by
 
contrast, document
 
specific details
 
useful for
 
geologic interpretation
 
and mining
conditions.
 
Given the
 
variability of
 
data-gathering methods,
definitive
 
mapping of
 
future mining
conditions
 
may
 
not
 
be
 
possible,
 
but
 
projections
 
and
 
assumptions
 
can
 
be
 
made
 
within
 
a
reasonable
 
degree of
 
certainty.
 
A significant
 
effort
 
was put
 
into verifying
 
the integrity
 
of the
database.
 
Once this was established,
 
stratigraphic columnar sections were
 
generated using
cross-sectional analysis to establish or confirm coal seam correlations.
A typical cross-section is shown in
Figure 7-1
.
 
 
ex963p2i0.jpg ex963p29i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
20
Figure 7-1:
 
Logan Cross-Section
Due
 
to
 
the
 
long
 
history
 
of
 
exploration
 
by
 
various
 
parties
 
on
 
the
 
Property,
 
a
 
wide
 
variety
 
of
survey
 
techniques
 
exist
 
for
 
documentation
 
of
 
data
 
point
 
locations.
 
Many
 
of
 
the
 
older
exploration
 
drill holes
 
appear
 
to have
 
been located
 
by
 
survey and
 
more
 
recently-completed
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
21
drill
 
holes
 
are
 
often
 
located
 
by
 
high-resolution
 
Global
 
Positioning
 
System
 
(
GPS
)
 
units.
 
However,
 
some
 
holes appear
 
to
 
have
 
been approximately
 
located using
 
USGS topography
maps
 
or
 
other
 
methods
 
which
 
are
 
less
 
accurate.
 
Therefore,
 
discretion
 
had
 
to
 
be
 
used
regarding the
 
accuracy for
 
the location
 
and ground
 
surface elevation
 
of some
 
of these
 
older
drill
 
holes.
 
In
 
instances
 
where
 
a
 
drill
 
hole
 
location
 
(or
 
associated
 
coal
 
seam
 
elevations)
appeared to
 
be inconsistent
 
with the
 
overall structural
 
trend (or
 
surface topography
 
for surface-
mineable
 
areas),
 
the
 
data
 
point
 
was
 
not
 
honored
 
for
 
geological
 
modeling.
 
Others
 
with
apparently minor variances were adjusted and then used by MM&A.
 
Surveying
 
of
 
the
 
underground
 
and
 
surface
 
mined
 
areas
 
has
 
been
 
performed
 
by
 
the
 
mine
operators and/or
 
their consulting
 
surveyors.
 
By assignment,
 
MM&A did
 
not verify
 
the accuracy
or completeness
 
of
 
supplied
 
mine
 
maps
 
but accepted
 
this
 
information
 
as
 
being
 
the work
 
of
responsible engineers and surveyors, as required by both State and Federal Law.
MM&A compiled
 
comprehensive topographic
 
map files
 
by selecting
 
the best
 
available aerial
mapping for each area and filling any gaps with digital USGS topographic mapping.
7.2
 
Non-Drilling Procedures and Parameters
Some analyses, specifically ultimate
 
ash and sulfur types
 
are not as
 
prevalent as others in
 
the
testing
 
done
 
on
 
samples
 
recovered
 
by
 
drilling.
 
To
 
supplement
 
the
 
information
 
database,
samples have been collected
 
from mine stockpiles
 
and either truck or
 
train shipment samples.
7.3
 
Drilling Procedures
Core
 
drilling
 
methods
 
utilize
 
NX-size
 
(5.4
 
centimeters)
 
or
 
similar-sized
 
core
 
cylinders
 
to
recover core
 
samples, which
 
can be
 
used to
 
delineate geologic
 
characteristics, and
 
for coal
quality
 
testing
 
and
 
geotechnical
 
logging.
 
For
 
the
 
core
 
holes,
 
the
 
geophysical
 
logs
 
are
especially useful
 
in verifying
 
the core
 
recovery of
 
both the
 
coal samples
 
(for assurance
 
that
sample is
 
representative of
 
the full
 
seam) and
 
of the
 
roof and
 
floor rock
 
samples (for
 
evaluating
ground control
 
characteristics of
 
deep mineable
 
coal
 
seams).
 
In addition
 
to the
 
core holes,
rotary
 
drilled
 
holes also
 
exist
 
on
 
most
 
of
 
the Properties.
 
Data
 
for
 
the
 
rotary
 
drilled
 
holes is
mainly
 
derived
 
from
 
downhole
 
geophysical
 
logs,
 
which
 
are
 
used
 
to
 
interpret
 
coal
 
and
 
rock
thickness and depth since logging of the drill cuttings is not reliable.
A wide variety of core-logging
 
techniques exist for the properties.
 
For many of the core
 
holes,
the
 
primary
 
data
 
source
 
is
 
a
 
generalized
 
lithology
 
description
 
by
 
the
 
driller,
 
typically
supplemented by a more detailed core log completed
 
by a geologist.
 
These drilling logs were
provided
 
to
 
MM&A
 
as
 
a
 
geological
 
database.
 
MM&A
 
geologists
 
were
 
not
 
involved
 
in
 
the
production of
 
original core
 
logs but
 
did perform
 
a basic
 
check of
 
information within
 
the provided
database.
 
Where
 
geophysical
 
logs for
 
such holes
 
are available,
 
they were
 
used
 
by MM&A
geologists to verify the coal thickness and core recovery of seams.
 
7.4
 
Hydrology
Hydrologic testing and forecasting are necessary parts of the permitting process and as such
are routinely considered in the mine planning process.
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
22
Logan
 
has
 
a
 
lengthy
 
history
 
of
 
operation
 
and
 
five
 
currently
 
active
 
mines
 
with
 
no
 
significant
hydrologic concerns or
 
material issues experienced
 
in its history.
 
Future mining is
 
projected
to occur
 
in areas
 
exhibiting similar
 
hydrogeological conditions
 
as past
 
mining, including
 
stream
undermining and undermining of
 
aquifers.
 
Based upon the successful
 
history of the operation
with
 
regards
 
to
 
hydrogeological
 
features,
 
MM&A
 
assumes
 
that
 
the
 
operation
 
will
 
not
 
be
hindered by such issues in the future.
7.5
 
Geotechnical Data
Mining plans for
 
potential underground mines
 
were developed by
 
Coronado and modified
 
by
MM&A
 
to
 
fit
 
current
 
property
 
constraints.
 
Pillar
 
stability
 
was
 
tested
 
by
 
MM&A
 
using
 
the
Analysis of Coal Pillar
 
Stability (ACPS)
 
program that was developed
 
by the
National Institute
for Occupational Safety
 
and Health (
NIOSH
)
.
 
MM&A reviewed the
 
results from the
 
ACPS
analysis and considered it in the development of
 
the LOM plan.
 
Coal and rock strengths from
core testing are used to verify the empirical assumptions integral to ACPS.
8
Sample Preparation,
 
Analyses and Security
8.1
 
Prior to Sending to the Lab
Most
 
of
 
the
 
coal
 
samples
 
have
 
been
 
obtained
 
from
 
the
 
Property
 
by
 
subsurface
 
exploration
using core drilling techniques.
 
The protocol for preparing and testing the samples has varied
over time and is not well documented for the older holes drilled on the Property.
 
Typical USA
core
 
drilling
 
sampling
 
technique
 
is
 
for
 
the
 
coal
 
core
 
sample,
 
once
 
recovered
 
from
 
the
 
core
barrel, to be
 
described then wrapped
 
in a sealed
 
plastic sleeve and
 
placed into a
 
covered core
box,
 
which
 
is
 
the
 
length
 
of
 
the
 
sample
 
so
 
that
 
the
 
core
 
can
 
be
 
delivered
 
to
 
a
 
laboratory
 
in
relatively intact
 
condition and
 
with original
 
moisture content.
 
The core
 
identification number
and the depth
 
are scribed on
 
the sample box
 
lid to identify
 
the sample.
 
This process has
 
been
the norm for both historical and ongoing exploration activities at Logan.
This
 
work
 
is
 
typically
 
performed
 
by
 
the
 
supervising
 
driller,
 
geologist
 
or
 
company
 
personnel.
 
Samples are most often delivered to the company by the driller after each shift or acquired by
company
 
personnel
 
or
 
representatives.
 
Most
 
of
 
the
 
coal
 
core
 
samples
 
were
 
obtained
 
by
previous
 
or
 
current
 
operators
 
on
 
the
 
Property.
 
MM&A
 
did
 
not
 
participate
 
in
 
the
 
collection,
sampling and
 
analysis of
 
the core
 
samples.
 
However,
 
it is
 
reasonable to assume,
 
given the
sophistication level of
 
the previous
 
operators, that
 
these samples
 
were generally
 
collected and
processed under
 
industry best-practices.
 
This assumption
 
is based
 
on MM&A’s familiarity with
the operating companies and the companies used to perform the analysis.
8.2
 
Lab Procedures
Coal quality testing
 
has been performed
 
over a large
 
number of years
 
by operating companies
using different
 
laboratories and
 
testing regimens.
 
Some of
 
the samples
 
have raw
 
analyses
and
 
washabilities
 
on
 
the
 
full
 
seam
 
(with
 
coal
 
and
 
rock
 
parting
 
layers
 
co-mingled)
 
and
 
are
mainly useful
 
for characterizing
 
the coal
 
quality for
 
projected production
 
from underground
 
and
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
23
highwall mining.
 
Other samples have coal and rock analyzed separately, the results of which
can be manipulated to forecast either surface or
 
underground mining quality.
 
Care has been
taken to use only those analyses that
 
are representative of the coal quality parameters for
 
the
appropriate mining type for each sample.
Standard procedure upon receipt of core samples by the testing laboratory is to log the depth
and
 
thickness
 
of
 
the
 
sample,
 
then
 
perform
 
testing
 
as
 
specified
 
by
 
a
 
representative
 
of
 
the
operating
 
company.
 
Each
 
sample
 
is
 
then
 
analyzed
 
in
 
accordance with
 
procedures
 
defined
under
American
 
Society
 
for
 
Testing
 
and
 
Materials
 
(
ASTM
)
 
standards
 
including,
 
but
 
not
limited
 
to;
 
washability
 
(ASTM
 
D4371);
 
ash
 
(ASTM
 
D3174);
 
sulfur
 
(ASTM
 
D4239);
 
Btu/lb.
(ASTM D5865); volatile matter (ASTM D3175); Free Swell Index (
FSI
) (ASTM D720).
9
Data Verification
9.1
 
Procedures of Qualified Person
MM&A reviewed the digital geologic database supplied by Coronado.
 
The database consists
of data records, which include
 
drill hole information for holes
 
that lie within and adjacent
 
to the
Property and records for numerous supplemental coal seam thickness measurements.
 
Upon
completion
 
of
 
the
 
database
 
verification,
 
copies
 
of
 
each
 
entry
 
were
 
printed,
 
and
 
cross
referenced to the
 
original document for
 
verification.
 
Once the initial
 
integrity of the
 
database
was
 
established,
 
stratigraphic
 
columnar
 
sections
 
were
 
generated
 
using
 
cross-sectional
analysis to establish
 
or confirm
 
coal seam
 
correlations.
 
Geophysical logs were
 
used wherever
available
 
to
 
assist
 
in
 
confirming
 
the
 
seam
 
correlation
 
and
 
to
 
verify
 
proper
 
seam
 
thickness
measurements and recovery of coal samples.
 
After
 
establishing
 
and/or
 
verifying
 
proper
 
seam
 
correlation,
 
seam
 
data
 
control
 
maps
 
and
geological cross-sections were
 
generated and
 
again used
 
to verify seam
 
correlations and
 
data
integrity.
 
Once the
 
database was
 
fully vetted,
 
seam thickness, base
 
of seam
 
elevation, roof
and floor
 
lithology,
 
and overburden
 
maps were
 
independently generated
 
for use
 
in the
 
mine
planning process.
9.2
 
Limitations
As
 
with
 
any
 
exploration
 
program,
 
localized
 
anomalies
 
cannot
 
always
 
be
 
discovered.
 
The
greater the density of the
 
samples taken, the less
 
the risk.
 
Once an area is
 
identified as being
of interest for inclusion
 
in the mine plan,
 
additional samples are taken to
 
help reduce the risk
in those specific areas.
 
In general, provision is
 
made in the mine
 
planning portion of the
 
study
to
 
allow
 
for
 
localized
 
anomalies
 
that
 
are
 
typically
 
classed
 
more
 
as
 
a
 
nuisance
 
than
 
a
hinderance.
9.3
 
Opinion of Qualified Person
Sufficient
 
data
 
has
 
been
 
obtained
 
through
 
various
 
exploration
 
and
 
sampling
 
programs
 
and
mining operations to
 
support the geological
 
interpretations of seam
 
structure and thickness
 
for
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
24
coal
 
horizons
 
situated
 
on
 
the
 
Property.
 
The
 
data
 
is
 
of
 
sufficient
 
quantity
 
and
 
reliability
 
to
reasonably support the coal resource and coal reserve estimates in this TRS.
10
Mineral Processing and Metallurgical Testing
10.1
 
Testing Procedures
Separate tabulations have been compiled for basic chemical analyses (both raw and washed
quality),
 
petrographic
 
data,
 
rheological
 
data
 
and
 
chlorine,
 
ash,
 
ultimate
 
and
 
sulfur
 
analysis.
 
Some
 
of
 
the
 
data
 
categories
 
form
 
the
 
analyses
 
are
 
not
 
as
 
prevalent
 
and
 
have
 
been
supplemented
 
by
 
samples collected
 
from mine
 
stockpiles and
 
either truck
 
or train
 
shipment
samples.
Available coal quality data
 
was tabulated by resource area
 
in a Microsoft® EXCEL workbook
and
 
the
 
details
 
of
 
that
 
work
 
are
 
maintained
 
on
 
file
 
at
 
the
 
offices
 
of
 
Coronado
 
and
 
MM&A.
 
These
 
tables
 
also
 
provide
 
basic
 
statistical
 
analyses
 
of
 
the
 
coal
 
quality
 
data
 
sets,
 
including
average
 
value;
 
maximum
 
and
 
minimum
 
values;
 
and
 
the
 
number
 
of
 
samples
 
available
 
to
represent
 
each
 
quality parameter
 
of
 
the seam.
 
Coal samples
 
that were
 
deemed by
 
MM&A
geologists
 
to
 
be
 
unrepresentative
 
were
 
not
 
used
 
for
 
statistical
 
analysis
 
of
 
coal
 
quality,
 
as
documented
 
in
 
the
 
tabulations.
 
A
 
representative
 
group
 
of
 
drill
 
hole
 
samples
 
from
 
the
Properties
 
were
 
then
 
checked
 
against
 
the
 
original
 
drill
 
laboratory
 
reports
 
to
 
verify
 
accuracy
and correctness.
The
 
amount
 
and
 
areal
 
extent
 
of
 
coal
 
sampling
 
for
 
geological
 
data
 
is
 
generally
 
sufficient
 
to
represent
 
the
 
quality
 
characteristics
 
of
 
the
 
coal
 
horizons
 
and
 
allow
 
for
 
proper
 
market
placement of
 
the subject
 
coal seams.
 
For some
 
of the
 
coal deposits
 
there are
 
considerable
laboratory
 
data
 
from
 
core
 
samples
 
that
 
are
 
representative
 
of
 
the
 
full
 
extent
 
of
 
the
 
resource
area; and for others there are
 
more limited data to represent the
 
resource area.
 
For example,
in the
 
active operations with
 
considerable previous
 
mining, there may
 
be limited
 
quality data
within some of the remaining resource
 
areas; however, in those cases the core sampling
 
data
can
 
be
 
supplemented
 
with
 
operational
 
data
 
from
 
mining
 
and
 
shipped
 
quality
 
samples
representative of the resource area.
10.2
 
Relationship of Tests to the Whole
The extensive sampling and testing procedures typically followed in the coal industry result in
an excellent
 
correlation between
 
samples and marketable
 
product.
 
Shipped analyses of
 
the
coal
 
from
 
Logan
 
were
 
reviewed
 
to
 
verify
 
that
 
the
 
coal
 
quality
 
and
 
characteristics
 
were
 
as
expected.
 
The
 
Logan
 
properties
 
have
 
a
 
long
 
history
 
of
 
saleable
 
production,
 
under
 
various
owners, in the high-volatile metallurgical and thermal markets, confirming exploration results.
10.3
 
Lab Information
Each
 
sample
 
is
 
analyzed
 
at
 
area
 
Laboratories
 
that
 
operate
 
in
 
accordance
 
with
 
procedures
defined under
 
ASTM standards
 
including, but
 
not limited
 
to; washability (ASTM
 
D4371); ash
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
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NC
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25
(ASTM D3174); sulfur (ASTM D4239); Btu/lb.
 
(ASTM D5865); volatile matter (ASTM D3175);
Free Swell Index (
FSI
) (ASTM D720).
10.4
 
Relevant Results
No critical
 
factors have
 
been found
 
that would
 
adversely affect
 
the recovery
 
of the
 
Reserve.
 
Any quality issues that occur,
 
either localized or generally are
 
accounted for in the Marketing
Study done for this TRS.
11
Mineral Resource Estimates
MM&A independently created
 
a geologic model
 
to define the
 
coal resources at
 
Logan.
 
Coal
resources were estimated as of December 31, 2021.
11.1
 
Assumptions, Parameters and Methodology
Geological
 
data
 
was
 
imported
 
into
 
Carlson
 
Mining
®
 
(formerly
 
SurvCADD
®
)
 
geological
modelling software
 
in the form
 
of Microsoft
®
 
Excel files
 
incorporating, drill hole
 
collars, seam
and thickness
 
picks, bottom
 
seam elevations
 
and raw
 
and washed
 
coal quality.
 
These data
files were validated prior
 
to importing into the
 
software.
 
Once imported, a geologic
 
model was
created,
 
reviewed,
 
and
 
verified
 
with
 
a
 
key
 
element
 
being
 
a
 
gridded
 
model
 
of
 
coal
 
seam
thickness.
 
Resource tonnes were estimated by using the seam thickness
 
grid based on each
valid
 
point
 
of
 
observation
 
and
 
by
 
defining
 
resource
 
confidence
 
arcs
 
around
 
the
 
points
 
of
observation.
 
Points of observation for Measured and Indicated confidence arcs were defined
for all
 
valid drill
 
holes that
 
intersected the
 
seam using
 
standards deemed
 
acceptable by
 
MM&A
based on
 
a detailed
 
geologic evaluation
 
and a
 
statistical analysis
 
of all
 
drill holes
 
within the
projected
 
reserve
 
areas
 
as
 
described
 
in
Section
 
11.1.1
.
 
The
 
geological
 
evaluation
incorporated an
 
analysis of
 
seam thickness
 
related to
 
depositional environments,
 
adjacent roof
and floor lithologies, and structural influences.
After validating coal
 
seam data and
 
establishing correlations, the
 
thickness and elevation
 
for
seams
 
of
 
economic
 
interest
 
were
 
used
 
to
 
generate
 
a
 
geologic
 
model.
 
Due
 
to
 
the
 
relative
structural simplicity of the deposits and the reasonable continuity of the tabular coal beds,
 
the
principal geological interpretation necessary to define the geometry of
 
the coal deposits is the
proper
 
modeling
 
of
 
their
 
thickness
 
and
 
elevation.
 
Both
 
coal
 
thickness
 
and
 
quality
 
data
 
are
deemed by
 
MM&A to be
 
reasonably sufficient
 
within the resource
 
areas.
 
Therefore, there is
a
 
reasonable
 
level
 
of
 
confidence
 
in
 
the
 
geologic
 
interpretations
 
required
 
for
 
coal
 
resource
determination based on the available data and the techniques applied to the data.
Table
 
11-1
 
below provides the geological
 
mapping and coal tonnage
 
estimation criteria used
for the coal resource and
 
reserve evaluation.
 
These cut-off parameters have been developed
by
 
MM&A
 
based
 
on
 
its
 
experience
 
with
 
the
 
Coronado
 
properties
 
and
 
are
 
typical
 
of
 
mining
operations
 
in
 
the
 
Central
 
Appalachian
 
coal
 
basin.
 
This
 
experience
 
includes
 
technical
 
and
economic
 
evaluations of
 
numerous
 
properties
 
in
 
the
 
region for
 
the purposes
 
of
 
determining
the economic viability of the subject coal reserves.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
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SSOCIATES
,
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.
26
Table 11
 
-1:
 
General Reserve & Resource Criteria
Item
Parameters
Technical Notes & Exceptions*
•
 
General Reserve Criteria
 
 
Reserve Classification
Reserve and Resource
Coal resources as reported are inclusive of coal reserves.
Reliability Categories
Reserve (Proven and Probable)
Resource (Measured, Indicated & Inferred)
To better reflect
 
geological conditions of the coal deposits,
distance between points of observation is standard USGS
(in meters), respectively, for measured
 
and indicated and
inferred.
Effective Date of Resource Estimate
December 31, 2021
Coal resources were updated for depletion and non-material
resource additions based on information from Coronado.
 
Effective date for coal resources is as of December
 
31,
2021.
Effective Date of Reserve Estimate
December 31, 2021
Coal reserves were updated for depletion and non-material
reserve additions based on information from Coronado.
 
Effective date for coal reserves is as of December
 
31, 2021.
Seam Density
Variable, dependent upon seam characteristics
(based on available drill hole quality).
 
In the
absence of laboratory data, estimated by (1)
assuming specific gravity of 1.30 for coal and 2.25 to
2.5 for rock parting, or (2) 1280 kg/m
3
to 1324 kg/m
3
for a "clean" seam)
•
 
Underground-Mineable Criteria
Map Thickness
Total seam thickness
Minimum Seam Thickness
0.76 meters (thermal coal); 0.68 meters
(metallurgical coal)
 
Minimum Mining Thickness
1.4 to 1.8 meters
Minimum Total Coal
 
Thickness
0.76 meters (thermal coal); 0.68 meters
(metallurgical coal)
 
Minimum In-Seam Wash Recovery
50 percent; 40 percent where coal is belted directly
to preparation plant
Wash Recovery Applied to Coal
Reserves
Based on average yield for drill holes within reserve
area, or in the absence of laboratory washability
data, based on estimated visual recovery using
specific gravities noted above and 95 percent yield
on "clean" coal
•
 
Underground-Mineable Criteria
 
Out-of-Seam Dilution Thickness for
Run-of-Mine Tonnes
 
Applied to Coal
Reserves
0.05 meters minimum
2243 kg/m³ density used for dilution tonnage estimate
Mine Barrier
60.96-meter distance from abandoned mines and
sealed or pillared areas; 100-foot distance from
planned highwall miner panels
Minimum Reserve Tonnage
226,796 recoverable tonnes for individual area
(logical mining unit)
Minimum Overburden Depth
30.48 meters
Minimum Interval to Rider Coal
Considered on a case-by-case basis, depending on
interval lithology, etc.
<1.5 meters are resource
Minimum Interval to Overlying or
Underlying Reserves
Considered on a case-by-case basis, depending on
interval lithology, extent and
 
type of extraction, etc.
Typically,
 
12.19 meters
Minimum Interval to Overlying or
Underlying Mined Areas
Considered on a case-by-case basis, depending on
interval lithology, extent and
 
type of extraction, etc.
Adjustments Applied to Coal Reserves
6 percent moisture increase; 5 percent preparation
plant inefficiency
Surface Mineable Criteria
Topographic Map Source
Reserves estimated based on aerial topography,
where available, and best available aerial
topography for other areas.
 
Pre-law highwalls also
based on aerial topography, where
 
available
Map Thickness
Total mineable seam
 
thickness (excluding removal
partings)
Mine Recovery Applied to Coal
Reserves
90 percent; 25 percent for previously underground
mined areas.
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
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27
Item
Parameters
Technical Notes & Exceptions*
Wash Recovery
Not Applicable for most reserves estimated on a
direct-ship basis.
 
Where surface mineable coal is
projected to be washed, based on average yield for
drill holes within reserve area, or in the absence of
laboratory washability data, based on estimated
visual recovery using specific gravities noted above
and 95 percent yield on "clean" coal
Minimum Thickness
0.3 meter for principal seam (principle seam is any
that is >0.76 meters from another mineable coal
bench)
0.15 meters for a split of a principal seam (split is
within 0.76 meters of another mineable coal bench)
Minimum thickness of recoverable coal
within single seam CTR/Area/HWM
areas
0.6 meters
Removable Rock Parting Thickness
0.07 meters
Maximum Cumulative Area Mining Strip
Ratio
30:1 – Area
15:1 - CTR
Exceptions considered for metallurgical grade coal products
if deemed economical
Design Bench Width for Contour/HWM
Areas
38.1 meters (Contour reserves estimated in
conjunction with potential HWM reserves)
Adjustments Applied to Marketable
Coal Reserves
4.5 percent moisture increase
Out-of-Seam Dilution Thickness
Applied to Coal Reserves
NA
2% adjustment (addition) made to product coal quality
 
ash to
account for dilution
 
Surface Property Control
Reserves considered where surface is controlled;
tonnage not estimated or classified as resource
where surface is uncontrolled.
Highwall Miner Reserves
Penetration Depth
91.4 – 243.8 meters
Seam Density & Wash Recovery
Similar to underground-mineable reserves
Mine Recovery Applied to Coal
Reserves
40 percent
 
Minimum Coal Thickness
0.6 meter
Minimum Mining Height
0.9 meter
Adjustments Applied to Marketable
Coal Reserves
6 percent moisture increase and 5 percent
preparation plant inefficiency
Out-of-Seam Dilution Thickness
Applied to Coal Reserves
0.9 meter less seam height
2242 to 2402 kg/m
3
 
density used for dilution tonnage
estimate
Note:
 
Exceptions for application of
 
these criteria to
 
resource and reserve
 
estimation are made
 
as warranted and
 
demonstrated by either
 
actual
mining experience or
 
detailed data that
 
allows for empirical
 
evaluation of mining
 
conditions.
 
Final classification of
 
coal reserve is
 
made based
on the pre-feasibility evaluation.
11.1.1
 
Geostatistical Analysis
MM&A
 
completed
 
a
 
geostatistical
 
analysis
 
on
 
drill
 
holes
 
within
 
the
 
reserve
 
boundaries
 
to
determine
 
the applicability
 
of the
 
common United
 
States classification
 
system for
 
measured
and indicated
 
and inferred
 
coal resources.
 
Historically,
 
the United
 
States has
 
assumed that
coal within
 
0.4-kilometer of
 
a point
 
of observation
 
represents a
 
measured resource
 
whereas
coal
 
between
 
0.4
 
kilometer
 
and
 
1.2
 
kilometer
 
from
 
a
 
point
 
of
 
observation
 
is
 
classified
 
as
indicated.
 
Inferred resources
 
are commonly
 
assumed to
 
be located
 
between 1.2
 
kilometers
and
 
4.8
 
kilometers
 
from
 
a
 
point
 
of
 
observation.
 
Per
 
SEC
 
regulations,
 
only
 
measured
 
and
indicated resources may be
 
considered for reserve classification,
 
respectively as proven and
probable reserves.
MM&A
 
performed
 
a
 
geostatistical
 
analysis
 
test
 
of
 
the
 
Logan
 
data
 
set
 
using
 
the
 
Drill
 
Hole
Spacing
 
Analysis
 
(
DHSA
)
 
method.
 
This
 
method
 
attempts
 
to
 
quantify
 
the
 
uncertainty
 
of
applying
 
a
 
measurement
 
from
 
a
 
central
 
location
 
to
 
increasingly
 
larger
 
square
 
blocks
 
and
provides
 
recommendations
 
for
 
determining
 
the
 
distances
 
between
 
drill
 
holes
 
for
 
measured,
indicated, and inferred resources.
To
 
perform DHSA the
 
data set was
 
processed to remove
 
any erroneous data
 
points, clustered
data points, as
 
well as directional
 
trends.
 
This was achieved
 
through the use
 
of histograms,
 
 
ex963p2i0.jpg ex963p37i2.jpg ex963p37i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
28
as
 
seen
 
in
Figure
 
11-1
,
 
color
 
coded
 
scatter
 
plots
 
showing
 
the
 
geospatial
 
positioning
 
of
 
the
borings,
Figure 11-2
, and trend analysis.
Figure 11-1:
 
Histogram of the Total Seam
Thickness for the No. 2 Gas Seam Present
in the Logan Complex
Figure 11-2:
 
Scatter plot of the Total
Seam Thickness for the No. 2 Gas Seam
Present in the Logan Complex
Following the completion of data processing, a variogram of
 
the data set was created,
Figure
11
-3
.
 
The variogram
 
plots average
 
square difference
 
against the
 
separation distance
 
between
the data pairs.
 
The separation distance is broken
 
up into separate bins defined
 
by a uniform
lag distance
 
(e.g., for
 
a lag
 
distance of
 
152 meters the
 
bins would
 
be 0
 
– 152
 
meters, 153
 
–
305
 
meters,
 
etc.).
 
Each
 
pair
 
of
 
data
 
points
 
that
 
are
 
less
 
than
 
one
 
lag
 
distance
 
apart
 
are
reported in the first bin.
 
If the data pair is
 
further apart than one lag
 
distance but less than two
lag distances
 
apart, then the
 
variance is reported
 
in the second
 
bin.
 
The numerical average
for differences reported
 
for each
 
bin is
 
then plotted
 
on the
 
variogram.
 
Care was
 
taken to
 
define
the lag
 
distance in
 
such a
 
way as
 
to not
 
overestimate any
 
nugget effect
 
present in
 
the data
set.
 
Lastly,
 
modeled equations,
 
often spherical, gaussian,
 
or exponential,
 
are applied
 
to the
variogram in order to represent the data set across a continuous spectrum.
 
 
ex963p2i0.jpg ex963p38i1.jpg
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
29
Figure 11-3: Variogram
 
of the Total Seam Thickness for the No. 2 Gas Seam
 
Present in the Logan Complex
The estimation
 
variance is then
 
calculated using information
 
from the
 
modeled variogram as
well as charts published by Journel and Huijbregts (1978).
 
This value estimates the variance
from applying
 
a single
 
central measurement
 
to increasingly
 
larger square
 
blocks.
 
Care was
taken to
 
ensure any
 
nugget effect
 
present was
 
added back
 
into the
 
data.
 
This process
 
was
repeated for each test block size.
The
 
final step
 
of the
 
process is
 
to calculate
 
the global
 
estimation
 
variance.
 
In this
 
step the
number
 
square
 
blocks
 
that
 
would
 
fit
 
inside
 
the
 
selected
 
study
 
area
 
is
 
determined
 
for
 
each
block size that was investigated in the previous step.
 
The estimation variance is then divided
by the number of blocks
 
that would fit inside
 
the study area for
 
each test block size.
 
Following
this determination, the data
 
is then transformed back
 
to represent the relative
 
error in the 95
th
-
percentile range.
Figure
 
11-4
shows the
 
results
 
of
 
the DHSA
 
performed
 
on the
 
No. 2
 
Gas
 
seam
 
data for
 
the
Logan
 
Complex
.
 
DHSA
 
provides
 
hole
 
to
 
hole
 
spacing
 
values,
 
these
 
distances
 
need
 
to
 
be
converted
 
to
 
radius
 
from
 
a
 
central
 
point
 
in
 
order
 
to
 
compare
 
to
 
the
 
historical
 
standards.
 
A
summary of
 
the radius
 
data is
 
shown in
Table
 
11-3
.
 
DHSA prescribes measured,
 
indicated,
and inferred drill
 
hole spacings be
 
determined at the
 
10-percent, 20-percent, and
 
50-percent
levels of relative error, respectively.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ex963p39i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
30
Figure 11-4: Result of DHSA for the No. 2 Gas Seam Present in the Logan Complex
Table 11
 
-2:
 
DHSA Results Summary for Radius from a Central
 
Point
Model:
Measured Radial Distance
(10% Relative Error)
Indicated Radial
Distance
(20% Relative Error)
Inferred Radial
Distance
(50% Relative Error)
(km)
(km)
(km)
Gaussian:
0.99
1.66
3.94
Spherical:
0.87
1.53
3.53
Exponential:
0.87
1.53
3.53
Comparing the results of
 
the DHSA to
 
the historical standards, it
 
is evident that the
 
historical
standards are more conservative than even the most conservative DHSA model with regards
to
 
determining
 
measured
 
resources.
 
The
 
Exponential
 
and
 
Spherical
 
models
 
recommend
using a radius
 
of 0.87 kilometers for
 
measured resources compared to
 
the historical value of
0.4
 
kilometers.
 
With
 
respect
 
to
 
indicated
 
resources
 
the
 
Spherical
 
and
 
Exponential
 
models
recommend using a radius
 
1.53 kilometers.
 
The historical radius
 
of 1.2 kilometers
 
is therefore
also more
 
conservative than
 
the DHSA
 
results for
 
indicated
 
resources.
 
These results
 
have
led the QP’s to report the data following
 
the historical classification standards, rather than
 
use
the results of the DHSA.
11.2
 
Qualified Person’s Estimates
Mineral
 
resources,
 
representing
 
in-situ
 
coal
 
in
 
which
 
a
 
portion
 
of
 
reserves
 
are
 
derived,
 
are
presented
 
below.
 
Based
 
on
 
the
 
work
 
described
 
and
 
detailed
 
modelling
 
of
 
the
 
areas
considering all the
 
parameters defined, a
 
coal resource estimate, summarized
 
in
Table
 
11-3
,
was prepared as of December 31, 2021, for property controlled by Coronado.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
31
Table 11
 
-3:
 
Coal Resources Summary as of December 31, 2021
 
(Mt)
 
Coal Resource (Dry Tonnes, In Situ, MT)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserves
129.6
47.7
0.0
177.3
24
1.0
28
Exclusive of Reserves
45.8
37.0
3.4
86.2
Total 12/31/2021
175.4
84.7
3.4
263.5
Note:
 
Resource tonnes are inclusive of reserve
 
tonnes since they include the in-situ tonnes from
 
which recoverable coal
reserves are derived.
Note 2:
 
Coal resources are reported on a dry basis.
 
Surface moisture and inherent moisture are excluded.
Note 3: The Property has 82.8 Mt of dry, in-place measured and indicated resource
 
tonnes exclusive of reserves as of December
31, 2021.
11.3
 
Resources Exclusive of Reserves
The
 
Property
 
contains
 
multiple
 
resource
 
blocks
 
which
 
were
 
not
 
deemed
 
to
 
exhibit
 
reserve
potential at the time of the study.
 
These underground-mineable resources, formally identified
as resources exclusive of reserves, are located in
 
the No. 2 Gas, Lower Powellton, Peerless,
Lower
 
Winifrede,
 
Middle
 
Cedar
 
Grove
 
and
 
Beckley
 
coal
 
seams.
 
There
 
are
 
also
 
surface
mineable
 
resources exclusive
 
of
 
reserves
 
in
 
various
 
seams.
 
Reasons
 
which
 
may
 
preclude
elevation of resources to reserves include, but are not limited to:
1.
 
Unfavorable economics at the PFS level, yet economics could become attractive in the
future under different market conditions.
 
2.
 
Exclusion from LOM planning by mining operator due to remaining resource blocks which
are relatively small, isolated blocks and not currently attractive from an operational
perspective.
 
11.3.1
 
Initial Economic Assessment
MM&A completed
 
an initial
 
economic assessment
 
to determine
 
the potential
 
economic viability
of
 
resources
 
exclusive
 
of
 
reserves.
 
Unlike
 
the
 
economic
 
analysis
 
presented
 
in
 
Chapter
 
19
developed to
 
test reserves,
 
the initial
 
economic assessment
 
below is
 
presented on
 
a real
 
basis
in 2022
 
dollars.
 
MM&A applied relevant
 
technical factors
 
to estimate
 
potential saleable tonnes
without the resource
 
blocks, should the
 
resources be extracted
 
via deep, continuous
 
mining
methods
 
or
 
surface
 
area
 
methods.
 
MM&A
 
developed
 
cash
 
cost
 
profiles
 
for
 
the
 
resource
blocks,
 
including
 
direct
 
cash
 
costs
 
(labor,
 
supplies,
 
roof
 
control,
 
maintenance
 
and
 
repair,
power,
 
and
 
other);
 
washing,
 
trucking,
 
materials
 
handling,
 
general
 
and
 
administrative,
 
and
environmental
 
costs;
 
and
 
indirect
 
cash
 
costs
 
(royalties,
 
production
 
taxes,
 
property
 
tax,
insurance).
 
Costs were developed based off relevant cost drivers (per-meter, per-bank cubic
meter, per-raw-tonne, per-clean-tonne).
 
Additionally, MM&A estimated capital
 
costs to
 
extract
resources.
 
Capital
 
costs
 
associated
 
with
 
mine
 
development
 
were
 
amortized
 
across
 
the
resource’s potential saleable
 
tonnages.
 
Additional non-cash items
 
(depreciation of equipment
and
 
depletion) and
 
cash costs
 
were compared
 
to an
 
assumed
 
sale price
 
of $130
 
per tonne
(FOB loadout) for underground-mineable
 
resources, representing the
 
long-term average price
forecast for HVB
 
provided by Coronado.
 
Surface resources were
 
assessed at
 
a sales price
of $52 per
 
tonne (FOB loadout)
 
based on estimated
 
historical pricing for
 
Coronado’s surface
operations.
 
Results of
 
the analysis are
 
shown below and
 
demonstrate potential profitability
 
on
a fully loaded cost basis.
 
Detailed summaries are shown in
Appendix D
.
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ex963p41i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
32
Table 11
 
-4:
 
Results of Initial Economic Assessment
Mine
Resource
Block
Direct
Cash
Transportation,
Washing,
Enviro, G&A
Indirect
Non-
Cash
Total
Cost
Fully
Loaded
P&L
Toney
 
Fork #2
N2G
 
$60.58
 
 
$15.01
 
 
$16.90
 
 
$13.82
 
$106.30
 
 
$23.77
 
Pardee
N2G
 
$66.63
 
 
$18.11
 
 
$16.90
 
 
$9.90
 
$111.54
 
 
$18.53
 
Sugar Camp
N2G
 
$83.54
 
 
$21.67
 
 
$16.90
 
 
$7.93
 
$130.03
 
 
$0.04
 
Lower Powellton
LPOW
 
$64.37
 
 
$15.53
 
 
$16.90
 
 
$6.61
 
$103.42
 
 
$26.66
 
N2G Peerless
LPOW
 
$67.34
 
 
$16.15
 
 
$16.90
 
 
$15.97
 
$116.35
 
 
$13.72
 
N2G Peerless
Peer
 
$86.35
 
 
$12.15
 
 
$16.90
 
 
$13.54
 
$128.94
 
 
$1.13
 
Beckley
Bec
 
$58.62
 
 
$14.06
 
 
$16.90
 
 
$13.87
 
$103.45
 
 
$26.63
 
Middle Cedar Grove
MCG
 
$62.16
 
 
$15.62
 
 
$16.90
 
 
$29.20
 
$123.88
 
 
$6.20
 
Ramaco
N2G
 
$56.27
 
 
$18.98
 
 
$16.90
 
 
$25.07
 
$117.22
 
 
$12.85
 
Lower Winifrede
LWIN
 
$51.37
 
 
$17.72
 
 
$16.90
 
 
$10.77
 
 
$96.76
 
 
$33.32
 
Thermal Area Mines
(S)
S
 
$29.45
 
 
$6.34
 
 
$8.41
 
 
$6.61
 
 
$50.81
 
 
$1.00
 
Figure 11-5:
 
Results of Initial Economic Assessment
11.4
 
Qualified Person’s Opinion
While there is
 
some level of
 
stratigraphically controlled seam-thickness
 
variability due to
 
seam
splitting,
 
sand
 
channels,
 
etc.,
 
the
 
coal
 
seams
 
on
 
the
 
mine
 
property
 
in
 
Logan
 
County
demonstrate
 
reasonable
 
thickness
 
consistency
 
according
 
to
 
the
 
classification
 
system
 
of
measured
 
(0
 
–
 
0.4
 
kilometer),
indicated
 
(0.4
 
to
 
1.2
 
kilometers),
 
and
inferred
 
(1.2
 
to
 
4.8
kilometers).
 
MM&A geologists
 
and engineers
 
modeled the
 
deposit and
 
delineated mineable
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
33
regions to reflect the
 
nature of each seam
 
and the practicality
 
of mining constraints.
 
Based on
MM&A’s
 
geostatistical analysis,
 
it would
 
be possible
 
to extend
 
the measured,
 
indicated and
inferred
 
arcs
 
slightly
 
beyond
 
historically
 
accepted
 
practices
 
due
 
to
 
consistent
 
geological
settings
.
 
The
 
QP’s
 
have
 
again
 
elected
 
not
 
to
 
extend
 
arc
 
distances,
 
introducing
 
a
 
level
 
of
conservatism in measured and indicated coal classification.
Based on the data
 
review, the attendant work done to
 
verify the data integrity
 
and the creation
of an independent geologic model, the
 
QPs believe
 
this is a fair and accurate
 
representation
of the Logan coal resources.
12
Mineral Reserve Estimates
12.1
 
Assumptions, Parameters and Methodology
Coal Reserves are
 
classified as
proven
 
or
probable
 
considering “modifying factors” including
mining,
 
metallurgical,
 
economic,
 
marketing,
 
legal,
 
environmental,
 
social
 
and
 
governmental
factors.
>
Proven Coal Reserves
 
are the economically mineable part of a measured coal resource,
adjusted for diluting materials and allowances for losses when the material is mined.
 
It is
based on appropriate assessment and studies in consideration of and adjusted for
reasonably assumed modifying factors.
 
These assessments demonstrate that extraction
could be reasonably justified at the time of reporting.
 
>
Probable Coal Reserves
 
are the economically mineable part of an indicated coal
resource, and in some circumstances a measured coal resource, adjusted for diluting
materials and allowances for losses when the material is mined.
 
It is based on
appropriate assessment and studies in consideration of and adjusted for reasonably
assumed modifying factors.
 
These assessments demonstrate that extraction could be
reasonably justified at the time of reporting.
 
Upon completion
 
of delineation
 
and calculation
 
of coal
 
resources, MM&A
 
generated
 
a LOM
plan for Logan.
 
The footprint of each reserve area is shown on the maps in
Appendix B
.
 
The
Mine
 
plan
 
was
 
generated
 
based
 
on
 
the
 
forecast
 
mine
 
plan
 
and
 
permit
 
plan
 
provided
 
by
Coronado with modifications
 
by MM&A where
 
necessary due to
 
current property control
 
limits,
modifications to geologic mapping, or other factors determined during the evaluation.
Carlson Mining software
 
was used to
 
generate the LOM
 
plan for Logan.
 
The mine plan
 
was
sequenced
 
based
 
on
 
productivity
 
schedules
 
provided
 
by
 
Coronado.
 
MM&A
 
judged
 
the
productivity estimates and
 
plans to be
 
reasonable based on
 
experience and
 
current industry
practice.
Raw,
 
ROM
 
production
 
data
 
outputs
 
from
 
LOM
 
plan
 
sequencing
 
were
 
processed
 
into
Microsoft
®
 
EXCEL spreadsheets and summarized on
 
an annual basis for processing
 
into the
economic
 
model.
 
Average
 
seam
 
densities
 
were
 
estimated
 
to
 
determine
 
raw
 
coal
 
tonnes
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
34
produced from
 
the LOM
 
plan.
 
Average mine recovery
 
and wash
 
recovery factors
 
were applied
to determine coal reserve tonnes.
 
Coal reserve
 
tonnes in
 
this evaluation
 
are reported
 
at a
 
4.5 percent
 
to 6.0
 
percent moisture
and represent the saleable product from the Property.
 
Pricing data as provided
 
by Coronado is described
 
in
Section 16.2
.
 
The pricing data
 
assumes
respective HVA, HVB, specialty markets
 
and thermal FOB-mine
 
prices of approximately
 
$224,
$123,
 
and
 
$51
 
per
 
metric
 
tonne
 
for
 
calendar
 
year
 
2022.
 
HVA,
 
HVB,
 
and
 
thermal
 
prices
respectively decrease
 
to
 
approximately $145,
 
$115,
 
and
 
$51
 
per metric
 
tonne
 
through year
2026,
 
and
 
then
 
increase to
 
$227,
 
$189,
 
and
 
$51
 
per
 
metric
 
tonne through
 
year 2050
 
(after
which sales prices were held constant).
The
 
coal resource
 
mapping and
 
estimation process,
 
described
 
in this
 
report was
 
used as
 
a
basis for the coal
 
reserve estimate.
 
Proven and probable coal
 
reserves were derived
 
from the
defined
 
coal
 
resource
 
considering
 
relevant
 
processing,
 
economic
 
(including
 
technical
estimates of
 
capital, revenue,
 
and cost),
 
marketing, legal,
 
environmental, socio-economic, and
regulatory factors and are presented on a moist, recoverable basis.
As is customary in
 
the US, the categories
 
for proven and probable
 
coal reserves are based
 
on
the distances from valid points of measurement as determined by the QPs for
 
the area under
consideration.
 
For
 
this
 
evaluation,
 
measured
 
resource,
 
which
 
may
 
convert
 
to
 
a
 
proven
reserve, is based on a 0.4-kilometer radius from a valid point of observation.
Points of observation
 
include exploration drill
 
holes, gas wells,
 
and mine measurements
 
which
have been fully vetted and processed into a geologic model.
 
The geologic model is based on
seam depositional modeling,
 
the interrelationship of overlying
 
and underlying strata
 
on seam
mineability,
 
seam
 
thickness
 
trends,
 
the
 
impact
 
of
 
seam
 
structure
 
(i.e.,
 
faulting),
 
intra-seam
characteristics, etc.
 
Once the geologic model
 
was completed, a statistical
 
analysis, described
in
Section 11.1.1
 
was conducted and a
 
0.4-kilometer radius from
 
a valid point
 
of observation
was selected to define Measured Resources.
 
Likewise,
 
the
 
distance
 
between
 
0.4
 
and
 
1.2
 
of
 
a
 
kilometer
 
radius
 
was
 
selected
 
to
 
define
Indicated Resources.
 
Indicated Resources may convert to Probable Reserves.
 
Inferred Resources (greater
 
than a 1.2-kilometer
 
radius from a
 
valid point
 
of observation) have
been excluded from Reserve consideration.
12.2
 
Qualified Person’s Estimates
Reserve
 
tonnage
 
estimates
 
provided
 
herein
 
report
 
coal
 
reserves
 
derived
 
from
 
the
 
in-situ
resource tonnes presented
 
in
Table
 
11-3
, and not
 
in addition to
 
coal resources.
 
Proven and
probable
 
coal
 
reserves
 
were
 
derived
 
from
 
the
 
defined
 
coal
 
resource
 
considering
 
relevant
mining,
 
processing,
 
infrastructure,
 
economic
 
(including
 
estimates
 
of
 
capital,
 
revenue,
 
and
cost),
 
marketing,
 
legal,
 
environmental,
 
socio-economic
 
and
 
regulatory
 
factors.
 
The
 
coal
reserves, as
 
shown in
Table
 
12-2
, are
 
based on
 
a technical
 
evaluation of
 
the geology
 
and a
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
35
preliminary feasibility
 
study of
 
the coal
 
deposits.
 
The extent
 
to which
 
the coal
 
reserves may
be affected
 
by any
 
known environmental,
 
permitting, legal,
 
title, socio-economic,
 
marketing,
political, or other relevant issues has been reviewed rigorously.
 
Similarly, the extent to which
the
 
estimates
 
of
 
coal
 
reserves
 
may
 
be
 
materially
 
affected
 
by
 
mining,
 
metallurgical,
infrastructure
 
and
 
other
 
relevant
 
factors
 
has
 
also
 
been
 
considered.
 
Coal
 
reserves
 
are
presented on a ROM basis in
Table
 
12-1.
Table 12-1:
 
Coal Reserves Summary (ROM Basis (Moist)) as of December
 
31, 2021 (Mt)
 
Demonstrated Coal Reserves (Mt, Moist ROM)
Quality (Dry)
 
By Reliability Category
By Mining Type
By Control Type
Area / Mine
Proved
Probable
Total
Surface
UG
Owned
Leased
Ash
Sulfur
Vol
Logan Mine
Complex
94.9
42.0
136.9
38.5
98.4
0.0
136.9
49
0.9
20
In the
 
financial analysis
 
some of
 
the projected
 
mines were
 
not economically
 
viable.
 
The tonnes
projected to be mined from these locations have not been included in the Reserve Base.
Table 12-2:
 
Coal Reserves Summary (Marketable Sales Basis) as of
 
December 31, 2021 (Mt)
 
Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipped, MT)
Quality (Dry Basis)
 
By Reliability Category
By Mining Type
By Control Type
Property
Proven
Probable
Total
Surface
UG
Owned
Leased
Ash%
Sulfur%
VM%
Logan County
Complex
53.4
20.1
73.4
33.4
40.1
0.0
73.4
8
0.9
35
Note: Marketable reserve tonnes are reported on
 
a moist basis, including a combination of surface
 
and inherent moisture.
 
The
combination of surface and inherent moisture is
 
modeled between 4.5 and 6-percent, depending
 
upon mining method.
 
Actual
product moisture is dependent upon multiple geological
 
factors, operational factors, and product contract
 
specifications and can
exceed 8-percent.
 
As such, the modeled moisture values provide a level
 
of conservatism for reserve reporting.
The results of
 
this TRS define an
 
estimated 73.4 Mt of
 
proven and probable marketable
 
coal
reserves.
 
Of that total,
 
73 percent are
 
proven, and 27
 
percent are probable.
 
All 73.4 Mt
 
are
leased
 
coal reserves
 
and
 
are assigned.
 
Approximately 68.7
 
Mt of
 
reserves
 
are
 
considered
suitable for the metallurgical coal
 
market and 4.8 Mt are
 
projected to be sold
 
into the thermal
coal market.
12.3
 
Qualified Person’s Opinion
The estimate of coal reserves was determined in accordance with the JORC Code along with
SEC Regulation S-K 1300.
The
 
LOM
 
mining
 
plan
 
for
 
Logan
 
was
 
prepared
 
to
 
the
 
level
 
of
 
preliminary
 
feasibility.
 
Mine
projections
 
were
 
prepared,
 
and
 
timing
 
scheduled
 
to
 
match
 
production
 
with
 
coal
 
seam
characteristics.
 
Production timing
 
was carried
 
out from
 
current locations
 
to depletion
 
of the
coal
 
reserve
 
area.
 
Coal
 
reserve
 
estimates
 
could
 
be
 
materially
 
affected
 
by
 
the
 
risk
 
factors
described in
Section 22.2
.
Based
 
on
 
the
 
Preliminary
 
Feasibility
 
Study
 
and
 
the
 
attendant
 
Economic
 
Review,
 
the
 
QPs
believe this is a fair and accurate calculation of the Logan coal reserves.
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
36
13
Mining Methods
Nine
 
underground
 
and
 
three
 
surface
 
mining
 
areas
 
were
 
modeled
 
and
 
tested
 
economically.
 
Once
 
the
 
Resources
 
were
 
calculated,
 
mine
 
plans
 
were
 
created
 
to
 
project
 
operating
 
each
resource
 
area
 
to
 
depletion,
 
with
 
crews
 
and
 
equipment
 
scheduled
 
to
 
move
 
to
 
subsequent
mining
 
areas
 
as
 
depletion
 
occurs.
 
Underground
 
mine
 
operations
 
are
 
projected
 
to
 
be
exhausted in 2042, surface mines deplete in 2051 and the highwall miners finish in 2053.
13.1
 
Geotech and Hydrology
Mining plans for
 
potential underground mines
 
were developed by
 
Coronado and MM&A.
 
Pillar
stability was tested
 
by MM&A using the
Analysis of Coal
 
Pillar Stability (ACPS)
 
program that
was
 
developed
 
by
 
the
National
 
Institute
 
for
 
Occupational
 
Safety
 
and
 
Health
 
(
NIOSH
)
.
 
MM&A reviewed
 
the results
 
from the
 
ACPS and
 
ALPS analysis
 
and considered
 
them in
 
the
development of the LOM plan.
For the HWM operation,
 
Mining cuts are approximately
 
2.9 meters wide, and
 
cuts are typically
laid out
 
on approximately
 
5.03-meter centers.
 
A 2.1-meter
 
to 2.4-meter
 
solid coal
 
fender is
left
 
in
 
place
 
between
 
cuts.
 
The
 
mining
 
plan
 
provides
 
that
 
larger
 
barrier
 
pillars
 
be
 
provided
periodically,
 
depending
 
on
 
overburden
 
depth
 
and
 
characteristics
 
and
 
the
 
immediate
 
roof
composition, typically after
 
15 to 20
 
cuts.
 
Although this plan,
 
with minor variations,
 
is common
throughout Appalachia, specific rock
 
and coal strength
 
information is used to
 
verify whether or
not this plan provided a sufficient factor of safety.
Hydrology has not been an issue of concern at Logan.
 
Based on numerous site visits to both
the surface and underground portions
 
of the Property by
 
the QPs, it has
 
been determined that
this is not a significant concern.
 
Mining of future reserves is projected
 
to occur in areas which
exhibit similar hydrogeological characteristics as those formerly mined areas.
13.2
 
Production Rates
Operations at Logan by Coronado
 
and its predecessors have been
 
on-going for many years.
 
The
 
mine
 
plan
 
and
 
productivity
 
expectations reflect
 
historical
 
performance
 
and
 
efforts
 
have
been made
 
to adjust
 
the plan
 
to reflect
 
future conditions.
 
MM&A is
 
confident
 
that the
 
mine
plan
 
is reasonably
 
representative
 
to provide
 
an
 
accurate
 
estimation of
 
coal
 
reserves.
 
Mine
development and operation have not been optimized within the TRS.
Carlson
 
Mining
 
software was
 
used
 
by
 
MM&A to
 
generate
 
mine
 
plans
 
for
 
the mineable
 
coal
seams.
 
Mine plans were sequenced based on productivity schedules provided by Coronado,
which were based
 
on historically achieved
 
productivity levels.
 
All production forecasting
 
ties
assumed production rates to
 
geological models as
 
constructed by MM&A’s team of geologists
and mining engineers.
The projected underground
 
mines are set
 
up similarly to
 
the four currently
 
active operations.
 
Each
 
mine
 
is
 
scheduled
 
to
 
operate
 
one
 
to
 
three
 
production
 
sections.
 
All
 
sections
 
are
 
 
ex963p2i0.jpg
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
37
configured as
 
full supersections
 
with two continuous
 
miners per
 
section.
 
In all cases,
 
mines
are forecasted
 
to produce
 
coal two
 
or three
 
shifts each
 
day.
 
In most
 
cases the
 
third shift
 
is
reserved
 
for
 
maintenance
 
and
 
belt
 
and
 
power
 
moves.
 
Production
 
is
 
scheduled
 
Monday
through Friday each week, and every other Saturday.
Three surface resource
 
areas were modeled.
 
Mining operations are projected
 
to utilize area
mining
 
as
 
well
 
as
 
contour
 
mining
 
(
CTR
)
 
methods.
 
The
 
projected
 
operations
 
will
 
employ
equipment capable of a combined production rate
 
of approximately 11,100 bcm/shift between
two spreads
 
of equipment
 
in 2026.
 
In 2027,
 
additional equipment
 
is added
 
in order
 
to increase
production levels to 19,100 bcm/shift.
 
Further equipment is projected for 2032 and beyond in
order to
 
increase production
 
levels for
 
the remaining
 
LOM production
 
to 27,100
 
bcm/shift.
 
The
production model assumes that the
 
mines continue at this
 
production rate until 2047
 
when the
equipment
 
suites
 
are
 
selectively
 
phased
 
out
 
of
 
production
 
due
 
to
 
a
 
reduction
 
in
 
available
working areas.
 
Final surface production
 
ceases in
 
2051 as the
 
last permitted
 
area is depleted,
whereas the
 
HWM production
 
finishes in
 
2053.
 
The models
 
assume that
 
the operations
 
will
work two, 10-hour
 
production shifts, 5
 
days per week
 
plus every other
 
Saturday, with sufficient
staffing to
 
float vacation
 
during the
 
year.
 
A total
 
of 115 employees
 
are assumed
 
for the
 
surface
mines at full production.
Coals from
 
the surface
 
operations are
 
hauled to
 
the loadout
 
for direct
 
ship or
 
to the
 
preparation
plant for washing ultimately
 
to be blended
 
to shipment’s specifications.
 
Saleable product from
the surface
 
operations is
 
projected to
 
be sold
 
primary into
 
the thermal
 
coal market
 
on a
 
raw
basis; however, some production is planned to be washed for the metallurgical coal market.
 
The
 
three
 
areas
 
planned
 
for
 
highwall
 
mining
 
are
 
assumed
 
to
 
be
 
mined
 
by
 
a
 
contractor;
therefore,
 
the contractor
 
costs
 
included in
 
the financial
 
model
 
assume that
 
the contractor
 
is
responsible for staffing those operations along with providing necessary equipment capital.
Spoil for
 
final highwall
 
reclamation is
 
expected to
 
come from
 
strategic placement
 
of spoil
 
on
pre-existing
 
benches
 
by
 
haul
 
trucks
 
such
 
that
 
they
 
are
 
within
 
the
 
push
 
distance
 
of
 
the
reclamation dozer.
 
13.3
 
Mining Related Requirements
13.3.1
 
Underground
A mine plan
 
with sequenced mining
 
projections was prepared
 
for each logical
 
mining unit.
 
For
each mine plan, the appropriate number of production units is selected for the resource area,
and a productivity level assigned, expressed in
 
meters of advance per unit-shift of production.
 
The
 
productivity
 
is based
 
on the
 
equipment and
 
personnel
 
configuration, mining
 
height
 
and
expected physical conditions.
 
13.3.2
 
Surface Mine
A mine
 
plan with
 
sequenced mining
 
projections was
 
prepared for
 
each logical
 
mining unit.
 
The
mobile
 
equipment
 
spreads
 
selected
 
are
 
representative
 
of
 
Coronado’s
 
equipment
 
fleets
 
and
deemed to be appropriate for the local mining conditions.
 
 
ex963p2i0.jpg
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
38
13.3.3
 
HWM
Contract HWM units are available
 
for assignment to contour surface mining
 
pits in the Logan
County
 
Division.
 
HWM substantially
 
increases
 
coal
 
recovery
 
from
 
contour
 
mining
 
benches
and is ideally suited for coal resource areas characterized by thin coal seams and irregular or
narrow boundaries that
 
are not well-suited
 
for underground
 
mining.
 
The contour
 
mining bench
will extend
 
into the
 
highwall to
 
the maximum
 
overburden stripping
 
ratio that
 
is economically
feasible or the minimum bench requirement for operation of the HWM unit.
 
13.4
 
Required Equipment and Personnel
13.4.1
 
Underground Mines
13.4.1.1
 
Powellton No. 1
The Powellton No. 1 Mine is active
 
with one continuous mining section.
 
The Upper Powellton
seam is accessed
 
via a shallow
 
slope and crop.
 
This mine produces
 
metallurgical coal from
leased mineral.
Production is
 
scheduled for
 
approximately 265 days
 
each year,
 
which represents production
on Monday through
 
Friday and every
 
other Saturday.
 
On each day,
 
two production sections
are scheduled
 
to produce
 
coal on
 
two shifts;
 
the third
 
shift is
 
reserved for
 
maintenance and
mine
 
conveyor belt
 
and
 
power moves.
 
The production
 
section
 
is configured
 
as a
 
full super
section with two continuous miners.
 
Productivity is planned at the rate of 48.8 meters to 76.6
meters
 
of
 
advance
 
(55.5
 
meters
 
to
 
87.2
 
meters
 
of
 
retreat).
 
A
 
total
 
of
 
50
 
employees
 
are
assigned to the mine.
Principal production equipment
 
includes two continuous
 
miners, two roof bolters,
 
four shuttle
cars, and
 
two scoops.
 
Coal is
 
extracted from
 
the production
 
face with
 
the continuous
 
miner
and hauled to the mine conveyor
 
in shuttle cars.
 
At the conveyor belt, the
 
coal is discharged
from
 
the
 
shuttle
 
cars
 
onto
 
a
 
feeder
 
breaker
 
for
 
transfer
 
onto
 
the
 
conveyor.
 
The
 
conveyors
carry the coal to
 
the outside, where it is
 
transported via overland conveyor to
 
the preparation
plant and load-out.
 
The Powellton No. 1 Mine
 
is an operating facility; all
 
necessary infrastructure and utilities are
in place.
 
All necessary permits have been obtained.
 
Estimated expenditures for site closure
and reclamation are included in
 
the financial model for this
 
site.
 
Expected annual production
averages
 
approximately
 
204,000
 
marketable
 
tonnes.
 
The
 
mine
 
is
 
scheduled
 
to
 
terminate
during 2042.
13.4.1.2
 
Lower War Eagle
The Lower
 
War
 
Eagle Mine
 
is active
 
with three
 
production sections.
 
The Lower
 
War
 
Eagle
seam is
 
accessed via
 
an existing
 
slope.
 
This mine
 
is a
 
metallurgical coal
 
operation with
 
all
remaining production on leased mineral property.
Production is
 
scheduled for
 
approximately 265 days
 
each year,
 
which represents production
on Monday through Friday
 
and every other Saturday.
 
On each day, three production sections
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
39
are scheduled
 
to produce
 
coal on
 
two shifts;
 
the third
 
shift is
 
reserved for
 
maintenance and
mine conveyor belt and power
 
moves.
 
The sections are configured
 
as one single section
 
with
one
 
continuous
 
miner
 
and
 
two
 
super
 
sections
 
with
 
two
 
continuous
 
miners
 
available
 
for
production.
 
Productivity is planned at the rate
 
of 34.8 meters to 78.8 meters
 
of advance (40.3
meters to 90.9 meters
 
of retreat) per shift
 
of operation.
 
A total of
 
176 employees are assigned
to the mine.
Principal production equipment
 
includes two continuous
 
miners, two roof bolters,
 
four shuttle
cars, and
 
two scoops.
 
Coal is
 
extracted from
 
the production
 
face with
 
the continuous
 
miner
and hauled to the mine conveyor
 
in shuttle cars.
 
At the conveyor belt, the
 
coal is discharged
from
 
the
 
shuttle
 
cars
 
onto
 
a
 
feeder
 
breaker
 
for
 
transfer
 
onto
 
the
 
conveyor.
 
The
 
conveyors
carry the coal
 
to the outside, where
 
it is transported
 
to the preparation
 
plant and load-out
 
via
overland conveyor.
 
The Lower War Eagle Mine
 
is an operating
 
facility; all necessary
 
infrastructure and utilities
 
are
in place.
 
All necessary permits have been obtained.
 
Estimated expenditures for site closure
and reclamation are included in
 
the financial model for this
 
site.
 
Expected annual production
averages
 
approximately
 
684,000
 
marketable
 
tonnes.
 
The
 
mine
 
is
 
scheduled
 
to
 
terminate
during 2033.
 
13.4.1.3
 
Eagle No. 1/Toney Fork #1
The Eagle No.
 
1 (Toney Fork #1) Mine is
 
an active mine
 
in the
 
Eagle (No. 2
 
Gas Lower) seam.
 
This mine is
 
a metallurgical coal
 
operation on
 
leased mineral property
 
and is accessed
 
via drift
entries from the outcrop.
Production is
 
scheduled for
 
approximately 265 days
 
each year,
 
which represents production
on Monday through Friday
 
and every other Saturday.
 
On each day, three production sections
are scheduled
 
to produce
 
coal on
 
two shifts;
 
the third
 
shift is
 
reserved for
 
maintenance and
mine
 
conveyor
 
belt
 
and
 
power
 
moves.
 
All
 
three
 
sections
 
are
 
full
 
super
 
sections
 
with
 
two
continuous
 
miners
 
per
 
section.
 
Productivity
 
is
 
planned
 
at
 
the
 
rate
 
of
 
37.2
 
meters
 
to
 
52.2
meters of advance
 
per shift (44.2
 
meters to 62.2
 
meters of retreat)
 
for the super
 
sections.
 
A
total of 177 employees are assigned to the mine.
Principal production equipment
 
per section includes
 
two continuous miners,
 
two roof bolters,
four
 
shuttle
 
cars,
 
and
 
two
 
scoops.
 
Coal
 
is
 
extracted
 
from
 
the
 
production
 
face
 
with
 
the
continuous miner
 
and hauled to
 
the mine conveyor
 
in shuttle cars.
 
At the
 
conveyor belt, the
coal is discharged onto a feeder breaker for transfer onto the conveyor.
 
The conveyors carry
the
 
coal
 
to
 
the
 
outside,
 
where
 
it
 
is
 
stacked
 
on
 
the
 
ground
 
to
 
await
 
truck
 
transport
 
to
 
the
preparation plant and load-out.
The Eagle
 
No. 1
 
Mine is
 
an operating
 
facility; all
 
necessary infrastructure
 
and utilities
 
are in
place.
 
All necessary permits
 
have been obtained;
 
the underground footprint
 
area expansion
is pending
 
final approval.
 
Estimated expenditures
 
for mine
 
closure and
 
site reclamation
 
are
included in the financial model.
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
40
Expected annual production averages approximately 697,000 marketable tonnes.
The mine is scheduled to terminate during 2041.
 
13.4.1.4
 
Muddy Bridge
The Muddy Bridge Mine is an active mine in the Eagle (No. 2 Gas
 
Lower) seam.
 
This mine is
a metallurgical coal
 
operation on leased
 
mineral property and
 
is accessed via
 
drift entries from
the outcrop.
Production is
 
scheduled for
 
approximately 265 days
 
each year,
 
which represents production
on Monday through Friday plus
 
every other Saturday.
 
On each day,
 
two production sections
are scheduled
 
to produce
 
coal on
 
two shifts;
 
the third
 
shift is
 
reserved for
 
maintenance and
mine conveyor belt and power
 
moves.
 
The sections are configured
 
as full super sections
 
with
two continuous miners available
 
for production on each
 
section.
 
Productivity is planned at
 
the
rate of 43.3 meters to
 
62.5 meters of advance and
 
retreat per shift of operation.
 
A total of 114
employees are assigned to the mine.
Principal production equipment
 
includes two continuous
 
miners, two roof bolters,
 
four shuttle
cars, and
 
two scoops.
 
Coal is
 
extracted from
 
the production
 
face with
 
the continuous
 
miner
and hauled to the mine conveyor
 
via shuttle cars.
 
At the conveyor belt, the coal
 
is discharged
from the
 
haulage units onto
 
a feeder breaker
 
for transfer
 
onto the
 
conveyor.
 
The conveyors
carry the coal to
 
the outside, where it
 
is stacked on the
 
ground to await truck
 
transport to the
Lower War
 
Eagle mine
 
for placement
 
onto the
 
overland conveyor
 
leading to
 
the preparation
plant and load-out.
The Muddy Bridge Mine is an operating facility; all necessary infrastructure and utilities are in
place.
 
All necessary
 
permits have been
 
obtained.
 
Coal mining
 
permits are routinely
 
obtained.
 
Estimated
 
expenditures
 
for
 
mine
 
closure
 
and
 
site
 
reclamation
 
are
 
included
 
in
 
the
 
financial
model.
Expected
 
annual
 
production
 
averages
 
approximately
 
712,000
 
marketable
 
tonnes
 
at
 
steady
state production levels.
The mine is scheduled to terminate during 2027.
13.4.1.5
 
Elklick Chilton
The proposed
 
Elklick Chilton
 
Mine is
 
scheduled to
 
begin production
 
in 2027.
 
The Chilton
 
seam
is
 
accessed
 
via
 
drift
 
entry.
 
The
 
seam
 
is
 
above
 
drainage.
 
This
 
mine
 
is
 
projected
 
to
 
be
 
a
metallurgical coal operation on leased mineral property.
 
Production is
 
scheduled for
 
approximately 265 days
 
each year,
 
which represents production
on Monday
 
through Friday
 
plus every
 
other Saturday.
 
On each day,
 
one production
 
section
is scheduled to
 
produce coal on
 
two shifts;
 
the third
 
shift is reserved
 
for maintenance
 
and mine
conveyor belt and power
 
moves.
 
The sections are configured as
 
full super sections with
 
two
continuous miners available
 
for production on
 
each section.
 
Productivity is
 
planned at the
 
rate
 
 
ex963p2i0.jpg
Coronado
 
Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
41
of
 
73.2
 
meters
 
of
 
advance
 
(109.8
 
meters
 
of
 
retreat)
 
per
 
shift
 
of
 
operation.
 
A
 
total
 
of
 
50
employees are assigned to the mine.
Principal production equipment
 
includes two continuous
 
miners, two roof bolters,
 
four shuttle
cars, and
 
two scoops.
 
Coal is
 
extracted from
 
the production
 
face with
 
the continuous
 
miner
and hauled to the mine conveyor
 
via shuttle cars.
 
At the conveyor belt, the coal
 
is discharged
from the
 
haulage units onto
 
a feeder breaker
 
for transfer
 
onto the
 
conveyor.
 
The conveyors
carry the coal to
 
the outside, where it
 
is stacked on the
 
ground to await truck
 
transport to the
preparation plant and load-out.
 
The Elklick
 
Chilton mine
 
is a
 
permitted mine
 
with surface
 
infrastructure in
 
place.
 
The proposed
mine
 
is
 
located
 
in
 
an
 
area
 
with
 
a
 
long
 
history
 
of
 
coal
 
mining,
 
with
 
numerous
 
permitted
operations in
 
close proximity.
 
Estimated expenditures
 
for mine
 
closure and
 
site reclamation
are included in the financial model.
Expected
 
annual
 
production
 
averages
 
approximately
 
290,000
 
marketable
 
tonnes
 
at
 
steady
state production levels.
The mine is scheduled to begin production in 2027 and terminate during 2040.
13.4.1.6
 
Camp Branch Chilton
The Camp Branch
 
Chilton Mine is
 
proposed mine in
 
the Chilton seam
 
which is accessed
 
via
drift
 
entry
 
from
 
the
 
outcrop
 
and
 
is
 
scheduled
 
to
 
begin
 
production
 
in
 
2027.
 
This
 
mine
 
is
 
a
metallurgical coal operation on leased mineral property.
Production is
 
scheduled for
 
approximately 265 days
 
each year,
 
which represents production
on Monday
 
through Friday
 
plus every
 
other Saturday.
 
On each day,
 
one production
 
section
is scheduled to
 
produce coal on
 
two shifts;
 
the third
 
shift is reserved
 
for maintenance and
 
mine
conveyor belt and power
 
moves.
 
The sections are configured as
 
full super sections with two
continuous miners available
 
for production on
 
each section.
 
Productivity is
 
planned at the
 
rate
of
 
73.2
 
meters
 
of
 
advance
 
(109.8
 
meters
 
of
 
retreat)
 
per
 
shift
 
of
 
operation.
 
A
 
total
 
of
 
50
employees are assigned to the mine.
Principal production equipment
 
includes two continuous
 
miners, two roof bolters,
 
four shuttle
cars, and
 
two scoops.
 
Coal is
 
extracted from
 
the production
 
face with
 
the continuous
 
miner
and hauled to the mine conveyor
 
via shuttle cars.
 
At the conveyor belt, the coal
 
is discharged
from the
 
haulage units onto
 
a feeder breaker
 
for transfer
 
onto the
 
conveyor.
 
The conveyors
carry the coal to
 
the outside, where it
 
is stacked on the
 
ground to await truck
 
transport to the
preparation plant and load-out.
Due
 
to the
 
projected starting
 
date
 
for the
 
Camp Branch
 
Chilton Mine,
 
no detailed
 
design of
infrastructure or surface facilities has been completed to date.
 
The proposed mine is located
in the Appalachian Basin, which has an extensive
 
history (>100 years) of coal mining.
 
There
is a sufficient population base
 
within commuting distance of
 
the proposed operation; no
 
Camp
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance
 
with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
42
or Town
 
construction will be required.
 
Estimated mine access and utility capital expenditures
are included in the financial model for the mine.
The proposed Camp Branch Chilton Mine has an existing permit.
 
Estimated expenditures for
mine closure and site reclamation are included in the financial model.
Expected
 
annual
 
production
 
averages
 
approximately
 
335,000
 
marketable
 
tonnes
 
at
 
steady
state production levels.
The mine is scheduled to begin production in 2027 and terminate during 2032.
13.4.1.7
 
Winifrede
The
 
proposed
 
Winifrede
 
(North
 
Fork)
 
Mine
 
is
 
scheduled
 
to
 
begin
 
production
 
in
 
2023.
 
The
Upper
 
Winifrede
 
seam
 
is
 
accessed
 
via
 
drift
 
along
 
the
 
outcrop.
 
This
 
mine
 
is
 
permitted
 
and
projected to be a metallurgical coal operation on leased mineral property.
 
Production is
 
scheduled for
 
approximately 265 days
 
each year,
 
which represents production
on Monday
 
through Friday
 
plus every
 
other Saturday.
 
On each day,
 
one production
 
section
is scheduled to
 
produce coal on
 
two shifts;
 
the third
 
shift is reserved
 
for maintenance
 
and mine
conveyor
 
belt
 
and
 
power
 
moves.
 
The
 
section
 
is
 
configured
 
as
 
a
 
super
 
section
 
with
 
two
continuous
 
miners
 
per
 
section
 
available
 
for
 
production.
 
Productivity
 
is
 
planned
 
at
 
the
 
38.1
meters to 45.1 meters
 
of advance (53.4 meters
 
to 63.1 meters of
 
retreat) per shift.
 
A total of
38 employees are assigned to the mine.
Principal production equipment
 
per section includes
 
two continuous miners,
 
two roof bolters,
four
 
shuttle
 
cars,
 
and
 
one
 
scoop.
 
Coal
 
is
 
extracted
 
from
 
the
 
production
 
face
 
with
 
the
continuous miner
 
and hauled to
 
the mine conveyor
 
in shuttle cars.
 
At the
 
conveyor belt, the
coal is discharged from
 
the shuttle cars onto a
 
feeder breaker for transfer onto
 
the conveyor.
 
The conveyors carry
 
the coal to
 
the outside, where
 
it is stacked
 
on the ground
 
to await truck
transport to the preparation plant and load-out.
There is an existing mine faceup
 
constructed for seam access.
 
The proposed mine is located
in the Appalachian Basin, which has an extensive
 
history (>100 years) of coal mining.
 
There
is a sufficient population base
 
within commuting distance of
 
the proposed operation; no
 
Camp
or Town
 
construction will be required.
 
The
 
proposed
 
Winifrede
 
Mine
 
at
 
North
 
Fork
 
is
 
permitted.
 
Estimated
 
expenditures
 
for
 
mine
closure and site reclamation are included in the financial model.
Expected
 
annual
 
production
 
averages
 
approximately
 
215,000
 
marketable
 
tonnes
 
at
 
steady
state levels.
 
The mine is scheduled to begin production in 2023 and terminate during 2024.
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
43
13.4.1.8
 
Lower Powellton
The
 
proposed Lower
 
Powellton
 
Mine
 
is scheduled
 
to begin
 
production in
 
2031.
 
The Lower
Powellton seam is accessed via a proposed drift along the outcrop.
 
This mine is projected to
be a metallurgical coal operation on leased mineral property.
Production is
 
scheduled for
 
approximately 265 days
 
each year,
 
which represents production
on Monday through Friday plus
 
every other Saturday.
 
On each day,
 
two production sections
are scheduled
 
to produce
 
coal on
 
two shifts;
 
the third
 
shift is
 
reserved for
 
maintenance and
mine conveyor belt
 
and power moves.
 
Both sections are
 
configured as a
 
super section with
two continuous miners
 
per section available
 
for production.
 
Productivity is planned
 
at the 73.2
meters of
 
advance per
 
shift (85.4
 
meters of
 
retreat per
 
shift).
 
A total
 
of 114
 
employees are
assigned to the mine during steady state production.
Principal production equipment
 
per section includes
 
two continuous miners,
 
two roof bolters,
four
 
shuttle
 
cars,
 
and
 
one
 
scoop.
 
Coal
 
is
 
extracted
 
from
 
the
 
production
 
face
 
with
 
the
continuous miner
 
and hauled to
 
the mine conveyor
 
in shuttle cars.
 
At the
 
conveyor belt, the
coal is discharged from
 
the shuttle cars onto a
 
feeder breaker for transfer onto
 
the conveyor.
 
The conveyors carry
 
the coal to
 
the outside, where
 
it is stacked
 
on the ground
 
to await truck
transport to
 
the preparation plant
 
and load-out.
 
The truck haul
 
cost is estimated
 
to be $1.98
per tonne.
Due
 
to
 
the
 
projected
 
starting
 
date
 
for
 
the
 
Lower
 
Powellton
 
Mine,
 
no
 
detailed
 
design
 
of
infrastructure or surface facilities has been completed to date.
 
The proposed mine is located
in the Appalachian Basin, which has an extensive
 
history (>100 years) of coal mining.
 
There
is a sufficient population base
 
within commuting distance of
 
the proposed operation; no
 
Camp
or Town
 
construction will be required.
 
Estimated mine access and utility capital expenditures
are included in the financial model for the mine.
Due
 
to
 
the
 
projected
 
start-up
 
date
 
of
 
the
 
Lower
 
Powellton
 
Mine,
 
no
 
permit
 
work
 
has
 
been
completed to date.
 
The proposed mine
 
is located in
 
an area with
 
a long history
 
of coal mining,
with
 
numerous
 
permitted
 
operations
 
in
 
close
 
proximity.
 
Coal
 
mining
 
permits
 
are
 
routinely
obtained.
 
Estimated expenditures
 
for mine
 
closure and
 
site reclamation
 
are included
 
in the
financial model for each mine or plant site.
Expected
 
annual
 
production
 
averages
 
approximately
 
521,000
 
marketable
 
tonnes
 
at
 
steady
state levels.
 
The mine is scheduled to begin production in 2031 and terminate during 2041.
13.4.1.9
 
Upper Winifrede
The
 
proposed
 
Upper Winifrede
 
Mine
 
is
 
scheduled
 
to
 
begin
 
production
 
in
 
2032.
 
The
 
Upper
Winifrede seam is accessed via a proposed drift
 
along the outcrop.
 
This mine is projected to
be a metallurgical coal operation on leased mineral property.
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
44
Production is
 
scheduled for
 
approximately 265 days
 
each year,
 
which represents production
on Monday
 
through Friday
 
plus every
 
other Saturday.
 
On each day,
 
one production
 
section
is scheduled to
 
produce coal on
 
two shifts;
 
the third
 
shift is reserved
 
for maintenance
 
and mine
conveyor belt and power
 
moves.
 
The sections are configured as
 
full super sections with two
continuous miners available
 
for production on
 
each section.
 
Productivity is
 
planned at the
 
rate
of 73.2 meters of advance per shift of operation.
 
A total of 50 employees are assigned to the
mine.
Principal production equipment
 
includes two continuous
 
miners, two roof bolters,
 
four shuttle
cars, and
 
two scoops.
 
Coal is
 
extracted from
 
the production
 
face with
 
the continuous
 
miner
and hauled to the mine conveyor
 
in shuttle cars.
 
At the conveyor belt, the
 
coal is discharged
from
 
the
 
shuttle
 
cars
 
onto
 
a
 
feeder
 
breaker
 
for
 
transfer
 
onto
 
the
 
conveyor.
 
The
 
conveyors
carry the coal to
 
the outside, where it
 
is stacked on the
 
ground to await truck
 
transport to the
preparation plant and load-out.
 
The truck haul cost is estimated to be $4.03 per tonne.
Due
 
to
 
the
 
projected
 
starting
 
date
 
for
 
the
 
Upper
 
Winifrede
 
Mine,
 
no
 
detailed
 
design
 
of
infrastructure or surface facilities has been completed to date.
 
The proposed mine is located
in the Appalachian Basin, which has an extensive
 
history (>100 years) of coal mining.
 
There
is a sufficient population base
 
within commuting distance of
 
the proposed operation; no
 
Camp
or Town
 
construction will be required.
 
Estimated mine access and utility capital expenditures
are included in the financial model for the mine.
Due
 
to
 
the
 
projected
 
start-up
 
date
 
of
 
the
 
Upper
 
Winifrede
 
Mine,
 
no
 
permit
 
work
 
has
 
been
completed to date.
 
The proposed mine
 
is located in
 
an area with
 
a long history
 
of coal mining,
with
 
numerous
 
permitted
 
operations
 
in
 
close
 
proximity.
 
Coal
 
mining
 
permits
 
are
 
routinely
obtained.
 
Estimated expenditures
 
for mine
 
closure and
 
site reclamation
 
are included
 
in the
financial model for each mine or plant site.
Expected
 
annual
 
production
 
averages
 
approximately
 
417,000
 
marketable
 
tonnes
 
at
 
steady
state levels.
 
The mine is scheduled to begin production in 2032 and terminate during 2036.
At the underground mines, ventilation fans are installed to provide a
 
sufficient volume of air to
ventilate
 
production
 
sections,
 
coal
 
haulage
 
and
 
transport
 
entries,
 
battery
 
charging
 
stations,
and
 
transformers
 
in
 
accordance
 
with
 
approved
 
plans.
 
High-voltage
 
cables
 
deliver
 
power
throughout the mine where transformers reduce voltage for specific equipment
 
requirements.
 
The Mine
 
Improvement and
 
New Emergency
 
Response Act
 
of 2006
 
(
MINER Act
) requires
 
that
carbon monoxide detection
 
systems be
 
installed along
 
mine conveyor
 
belts and
 
that electronic
two-way
 
tracking and
 
communications
 
systems be
 
installed
 
throughout underground
 
mines.
 
Water is required to control dust at production sections
 
and along conveyor belts, and to cool
electric motors.
 
Water is available
 
from nearby sources and
 
is distributed within the
 
mine by
pipelines as required.
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
45
13.4.2
 
Surface Mines and Highwall Miners
Mining
 
operations
 
are
 
projected
 
to
 
utilize
 
area
 
mining
 
as
 
well
 
as
 
contour
 
mining
 
(
CTR
)
methods.
 
The projected operations will employ equipment capable of a combined production
rate of
 
approximately 6,500
 
bcm/shift in
 
2022 between
 
two spreads
 
of equipment
 
in 2022
 
to
16,700 bcm/shift between three spreads
 
of equipment in 2026.
 
In 2027, additional equipment
is
 
added
 
in
 
order
 
to
 
increase
 
production
 
levels
 
to
 
19,100
 
bcm/shift.
 
Further
 
equipment
 
is
projected for
 
2032 and
 
beyond in
 
order to
 
increase production
 
levels for
 
the remaining
 
LOM
production
 
to
 
27,100
 
bcm/shift.
 
The
 
production
 
model
 
assumes
 
that
 
the
 
mines
 
continue
 
at
this
 
production
 
rate
 
until
 
2048
 
when
 
the
 
equipment
 
suites
 
are
 
selectively
 
phased
 
out
 
of
production due to a reduction in available working areas.
 
All surface and/or HWM production
finishes in
 
2053.
 
The models
 
assume that
 
the operations
 
will work
 
two, 10-hour
 
production
shifts,
 
5
 
days
 
per
 
week
 
plus
 
every
 
other
 
Saturday,
 
with
 
sufficient
 
staffing
 
to
 
float
 
vacation
during the year.
 
A total of 115 employees are assumed for the surface mines.
It is assumed that most of
 
the spoil movement goes through a
 
shovel or loader bucket and is
eventually returned to
 
the pit for
 
final reclamation.
 
The dozer’s
 
primary responsibility is
 
cutting
the initial benches for the drill and shaping the reclaimed contour highwall.
 
All
 
highwall
 
mining
 
are
 
assumed
 
to
 
be
 
performed
 
by
 
a
 
contractor.
 
The
 
contractor
 
is
responsible for staffing those operations along with providing necessary equipment capital.
Spoil for
 
final highwall
 
reclamation is
 
expected to
 
come from
 
strategic placement
 
of spoil
 
on
pre-existing
 
benches
 
by
 
haul
 
trucks
 
such
 
that
 
they
 
are
 
within
 
the
 
push
 
distance
 
of
 
the
reclamation dozer.
 
13.4.2.1
 
Toney Fork
Toney
 
Fork
 
surface
 
mining
 
operations
 
are
 
projected
 
to
 
be
 
mined
 
from
 
2022
 
to
 
2039,
 
with
emphasis
 
placed
 
on
 
preparing
 
space
 
for
 
HWM
 
operations.
 
Expected
 
production
 
for
 
the
operations average approximately 372,000 marketable tonnes.
The Toney
 
Fork HWM operates in 2023 to 2043 and mines an additional 252,000 marketable
tonnes at steady state levels.
13.4.2.2
 
Buffalo Creek South
The
 
Buffalo
 
Creek
 
South
 
surface
 
and/or
 
HWM
 
mining
 
operations
 
are
 
projected
 
to
 
operate
between
 
2027
 
and
 
2053,
 
with
 
emphasis
 
placed
 
on
 
preparing
 
space
 
for
 
HWM
 
operations.
 
Expected
 
surface
 
production
 
for
 
the
 
operations
 
totals
 
approximately
 
383,000
 
marketable
tonnes
 
at
 
steady
 
state
 
levels.
 
The
 
Buffalo
 
Creek
 
HWM
 
mines
 
an
 
additional
 
287,000
marketable tonnes at steady state levels.
13.4.2.3
 
Sugar Camp
Sugar
 
Camp
 
surface
 
mining
 
operations
 
are
 
projected
 
to
 
be
 
mined
 
from
 
2032
 
to
 
2051.
 
Expected production for the operations average approximately 267,000 marketable tonnes.
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
46
The
 
Sugar
 
Camp
 
HWM
 
operates
 
from
 
2040
 
to
 
2047
 
and
 
mines
 
an
 
additional
 
265,000
marketable tonnes.
As shown
 
in
Tables 13-1 through
 
13-3
, the
 
areas planned
 
for underground
 
production continue
until 2042, whereas surface and
 
auger/HWM production is projected to
 
finish in 2053.
 
Clean
coal production varies directly
 
with coal thickness in
 
the case of the underground
 
mines, and
overburden removal for the surface mines.
Table 13-1:
 
Underground Summary of Production by Year (000)
Mine Name
2022
2023
2024
2025
2026
2027
2028
2029
Camp Br Chilton
0
0
0
0
0
125
371
344
Eagle No. 1 (Toney
Fork)
786
805
778
769
744
767
764
749
Elk Lick Chilton
0
0
0
0
0
56
250
255
Lower Powellton
0
0
0
0
0
0
0
0
Lower War Eagle
615
652
639
664
706
756
841
790
Powellton No. 1
40
0
33
205
205
206
203
205
Muddy Br No.2 Gas
683
660
689
804
786
565
0
0
Upper Winifrede
0
0
0
0
0
0
0
0
Winifrede (Chilton
Rider)
0
215
63
0
0
0
0
0
 
Total
2,123
2,332
2,202
2,442
2,441
2,475
2,429
2,342
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
47
Mine Name
2030
2031
2032
2033
2034
2035
2036
2037
Camp Br Chilton
338
288
142
0
0
0
0
0
Eagle No. 1 (Toney
Fork)
701
650
625
640
662
687
728
580
Elk Lick Chilton
271
283
303
252
272
308
371
327
Lower Powellton
0
166
495
510
490
503
508
517
Lower War Eagle
721
452
179
90
0
0
0
0
Powellton No. 1
212
209
209
213
215
201
196
199
Muddy Br No.2 Gas
0
0
0
0
0
0
0
0
Upper Winifrede
0
0
230
564
378
309
314
0
Winifrede (Chilton
Rider)
0
0
0
0
0
0
0
0
 
Total
2,243
2,049
2,183
2,267
2,016
2,008
2,117
1,623
Mine Name
2038
2039
2040
2041
2042
2043
2044
2045
Camp Br Chilton
0
0
0
0
0
0
0
0
Eagle No. 1 (Toney
Fork)
417
197
169
287
0
0
0
0
Elk Lick Chilton
320
323
217
0
0
0
0
0
Lower Powellton
510
502
658
236
0
0
0
0
Lower War Eagle
0
0
0
0
0
0
0
0
Powellton No. 1
197
198
189
188
156
0
0
0
Muddy Br No.2 Gas
0
0
0
0
0
0
0
0
Upper Winifrede
0
0
0
0
0
0
0
0
Winifrede (Chilton
Rider)
0
0
0
0
0
0
0
0
 
Total
1,444
1,220
1,234
711
156
0
0
0
Table 13-2:
 
Surface Summary of Production by Year (000)
Mine Name
2022
2023
2024
2025
2026
2027
2028
2029
Toney
 
Fork Surf
126
380
530
563
525
243
196
291
Buffalo Cr South
Area
0
0
0
0
0
287
522
555
Sugar Camp Area 1
0
0
0
0
0
0
0
0
 
Total
126
380
530
563
525
530
718
846
 
 
 
 
 
 
 
 
 
Mine Name
2030
2031
2032
2033
2034
2035
2036
2037
Toney
 
Fork Surf
411
291
266
322
452
431
476
318
Buffalo Cr South
Area
476
463
407
481
434
248
241
174
Sugar Camp Area 1
0
0
141
346
466
387
363
50
 
Total
887
754
815
1,149
1,352
1,066
1,079
543
 
 
 
 
 
 
 
 
 
Mine Name
2038
2039
2040
2041
2042
2043
2044
2045
Toney
 
Fork Surf
627
248
0
0
0
0
0
0
Buffalo Cr South
Area
257
351
310
379
441
227
562
372
Sugar Camp Area 1
135
34
77
165
149
510
283
398
 
Total
1,020
633
387
544
590
737
845
770
 
 
 
 
 
 
 
 
 
Mine Name
2046
2047
2048
2049
2050
2051
2052
2053
Toney
 
Fork Surf
0
0
0
0
0
0
0
0
Buffalo Cr South
Area
459
582
460
41
0
0
0
0
Sugar Camp Area 1
421
374
378
117
160
265
0
0
 
Total
880
955
838
158
160
265
0
0
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
48
Table 13-3:
 
Highwall Summary of Production by Year (000)
Mine Name
2022
2023
2024
2025
2026
2027
2028
2029
Toney
 
Fork HWM
0
207
171
207
101
227
253
182
Buffalo Cr South
HWM
0
0
0
0
0
164
261
208
Sugar Camp HWM
0
0
0
0
0
0
0
0
 
Total
0
207
171
207
101
391
514
390
 
 
 
 
 
 
 
 
 
Mine Name
2030
2031
2032
2033
2034
2035
2036
2037
Toney
 
Fork HWM
0
0
195
421
401
200
281
332
Buffalo Cr South
HWM
196
148
246
319
337
194
276
357
Sugar Camp HWM
0
0
0
0
0
0
0
0
 
Total
196
148
441
740
738
394
556
688
 
 
 
 
 
 
 
 
 
Mine Name
2038
2039
2040
2041
2042
2043
2044
2045
Toney
 
Fork HWM
298
264
214
289
291
171
0
0
Buffalo Cr South
HWM
254
319
286
220
406
0
0
34
Sugar Camp HWM
0
0
80
81
15
272
267
243
 
Total
552
582
580
590
713
443
267
277
 
 
 
 
 
 
 
 
 
Mine Name
2046
2047
2048
2049
2050
2051
2052
2053
Toney
 
Fork HWM
0
0
0
0
0
0
0
0
Buffalo Cr South
HWM
302
338
368
277
386
299
318
21
Sugar Camp HWM
388
156
0
0
0
0
0
0
 
Total
690
494
368
277
386
299
318
21
14
Processing and Recovery Methods
14.1
 
Description or Flowsheet
The Logan County Division includes the Saunders Preparation Plant in addition to the mines.
 
The
 
plant
 
site
 
includes raw
 
coal
 
storage,
 
clean
 
coal
 
storage,
 
a
 
railroad
 
loadout,
 
and
 
refuse
disposal
 
area.
 
The
 
plant
 
has
 
a
 
feed
 
rate
 
capacity
 
of
 
1,088
 
raw
 
tonnes
 
per
 
hour.
 
Primary
separation
 
equipment
 
includes
 
a
 
heavy
 
media
 
vessel,
 
heavy
 
media
 
cyclones,
 
classifying
cyclones,
 
spirals,
 
flotation
 
cells,
 
and
 
column
 
flotation,
 
supported
 
by
 
the
 
requisite
 
screens,
centrifuges, vacuum filters, sumps, pumps,
 
and distribution systems.
 
Coarse and fine refuse
are disposed separately in an adjacent refuse area which incorporates slurry cells.
Processes and
 
equipment are
 
typical of
 
those used
 
in the
 
coal industry
 
and are
 
in use
 
in nearly
all plants in the Central Appalachian Basin.
 
14.2
 
Requirements for Energy, Water,
 
Material and Personnel
Personnel have historically
 
been sourced from
 
the surrounding communities
 
in Logan, Boone,
Wyoming, and
 
Mingo counties, and
 
have proven
 
to be adequate
 
in numbers to
 
operate past
and current mines.
 
As mining is common in the surrounding
 
areas, the workforce is generally
familiar with mining practices and is comprised of a strong talent pool of experienced miners.
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
49
Water is sourced locally from Buffalo Creek
 
Public Service District and/or
 
locally from streams
via water withdrawal permits, and electricity is sourced from AEP.
 
The service industry in the
areas surrounding the
 
mine complex has
 
historically provided supplies,
 
equipment repairs
 
and
fabrication, etc.
 
15
Infrastructure
The
 
Coronado-owned
 
Saunders
 
Preparation
 
Plant
 
services
 
the
 
mines.
 
The
 
ROM
 
coal
 
is
delivered from the
 
Powellton No. 1,
 
Eagle No. 1,
 
Muddy Bridge and
 
Lower War
 
Eagle Mines
via overland conveyor, all remaining
 
production is or
 
will be delivered
 
to the plant site
 
by truck.
The CSX rail line serves as the main means of transport from the mine complex/loadout.
As an active operation, the necessary support infrastructure for Logan is in place.
As
 
new
 
areas
 
are
 
developed,
 
the
 
infrastructure
 
requirements
 
will
 
change.
 
These
 
changes
have been considered in the LOM plans and financial model.
Most of the seams lie
 
below drainage; however, several metallurgical coal seams are
 
situated
above drainage.
 
The underground mining resource
 
areas which are located
 
above-drainage
require
 
an
 
access
 
road
 
and
 
mine
 
access
 
development
 
along
 
the
 
outcrop,
 
whereas
 
below-
drainage mines are
 
accessed based on
 
other proposed surface
 
infrastructure locations and/or
surface property
 
control.
 
In some
 
cases, the access
 
and face-up may
 
be developed
 
as part
of
 
surface mining
 
activities.
 
A
 
mine
 
transformer and
 
water
 
tank are
 
located
 
at
 
the face-up,
along with the mine fan, stacker conveyor, supply facilities, shop, office, and bath house.
The surface
 
mining mobile
 
equipment spreads
 
advance the contour
 
and area
 
mining pits
 
while
systematically reclaiming the trailing
 
side of pits
 
where coal has
 
been removed.
 
The coal haul
roads
 
are
 
extended
 
and
 
maintained
 
as
 
the
 
pits
 
advance.
 
Support
 
facilities
 
are
 
maintained
nearby but
 
away from
 
the active
 
mining, and
 
include storage
 
areas for
 
blasting agents,
 
fuel
and lubricants, and mine supplies along with maintenance facilities and offices.
The HWM equipment
 
advances along with
 
the contour mining
 
pits.
 
The rate of
 
advance of the
contour
 
mining
 
is
 
somewhat
 
constrained
 
by
 
the
 
advancement
 
rate
 
of
 
the
 
HWM.
 
A
 
diesel-
powered
 
generator
 
trails
 
the
 
highwall
 
miner
 
and
 
powers
 
the
 
continuous
 
mining
 
unit.
 
Other
support facilities are provided along with the contour mining support facilities.
 
A map of the existing facilities in
Figure 15-1
 
shows the layout of the required infrastructure.
 
 
ex963p2i0.jpg
 
ex963p59i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
50
Figure 15-1:
 
Logan Surface Facilities
16
Market Studies
16.1
 
Market Description
The
 
quality
 
characteristics
 
for
 
the
 
subject
 
coal
 
resources
 
and
 
coal
 
reserves
 
have
 
been
reviewed in detail by MM&A.
 
The drill hole data were utilized to develop average coal quality
characteristics
 
for
 
the
 
mining
 
site.
 
These
 
average
 
coal
 
quality
 
characteristics
 
were
 
then
utilized as the basis for determining the
 
various markets into which the
 
saleable coal will likely
be placed.
 
The projected quality specifications for the Logan products are as shown in
Table 16-1
.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
51
Table 16-1:
 
Quality Specifications by Product
 
HVA
HVB
Thermal
(A/R)
Moisture (%)
7.50
8.00
7.50
Ash (%)
7.50
8.00
12.50
Sulfur (%)
0.90
0.95
1.00
Volatile Matter (%)
32.5
37.0
36.0
Btu/lb.
N/A
N/A
12,300
Fluidity (ddpm)
30,000
25,000
N/A
MMR (%)
1.04
0.93
N/A
CSR
62
58
N/A
FSI
8.00
8.00
N/A
Note:
 
All Specs are dry basis except Moisture and
 
Thermal
The mine production serves the both the high-volatile metallurgical and the thermal markets.
16.2
 
Price Forecasts
Coronado provided
 
MM&A with
 
price forecasts
 
for its
 
active operations.
 
Customer coal
 
pricing
is
 
derived
 
from
 
market
 
observed
 
forward
 
estimates
 
based
 
on
 
global
 
economic
 
supply
 
and
demand
 
analysis
 
which
 
is
 
applied
 
to
 
mine
 
plan
 
sales
 
volumes
 
and
 
product
 
mix
 
and
 
is
supplemented with Coronado’s
 
in-house knowledge of applicable
 
rail transportation charges,
ocean
 
freight
 
charges
 
and
 
port
 
charges.
 
MM&A
 
utilized
 
this
 
data
 
for
 
price
 
forecasting
 
in
financial
 
modeling.
 
Concurrent
 
with
 
aforementioned-quality
 
parameters
 
in
 
the
 
preceding
section,
 
production
 
from
 
the
 
proposed
 
operations
 
is
 
assumed
 
to
 
be
 
primarily
 
sold
 
in
metallurgical markets with limited thermal sales.
 
Pricing was provided through calendar year
2050 (after which sales prices were held constant).
 
Coal
 
price
 
forecasts
 
for
 
the
 
Logan
 
products
 
were
 
provided
 
by
 
Coronado
 
for
 
various
 
coal
markets in terms of US nominal dollars per metric tonne.
 
16.3
 
Contract Requirements
Some
 
contracts
 
are
 
necessary
 
for
 
successful
 
marketing
 
of
 
the
 
coal.
 
For
 
Logan,
 
since
 
all
mining, preparation and marketing is done in-house, the remaining contracts required are:
>
Transportation
 
– The Mine contracts with the CSX Railroad to transport the coal to either
the domestic customers or to the Pier 6 and Dominion terminals at Norfolk, Virginia for
overseas shipment.
>
Sales
– Sales contracts are a mix of spot and contract sales.
 
With the volatility of the
market, long-term contracts are not typically written.
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
52
17
Environmental Studies, Permitting and Plans,
Negotiations or
 
Agreements with Local
Individuals
 
17.1
 
Results of Studies
MM&A
 
completed
 
a
 
Limited
 
Phase
 
I
 
Environmental
 
Site
 
Assessment
 
(
ESA
)
 
on
 
the
 
Logan
Property in May 2017 on behalf of
 
Coronado.
 
Coronado reports not having conducted such
 
a
study
 
since
 
the
 
MM&A
 
studies.
 
The
 
ESA
 
completed
 
by
 
MM&A
 
included
 
a
 
site
 
inspection,
review of
 
historical records,
 
a database
 
search of
 
State and
 
Federal regulatory
 
records and
interviews
 
to
 
identify potential
 
recognized environmental
 
conditions (
RECs
) that
 
may
 
create
environmental liability
 
for the
 
sites.
 
MM&A concluded
 
that no
 
long-term
 
liabilities existed
 
at
the time of these ESAs.
Based on
 
these former
 
ESAs completed
 
by MM&A,
 
it is
 
the QPs’
 
opinion that
 
Logan has
 
a
generally typical coal industry record of compliance with applicable mining, water quality, and
environmental
 
laws.
 
Estimated
 
costs
 
for
 
mine
 
closure,
 
including
 
water
 
quality
 
monitoring
during site reclamation, are included in the financial models.
17.2
 
Requirements and Plans for Waste Disposal
The
 
original
 
design
 
for
 
the
 
North
 
Fork
 
Refuse
 
Area
 
(
North
 
Fork
)
 
at
 
the
 
Logan
 
Property
projected a
 
crest to
 
elevation 686 meters.
 
The present
 
elevation of
 
the deck
 
is ±685meters.
 
In
 
2018
 
MSHA approved
 
an
 
expansion plan
 
to
 
raise
 
the
 
cross-valley crest
 
to
 
elevation
 
802
meters, and
 
from there
 
converting to
 
a sidehill
 
fill.
 
This will
 
allow for
 
a total
 
volume of
 
50 million
CM
 
which
 
would
 
be
 
sufficient
 
capacity
 
for
 
all
 
the
 
refuse
 
generated
 
by
 
the
 
LOM
 
plan
 
that
underpins the
 
current Logan County
 
Division reserves.
 
Further plans
 
for the
 
North Fork
 
site
call for
 
conversion of the
 
fill to a
 
total cross-valley configuration,
 
predicated on completion
 
of
surface mining
 
on the
 
ridge between
 
North Fork
 
and
 
Middle Fork.
 
This has
 
the potential
 
of
providing an additional 10 million CM of capacity.
17.3
 
Permit Requirements and Status
All mining operations are subject to federal
 
and state laws and must obtain permits
 
to operate
mines,
 
coal
 
preparation
 
and
 
related
 
facilities,
 
haul
 
roads,
 
and
 
other
 
incidental
 
surface
disturbances necessary for mining to occur.
 
Permits generally require that the permittee post
a performance bond
 
in an
 
amount established
 
by the regulatory
 
program to provide
 
assurance
that
 
any
 
disturbance
 
or
 
liability
 
created
 
during
 
mining
 
operations
 
is
 
properly
 
restored
 
to
 
an
approved post-mining
 
land use
 
and
 
that all
 
regulations and
 
requirements of
 
the permits
 
are
fully satisfied before
 
the bond is
 
returned to the
 
permittee.
 
Significant penalties exist
 
for any
permittee
 
who
 
fails
 
to
 
meet
 
the
 
obligations
 
of
 
the
 
permits
 
including
 
cessation
 
of
 
mining
operations, which can lead to potential forfeiture
 
of the bond.
 
Any company, and its directors,
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
53
owners and officers,
 
which are subject
 
to bond forfeiture
 
can be denied
 
future permits under
the program.
1
New permits
 
or permit
 
revisions will
 
occasionally be
 
necessary to
 
facilitate the
 
expansion or
addition of new mining areas
 
on the properties, such as
 
amendments to existing permits and
new
 
permits
 
for
 
mining
 
of
 
reserve
 
areas.
 
Exploration
 
permits
 
also
 
are
 
required.
 
Property
under lease
 
includes provisions
 
for exploration
 
among the
 
terms of
 
the lease.
 
New or
 
modified
mining permits
 
are subject
 
to a
 
public advertisement
 
process and
 
comment period,
 
and the
public is provided
 
an opportunity to
 
raise objections
 
to any proposed
 
mining operation.
 
MM&A
is not aware
 
of any specific
 
prohibition of mining
 
on the subject
 
property and
 
given sufficient
time and
 
planning, Coronado
 
should be
 
able to
 
secure new
 
permits to
 
maintain
 
its planned
mining operations within the context of current regulations.
 
Necessary permits are in place to
support current
 
production on the
 
properties, but
 
future permits are
 
required to maintain
 
and
expand
 
production.
 
Portions
 
of
 
the
 
properties
 
are
 
located
 
near
 
local
 
communities.
 
Regulations
 
prohibit
 
mining
 
activities
 
within
 
91.4
 
meters
 
of
 
a
 
residential
 
dwelling,
 
school,
church,
 
or
 
similar
 
structure
 
unless
 
written
 
consent
 
is
 
first
 
obtained
 
from
 
the
 
owner
 
of
 
the
structure.
 
Where
 
required,
 
such
 
consents
 
have
 
been
 
obtained
 
where
 
mining
 
is
 
proposed
beyond the regulatory limits.
Coronado has obtained all mining
 
and discharge permits to operate
 
its mines and processing,
loadout or related facilities.
 
MM&A is unaware of any obvious or current Coronado permitting
issues that are expected to prevent the issuance of future permits.
 
Logan, along with all coal
producers,
 
is
 
subject
 
to
 
a
 
level
 
of
 
uncertainty
 
regarding
 
future
 
clean
 
water
 
permits
 
due
 
to
United States Environmental Protection Agency
(
EPA
)
 
involvement with state programs.
The Mining permits currently held by Logan are shown in
Table 17-1.
1
 
Monitored under the Applicant Violator System (AVS) by the Federal Office of Surface Mining.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
54
Table 17-1:
 
Logan Mining Permits
Type
Permit ID
Permit Name
$ Bond
Current Status
Issued
Date
Expiration Date
Hectares
NPDES No.
Other
O001984
 
North Fork Refuse
1
$1,033,200
Renewed
4/11/1984
4/11/2024
116.03
WV0095699
Other - Loadout Only
O009283
 
Elk Lick Dock
$33,000
Renewed
6/10/1983
6/10/2023
13.31
WV1023071
Other
O009883
 
Saunders Prep Plant
$223,200
Renewed
6/24/1983
6/24/2023
36.04
WV0095699
Other - Refuse
Disposal
O012383
 
Middle Fork Refuse
1
$364,800
Renewed
9/27/1983
9/27/2023
46.13
WV0096156
Other - Loadout Only
O500513
 
Toney Fork Loadout
 
$32,000
Renewed
9/11/2014
9/11/2024
12.67
WV1028081
Other - Refuse
Disposal
O501108
Elklick Branch Haulroad/Refuse
1
 
$281,600
Renewed
11/13/2008
11/13/2023
5.83
WV1029843
Coal Surface Mine
S500417
 
North Fork Winifrede Contour Mine
 
$390,000
Not Started
2/13/2018
2/13/2023
50.59
WV1028430
Coal Surface Mine
S500709
 
Toney Fork Surface Mine No. 3
 
$2,625,000
Renewed
11/20/2013
11/20/2023
340.83
WV1019902
Coal Surface Mine
S501210
 
Toney Fork West Surface Mine
 
$1,670,000
Inactive
2/29/2012
2/28/2022
134.30
WV1024990
Coal Surface Mine
S501410
 
Elklick Surface Mine
 
$2,760,800
Inactive
8/16/2013
8/16/2023
327.47
WV1025015
Coal Surface Mine
S503395
 
TONEY FORK SURFACE #2
 
$5,605,000
Renewed
5/28/1998
5/28/2023
453.61
WV1016750
Coal Underground
U004485
 
Dingess Br. No. 1
$0
Completely
Released
6/12/1985
PHII Released
4.05
WV1008340
Coal Underground
U400299
 
Paynter Branch Mine No. 1
 
$81,000
Renewed
4/5/2002
4/5/2022
10.01
WV1018728
Coal Underground
U500109
 
Chilton Deep Mine No. 1
 
$30,800
Inactive
1/31/2011
1/31/2026
5.53
WV1019821
Coal Underground
U500789
WA #1 Mine
$0
Completely
Released
 
7/31/1990
PHII Released
0
WV0096385
Coal Underground
U500919
North Fork Winifrede Deep Mine
$12,240
New
03/03/2020
3/3/2025
2.21
Coal Underground
U501311
 
Eagle No. 1 Mine
 
$91,080
Not Started
5/20/2013
5/20/2023
14.71
WV1025139
Coal Underground
U502008
 
Dingess Br-Chilton Mine No. 2
 
$42,920
Phase 1 Released
10/10/2008
PHI Released
11.62
WV1029908
Coal Underground
U505392
 
ALMA NO. 1 MINE
 
$283,480
Renewed
3/3/1995
3/3/2025
39.25
WV1013408
Coal Underground
U506686
Camp Branch Deep Mine
$96,200
Renewed
1/26/1987
1/26/1997
26.24
WV0093122
Coal Surface Mine
S500615
 
Toney Fork A-Ridge Surface Mine
 
$80,000
Phase 1 Released
2/24/2016
2/24/2026
15.80
WV1028278
Coal Underground
U501015
 
CB Chilton #1 Mine
 
$10,600
Not Started
12/28/2016
12/28/2021
1.68
WV1028316
Coal Underground
U503496
Muddy Bridge Branch #1
$35,280
Renewed
08/04/1997
08/04/2022
5.46
WV1016954
Coal Underground
U503596
Muddy Bridge Branch #2
$65,520
Renewed
08/04/1997
08/04/2022
10.35
WV1016954
River Dock
810-8037
Big Sandy Dock
$210,700
In-Active
7/10/1986
7/10/2021
2.99
KYG040724
Notes:
 
 
1.
 
Permits containing refuse placement.
 
2.
 
Does not include prospect permits.
 
 
ex963p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
55
17.4
 
Local Plans, Negotiations or Agreements
MM&A found no indication of agreements beyond the scope of Federal or State Regulations.
17.5
 
Mine Closure Plans
Applicable
 
regulations
 
require
 
that
 
mines
 
be
 
properly
 
closed,
 
and
 
reclamation
 
commenced
immediately upon abandonment.
 
In general, site reclamation includes
 
removal of structures,
backfilling, regrading, and revegetation of disturbed areas.
 
For surface mines, the majority of
the expense
 
for backfilling and
 
regrading is completed
 
as part of
 
ongoing mining operations,
with only
 
reclamation of
 
final pits
 
and HWM
 
benches required
 
at end-of-mine
 
life.
 
Sediment
control is required
 
during the
 
establishment of
 
vegetation, and
 
bond release
 
generally requires
a
 
minimum
 
five-year
 
period
 
of
 
site
 
maintenance,
 
water
 
sampling,
 
and
 
sediment
 
control
following
 
mine
 
completion.
 
This
 
requirement is
 
reduced
 
to two
 
years for
 
certain
 
operations
involving re-mining.
 
Reclamation of underground mines includes closure and sealing of mine
openings such as portals and shafts in addition to the items listed above.
 
Estimated costs
 
for mine
 
closure, including
 
water quality
 
monitoring during
 
site reclamation,
are included in the financial models.
 
As with all mining companies, an
 
accretion calculation is
performed annually so the necessary
 
Asset Retirement Obligations (
ARO
) can be shown as
 
a
Liability on the Balance Sheet.
17.6
 
Qualified Person’s Opinion
The Logan complex is an
 
operating facility; all necessary permits
 
for current production have
been obtained.
 
The QPs know
 
of no reason that any
 
permits revisions that may be
 
required
cannot be obtained.
 
Estimated expenditures for site
 
closure and reclamation
 
are included in the
 
financial model for
this site.
18
Capital and Operating Costs
18.1
 
Capital Cost Estimate
The production sequence selected for a property must consider the proximity of each reserve
area to coal preparation
 
plants, river docks and
 
railroad loading points, along
 
with suitability of
production equipment
 
to coal
 
seam conditions.
 
The in-place
 
infrastructure was
 
evaluated, and
any
 
future
 
needs
 
were
 
planned
 
to
 
a
 
level
 
suitable
 
for
 
a
 
Preliminary
 
Feasibility
 
Study
 
and
included in the Capital Forecast.
Coronado
 
provided
 
MM&A
 
with
 
an
 
inventory
 
of
 
operating
 
equipment
 
available
 
at
 
Logan.
 
MM&A’s
 
capital
 
schedules
 
assume
 
that
 
major
 
equipment
 
rebuilds
 
occur
 
over
 
the
 
course
 
of
each machine’s
 
remaining assumed
 
operating life.
 
Replacement equipment
 
was scheduled
based
 
on
 
MM&A’s
 
experience
 
and
 
knowledge
 
of
 
mining
 
equipment
 
and
 
industry
 
standards
 
 
ex963p2i0.jpg ex963p14i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
56
with respect
 
to the useful
 
life of such
 
equipment.
 
As one mine
 
is depleted, the
 
equipment is
moved to its replacement.
A summary of the estimated capital for the Property is provided in
Figure 18-1
 
below.
 
Figure 18-1:
 
CAPEX
18.2
 
Operating Cost Estimate
Coronado
 
provided
 
historical
 
and
 
a
 
preliminary
 
5-year
 
projection
 
of
 
operating
 
costs
 
for
MM&A’s review.
 
MM&A used the historical
 
and/or budget cost information
 
as a reference and
developed
 
a
 
personnel schedule
 
for
 
the
 
mine.
 
Hourly
 
labor
 
rates and
 
salaries
 
were
 
based
upon
 
information
 
contained
 
in
 
Coronado’s
 
financial
 
summaries.
 
Fringe
 
benefit
 
costs
 
were
developed for vacation
 
and holidays, federal
 
and state unemployment
 
insurance, retirement,
workers’
 
compensation
 
and
 
pneumoconiosis,
 
casualty
 
and
 
life
 
insurance,
 
healthcare
 
and
bonuses.
 
A
 
cost
 
factor
 
for
 
mine
 
supplies
 
was
 
developed
 
that
 
relates
 
expenditures
 
to
 
mine
advance rates for roof control costs and other mine supply costs experienced at underground
mines.
 
Other factors were developed for maintenance and repair costs, rentals, mine power,
outside services and other direct mining costs.
 
Other cost factors were
 
developed for coal
 
preparation plant processing,
 
refuse handling, coal
loading, property taxes, and insurance and bonding.
 
Appropriate royalty rates were assigned
for
 
production
 
from
 
leased
 
coal
 
lands
 
and
 
sales
 
taxes
 
were
 
calculated
 
for
 
state
 
severance
taxes, the federal black lung excise tax, and federal and state reclamation fees.
Mandated Sales Related Costs such as Black Lung Excise are summarized in
Table
 
18-1
.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
57
Table 18-1:
 
Estimated Coal Production Taxes and Sales Costs
Description of Tax or Sales Cost
Basis of Assessment
Cost
Federal Black Lung Excise Tax -
Underground
Per Tonne
$1.21
Federal Black Lung Excise Tax - Surface
Per Tonne
$0.61
Federal Black Lung Excise Tax - Highwall
Miner
Per Tonne
$0.61
Federal Reclamation Fees – Underground
Per Tonne
$0.13
Federal Reclamation Fees – Surface
Per Tonne
$0.31
Federal Reclamation Fees - Highwall Miner
Per Tonne
$0.31
West Virginia Reclamation Tax
 
-
Underground
Per Tonne
$0.308
West Virginia Reclamation Tax
 
- Surface
Per Tonne
$0.308
West Virginia Reclamation Tax
 
- Highwall
Miner
Per Tonne
$0.308
West Virginia Severance Tax
Percentage of Revenue
1 to 5%
Royalties – Underground
Percentage of Revenue
5 to 8%
Royalties – Surface
Percentage of Revenue
9%
Royalties - Highwall Miner
Percentage of Revenue
9%
Notes: 1. Federal black lung excise tax is paid
 
only on coal sold domestically.
 
MM&A assumed
45% of total coal sales to be domestic in the economic
 
analysis discussed below.
A summary of the projected Operating Costs is in
Table
 
18-2
.
Table 18-2:
 
Logan Operating Costs
 
 
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
Remainin
g
LOM
Average
 
Total
2022
2023
2024
2025
2026
2027
2028
2029
ROM Production Tonnes
 
146.4
 
 
5.8
 
 
7.2
 
 
7.2
 
 
8.2
 
 
7.8
 
 
8.0
 
 
7.8
 
 
7.8
 
 
3.5
 
Yield
50.16%
39.12
%
40.50
%
40.20
%
39.27
%
39.32
%
42.21
%
47.16
%
45.81
%
55.94%
Saleable Production
Tonnes
*
 
73.4
 
 
2.2
 
 
2.9
 
 
2.9
 
 
3.2
 
 
3.1
 
 
3.4
 
 
3.7
 
 
3.6
 
 
1.9
 
Thermal Tonnes
 
4.30
 
 
0.04
 
 
0.11
 
 
0.16
 
 
0.17
 
 
0.16
 
 
0.13
 
 
0.16
 
 
0.20
 
 
0.13
 
Domestic Met Tonnes
 
69.14
 
 
2.21
 
 
2.81
 
 
2.74
 
 
3.04
 
 
2.91
 
 
3.26
 
 
3.50
 
 
3.38
 
 
1.81
 
Export Met Tonnes
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
Total Saleable Tonnes
 
73.44
 
 
2.25
 
 
2.92
 
 
2.90
 
 
3.21
 
 
3.07
 
 
3.40
 
 
3.66
 
 
3.58
 
 
1.94
 
Cash Costs per Tonne:
Mining Costs
$65.37
$61.54
 
$59.28
 
$61.82
 
$60.25
 
$63.24
 
$62.37
 
$60.89
 
$61.61
 
 
$67.44
 
Processing and Transport
 
$15.93
 
$17.85
 
$17.36
 
$14.27
 
$14.04
 
$14.48
 
$14.42
 
$13.96
 
$14.43
 
 
$16.44
 
Sales Related Costs
 
$15.22
 
$15.64
 
$12.12
 
$11.13
 
$12.16
 
$12.11
 
$13.44
 
$13.79
 
$13.85
 
 
$16.37
 
G&A
 
$2.08
 
 
$2.73
 
 
$2.16
 
 
$2.11
 
 
$1.96
 
 
$2.06
 
 
$2.06
 
 
$2.06
 
 
$2.06
 
 
$2.06
 
 
Total Cash Costs
 
$98.61
 
$97.76
 
$90.92
 
$89.32
 
$88.41
 
$91.89
 
$92.29
 
$90.70
 
$91.95
 
 
$102.31
 
* The Financial model includes 0.03 million tonnes of inferred coal production.
 
Inferred coal represents 0.04% of the total
production, and none of this coal was included in the estimate of reserves.
19
Economic
 
Analysis
19.1
 
Assumptions, Parameters and Methods
A pre-feasibility LOM
 
plan was prepared
 
by MM&A for
 
the Logan operations.
 
MM&A prepared
mine
 
projections
 
and
 
production
 
timing
 
forecasts
 
based
 
on
 
coal
 
seam
 
characteristics.
 
Production
 
timing
 
was
 
carried
 
out
 
from
 
2022
 
to
 
depletion
 
(exhaustion)
 
of
 
the
 
coal
 
reserve
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
58
areas, which is projected
 
for the year 2053.
 
All costs and
 
prices are based on
 
2021 nominal
United States dollars.
The
 
Mine
 
plan,
 
productivity
 
expectations
 
and
 
cost
 
estimates
 
generally
 
reflect
 
historical
performance
 
by
 
Coronado
 
and
 
efforts
 
have
 
been
 
made
 
to
 
adjust
 
plans
 
and
 
costs
 
to
 
reflect
future conditions.
 
MM&A is confident
 
that the mine
 
plan and
 
financial model are
 
reasonably
representative to provide an accurate estimation of coal reserves.
Capital
 
schedules
 
were
 
developed
 
by
 
MM&A for
 
mine
 
development,
 
infrastructure,
 
and
 
on-
going capital
 
requirements for
 
the life
 
of the
 
mine.
 
Staffing levels
 
were prepared,
 
and operating
costs estimated by
 
MM&A.
 
MM&A utilized historical
 
cost data provided by
 
Coronado and its
own knowledge and experience to estimate direct and indirect operating costs.
 
The preliminary
 
feasibility financial
 
model, prepared
 
for this
 
TRS, was
 
developed to
 
test the
economic viability
 
of the coal
 
reserve area.
 
The results
 
of this
 
financial model
 
are not intended
to represent a bankable feasibility study, required for financing of any current or future mining
operations, but are
 
intended to
 
prove the economic
 
viability of the
 
estimated coal reserves.
 
All
costs
 
and
 
prices are
 
based on
 
2021
 
nominal United
 
States dollars
 
assuming
 
a 2%
 
inflation
rate.
On an
 
unlevered basis,
 
the NPV
 
of the
 
project cash
 
flows after
 
taxes was
 
estimated for
 
the
purpose
 
of
 
classifying
 
coal
 
reserves.
 
The
 
project
 
cash
 
flows,
 
excluding
 
debt
 
service,
 
are
calculated by subtracting
 
direct and indirect
 
operating expenses and
 
capital expenditures from
revenue.
 
Direct costs
 
include labor, drilling
 
and blasting,
 
operating supplies, maintenance
 
and
repairs, facilities costs for
 
materials handling, coal
 
preparation, refuse disposal,
 
coal loading,
sampling
 
and
 
analysis services,
 
reclamation and
 
general and
 
administrative costs.
 
Indirect
costs include statutory and legally
 
agreed upon fees related
 
to direct extraction of
 
the mineral.
 
The
 
indirect
 
costs
 
are
 
the
 
Federal
 
black
 
lung
 
tax,
 
Federal
 
and
 
State
 
reclamation
 
taxes,
property
 
taxes,
 
local
 
transportation
 
prior
 
to
 
delivery
 
at
 
rail
 
or
 
barge
 
loading
 
sites,
 
coal
production
 
royalties,
 
sales
 
and
 
use
 
taxes,
 
income
 
taxes
 
and
 
State
 
severance
 
taxes.
 
Coronado’s historical costs provided a useful reference for MM&A’s
 
cost estimates.
Sales
 
revenue
 
is
 
based
 
on
 
the
 
metallurgical
 
coal
 
price
 
information
 
provided
 
to
 
MM&A
 
by
Coronado.
Projected debt
 
service is
 
excluded from
 
the P&L
 
and cash
 
flow model
 
in order
 
to determine
Enterprise Value.
The financial model expresses coal sales prices, operating
 
costs, and capital expenditures in
current
 
day
 
dollars
 
without
 
adjustment
 
for
 
inflation.
 
Capital
 
expenditures
 
and
 
reclamation
costs
 
are
 
included
 
based
 
on
 
engineering
 
estimates
 
for
 
each
 
mine
 
by
 
year.
 
The
 
Coronado
division’s existing allocations of administrative costs are continued in the future projections.
Coronado will pay royalties
 
for the various
 
current and projected
 
operations.
 
The royalty rates
vary by mining method and location.
 
The royalty rates for Logan are estimated to be 5 to 9%
of the sales revenue.
 
 
ex963p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
59
The
 
projection
 
model
 
also
 
includes
 
consolidated
 
income
 
tax
 
calculations
 
at
 
the
 
Coronado
level,
 
incorporating
 
statutory
 
depletion
 
calculations,
 
as
 
well
 
as
 
state
 
income
 
taxes,
 
and
 
a
federal
 
tax
 
rate
 
of
 
21%.
 
To
 
the
 
extent
 
the
 
mine
 
generates
 
net
 
operating
 
losses
 
for
 
tax
purposes, the losses are carried over to offset future taxable income.
 
The terms “cash flows”
and “project cash flows” used in this report refer to after tax cash flows.
Consolidated
 
cash
 
flows
 
are
 
driven
 
by
 
annual
 
sales
 
tonnage,
 
which
 
at
 
steady-state
 
level
ranges
 
from
 
a
 
peak
 
of
 
4.2
 
million
 
tonnes
 
in
 
2033
 
to
 
a
 
low
 
of
 
1.0
 
million
 
tonnes
 
in
 
2045.
 
Projected consolidated revenue
 
ranges from $150.1
 
million to $537.5
 
million at steady
 
state.
 
Revenue totals $10.0 billion for the project’s life.
Consolidated cash flow from operations is positive throughout the projected operating period,
with
 
the
 
exception
 
of
 
post-production
 
years,
 
due
 
to
 
end-of-mine
 
reclamation
 
spending.
 
Consolidated cash flow from operations peaks at $136.5 million
 
in 2034 and totals $2.4 billion
over the project’s
 
life.
 
Capital expenditures total
 
$141.2 million from
 
2022 through 2026
 
and
$709.4 million over the project’s life.
 
Coal price forecasts
 
for coal
 
products were prepared
 
by Coronado
 
for its proposed
 
operations.
 
Such
 
prices
 
were used
 
for
 
the
 
revenue
 
input
 
into
 
the financial
 
model.
 
Sales
 
variable costs
such as production royalties and severance taxes were based upon the revenue input.
19.2
 
Results
The pre-feasibility financial model,
 
prepared by MM&A for
 
this TRS, was developed
 
to test the
economic
 
viability
 
of
 
each
 
coal
 
resource
 
area.
 
The
 
results
 
of
 
this
 
financial
 
model
 
are
 
not
intended
 
to
 
represent
 
a
 
bankable
 
feasibility
 
study,
 
as
 
may
 
be
 
required
 
for
 
financing
 
of
 
any
current
 
or
 
future
 
mining
 
operations
 
contemplated
 
but
 
are
 
intended
 
to
 
prove
 
the
 
economic
viability of the estimated coal
 
reserves.
 
Optimization of the LOM plan was
 
outside the scope
of the engagement.
Figure 19-1
 
shows the
 
annual variance
 
of cash
 
costs per
 
ton.
 
Table 19-1
 
shows LOM
 
tonnage,
P&L, and EBITDA for Logan.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ex963p69i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
60
Figure 19-1:
 
Cash Costs per Tonne
As shown
 
above, the
 
Logan’s average cash
 
cost ranges
 
between approximately
 
$89 and
 
$116
per tonne for most of the operating period.
Table 19-1:
 
Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)
 
LOM
LOM
P&L
LOM
EBITDA
 
Tonnes
*
Pre-Tax P&L
Per Tonne
EBITDA
Per Tonne
Deep Mines
 
 
 
 
 
Camp Br Chilton
 
1,607
 
 
$32,285
 
 
$20.08
 
 
$54,357
 
 
$33.82
 
Eagle No. 1 (Toney Fork)
 
12,504
 
 
$91,928
 
 
$7.35
 
 
$205,032
 
 
$16.40
 
Elk Lick Chilton
 
3,809
 
 
$116,111
 
 
$30.48
 
 
$150,035
 
 
$39.39
 
Lower Powellton
 
5,095
 
 
$102,826
 
 
$20.18
 
 
$164,666
 
 
$32.32
 
Lower War Eagle
 
7,105
 
 
$207,728
 
 
$29.24
 
 
$308,368
 
 
$43.40
 
Powellton No. 1
 
3,677
 
 
$97,593
 
 
$26.54
 
 
$151,180
 
 
$41.12
 
Muddy Br No.2 Gas
 
4,188
 
 
$270,115
 
 
$64.50
 
 
$313,447
 
 
$74.85
 
Upper Winifrede
 
1,794
 
 
$57,593
 
 
$32.11
 
 
$78,591
 
 
$43.82
 
Winifrede (Chilton Rider)
 
278
 
 
$1,052
 
 
$3.79
 
 
$5,158
 
 
$18.58
 
Consolidated Deep Mines
 
40,057
 
 
$977,232
 
 
$24.40
 
 
$1,430,834
 
 
$35.72
 
Surface Mines
Toney Fork Surf
 
6,698
 
 
$30,295
 
 
$4.52
 
 
$142,924
 
 
$21.34
 
Buffalo Cr South Area
 
8,728
 
 
$97,428
 
 
$11.16
 
 
$221,170
 
 
$25.34
 
Sugar Camp Area 1
 
5,221
 
 
$32,688
 
 
$6.26
 
 
$148,325
 
 
$28.41
 
Surface Mines Consolidated
 
20,646
 
 
$160,411
 
 
$7.77
 
 
$512,419
 
 
$24.82
 
Highwall Miner (HWM)
Operations
Toney Fork HWM
 
4,705
 
 
$254,021
 
 
$53.99
 
 
$256,385
 
 
$54.49
 
Buffalo Cr South HWM
 
6,532
 
 
$439,179
 
 
$67.23
 
 
$440,183
 
 
$67.39
 
Sugar Camp HWM
 
1,501
 
 
$98,208
 
 
$65.43
 
 
$98,208
 
 
$65.43
 
HWM Consolidated
 
12,738
 
 
$791,408
 
 
$62.13
 
 
$794,775
 
 
$62.39
 
Grand Total
 
73,441
 
 
$1,929,050
 
 
$26.27
 
 
$2,738,028
 
 
$37.28
 
* The Financial model includes 0.03 million tonnes of inferred coal production.
 
Inferred coal
represents 0.04% of the total production, and none of this coal was included in the estimate of
reserves.
As shown in
Table
 
19-1,
 
the Logan Complex shows positive EBITDA over the LOM.
 
Overall,
Coronado’s consolidated operations show positive LOM P&L
 
and LOM EBITDA of $1.9
 
billion
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
61
and $2.7 billion, respectively.
 
A summary of the
 
key financial performance metrics
 
projected
through 2029 is provided below in
Table 19-2
.
Table 19-2:
 
Summary of Logan Key Financial Performance
 
Metrics (2022-2029)
 
 
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
Remainin
g
LOM
Average
 
Total
2022
2023
2024
2025
2026
2027
2028
2029
ROM Production Tonnes
 
146.4
 
 
5.8
 
 
7.2
 
 
7.2
 
 
8.2
 
 
7.8
 
 
8.0
 
 
7.8
 
 
7.8
 
 
3.5
 
Yield
50.16%
39.12
%
40.50
%
40.20
%
39.27
%
39.32
%
42.21
%
47.16
%
45.81
%
55.94%
Saleable Production
Tonnes
*
 
73.4
 
 
2.2
 
 
2.9
 
 
2.9
 
 
3.2
 
 
3.1
 
 
3.4
 
 
3.7
 
 
3.6
 
 
1.9
 
Thermal Tonnes
 
4.30
 
 
0.04
 
 
0.11
 
 
0.16
 
 
0.17
 
 
0.16
 
 
0.13
 
 
0.16
 
 
0.20
 
 
0.13
 
Domestic Met Tonnes
 
69.14
 
 
2.21
 
 
2.81
 
 
2.74
 
 
3.04
 
 
2.91
 
 
3.26
 
 
3.50
 
 
3.38
 
 
1.81
 
Export Met Tonnes
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
Total Saleable Tonnes
 
73.44
 
 
2.25
 
 
2.92
 
 
2.90
 
 
3.21
 
 
3.07
 
 
3.40
 
 
3.66
 
 
3.58
 
 
1.94
 
Cash Costs per Tonne:
Mining Costs
 
$65.37
 
$61.54
 
$59.28
 
$61.82
 
$60.25
 
$63.24
 
$62.37
 
$60.89
 
$61.61
 
 
$67.44
 
Processing and Transport
 
$15.93
 
$17.85
 
$17.36
 
$14.27
 
$14.04
 
$14.48
 
$14.42
 
$13.96
 
$14.43
 
 
$16.44
 
Sales Related Costs
 
$15.22
 
$15.64
 
$12.12
 
$11.13
 
$12.16
 
$12.11
 
$13.44
 
$13.79
 
$13.85
 
 
$16.37
 
G&A
 
$2.08
 
 
$2.73
 
 
$2.16
 
 
$2.11
 
 
$1.96
 
 
$2.06
 
 
$2.06
 
 
$2.06
 
 
$2.06
 
 
$2.06
 
 
Total Cash Costs
 
$98.61
 
$97.76
 
$90.92
 
$89.32
 
$88.41
 
$91.89
 
$92.29
 
$90.70
 
$91.95
 
 
$102.31
 
EBITDA per Tonne
 
$37.28
 
$89.22
 
$26.97
 
$26.95
 
$34.49
 
$35.09
 
$34.68
 
$32.64
 
$32.66
 
 
$37.31
 
Expansion CapEx ($M)
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
Maintenance CapEx ($M)
 
$709.4
 
 
$54.8
 
 
$27.4
 
 
$28.0
 
 
$17.4
 
 
$13.7
 
 
$59.6
 
 
$28.7
 
 
$27.1
 
 
$18.1
 
 
Total CapEx
 
$709.4
 
 
$54.8
 
 
$27.4
 
 
$28.0
 
 
$17.4
 
 
$13.7
 
 
$59.6
 
 
$28.7
 
 
$27.1
 
 
$18.1
 
* The Financial model includes 0.03 million tonnes of inferred coal production.
 
Inferred coal represents 0.04% of the total
production, and none of this coal was included in the estimate of reserves.
After
 
Tax
 
Cash Flows
 
were
 
developed
 
in
 
order to
 
calculate
 
the NPV
 
for
 
this
 
Property.
 
The
NPV is estimated
 
to be $611.3
 
million at a
 
discount rate of
 
10.0%.
 
A summary of
 
the Logan
after-tax cash flow is shown in
Table
 
19-3
.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
62
Table 19-3:
 
Project Cash Flow Summary ($000)
*
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
Total
2022
2023
2024
2025
2026
Production & Sales tonnes
73,441
2,250
2,919
2,903
3,213
3,067
Total
 
Revenue
$9,980,224
$420,654
$344,156
$337,534
$394,845
$389,424
EBITDA
$2,738,028
$200,726
$78,732
$78,233
$110,802
$107,624
Net Income
$1,610,525
$120,459
$34,650
$29,605
$61,436
$59,748
Net Cash Provided by Operating Activities
$2,372,457
$125,587
$89,779
$70,664
$90,037
$94,643
Purchases of Property, Plant, and
Equipment
$(709,361)
$(54,793)
$(27,441)
$(27,989)
$(17,357)
$(13,652)
Net Cash Flow
$1,663,096
$70,794
$62,338
$42,674
$72,680
$80,991
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2027
2028
2029
2030
2031
2032
Production & Sales tonnes
3,396
3,661
3,579
3,326
2,950
3,438
Total
 
Revenue
$431,154
$451,609
$445,987
$420,670
$376,614
$440,781
EBITDA
$117,770
$119,515
$116,897
$111,475
$78,018
$87,218
Net Income
$65,436
$69,828
$70,242
$65,713
$34,306
$33,521
Net Cash Provided by Operating Activities
$100,542
$104,726
$104,191
$100,196
$77,188
$77,404
Purchases of Property, Plant, and
Equipment
$(59,598)
$(28,735)
$(27,081)
$(31,232)
$(48,753)
$(71,927)
Net Cash Flow
$40,944
$75,991
$77,110
$68,964
$28,435
$5,477
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2033
2034
2035
2036
2037
2038
Production & Sales tonnes
4,156
4,105
3,468
3,753
2,854
3,015
Total
 
Revenue
$537,477
$534,901
$465,163
$514,566
$405,973
$421,828
EBITDA
$142,816
$161,080
$119,812
$148,790
$92,000
$117,900
Net Income
$89,651
$103,843
$69,446
$91,589
$53,041
$76,624
Net Cash Provided by Operating Activities
$113,575
$136,352
$113,896
$123,326
$92,161
$99,895
Purchases of Property, Plant, and
Equipment
$(23,808)
$(29,414)
$(13,377)
$(19,641)
$(50,095)
$(29,180)
Net Cash Flow
$89,767
$106,938
$100,519
$103,685
$42,066
$70,715
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2039
2040
2041
2042
2043
2044
Production & Sales tonnes
2,436
2,201
1,845
1,459
1,180
1,112
Total
 
Revenue
$355,369
$338,176
$268,754
$214,586
$172,885
$150,118
EBITDA
$87,011
$83,646
$68,092
$62,920
$44,089
$34,328
Net Income
$55,313
$54,058
$44,925
$45,801
$29,936
$22,534
Net Cash Provided by Operating Activities
$83,815
$71,639
$61,735
$55,327
$42,764
$32,618
Purchases of Property, Plant, and
Equipment
$(15,349)
$(9,482)
$(14,390)
$(5,290)
$(14,378)
$(3,690)
Net Cash Flow
$68,466
$62,157
$47,345
$50,037
$28,386
$28,928
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2045
2046
2047
2048
2049
2050
Production & Sales tonnes
1,047
1,570
1,449
1,206
435
546
Total
 
Revenue
$152,705
$241,778
$219,387
$188,710
$76,217
$101,030
EBITDA
$31,080
$76,832
$69,847
$62,067
$19,753
$38,469
Net Income
$16,163
$53,074
$44,398
$39,304
$4,857
$21,379
Net Cash Provided by Operating Activities
$28,550
$56,069
$60,773
$54,739
$27,203
$29,794
Purchases of Property, Plant, and
Equipment
$(33,303)
$(3,327)
$(23,807)
$(5,664)
$(5,458)
$(1,150)
Net Cash Flow
$(4,752)
$52,742
$36,967
$49,075
$21,745
$28,645
 
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ex963p72i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
63
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2051
2052
2053
2054
2055
2056
Production & Sales tonnes
564
318
21
-
-
-
Total
 
Revenue
$102,990
$60,217
$3,964
$-
$-
$-
EBITDA
$42,382
$26,401
$1,703
$-
$-
$-
Net Income
$24,434
$24,120
$1,383
$(164)
$(84)
$(43)
Net Cash Provided by Operating Activities
$35,071
$18,199
$3,510
$(1,729)
$(882)
$(899)
Purchases of Property, Plant, and
Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$35,071
$18,199
$3,510
$(1,729)
$(882)
$(899)
* The Financial model includes 0.03 million tonnes of inferred coal production.
 
Inferred coal represents 0.04% of the total
production, and none of this coal was included in the estimate of reserves.
19.3
 
Sensitivity
Sensitivity of
 
the NPV
 
results to
 
changes in
 
the key
 
drivers is
 
presented in
 
the chart
 
below.
 
The sensitivity study
 
shows the NPV
 
at the 10.0%
 
discount rate when
 
Base Case sales
 
prices,
operating costs, and
 
capital costs are increased
 
and decreased in increments
 
of 5% within a
+/- 15% range.
Figure 19-2:
 
Sensitivity of NPV
As shown, NPV
 
is quite sensitive
 
to change in
 
sales price and
 
operating cost estimates,
 
and
slightly sensitive to changes in capital cost estimates.
 
 
ex963p2i0.jpg
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
64
20
Adjacent Properties
20.1
 
Information Used
No Proprietary information associated with neighboring properties was used as part of this
study.
21
Other Relevant Data and Information
MM&A performed
 
a previous
 
audit of
 
all the
 
Properties in
 
year 2017
 
for Coronado
 
based on
SEC
 
Industry
 
Guide
 
7
 
standards.
 
In
 
addition,
 
MM&A
 
completed
 
a
 
Limited
 
Phase
 
I
Environmental Site Assessment
 
(
ESA
) on
 
the Property
 
in 2017
 
on behalf
 
of Coronado.
 
MM&A
conducted
 
a
 
Joint
 
Ore
 
Reserve
 
Committee
 
(
JORC
)
 
compliant
 
resource
 
and
 
reserve
assessment of the
 
assets effective
 
January 1, 2018.
 
By assignment, the
 
JORC assessment
included
 
a
 
preliminary
 
feasibility
 
level
 
study
 
of
 
the
 
subject
 
coal
 
reserves,
 
encompassing
detailed mine
 
planning and
 
cost analysis
 
through depletion
 
of Logan’s
 
JORC-compliant coal
reserves.
 
MM&A utilized
 
this former
 
preliminary feasibility
 
study as
 
the basis
 
of an
 
updated
study which meets those standards set forth by the SEC.
22
Interpretation and Conclusions
22.1
 
Conclusion
Sufficient
 
data
 
has
 
been
 
obtained
 
through
 
various
 
exploration
 
and
 
sampling
 
programs
 
and
mining operations to
 
support the geological
 
interpretations of seam
 
structure and thickness
 
for
coal
 
horizons
 
situated
 
on
 
the
 
Property.
 
The
 
data
 
is
 
of
 
sufficient
 
quantity
 
and
 
reliability
 
to
reasonably support the coal resource and coal reserve estimates in this TRS.
The geological
 
data and
 
preliminary feasibility
 
study,
 
which consider
 
mining plans,
 
revenue,
and
 
operating
 
and
 
capital
 
cost
 
estimates
 
are
 
sufficient
 
to
 
support
 
the
 
classification
 
of
 
coal
reserves provided herein.
This
 
geologic
 
evaluation
 
conducted
 
in
 
conjunction
 
with
 
the
 
preliminary
 
feasibility
 
study
 
is
sufficient to
 
conclude that
 
the 73.4 Mt
 
of marketable
 
coal reserves
 
identified on the
 
Property
are economically
 
mineable under
 
reasonable expectations
 
of market
 
prices for
 
metallurgical
coal products, estimated operation costs, and capital expenditures.
22.2
 
Risk Factors
Risks have been identified for operational, technical and administrative subjects addressed
 
in
the Pre-Feasibility Study.
 
A risk matrix has been
 
constructed to present the risk
 
levels for all
the risk factors
 
identified and quantified
 
in the risk assessment
 
process.
 
The risk matrix
 
and
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
65
risk assessment
 
process are
 
modelled to
 
that presented
 
in the
 
Australian and
 
New Zealand
Standard on Risk Management (AS/NZS 4360).
 
The
 
purpose
 
of
 
the
 
characterization
 
of
 
the
 
project
 
risk
 
components
 
is
 
to
 
inform
 
the
 
project
stakeholders of key aspects of
 
the Coronado projects that can
 
be impacted by events whose
consequences can affect the success of the venture.
 
The significance of an impacted aspect
of the operation is directly related to both the probability of occurrence and the severity of the
consequences.
 
The
 
initial
 
risk
 
for
 
a
 
risk
 
factor
 
is
 
herein
 
defined
 
as
 
the
 
risk
 
level
 
after
 
the
potential impact
 
of the
 
risk factor
 
is addressed
 
by competent
 
and prudent
 
management utilizing
control measures readily available.
 
Residual risk for a risk factor is herein defined as the risk
level following application
 
of special mitigation
 
measures if management
 
determines that the
initial
 
risk
 
level
 
is
 
unacceptable.
 
Initial
 
risk
 
and
 
residual
 
risk
 
can
 
be
 
quantified
 
numerically,
derived by the
 
product of values
 
assigned to probability
 
and consequence ranging
 
from very
low risk to very high risk.
 
The
 
probability
 
and
 
consequence
 
parameters
 
are
 
subjective
 
numerical
 
estimates
 
made
 
by
practiced mine engineers and managers.
 
Both are assigned values from 1 to 5 for
 
which the
value 1 represents the
 
lowest probability and least
 
consequence, and the value
 
5 represents
the highest probability and
 
greatest consequence.
 
The products, which define
 
the Risk Level,
are classified from very low to very high.
 
Risk Level Table
 
(R = P x C)
Risk Level (R)
Very Low (1 to 2)
Low (3 to 5)
Moderate (6 to 11)
High (12 to 19)
Very High (20 to 25)
Risk aspects
 
identified and
 
evaluated during
 
this assignment
 
total 13.
 
No residual
 
risks are
rated Very
 
High.
 
One (1)
 
residual risk
 
is rated
 
High.
 
Eight (8)
 
of the
 
risk aspects
 
could be
associated
 
with
 
Moderate
 
residual risk.
 
Four
 
(4) of
 
the
 
risk aspects
 
were
 
attributed
 
Low or
Very Low residual risks.
 
22.2.1
 
Governing Assumptions
The listing of
 
the aspects is
 
not presumed to
 
be exhaustive.
 
Instead that listing
 
is presented
based on the experiences of the contributors to the TRS.
 
1.
 
The probability and consequence ratings are subjectively assigned, and it is assumed
that this subjectivity reasonably reflects the condition of the active and projected mine
operations.
2.
 
The Control Measures shown in the matrices presented in this chapter are not
exhaustive.
 
They represent a condensed collection of activities that the author of the
risk assessment section has observed to be effective in coal mining scenarios.
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
66
3.
 
Mitigation Measures listed for each risk factor of the operation are not exhaustive.
 
The
measures listed, however, have been observed by the author to be effective.
 
4.
 
The monetary values used in ranking the consequences are generally-accepted
quantities for the coal mining industry.
22.2.2
 
Limitations
The
 
risk
 
assessment
 
proposed
 
in
 
this
 
report
 
is
 
subject
 
to
 
the
 
limitations
 
of
 
the
 
information
currently collected, tested, and interpreted at the time of the writing of the report.
22.2.3
 
Methodology
The numerical
 
quantities (i.e.,
 
risk levels)
 
attributable
 
to either
 
“initial” or
 
“residual” risks
 
are
derived by the
 
product of values
 
assigned to probability
 
and consequence ranging
 
from very
low risk to very high risk.
R = P x C
Where:
R = Risk Level
P = Probability of Occurrence
C = Consequence of Occurrence
The
 
Probability
 
(P)
 
and
 
Consequence
 
(C)
 
parameters
 
recited
 
in
 
the
 
formula
 
are
 
subjective
numerical
 
estimates
 
made
 
by
 
practiced
 
mine
 
engineers
 
and
 
managers.
 
Both
 
P
 
and
 
C
 
are
assigned
 
integer
 
values
 
ranging
 
from
 
1
 
to
 
5
 
for
 
which
 
the
 
value
 
1
 
represents
 
the
 
lowest
probability
 
and
 
least
 
consequence,
 
and
 
the
 
value
 
5
 
represents
 
the
 
highest
 
probability
 
and
greatest consequence.
 
The products (R =
 
P x C) which
 
define the Risk Level,
 
are thereafter
classified from very low to very high.
Risk Level Table
Risk Level (R)
Very Low (1 to 2)
Low (3 to 5)
Moderate (6 to 11)
High (12 to 19)
Very High (20 to 25)
Very
 
high initial risks
 
are considered to
 
be unacceptable and
 
require corrective action
 
well in
advance of
 
project development.
 
In short,
 
measures must
 
be applied
 
to reduce
 
very high
 
initial
risks to a tolerable level.
 
As
 
shown
 
and
 
discussed
 
above,
 
after
 
taking
 
into
 
account
 
the
 
operational,
 
technical,
 
and
administrative actions
 
that
 
have
 
been applied
 
or are
 
available for
 
action
 
when required,
 
the
residual risk can be determined.
 
The residual risk provides a basis for
 
the management team
to determine if the residual risk
 
level is acceptable or tolerable.
 
If the risk level is determined
to
 
be
 
unacceptable,
 
further
 
actions
 
should
 
be
 
considered
 
to
 
reduce
 
the
 
residual
 
risk
 
to
acceptable or
 
tolerable levels
 
to provide
 
justification for
 
continuation of
 
the proposed
 
operation.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
67
22.2.4
 
Development of the Risk Matrix
Risks
 
have
 
been
 
identified
 
for
 
the
 
technical,
 
operational,
 
and
 
administrative
 
subjects
addressed
 
in
 
the
 
TRS.
 
The
 
risk
 
matrix
 
and
 
risk
 
assessment
 
process
 
is
 
modelled
 
to
 
that
presented in the Australian
 
and New Zealand
 
Standard on Risk Management
 
(AS/NZS 4360).
 
22.2.4.1
 
Probability Level Table
Table 22-1:
 
Probability Level Table
Category
Probability Level (P)
1
Remote
Not likely to occur except in exceptional circumstances.
<10%
2
Unlikely
Not likely to occur; small in degree.
10 - 30%
3
Possible
Capable of occurring.
30 - 60%
4
Likely
High chance of occurring in most circumstances.
60 - 90%
5
Almost Certain
Event is expected under most circumstances; impossible
 
to
avoid.
>90%
The lowest rated
 
probability of occurrence
 
is assigned
 
the value of
 
1 and described
 
as remote,
with a likelihood of occurrence
 
of less than 2
 
percent.
 
Increasing values are assigned to
 
each
higher
 
probability
 
of
 
occurrence,
 
culminating
 
with
 
the
 
value
 
of
 
5
 
assigned
 
to
 
incidents
considered to be almost certain to occur.
22.2.4.2
 
Consequence Level Table
Table
 
22-2
 
lists the consequence levels.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
68
Table 22-2:
 
Consequence Level Table
Correlation of Events in Key Elements of the
 
Project Program to Event Severity Category
Category
Severity of
the Event
Financial
Impact of the
Event
Unplanned
Loss of
Production
(Impact on
Commercial
Operations)
Events Impacting
on the
Environment
Events Affecting the
Program's Social and
Community Relations
Resultant Regulatory /
Sovereign Risk
Events Affecting Occupational Health &
Safety
1
Insignificant
< USD $0.5
million
≤ 12 hours
Insignificant loss of
habitat; no
irreversible effects
on water, soil and
the environment.
Occasional nuisance impact on
travel.
-
 
Event recurrence avoided by corrective
action through established procedures
(Engineering, guarding, training).
2
Minor
USD $0.5 million
to $2.0 million
≤ 1 day
No significant
change to species
populations; short-
term reversible
perturbation to
ecosystem function.
Persistent nuisance impact on
travel.
 
Transient adverse media
coverage.
-
 
First aid – lost time.
 
Event recurrence
avoided by corrective action through
established procedures.
3
Moderate
USD $2.0 million
to $10.0 million
≤ 1 week
Appreciable change
to species
population; medium-
term (≤10 years)
detriment to
ecosystem function.
Measurable impact on travel and
water/air quality.
 
Significant
adverse media coverage /
transient public outrage.
Uncertainty securing or
retaining essential
approval / license.
Medical Treatment –
permanent
incapacitation.
 
Avoiding event recurrence
requires modification to established
corrective action procedures
.
Change to regulations
(tax; bonds; standards).
4
Major
USD $10.0
million to $50.0
million
1 to 2 weeks
Change to species
population
threatening viability;
long-term (>10
years) detriment to
ecosystem function.
Long-term, serious impact on
travel and use of water
resources; degradation of air
quality; sustained and effective
public opposition.
Suspension / long-delay
in securing essential
approval / license.
Fatality.
 
Avoiding event recurrence
requires modification to established
corrective action procedures and staff
retraining.
Change to laws (tax;
bonds; standards).
5
Critical
>USD $50.0
million
>1 month
Species extinction;
irreversible damage
to ecosystem
function.
Loss of social license.
Withdraw / failure to
secure essential
approval / license.
Multiple fatalities.
 
Avoiding event
recurrence requires major overhaul of
policies and procedures.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
69
The
 
lowest
 
rated
 
consequence
 
is
 
assigned
 
the
 
value
 
of
 
1
 
and
 
is
 
described
 
as
 
Insignificant
Consequence parameters of which include
 
non-reportable safety incidents with zero
 
days lost
accidents, no
 
environmental damage,
 
loss of
 
production or
 
systems for
 
less than
 
one week
and
 
cost
 
of
 
less
 
than
 
USD
 
$0.5
 
million.
 
Increasing
 
values
 
are
 
assigned
 
to
 
each
 
higher
consequence,
 
culminating
 
with
 
the
 
value
 
of
 
5
 
assigned
 
to
 
critical
 
consequences,
 
the
parameters of
 
which include
 
multiple-fatality accidents,
 
major environmental
 
damage, and
 
loss
of production
 
or systems
 
for longer
 
than one
 
month and
 
cost of
 
greater than
 
USD $50.0
 
million.
Composite Risk Matrix R = P x C and Color-Code Convention
The risk level, defined
 
as the product of
 
probability of occurrence and
 
consequence, ranges in
value from 1 (lowest possible risk) to 25 (maximum risk level).
 
The values are color-coded to
facilitate identification of the highest risk aspects.
Table 22-3:
 
Risk Matrix
P x C = R
Consequence (C)
Insignificant
Minor
Moderate
Major
Critical
1
2
3
4
5
Probability Level (P)
Remote
1
1
2
3
4
5
Unlikely
2
2
4
6
8
10
Possible
3
3
6
9
12
15
Likely
4
4
8
12
16
20
Almost
Certain
5
5
10
15
20
25
22.2.5
 
Categorization of Risk Levels and Color Code Convention
Very
 
high
 
risks
 
are
 
considered
 
to
 
be
 
unacceptable
 
and
 
require
 
corrective
 
action.
 
Risk
reduction measures must be applied to reduce very high risks to a tolerable level.
22.2.6
 
Description of the Coal Property
The Logan Mine Complex (
Logan
) is located in Logan, Boone, and Wyoming
 
Counties, West
Virginia
 
–is an
 
active operation
 
with four
 
underground mines
 
and one
 
surface mine.
 
Active
underground
 
operations
 
within
 
the
 
Logan
 
Mine
 
Complex
 
all
 
utilize
 
continuous
 
mining
production sections.
 
Large mining operations are conducted at the Muddy Bridge, Eagle No.
1
 
Mine
 
and
 
Lower
 
War
 
Eagle
 
Mine.
 
Coronado
 
also
 
operates
 
a
 
single
 
section
 
active
underground room-and-pillar
 
section
 
in the
 
Powellton
 
Mine.
 
Other operations
 
are projected
on relatively small reserve blocks to
 
be developed sequentially to sustain production levels
 
as
each reserve is
 
depleted.
 
The method provides
 
continuity, preserving skilled work groups
 
and
enabling
 
effective
 
utilization
 
of
 
production
 
equipment
.
 
Mines
 
located
 
above
 
drainage
 
have
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
70
access via
 
drift entries.
 
A few
 
of the
 
coal seams
 
are below
 
drainage and
 
are accessed
 
with
slopes and shafts or box cuts.
The Logan
 
Mine Complex
 
also includes
 
one active
 
surface mine
 
(Toney
 
Fork) and
 
one idle
surface mine (Elklick).
 
Both area and contour surface mining are employed.
 
Highwall mining
is conducted
 
by contract
 
operators.
 
The surface
 
operations are
 
relatively small
 
and developed
sequentially to sustain
 
production levels.
 
Similar to the
 
underground operations, the method
provides
 
continuity
 
while
 
preserving
 
skilled
 
work
 
groups
 
and
 
enabling
 
effective
 
utilization of
production equipment.
 
The surface mining
 
methods selected utilize
 
hydraulic shovels, front-
end loaders, large tractors and rock trucks for overburden removal.
22.2.7
 
Summary of Residual Risk Ratings
Each
 
risk
 
factor
 
is
 
numbered,
 
and
 
a
 
risk
 
level
 
for
 
each
 
is
 
determined
 
by
 
multiplying
 
the
assigned probability by
 
the assigned consequence.
 
The risk
 
levels are plotted
 
on a risk
 
matrix
to provide a composite view of the Coronado risk profile.
 
The average risk level is 7.5, which
is defined as Moderate.
Table 22-4:
 
Risk Assessment Matrix
 
 
 
 
 
 
 
 
 
Consequence
Critical
>$50 MM
8, 9
 
 
 
 
 
Major
$10-50MM
 
 
 
6
 
 
Moderate
$2-10 MM
12
4
1, 2, 3
 
 
 
Minor
$0.5-$2 MM
 
 
13
5, 10
7
 
Low
<$0.5 MM
 
 
11
 
 
 
 
<10%
10-30%
30-60%
60-90%
>90%
 
Remote
Unlikely
Possible
Likely
Almost
Certain
22.2.8
 
Risk Factors
A high-level approach is utilized to characterize risk factors
 
that are generally similar across a
number of
 
the active
 
and proposed
 
mining operations.
 
Risk factors
 
that are
 
unique to
 
a specific
operation or are particularly noteworthy are addressed individually.
22.2.8.1
 
Geological and Coal Resource
Coal
 
mining
 
is
 
accompanied
 
by
 
risk
 
that,
 
despite
 
exploration
 
efforts,
 
mining
 
areas
 
will
 
be
encountered where geological conditions render extraction
 
of the resource to be
 
uneconomic,
or that coal quality characteristics disqualify the product for sale into target markets.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
71
Offsetting the geological and
 
coal resource risk
 
are the massive
 
size of the
 
controlled property
which
 
allows
 
large
 
areas
 
to
 
be
 
mined
 
sufficiently
 
away
 
from
 
areas
 
where
 
coal
 
quality
 
and
mineability
 
may
 
be
 
less
 
favorable.
 
In
 
addition,
 
several
 
mines
 
are
 
designed
 
to
 
operate
 
with
multiple
 
production
 
sections,
 
which
 
lessens
 
the
 
immediate
 
impact
 
when
 
one
 
section
encounters
 
difficulties.
 
The
 
large
 
reserve
 
areas
 
also
 
provide
 
a
 
mitigation
 
strategy
 
of
developing
 
an
 
additional
 
(spare)
 
section
 
at
 
each
 
mine,
 
or
 
additional
 
mines,
 
which
 
can
 
be
activated
 
when
 
adverse
 
conditions
 
are
 
encountered,
 
thereby
 
maintaining
 
consistent
production and quality.
 
The spare section or
 
mines require additional mine
 
extension cost but
increase flexibility and performance consistency.
The
 
larger reserve
 
areas will
 
be developed
 
with
 
multiple production
 
sections and
 
the small,
replacement
 
production
 
reserve
 
areas
 
provide
 
ready
 
access
 
to
 
alternative
 
locations
 
if
geological
 
and
 
coal
 
resource
 
characteristics
 
require
 
abandonment
 
of
 
an
 
active
 
production
area.
Table 22-5:
 
Geological and Coal Resource Risk Assessment (Risks 1 and 2)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Recoverable coal
tonnes recognized to
be significantly less
than previously
estimated.
Reserve base is
adequate to serve market
commitments and
respond to opportunities
for many years.
 
Local
adverse conditions may
increase frequency and
cost of production unit
relocations.
Previous and ongoing
exploration and
extensive regional
mining history provide
a high level of
confidence of coal
seam correlation,
continuity of the coal
seams, and coal
resource tonnes.
4
4
16
Optimize mine
plan to increase
resource
recovery;
develop mine
plan to provide
readily available
alternate mining
locations to
sustain expected
production level.
3
3
9
Coal quality locally
proves to be lower
than initially
projected.
If uncontrolled, production
and sale of coal that is
out of specification can
result in rejection of
deliveries, cancellation of
coal sales agreements
and damage to
reputation.
Exploration and vast
experience and history
in local coal seams
provide confidence in
coal quality; limited
excursions can be
managed with careful
product segregation
and blending.
3
5
15
Develop mine
plan to provide
readily available
alternate mining
locations to
sustain expected
production level;
modify coal sales
agreements to
reflect coal
quality.
3
3
9
22.2.8.2
 
Environmental
MM&A
 
completed
 
a
 
Limited
 
Phase
 
I
 
Environmental
 
Site
 
Assessment
 
(
ESA
)
 
on
 
the
 
Logan
County
 
Property
 
in
 
May
 
2017
 
on
 
behalf
 
of
 
Coronado.
 
MM&A
 
concluded
 
that
 
no
 
long-term
liabilities existed at the time of this ESA.
Water
 
quality
 
and
 
other
 
permit
 
requirements
 
are
 
subject
 
to
 
modification
 
and
 
such
 
changes
could have
 
a material impact
 
on the capability
 
of the operator
 
to meet modified
 
standards or
to
 
receive new
 
permits
 
and
 
modifications
 
to
 
existing permits
 
.
 
Permit protests
 
may
 
result
 
in
delays or denials to permit applications.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
72
Environmental standards and permit requirements have evolved significantly
 
over the past 50
years
 
and
 
to-date,
 
mining
 
operators
 
and
 
regulatory
 
bodies
 
have
 
been
 
able
 
to
 
adapt
successfully to evolving environmental requirements.
Table 22-6:
 
Environmental (Risks 3 and 4)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Environmental
performance
standards are
modified in the future.
Delays in receiving new
permits and modifications
to existing permits; cost
of testing and treatment
of water and soils
Work with regulatory
agencies to
understand and
influence final
standards; implement
testing, treatment and
other actions to comply
with new standards.
3
4
12
Modify mining
and reclamation
plans to improve
compliance with
new standards
while reducing
cost of
compliance.
3
3
9
New permits and
permit modifications
are increasingly
delayed or denied.
Interruption of production
and delayed
implementation of
replacement production
from new mines.
Comply quickly with
testing, treatment and
other actions required;
continue excellent
compliance
performance within
existing permits.
2
4
8
Establish and
maintain close
and constructive
working
relationships with
regulatory
agencies, local
communities and
community
action groups.
2
3
6
22.2.8.3
 
Regulatory Requirements
Federal and
 
state health
 
and safety
 
regulatory agencies
 
occasionally amend
 
mine laws
 
and
regulations.
 
The
 
impact
 
is
 
industry-wide.
 
Mining
 
operators
 
and
 
regulatory
 
agencies
 
have
been able to adapt successfully to evolving health and safety requirements.
Table 22-7:
 
Regulatory Requirements (Risk 5)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Federal and state
mine safety and
health regulatory
agencies amend
mine laws and
regulations.
Cost of training,
materials, supplies and
equipment; modification
of mine examination and
production procedures;
modification of mining
plans.
Participate in hearings
and workshops when
possible to facilitate
understanding and
implementation; work
cooperatively with
agencies and
employees to facilitate
implementation of new
laws and regulations.
4
3
12
Familiarity and
experience with
new laws and
regulations
results in
reduced impact
to operations and
productivity and
improved
supplies and
equipment
options.
4
2
8
22.2.8.4
 
Market and Transportation
Most
 
of
 
the
 
current
 
and
 
future
 
production
 
is
 
expected
 
to
 
be
 
directed
 
to
 
domestic
 
and
international metallurgical markets.
 
Historically the metallurgical
 
markets have been
 
cyclical
and highly volatile.
 
Thermal coal markets are
 
also cyclical and domestic
 
markets have been
adversely affected by competition from natural
 
gas and subsidized renewable energy
 
sources
and regulation.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
73
Table 22-8:
 
Market and Transportation (Risk 6)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Volatile coal prices
drop precipitously.
Loss of revenue
adversely affects
profitability; reduced cash
flow may disrupt capital
expenditures plan.
Cost control measures
implemented; capital
spending deferred.
4
5
20
High-cost
operations
closed, and
employees
temporarily
furloughed.
4
4
16
Occasional
 
delay
 
or
 
interruption
 
of
 
rail,
 
river
 
and
 
terminals
 
service
 
may
 
be
 
expected
.
 
The
operator can possibly minimize
 
the impact of delays
 
by being a preferred
 
customer by fulfilling
shipment obligations promptly and maintaining close working relationships.
Table
 
22-9:
 
Market and Transportation (Risk 7)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Rail or river transport
is delayed; storage
and shipping access
at river and ocean
terminals is not
available.
Fulfillment of coal sales
agreements delayed;
limited coal storage at
mines may increase cost
of rehandling; production
may be temporarily idled.
Provide adequate
storage capacity at
mines; coordinate
continuously with
railroad and shipping
companies to respond
quickly and effectively
to changing
circumstances.
5
3
15
Provide back-up
storage facility
along with
personnel,
equipment and
rehandle plan to
sustain
production and
fulfill sales
obligations
timely.
5
2
10
22.2.8.5
 
Mining Plan
Occupational
 
health
 
and
 
safety
 
risks
 
are
 
inherent
 
in
 
mining
 
operations.
 
Comprehensive
training
 
and
 
retraining
 
programs,
 
internal
 
safety
 
audits
 
and
 
examinations,
 
regular
 
mine
inspections,
 
safety
 
meetings,
 
along
 
with
 
support
 
of
 
trained
 
fire
 
brigades
 
and
 
mine
 
rescue
teams
 
are
 
among
 
activities
 
that
 
greatly
 
reduce
 
accident
 
risks.
 
Employee
 
health
 
monitoring
programs
 
coupled
 
with
 
dust
 
and
 
noise
 
monitoring
 
and
 
abatement
 
reduce
 
health
 
risks
 
to
miners.
 
As underground
 
and surface
 
mines are
 
developed and
 
extended, observation
 
of geological,
hydrogeological
 
and
 
geotechnical
 
conditions
 
lead
 
to
 
modification
 
of
 
mine
 
plans
 
and
procedures to enable safe work within the mine environments.
Highlighted below are selected examples
 
of safety and external factors relevant
 
to Coronado
operations.
22.2.8.5.1 Methane Management
Coalbed
 
methane
 
is
 
present
 
in
 
coal
 
operations
 
below
 
drainage.
 
Often
 
the
 
methane
concentration in shallow coal seams
 
is at such low levels that
 
it can be readily managed
 
with
frequent
 
testing
 
and
 
monitoring,
 
vigilance
 
and
 
routine
 
mine
 
ventilation.
 
Very
 
high
 
methane
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
74
concentrations may be present at
 
greater depths.
 
High methane concentrations may require
degasification of the coal
 
seam to assure safe mining.
 
Due to the seams being
 
targeted and
their depths, excessive methane is not expected to be encountered at Logan.
Table 22-10:
 
Methane Management (Risk 8)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Methane hazard is
present in mines
operating below
drainage.
Injury or loss of life;
possible ignition of gas
and mine explosion;
potential loss of mine and
equipment temporarily or
permanently; additional
mine fan, mine power,
ventilation, monitoring
and examination
requirements.
Low to moderate levels
can be managed with
frequent examinations,
testing and monitoring
within the mine
ventilation system.
 
Excellent rock dust
maintenance
minimizes explosion
propagation risk should
an ignition occur.
1
5
5
Very high-level
methane
concentrations
may require coal
seam
degasification
and gob
degasification if
longwall or pillar
extraction
methods are
employed.
1
5
5
22.2.8.5.2 Mine Fires
Mine fires,
 
once common
 
at mine
 
operations, are
 
rare today.
 
Most active
 
coal miners
 
have
not encountered a mine fire.
 
Vastly
 
improved mine power and equipment electrical
 
systems,
along with safe mine
 
practices reduce mine fire
 
risks.
 
Crew training and
 
fire brigade support
and
 
training
 
improve
 
response
 
for
 
containment
 
and
 
control
 
if
 
a
 
fire
 
occurs.
 
Spontaneous
combustion
 
within
 
coal
 
mines,
 
which
 
is
 
the
 
source
 
of
 
most
 
fires
 
that
 
occur
 
today,
 
is
 
not
expected
 
to
 
commonly
 
occur
 
at
 
the
 
Logan
 
property.
 
When
 
spontaneous
 
combustion
conditions are
 
present, monitoring systems
 
are employed for
 
early detection and
 
mine plans
are designed to facilitate isolation, containment and rapid extinguishment.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
75
Table 22-11
 
:
 
Mine Fires (Risk 9)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Mine fire at
underground or
surface mine
operation.
Injury or loss of life;
potential loss of mine
temporarily or
permanently; damage to
equipment and mine
infrastructure.
Inspection and
maintenance of mine
power, equipment and
mine infrastructure;
good housekeeping;
frequent examination
of conveyor belt
entries; prompt
removal of
accumulations of
combustible materials.
1
5
5
If spontaneous
combustion
conditions are
present,
enhanced
monitoring and
examination
procedures will
be implemented;
mine design will
incorporate
features to
facilitate
isolation,
containment and
extinguishment
of
 
spontaneous
combustion
locations.
1
5
5
22.2.8.5.3 Highwall Failure
Contour
 
surface
 
mining,
 
area
 
surface
 
mining
 
and
 
highwall
 
mining
 
all
 
expose
 
miners
 
and
production
 
equipment
 
to
 
the
 
risk
 
of
 
highwall
 
failure.
 
The
 
highwall
 
can
 
be
 
designed
 
to
incorporate safety
 
precautions to
 
address geotechnical
 
and hydrogeological
 
concerns.
 
Drilling
and
 
blasting
 
design
 
can
 
be
 
modified
 
to
 
fit
 
soil
 
and
 
strata
 
conditions
 
to
 
enhance
 
highwall
stability.
 
Foremen
 
and
 
crews
 
are
 
trained
 
to
 
examine
 
the
 
highwalls
 
frequently
 
to
 
observe
changes and indications of
 
failure.
 
Highwall designs incorporate adequate
 
web thickness and
safety pillar width to assure highwall stability.
Table 22-12:
 
Highwall Failure (Risk 10)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Highwall failure
occurs at surface or
highwall mining
operations.
Injury or loss of life;
catastrophic damage to
equipment; production
interruption.
Regular inspection for
change and signs of
failure; conservative
design of HWM web
thickness and safety
pillar width;
conservative wall slope
and bench width in
design.
4
3
12
Optimize drilling
and blasting
plan; increase
safety factors for
wall slope and
bench width;
install
instrumentation
and frequent
survey to detect
movement;
dewater to
reduce wall
pressure.
4
2
8
22.2.8.5.4 Availability of Supplies and Equipment
The industry has
 
periodically experienced difficulty
 
receiving timely delivery
 
of mine supplies
and equipment.
 
Availability issues
 
often accompanied
 
boom periods
 
for coal
 
demand.
 
Any
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
76
future
 
delivery
 
of
 
supplies and
 
equipment delays
 
are
 
expected
 
to be
 
temporary
 
with
 
limited
impact on production.
Table 22-13:
 
Availability of Supplies and Equipment (Risk 11)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Disruption of
availability for
supplies and
equipment.
Temporary interruption of
production.
Force majeure
provision in coal sales
agreements to limit
liability for delayed or
lost sales.
3
2
6
Work closely with
customers to
assure delayed
coal delivery
rather than
cancelled sales;
monitor external
conditions and
increase
inventory of
critical supplies;
accelerate
delivery of
equipment when
possible.
3
1
3
22.2.8.5.5 Labor
Work stoppage due
 
to labor
 
protests are
 
considered to
 
be unlikely
 
and accompanied
 
by limited
impact should it
 
occur.
 
Excellent employee relations and
 
communications limit the exposure
to outside
 
protesters.
 
Loss of
 
supervisors and
 
skilled employees
 
to retirement
 
is inevitable;
the impact can
 
be lessened
 
with succession
 
planning and
 
training and
 
training and
 
mentorship
of new employees.
Table 22-14:
 
Labor – Work Stoppage (Risk 12)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Work stoppage due
to strikes, slowdowns
or secondary boycott
activity.
Loss of production and
coal sales; damaged
customer and employee
relations; reputation loss.
Maintain excellent
employee relations and
communications;
maintain frequent
customer
communications.
2
3
6
Develop plan for
employee
communications
and legal support
to minimize
impact of
secondary
boycott activities.
1
3
3
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
77
Table 22-15:
 
Labor – Retirement (Risk 13)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation Measures
Residual Risk
Level
P
C
R
P
C
R
Retirement of
supervisors and
skilled employees.
Loss of leadership
and critical skills to
sustain high levels of
safety, maintenance
and productivity.
Monitor demographics
closely and maintain
communications with
employees who are
approaching retirement
age; maintain employee
selection and training
programs.
3
3
9
Maintain selection of
candidates and
implementation of in-
house or third-party
training for electricians
and mechanics;
develop employee
mentoring program.
3
2
6
23
Recommendations
Coronado
 
is
 
continuing
 
to
 
work
 
both
 
internally
 
and
 
with
 
outside
 
assistance
 
to
 
continue
 
to
further define their Resource Base and to Optimize the LOM Plan.
24
References
Publicly
 
available
 
information
 
from
 
various
 
State
 
and
 
Federal
 
agencies
 
was
 
used
 
where
relevant.
25
Reliance on Information Provided by the
Registrant
For the purpose of this TRS, MM&A utilized the
 
Geological data provided by Coronado.
 
This
information was subjected to verification of its integrity and completeness.
Historical productivity and operating costs were also
 
supplied by Coronado.
 
This information
was combined with the experience and knowledge of the QP’s to forecast the LOM plan.
A summary
 
of the
 
information provided by
 
Coronado relied upon
 
by MM&A for
 
the purposes
of this TRS is provided in
Table
 
25-1
.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Logan County Complex in Accordance with
 
the JORC Code and United States SEC Regulation
 
S-K 1300 as
of December 31, 2021
 
Central Appalachian Coal Basin
West Virginia, USA
 
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Table 25-1:
 
Information from Registrant Relied Upon by MM&A
 
Category
Information Provided by Coronado
Report
Section
Legal
Mineral control and surface control rights as shown on maps
3.2, 3.3
Geological
Geologic data including digital databases and original source
 
data
including geologist logs, driller’s logs, geophysical logs
9.1
Coal Quality
Database of coal quality information supplemented with
 
original source
laboratory sheets where available
10.1
Mining
Historical productivities and manpower from operating and future
Coronado mines
13.2, 13.4
Coal Preparation
Flow sheet and other information representing current
 
and future methods
of coal processing
 
14.1
Marketing
Long-term price forecast and market placement by seam
 
or mine used in
financial projections
16.2
Waste Disposal
Engineering data and estimates representing remaining
 
capacities for
coarse and fine coal waste disposal
17.2
Environmental
Permit and bonding information
17.3
Costs
Historical and budgetary operating cost information used to
 
derive cost
drivers for reserve financial modeling
18.2
Economic
WACC and inflation rate used in discounted
 
cash flow analysis
19.1, 19.2,
19.3
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APPENDIX
A
BIOGRAPHIES
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APPENDIX
B
MAPS
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ex963p95i0.jpg
 
 
 
ex963p96i0.jpg
 
 
 
ex963p97i0.jpg
 
 
 
ex963p98i0.jpg
 
 
 
ex963p99i0.jpg
 
 
 
ex963p100i0.jpg
 
 
 
ex963p101i0.jpg
 
 
 
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APPENDIX
C
GLOSSARY OF TERMS
 
 
 
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Appendix C
 
 
 
 
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Glossary of Abbreviations and Definitions
Abbreviation
Definition
AIPG
American Institute of Professional Geologists
ARMPS
Analysis of Retreat Mining Pillar Stability
ASTM
American Society for Testing
 
and Materials
AVS
Applicant Violator System
bcm
Bank cubic meters
Btu/lb.
British Thermal Unit per pound
CAT
®
Caterpillar Inc.
C.P.G.
Certified Professional Geologist
Carlson
Carlson Mining – formerly SurvCADD
®
 
– a prevalent software package
used for modeling in the Appalachian region
CFR
Code of Federal Regulations
Coronado
Coronado Global Resources Inc.
 
CSR
Codes of State Rules
 
CSX
CSX Corporation, a rail-based freight transportation company
CTR
Contour mining
Demonstrated
reserves
Demonstrated reserves are the sum of proven and probable reserves.
DEP
Department of Environmental Protection
EBITDA
Earnings before Interest, Taxes,
 
Depreciation, and Amortization
 
EOM
End-of-mine reclamation
EPA
United States Environmental Protection Agency
 
ESA
Limited Phase I Environmental Site Assessment
EVR
Estimated Visual Recovery
Feasibility Study
“…comprehensive technical and economic study of the selected
development option for a mineral project, which includes detailed
assessments of all applicable modifying factors together with any other
relevant operational factors, and detailed financial analysis that are
necessary to demonstrate, at the time of reporting, that extraction is
economically viable.
 
According to the proposed definition, the results of
the study may serve as the basis for a final decision by a proponent or
financial institution to proceed with, or finance, the development of the
project. Thus, a feasibility study is more comprehensive, with a higher
degree of accuracy, and yielding results with a higher level of
confidence, than a pre-feasibility study.”
 
Hitachi
Hitachi Construction Machinery Co., Ltd.
HWM
Highwall mining
In situ
Its natural position; said specific of a rock, soil, or fossil when in the
situation in which was originally formed or deposited
Indicated
Resources
Indicated
 
resources
 
are
 
those
 
lying
 
between
 
0.4-kilometer
 
and
 
1.2-
kilometer radius
 
from such
 
an observation
 
point and
 
reported herein
 
as
in-situ mineral resources.
Inferred
Resources
Inferred resources lie more than a 1.2-kilometer radius from a valid point
of
 
measurement
 
but
 
less
 
than
 
4.8
 
kilometers
 
from
 
one,
 
and
 
reported
herein as in-situ mineral resources.
JORC Code
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves
lb. SO
2
 
/ mm Btu
Pounds per sulfur dioxide per million British thermal units
LJ Hughes
LJ Hughes & Sons, Inc. - drilling Company
 
 
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Appendix C
 
 
 
 
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Abbreviation
Definition
LOM
Life-of-mine
M&R
Maintenance and repair
M.B.A.
Master of Business Administration
Measured
Resources
Measured resources are those lying within 0.4-kilometer radius from a
valid point of measurement and reported herein as in-situ mineral
resources.
MINER Act
Mine Improvement and New Emergency Response Act of 2006
 
Mineral Reserve
“…the economically mineable part of a Measured and/or Indicated
Mineral Resource.
 
It includes dilution materials and allowances for
losses, which occur when the material is mined or extracted and is
defined by studies at Preliminary Feasibility or Feasibility level as
appropriate that include Modifying Factors.
 
Such studies demonstrate
that, at the time of reporting, extraction of the mineral reserve is
economically viable under reasonable investment and marketing
assumptions.”
 
Mineral Resource
“…a concentration or occurrence of solid material of economic interest
or on the Earth’s crust in such form, grade or quality that there are
reasonable prospects for eventual economic extraction.
 
The location,
quantity, grade, continuity and other geological characteristics and
continuity of a Mineral Resource are known, estimated or interpreted
from specific geological evidence and knowledge, including sampling.”
 
MM&A
Marshall Miller & Associates, Inc.
Modifying Factors
“…considerations used to convert Mineral Resources to Mineral
Reserves. These include, but are not restricted to, mining, processing,
metallurgical, infrastructure, economic, marketing, legal, environmental
compliance, plans, negotiations, or agreements with local individuals or
groups and governmental factors.”
MRMR
Mineral Resources to Mineral Reserves
MSHA
United States Department of Labor Mine Safety and Health
Administration
MSL
Mean sea level
Mt
Million metric tonnes
NAIP
National Agricultural Imagery Program
NIOSH
National Institute for Occupational Safety and Health
NS
Norfolk Southern Corporation, a rail-based freight transportation
company
O&M
Operating and maintenance
 
OSD
Out-of-seam dilution
OSM
U.S. Office of Surface Mining Reclamation and Enforcement
P&L
Profit and loss before tax
 
P.E.
Professional Engineer
Preliminary
Feasibility Study
“…as a comprehensive study of a range of options for the technical and
economic viability of a mineral project that has advanced to a stage
where a qualified person has determined (in the case of underground
mining) a preferred mining method, or in the case of surface mining) a
pit configuration, and in all cases has determined an effective method of
mineral processing and an effective plan to sell the product. The study’s
financial analysis must have the level of detail necessary to
demonstrate, at the time of reporting, that extraction is economically
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Appendix C
 
 
 
 
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Abbreviation
Definition
viable. In addition, as noted in the proposed definition of a pre-feasibility
study,
 
while a pre-feasibility study is less comprehensive and results in
a lower confidence level than a feasibility study, a pre- feasibility study
is more comprehensive and results in a higher confidence level than an
initial assessment.”
 
Property(ies)
Bituminous coal deposits located in Boone, Logan, and Wyoming
Counties, West Virginia.
 
QP
Qualified Person
Qualified Person
“…a person who is a mineral industry professional with at least five
years of relevant experience in the type of mineralization and type of
deposit under consideration and in the specific type of activity that
person is undertaking on behalf of the registrant. In addition, the
proposed definition requires a qualified person to be an eligible member
or licensee in good standing of a recognized professional organization
at the
time the technical report is prepared.”
Rec.
Recovery
RECs
Recognized Environmental Conditions
Resource
Database
The Resource Database is established by the collection, validation,
recording, storing and processing of data and forms the foundation
necessary for the estimation of Mineral Resource and Mineral Reserve.
 
A quality assurance and quality control program is essential and must
be established to govern the collection of all data.
 
In reporting, a
Mineral Resource must meet the minimum requirement of “reasonable
prospects for economic extraction”. This will require the concurrent
collection and storage of preliminary economic, mining, metallurgical,
environmental, legal and social data and other information for use in the
estimation of MRMR.
 
The Resource Database will include both “primary” (observation and
measurement) and “interpreted” data. It is recommended that data be
stored digitally, using a documented, standard format and a reliable
storage medium that allows for easy and complete retrieval of the data.
ROM
Run-of-mine
RPO
Recognized Professional Organizations
S-K 1300
United States Securities and Exchange Commission Regulation S-K
1300 Modernization of Property Disclosures
SEC
U.S. Securities and Exchange Commission
SMCRA
Surface Mining Control and Reclamation Act of 1977 is the primary
federal law that regulates the environmental effects of coal mining in the
United States.
SME
Society for Mining Engineers
Strip Ratio
Represented by bcm of overburden to recoverable coal tonnes
 
tph
tonnes per hour
 
TRS
Technical
 
Report Summary
USA
United States of America
USGS
United States Geologic Survey
 
 
 
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Appendix C
 
 
 
 
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Abbreviation
Definition
VALMIN Code
Australasian Code for Public Reporting of Technical
 
Assessments and
Valuations of Mineral Assets
Vulcan™
Vulcan™ software is a product of Maptek™, a provider of software for
the global mining industry.
ex963p115i0.jpg
 
 
APPENDIX
D
INITIAL ECONOMIC ASSESSMENT FOR
RESOURCES EXCLUSIVE OF RESERVES
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APPENDIX
E
JORC TABLE 1
 
 
 
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Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Section 1 Sampling Techniques and Data
Criteria
JORC Code explanation
Commentary
Sampling
techniques
>
Nature and quality of sampling (e.g. cut channels, random
 
chips, or specific
specialised industry standard measurement tools appropriate
 
to the minerals
under investigation, such as downhole gamma
 
sondes, or handheld XRF
instruments, etc.). These examples should not be
 
taken as limiting the broad
meaning of sampling.
>
Include reference to measures taken to ensure sample
 
representivity and the
appropriate calibration of any measurement tools
 
or systems used.
>
Aspects of the determination of mineralisation that are Material
 
to the Public
Report. In cases where ‘industry standard’ work has
 
been done this would be
relatively simple (e.g. ‘reverse circulation drilling
 
was used to obtain 1 m
samples from which 3 kg was pulverised to produce a
 
30 g charge for fire
assay’). In other cases, more explanation may be
 
required, such as where
there is coarse gold that has inherent sampling
 
problems. Unusual
commodities or mineralisation types (e.g. submarine nodules)
 
may warrant
disclosure of detailed information.
>
 
Most of the coal samples have been obtained
 
from the Properties by subsurface
exploration using core drilling techniques.
 
The protocol for preparing and testing
the samples has varied over time and is not well
 
documented for the older holes
drilled on the Properties.
>
 
Typical USA core drilling sampling technique is for the coal core sample,
 
once
recovered from the core barrel, to be described then wrapped
 
in a sealed plastic
sleeve and placed into a covered core box, which
 
is the length of the sample so
that the core can be delivered to a laboratory in relatively
 
intact condition and with
original moisture content.
>
 
It is reasonable to assume, given the sophistication
 
level of the previous operators,
that these samples were generally collected and processed
 
under industry best-
practices.
 
This assumption is based on MM&A’s familiarity with the operating
companies and the companies used to perform the
 
analysis.
 
>
 
Some of the drill holes were air rotary bored
 
and no coal core samples were
collected.
 
Seam thickness for rotary-drilled bore holes is
 
verified by calibrated
downhole gamma-density logs.
 
>
 
Coal samples that were deemed by MM&A geologists
 
to be unrepresentative were
not used for statistical analysis of coal quality, as documented in the
 
tabulations. A
representative group of drill hole samples from
 
the Properties were then checked
against the original drill laboratory reports to
 
verify accuracy
 
and correctness.
 
Drilling
techniques
>
Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air
 
blast,
auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit
 
or other type, whether core is
oriented and if so, by what method, etc.).
>
 
The Properties have been extensively explored
 
by subsurface drilling efforts carried
out by numerous entities, most of which were
 
completed prior to acquisition by
Coronado.
 
The majority of the drilling was accomplished using
 
vertical continuous
(diamond) coring or air rotary methods.
>
 
Core drilling methods utilize NX-size (5.4 centimeter)
 
or similar-sized core cylinders
to recover core samples, which can be used
 
to delineate geologic characteristics,
and for coal quality testing and geotechnical logging.
 
>
 
Data for the rotary drilled holes is mainly derived
 
from downhole geophysical logs,
which are used to interpret coal and rock thickness
 
and depth since logging of the
drill cuttings is not reliable.
>
 
Geophysical logging was performed on many of
 
the holes, either by Geological
Logging Systems (a division of MM&A), other
 
geophysical logging contractors, and
on those properties acquired from CONSOL geophysical
 
logging was often
performed by CONSOL’s in-house logging services.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
Drill sample
recovery
>
 
Method of recording and assessing core and chip
 
sample recoveries and
results assessed.
>
 
Measures taken to maximise sample recovery and
 
ensure representative
nature of the samples.
>
 
Whether a relationship exists between sample recovery
 
and grade and
whether sample bias may have occurred due
 
to preferential loss/gain of
fine/coarse material.
>
 
Where available, core recovery thickness of coal samples
 
was reconciled with the
thickness interpreted from geophysical logs.
>
 
Core recovery of the older coal samples lacking
 
geophysical logs is sometimes not
well-documented: however, when the laboratory results for such holes had
anomalous values, the data was disqualified and
 
not used.
 
Logging
>
 
Whether core and chip samples have been geologically
 
and geotechnically
logged to a level of detail to support appropriate
 
Mineral Resource estimation,
mining studies and metallurgical studies.
>
 
Whether logging is qualitative or quantitative
 
in nature. Core (or costean,
channel, etc.) photography.
>
 
The total length and percentage of the relevant
 
intersections logged.
>
 
A wide variety of core-logging techniques exist for
 
the properties.
 
For many of the
core holes, the primary data source is a generalized
 
lithology description by the
driller, in some cases supplemented by a more detailed core log
 
completed by a
geologist.
 
>
 
The logging of core thickness and depth is quantitative.
 
With the exception of the
coal seams, logging of rock strata type is more subjective
 
and best considered as
qualitative.
Sub-sampling
techniques and
sample
preparation
>
 
If core, whether cut or sawn and whether quarter, half or all
 
core taken.
>
 
If non-core, whether riffled, tube sampled, rotary split, etc.
 
and whether
sampled wet or dry.
>
 
For all sample types, the nature, quality and appropriateness
 
of the sample
preparation technique.
>
 
Quality control procedures adopted for all sub-sampling
 
stages to maximise
representivity
 
of samples.
>
 
Measures taken to ensure that the sampling is representative
 
of the in situ
material collected, including for instance results for
 
field duplicate/second-half
sampling.
>
 
Whether sample sizes are appropriate to the grain
 
size of the material being
sampled.
>
 
Typical US practice in the Appalachian Basin is that core samples
 
for deep
mineable core samples are not sawn or subsampled
 
(since seams are not of great
thickness and the entire seam is mined and co-mingled).
>
 
Oftentimes, core for surface-mineable coal seams are
 
bench sampled separately
by the various coal and rock layers (plies).
>
 
MM&A has exercised diligence to use only those
 
analyses that are representative
of the coal quality parameters for the appropriate
 
mining type for each sample.
Quality of assay
data and
laboratory tests
>
 
The nature, quality and appropriateness of the assaying
 
and laboratory
procedures used and whether the technique is considered
 
partial or total.
>
 
For geophysical tools, spectrometers, handheld XRF
 
instruments, etc., the
parameters used in determining the analysis including
 
instrument make and
model, reading times, calibrations factors applied and
 
their derivation, etc.
>
 
Nature of quality control procedures adopted (e.g.
 
standards, blanks,
duplicates, external laboratory checks) and whether
 
acceptable levels of
accuracy (i.e. lack of bias) and precision have
 
been established.
>
 
Sample analysis was typically carried out by accredited
 
US laboratories.
 
>
 
Standard procedure upon receipt of core samples
 
by the testing laboratory is to log
the depth and thickness of the sample, then perform
 
testing as specified by a
representative of the operating company.
 
Each sample is then analyzed in
accordance with procedures defined under
American Society for Testing and
Materials (
ASTM
)
 
standards including, but not limited to; washability
 
(ASTM
D4371); ash (ASTM D3174); sulfur (ASTM D4239);
 
Btu/lb. (ASTM D5865); volatile
matter (ASTM D3175); Free Swell Index (
FSI
) (ASTM D720).
>
 
Geophysical tools are calibrated by the logging
 
company and where possible,
validated using a calibration hole.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
Verification of
sampling and
assaying
>
 
The verification of significant intersections by either
 
independent or alternative
company personnel.
>
 
The use of twinned holes.
>
 
Documentation of primary data, data entry procedures,
 
data verification, data
storage (physical and electronic) protocols.
>
 
Discuss any adjustment to assay data.
>
 
All coal intersection data used to generate the geologic
 
model has been cross
referenced with the lithological and geophysical logs
 
by MM&A.
>
 
Laboratory quality was adjusted from dry basis
 
to reflect the anticipated marketable
product moisture.
>
 
Coal quality results were verified by spot-check with
 
laboratory analysis sheets by
MM&A before inclusion into the geologic model
 
and use in the resource estimate.
Location of data
points
>
 
Accuracy and quality of surveys used to locate drill
 
holes (collar and down-
hole surveys), trenches, mine workings and other
 
locations used in Mineral
Resource estimation.
>
 
Specification of the grid system used.
>
 
Quality and adequacy of topographic control.
>
 
Due to the long history of exploration by various
 
parties on the Properties, a wide
variety of survey techniques exist for documentation of
 
data point locations.
 
Many
of the older exploration drill holes appear to have
 
been located by ground survey;
more recently completed drill holes are often located
 
by high-resolution Global
Positioning System (
GPS
) units.
>
 
Grid systems used are typically the State Plane Coordinate
 
System pertinent to
each property.
 
>
 
Topography is based on either the USGS topographic 7.5-minute quadrangle maps
or on recent aerial photogrammetry as necessary
 
(subject to availability).
Data spacing and
distribution
>
 
Data spacing for reporting of Exploration Results.
>
Whether the data spacing and distribution is sufficient
 
to establish the
degree of geological and grade continuity appropriate
 
for the Mineral
Resource and Ore Reserve estimation procedure(s)
 
and classifications
applied.
>
 
Whether sample compositing has been applied.
>
 
Spacing and distribution of data point information
 
may vary from seam to seam
within each mining area.
 
The areas estimated for coal resource and
 
coal reserve
tonnes have been limited so that the data spacing
 
and distribution is sufficient to
establish the degree of geological continuity appropriate
 
for the estimation and
classification of the coal tonnes.
 
>
 
All of the coal resource tonnes are in the measured,
 
indicated, and inferred
categories, and all of the coal reserve tonnes are in
 
the proved and probable
categories in accordance with the JORC Code and
 
SEC standards.
 
Orientation of
data in relation to
geological
structure
>
 
Whether the orientation of sampling achieves unbiased
 
sampling of possible
structures and the extent to which this is
 
known, considering the deposit type.
>
 
If the relationship between the drilling orientation and
 
the orientation of key
mineralised structures is considered to have introduced
 
a sampling bias, this
should be assessed and reported if material.
>
 
Drill holes have been vertically drilled.
 
No downhole deviation logs have been
collected and it is therefore not known if the drill
 
holes have deviated away from
vertical.
 
Based on the relatively shallow seam depths,
 
any deviation is expected to
be insignificant and immaterial to the geologic
 
characterization of the property.
>
 
The dip of the coal seams is relatively minor
 
and not a material issue for
representation of seam thickness or quality.
Sample security
The measures taken to ensure sample security.
>
 
Sample handling procedures employed by explorationists
 
follow typical US protocol
and should be adequate to insure sample security.
Audits or reviews
The results of any audits or reviews of
 
sampling techniques and data.
>
 
MM&A has reviewed all available geological information
 
for the Properties in
developing the geologic model.
 
Only that data deemed suitable has been used
 
for
the purpose of generating the resource and
 
reserve estimates.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Section 2 Reporting of Exploration Results
Criteria
JORC Code explanation
Commentary
Mineral tenement
and land tenure
status
>
 
Type, reference name/number, location and ownership including agreements
or material issues with third parties such as joint
 
ventures, partnerships,
overriding royalties, native title interests, historical
 
sites, wilderness or national
park and environmental settings.
>
 
The security of the tenure held at the time of reporting
 
along with any known
impediments to obtaining a licence to operate
 
in the area.
>
 
The Coronado coal resources are located within
 
three of the United State of
America: Virginia; West Virginia; and Pennsylvania.
 
Control of these Properties is
governed by many hundreds of agreements.
>
 
MM&A has not carried out separate title verification
 
for the coal properties and has
not verified leases, deeds, surveys or other property
 
control instruments pertinent
to the subject resources.
 
>
 
Coronado has represented to MM&A that it controls the
 
mining rights to the coal
deposits as shown on its property maps, and
 
MM&A has accepted these as being
a true and accurate depiction of the mineral rights
 
controlled by Coronado.
 
The
TRS assumes the properties are developed under
 
responsible and experienced
management.
>
 
There are no known legal or environmental encumbrances
 
that would impede
development of the subject coal reserves.
Exploration done
by other parties
>
 
Acknowledgment and appraisal of exploration by other
 
parties.
>
 
The Properties have been extensively explored
 
by subsurface drilling efforts
carried out by numerous entities, most of which
 
were completed prior to acquisition
by Coronado.
>
 
This exploration work was generally performed to
 
prevailing US best practice
standards and deemed adequate for the purposes
 
of this TRS.
 
Geology
>
 
Deposit type, geological setting and style of mineralisation.
>
 
The Coronado coal resources are located within
 
the Northern and Central
Appalachian Coal Basins.
>
 
The coal deposits are Carboniferous in age, being
 
of the Pennsylvanian system.
>
 
Seam of economic significance typically range between
 
0.3 meters and 1.8 meters
in thickness, with relatively little structural deformation.
>
 
Regional structure is typically characterized by gently
 
dipping strata to the
northwest at less than one percent.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
Drill hole
Information
>
 
A summary of all information material to the understanding
 
of the exploration
results including a tabulation of the following information
 
for all Material drill
holes:
●
 
easting and northing of the drill hole collar
●
 
elevation or RL (Reduced Level – elevation above
 
sea level in metres) of
the drill hole collar
●
 
dip and azimuth of the hole
●
 
down hole length and interception depth
●
 
hole length.
>
 
If the exclusion of this information is justified on
 
the basis that the information
is not Material and this exclusion does not detract
 
from the understanding of
the report, the Competent Person should clearly explain
 
why this is the case.
>
 
MM&A reviewed and entered all pertinent data into
 
a digital geologic database for
each Coronado property.
 
The database consists of thousands of data records,
which include drill hole and supplemental coal
 
seam thickness measurements from
outcrop and mine exposures.
 
>
 
All drill holes in the database are provided
 
with a collar elevation and the State
Plane Coordinate System easting and northing coordinate.
>
 
After MM&A confirmed proper coal seam thickness and
 
correlation, the seam data
was modelled and compiled into coal resource maps.
>
 
The maps are provided in the TRS; however, a tabulation of the thousands
 
of
individual data records is not practical to include.
Data aggregation
methods
>
 
In reporting Exploration Results, weighting averaging
 
techniques, maximum
and/or minimum grade truncations (e.g. cutting of high
 
grades) and cut-off
grades are usually Material and should be stated.
>
 
Where aggregate intercepts incorporate short lengths
 
of high grade results
and longer lengths of low grade results, the
 
procedure used for such
aggregation should be stated and some typical examples
 
of such
aggregations should be shown in detail.
>
 
The assumptions used for any reporting of
 
metal equivalent values should be
clearly stated.
>
 
Where a coal seam has been bench sampled
 
(typically for surface mining) the
individual analyses for the coal plies are normally
 
weight-averaged to represent the
total of recoverable coal.
>
 
Coal quality summary results have been documented
 
in the TRS.
 
Average coal
quality on a per-seam basis is used to represent
 
the coal resources within a given
mining area.
>
 
Average coal quality for each Coronado complex is provided
 
in Tables 1-1, 1-2 and
1-3 of this TRS.
 
>
 
No other data aggregations methods are used.
Relationship
between
mineralisation
widths and
intercept lengths
>
 
These relationships are particularly important in the
 
reporting of Exploration
Results.
>
 
If the geometry of the mineralisation with respect
 
to the drill hole angle is
known, its nature should be reported.
>
 
If it is not known and only the down hole lengths
 
are reported, there should be
a clear statement to this effect (e.g. ‘down hole length,
 
true width not known’).
>
 
Coal thickness values from all coal intersections
 
and down hole geophysical logs
are considered to be vertical thicknesses.
 
Seam dip of approximately 2.0 to 3.0
degrees has little effect on the vertical thickness of the
 
seam.
Diagrams
>
 
Appropriate maps and sections (with scales) and tabulations
 
of intercepts
should be included for any significant discovery being
 
reported These should
include, but not be limited to a plan view of
 
drill hole collar locations and
appropriate sectional views.
>
 
Diagrams and maps showing the coal seam intercepts
 
are presented in the TRS.
Balanced
reporting
>
 
Where comprehensive reporting of all Exploration Results
 
is not practicable,
representative reporting of both low and high grades
 
and/or widths should be
practiced to avoid misleading reporting of Exploration
 
Results.
>
 
All of the available, qualified exploration data has
 
been included within the
tabulations, maps, and diagrams for this TRS.
>
 
Both coal thickness and quality data are deemed
 
by MM&A to be reasonably
sufficient within the resource areas. Therefore, there is a
 
reasonable level of
confidence in the geologic interpretations required for
 
coal resource determination
based on the available data and the techniques applied
 
to the data.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
Other substantive
exploration data
>
 
Other exploration data, if meaningful and material,
 
should be reported
including (but not limited to): geological observations;
 
geophysical survey
results; geochemical survey results; bulk samples –
 
size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or
 
contaminating substances.
>
 
Informational material available from the U.S. Geological
 
Survey and the respective
State Surveys was used to assist in the Resource
 
estimate.
 
Further work
>
 
The nature and scale of planned further work (e.g.
 
tests for lateral extensions
or depth extensions or large-scale step-out drilling).
>
 
Diagrams clearly highlighting the areas of possible
 
extensions, including the
main geological interpretations and future drilling areas,
 
provided this
information is not commercially sensitive.
>
 
Further work is expected to include additional exploration,
 
geotechnical testing,
coal quality analyses, and coal property acquisition.
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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,
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Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code explanation
Commentary
Database
integrity
>
 
Measures taken to ensure that data has not been
 
corrupted by, for
 
example,
transcription or keying errors, between its initial collection and its use for
Mineral Resource estimation
 
purposes.
>
 
Data validation procedures
 
used.
>
 
MM&A confirmed coal seam thickness and correlations
 
in databases used for coal
deposit modelling.
 
Representative records were spot-checked for
 
data entry
validation.
 
>
 
Geophysical logs were used wherever available
 
to assist in confirming the seam
correlation and to verify proper seam thickness measurements
 
and recovery of coal
samples.
Site
visits
>
 
Comment on
 
any site
 
visits undertaken
 
by the
 
Competent Person and the
outcome of those visits.
>
 
If no
 
site visits
 
have been
 
undertaken indicate why
 
this is the case.
>
 
MM&A is very familiar with the Properties and
 
has conducted multiple site visits
throughout the years.
Geological
interpretation
>
 
Confidence in (or conversely,
 
the uncertainty
 
of) the geological interpretation
 
of
the mineral deposit.
>
 
Nature of the data used and of
 
any assumptions made.
>
 
The effect,
 
if any,
 
of alternative interpretations on
 
Mineral Resource estimation.
>
 
The use of geology in guiding
 
and controlling Mineral Resource estimation.
>
 
The factors affecting continuity both
 
of grade and geology.
>
 
Due to the relative structural simplicity of the deposits
 
and the reasonable continuity
of the tabular coal beds, the principal geological
 
interpretation necessary to define
the geometry of the coal deposits is the proper
 
modeling of their thickness and
elevation.
 
>
 
Both coal thickness and quality data are deemed
 
by MM&A to be reasonable within
the resource areas.
 
>
 
Therefore, there is a reasonable level of confidence
 
in the geologic interpretations
required for coal resource determination based on
 
the available data and the
techniques applied to the data.
Dimensions
>
 
The extent and variability of the Mineral Resource expressed as length (along
strike or otherwise), plan width, and depth below surface to the upper and lower
limits of the Mineral Resource.
>
 
The subject coal resource areas mostly exist in
 
discreet, individual deposits of highly
variable dimensions, shapes and depth below the
 
ground surface.
>
 
Such factors are best depicted in the maps contained
 
in the TRS.
>
 
Details of the parameters are cited within the
 
TRS and included in the table of Cut-off
Parameters listed in Section 11.1 of the TRS.
 
Estimation
and
modelling
techniques
>
 
The nature and appropriateness of the estimation technique(s) applied and key
assumptions, including treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of extrapolation from data
points. If a computer assisted estimation method was chosen include a
description of computer software and
 
parameters used.
>
 
The availability of check estimates, previous estimates and/or mine production
records and whether the Mineral Resource estimate takes
 
appropriate account
of
 
such data.
>
 
The assumptions made regarding
 
recovery of by-products.
>
 
Geological data was imported into Carlson Mining
®
 
(formerly SurvCADD
®
) geological
modelling software in the form of Microsoft
®
 
Excel files incorporating, drill hole
collars, seam and thickness picks, bottom seam elevations
 
and raw and washed coal
quality. These data files were validated prior to importing into the software.
>
 
Once imported, a geologic model was created.
>
 
The geological model was verified and reviewed.
 
>
 
Resources were estimated by defining seam thickness
 
at each point of observation
and by defining resource confidence arcs around
 
the points of observation.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
>
 
Estimation of deleterious elements or other non-grade variables of economic
significance (e.g. sulphur for acid mine drainage characterisation).
>
 
In the case
 
of block model interpolation, the
 
block
 
size in relation to the
average sample spacing and the search employed.
>
 
Any assumptions behind modelling of
 
selective mining units.
>
 
Any assumptions about
 
correlation between variables.
>
 
Description of how the
 
geological interpretation was used to control the
resource estimates.
>
 
Discussion of basis for using or not
 
using grade cutting or capping.
>
 
The process of validation, the
 
checking process used, the comparison of model
data to drill hole data, and
 
use of reconciliation data if available.
>
 
Points of observation for Measured and Indicated
 
confidence arcs were defined for
all drill holes that intersected the seam.
 
>
 
As prescribed by the common United States
 
classification system the following
distances from points of observation were used
 
to define the corresponding
Resource category arcs:
-
 
Inferred Resources – greater than 3,960 feet (1.2
 
kilometers) but less than 15,840
feet (4.8 kilometers)
-
 
Indicated Resources – 3,960 feet (1.2 kilometers)
-
 
Measured Resources – 1,320 feet (0.4 kilometers)
>
 
The use of the standards commonly used in the
 
United States are appropriate and
customary for this resource jurisdiction and deposition
 
type.
>
 
MM&A performed a geostatistical analysis test
 
of the Coronado data sets using the
Drill Hole Spacing Analysis (
DHSA
) method.
>
 
Based on MM&A’s analysis, it would be possible to extend the measured,
 
indicated
and inferred arcs slightly beyond historically accepted
 
practices due to consistent
geological settings. The QP’s have elected not to extend
 
arc distances, introducing a
level of conservatism in the coal classification.
Moisture
>
 
Whether the tonnages are estimated on a dry basis
 
or with natural moisture,
and the method of determination of the moisture
 
content.
>
 
Coal resource tonnes are presented on a dry, in-situ basis.
>
 
Reserve tonnes are presented on a moist basis at
 
anticipated product moisture
ranging from 4.0 to 6.0 percent. Moisture content
 
based on historic analyses of
shipped coal.
Cut-off
Parameters
>
 
The basis of the adopted cut-off grade(s) or quality parameters
 
applied.
>
 
The cut-off parameters were tailored for each of the
 
Coronado properties to be in
accordance with mining/ processing capabilities and
 
market conditions prevalent at
each operation.
>
 
Examples include minimum recoverable coal thickness,
 
acceptable ash content and
wash recovery, and manageable overburden to coal ratio for surface mineable
 
coal.
>
 
Details of the parameters are cited within the
 
TRS and included in the table of Cut-off
Parameters listed in Section 11.1 of this TRS.
>
 
These cut-off parameters have been developed by MM&A
 
based on its experience
with the Coronado properties and other mining
 
operations of the Central Appalachian
coal basin.
 
This experience includes technical and economic
 
evaluations of
numerous properties in the region for the purposes
 
of determining the economic
viability of the subject coal reserves.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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9
Criteria
JORC Code explanation
Commentary
Mining factors or
assumptions
>
 
Assumptions made regarding possible mining methods,
 
minimum mining
dimensions and internal (or, if applicable, external) mining dilution.
 
It is always
necessary as part of the process of determining
 
reasonable prospects for
eventual economic extraction to consider potential
 
mining methods, but the
assumptions made regarding mining methods and parameters
 
when estimating
Mineral Resources may not always be rigorous.
 
Where this is the case, this
should be reported with an explanation of the
 
basis of the mining assumptions
made.
>
 
Mining factors such as dilution, mining and washing
 
recovery are variable and have
been applied at the coal deposits at each operation
 
based on site-specific
characteristics.
>
 
Details of the factors are cited within the TRS.
>
 
Factors that would typically preclude conversion of a
 
coal resource to coal reserve
include the following: inferred resource classification;
 
absence of coal quality; poor
mine recovery; lack of access; insufficient exploration; or
 
uncontrolled surface
property for areas of proposed for surface mining.
 
>
 
While such factors were used to preclude the conversion
 
of a very limited number of
coal resources to coal reserves in this report,
 
the extensive history of mining on the
Properties would suggest that there are reasonable prospects
 
for eventual economic
extractions of all coal resources under favorable
 
market conditions.
Metallurgical
factors or
assumptions
>
 
The basis for assumptions or predictions regarding
 
metallurgical amenability. It
is always necessary as part of the process of
 
determining reasonable prospects
for eventual economic extraction to consider potential
 
metallurgical methods,
but the assumptions regarding metallurgical treatment
 
processes and
parameters made when reporting Mineral Resources may
 
not always be
rigorous. Where this is the case, this should be reported
 
with an explanation of
the basis of the metallurgical assumptions made.
>
 
The products mined from coal resources controlled by
 
Coronado can be sold into
high-, mid-, and low-volatile metallurgical coal markets
 
because of their inherent
quality characteristics.
 
>
 
Run-of-mine production is washed at the coal preparation
 
plants as needed for
quality control.
 
>
 
Coronado may blend production from multiple
 
sources to manage ash and sulfur
content along with the rheological and petrographic
 
characteristics of the shipped
products.
 
Environmental
factors or
assumptions
>
 
Assumptions made regarding possible waste and
 
process residue disposal
options. It is always necessary as part of the process
 
of determining reasonable
prospects for eventual economic extraction to consider
 
the potential
environmental impacts of the mining and processing
 
operation.
 
While at this
stage the determination of potential environmental impacts,
 
particularly for a
greenfields project, may not always be well advanced,
 
the status of early
consideration of these potential environmental impacts
 
should be reported.
Where these aspects have not been considered
 
this should be reported with an
explanation of the environmental assumptions made.
>
 
MM&A completed a Limited Phase I Environmental Site
 
Assessment (ESA) on the
Buchanan property in April 2016, and on the Logan
 
County and Greenbrier
Properties in May 2017 on behalf of Coronado.
 
Coronado reports not having
conducted such a study since the MM&A studies.
 
>
 
The ESAs completed by MM&A included a site inspection,
 
review of historical
records, a database search of State and Federal
 
regulatory records and interviews to
identify potential recognized environmental conditions (RECs)
 
that may create
environmental liability for the sites.
 
>
 
MM&A identified one REC at Greenbrier associated
 
with stained soil and gravel near
a fueling and maintenance area.
 
Coronado reported to MM&A that satisfactory
clean-up efforts were completed at Greenbrier.
 
>
 
Based on these former ESAs completed by MM&A,
 
it is MM&A’s opinion that
Coronado has a generally typical coal industry
 
record of compliance with applicable
mining, water quality, and environmental laws.
 
Estimated costs for mine closure,
including water quality monitoring during site reclamation,
 
are included in the TRS
financial models.
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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&
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SSOCIATES
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Criteria
JORC Code explanation
Commentary
Bulk density
>
 
Whether assumed or determined. If assumed, the
 
basis for the assumptions. If
determined, the method used, whether wet or dry, the frequency of the
measurements, the nature, size and representativeness
 
of the samples.
>
 
The bulk density for bulk material must have been
 
measured by methods that
adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit.
>
 
Discuss assumptions for bulk density estimates
 
used in the evaluation process
of the different materials.
>
 
Laboratory derived seam densities measured in
 
specific gravity were used where
available.
 
As needed, these data were supplemented by estimated
 
seam density
values based on the relative proportion of
 
coal and non-coal material within the seam
(typically at 1.30 and 2.25 specific gravity, respectively).
>
 
Average seam density was determined for each coal deposit
 
and used to convert
coal volumes into coal tonnage estimates.
Classification
>
 
The basis for the classification of the Mineral Resources
 
into varying confidence
categories.
>
 
Whether appropriate account has been taken
 
of all relevant factors (i.e. relative
confidence in tonnage/grade estimations, reliability
 
of input data, confidence in
continuity of geology and metal values, quality, quantity and distribution
 
of the
data).
>
 
Whether the result appropriately reflects the
 
Competent
>
 
Person’s view of the deposit.
>
 
The Resource has been classified based on suitable
 
distances from points of
observations prescribed in the common United States
 
classification system.
>
 
The use of the United States standards is appropriate
 
and customary for this
resource jurisdiction and deposition type.
>
 
MM&A performed a geostatistical analysis test
 
of the Coronado data sets using the
Drill Hole Spacing Analysis (
DHSA
) method.
>
 
Based on MM&A’s analysis, it would be possible to extend the measured,
 
indicated
and inferred arcs slightly beyond historically accepted
 
practices due to consistent
geological settings. The QP’s have elected not to extend
 
arc distances, introducing a
level of conservatism in the coal classification.
>
 
All relevant factors have been accounted for and
 
reflect the Competent Person’s
view of the deposit.
Audits or reviews
>
 
The results of any audits or reviews of Mineral
 
Resource estimates.
>
 
MM&A completed prepared a statement of coal resources
 
and reserves for the
Properties in accordance with the JORC Code
 
as of December 31, 2017.
 
MM&A
also subsequently updated the estimate of resources
 
and reserves for depletion as
of December 31, 2018, December 31, 2019, and
 
December 31, 2020.
>
 
MM&A performed a previous audit of the Properties
 
in year 2017 for Coronado
based on U.S. Securities and Exchange Commission
 
(SEC) Industry Guide 7 and
USGS Circular 891 standards.
 
>
 
Earlier audits were performed by various independent
 
consultants for predecessors-
in-title to Coronado and at various levels of detail
 
depending on the clients concerns
and the allotted time for completion.
 
Previous audits and reviews defined the
primary coal resource areas and estimated the recoverable
 
tonnes for each seam
based on the expected mining methods.
 
>
 
Additionally, MM&A has performed proprietary evaluations for predecessors-in-title
to Coronado, which encompass portions of the Properties
 
included in this TRS.
Discussion of
relative
accuracy/
confidence
>
 
Where appropriate a statement of the relative accuracy
 
and confidence level in
the Mineral Resource estimate using an approach
 
or procedure deemed
appropriate by the Competent Person. For example,
 
the application of statistical
or geostatistical procedures to quantify the relative
 
accuracy of the resource
within stated confidence limits, or, if such an approach is not deemed
>
 
The relative accuracy of and confidence in the coal
 
tonnage and quality estimates
provided herein are judged to be in conformance
 
with current industry best-practices.
>
 
The representation of average coal quality characteristics
 
should be understood to
represent a reasonably representative sampling
 
that is generally indicative of coal
quality and does not represent a statistically rigorous
 
approach to coal quality
modeling.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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&
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SSOCIATES
,
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NC
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11
Criteria
JORC Code explanation
Commentary
appropriate, a qualitative discussion of the factors that
 
could affect the relative
accuracy and confidence of the estimate.
>
 
The statement should specify whether it relates
 
to global or local estimates,
and, if local, state the relevant tonnages, which
 
should be relevant to technical
and economic evaluation. Documentation should include
 
assumptions made
and the procedures used.
>
 
These statements of relative accuracy and confidence
 
of the estimate should be
compared with production data, where available.
>
 
Resource estimation has been completed using standard
 
coal estimation methods
which are deemed appropriate for this deposit.
Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code explanation
Commentary
Mineral Resource
estimate for
conversion to Ore
Reserves
 
>
 
Description of the Mineral Resource estimate used
 
as a basis for the
conversion to an Ore Reserve.
>
 
The coal resource estimate was prepared
 
as part of the report Coronado Global
Resources Inc. Statement of Coal Resources and
 
Reserves in Accordance with
JORC Code and United States SEC Standards
 
as of December 31, 2021 –
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and
Pennsylvania, USA – February 2022 prepared
 
by MM&A.
>
 
The resource estimation criteria were developed by
 
MM&A based on the capabilities
of the mining equipment used within the production
 
model and on industry-accepted
standards to assure that the basic geologic characteristics
 
of the coal resources are
in reasonable conformity with those to be mined and
 
marketed by Coronado.
>
 
Clear statement as to whether the Mineral Resources
 
are reported additional
to, or inclusive of, the Ore Reserves.
>
 
Coal resources generally are reported inclusive of
 
the coal reserves.
 
In some
cases, resources are reported in addition to
 
coal reserves.
 
Tables 1-1 and 11
 
-3 of
the TRS clearly identify resources “inclusive of mine
 
plan” from which coal reserves
were estimated along with those resources “exclusive
 
of mine plan” from which no
reserves were estimated.
 
Site visits
 
>
 
Comment on any site visits undertaken by the
 
Competent Person and the
outcome of those visits.
>
 
MM&A is very familiar with the Properties and
 
has conducted multiple site visits
throughout the years.
Study status
 
>
 
The type and level of study undertaken to
 
enable Mineral Resources to be
converted to Ore Reserves.
>
 
A preliminary feasibility LOM plan was prepared by
 
MM&A for active and proposed
mines.
 
>
 
The Code requires that a study to at least Pre-Feasibility
 
Study level has been
undertaken to convert Mineral Resources to Ore
 
Reserves. Such studies will
have been carried out and will have determined a
 
mine plan that is technically
achievable and economically viable, and that material
 
Modifying Factors have
been considered.
>
 
This geologic evaluation conducted in accordance
 
with JORC and SEC standards
and in conjunction with the preliminary feasibility
 
study is sufficient to conclude that
the surface, highwall miner and underground
 
coal reserves identified on the
Properties are economically mineable under reasonable
 
expectations of market
prices for thermal and metallurgical coal products, estimated
 
operation costs, and
capital expenditures.
>
 
The pre-feasibility financial models, prepared by MM&A
 
for this TRS, was developed
to test the economic viability of each coal resource
 
area.
>
 
Proved and probable coal reserve were derived
 
from the defined in-situ coal
resource considering relevant processing, economic (including
 
independent
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
estimates of capital, revenue and cost, marketing, legal,
 
environmental,
socioeconomic, and regulatory factors).
Cut-off parameters
>
 
The basis of the adopted cut-off grade(s) or quality parameters
 
applied.
>
 
The cut-off parameters were tailored for each of the
 
Coronado properties to be in
accordance with mining/ processing capabilities and
 
market conditions prevalent at
each operation.
>
 
Examples include minimum recoverable coal thickness,
 
acceptable ash content and
wash recovery, and manageable overburden to coal ratio for surface mineable
 
coal.
>
 
Details of the parameters are cited within the TRS and
 
included in the table of Cut-
off Parameters listed in Section 11.1 of this TRS.
>
 
These cut-off parameters have been developed by MM&A
 
based on its experience
with the Coronado properties and are typical of
 
mining operations in the Central
Appalachian coal basin.
 
This experience includes technical and economic
evaluations of numerous properties in the region
 
for the purposes of determining the
economic viability of the subject coal reserves.
Mining factors or
assumptions
 
>
 
The method and assumptions used as reported
 
in the Pre-Feasibility or
Feasibility Study to convert the Mineral Resource to an
 
Ore Reserve (i.e. either
by application of appropriate factors by optimisation
 
or by preliminary or
detailed design).
>
 
After validating coal seam data and establishing
 
correlations, the thickness and
elevation for seams of economic interest were used
 
to generate a geologic model.
>
 
A pre-feasibility LOM plan was prepared
 
by MM&A for active and proposed mines.
 
MM&A prepared mine projections and production timing
 
forecasts based on coal
seam characteristics.
 
Production timing was carried out from 2022
 
to depletion
(exhaustion) of the coal reserve areas.
>
 
The choice, nature and appropriateness of the selected
 
mining method(s) and
other mining parameters including associated design
 
issues such as pre-strip,
access, etc.
>
 
The room-and-pillar mining method was selected to
 
model the underground mining
resources, utilizing continuous miners for coal extraction,
 
shuttle cars for production
section haulage and roof bolters for roof control,
 
with the exception that the
Buchanan Mine also uses longwall shearers, armored
 
face conveyors, and
hydraulic self-advancing roof support.
 
The resource areas located above drainage
are relatively small and often have irregular
 
boundaries.
The Buchanan Mine in
Buchanan County, Virginia is the only active longwall mine currently being operated
by Coronado.
>
 
The Coronado underground mining resource areas
 
which are located above-
drainage require an access road and mine access
 
development along the outcrop,
whereas below-drainage mines are accessed via shaft or
 
slope based on other
proposed surface infrastructure locations and/or surface
 
property control.
 
>
 
The surface mining method selected utilizes highly productive
 
hydraulic shovels,
front-end loaders, large tractors and rock trucks
 
for overburden removal.
 
The
mobile equipment spreads adapt readily to winding
 
coal outcrops for contour
surface mining and are effective for point-removal and area
 
mining applications.
>
 
Application of highwall and auger mining units
 
is an effective method to recover coal
resources not suitable for underground mining and under
 
excessive cover for
surface mining.
>
 
The assumptions made regarding geotechnical parameters
 
(e.g. pit slopes,
stope sizes, etc.), grade control and pre-production
 
drilling.
>
 
Mining plans for potential underground mines were
 
developed by MM&A.
 
Pillar
stability was tested by MM&A using the
Analysis of Coal Pillar Stability (ACPS
)
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
program that was developed by the
National Institute for Occupational Safety
and Health (
NIOSH
)
.
 
>
 
Coronado must obtain approved mining plans from
United States Department of
Labor Mine Safety and Health Administration (
MSHA
)
that define safety
parameters for the highwalls developed during
 
contour and area mining.
 
MM&A’s
planning model does not require input of specific
 
highwall design parameters, but
provides for timing of mining within mine plan polygons
 
that is representative of the
operation performance attained at Central Appalachia
 
surface mines.
>
 
Highwall and auger mining is conducted under highwalls
 
designed and constructed
to meet MSHA permit requirements.
 
To better assure highwall stability and safety
during highwall coal extraction, MSHA requires that
 
coal fenders, or stumps, be left
in place between successive cuts. Periodic barrier pillars
 
must be left in place as an
additional safeguard.
 
MM&A has adjusted the expected mining recovery
 
for
highwall and auger mining resources to reflect
 
highwall stability and safety
requirements.
>
 
The major assumptions made and Mineral Resource
 
model used for pit and
stope optimisation (if appropriate).
>
 
Underground Mining Resources:
 
For metallurgical resources, minimum coal seam
thickness extends down to between 0.6 and 1.2
 
meters and a minimum overburden
(depth of cover) of 30.5 meters.
 
A 61-meter horizontal distance is maintained from
abandoned mines and sealed or pillared areas,
 
and a 30-meter horizontal distance
is maintained from planned highwall miner panels.
 
Mine recovery is reduced when
a rider coal seam is present within a 1.5- to 3.0-meter
 
interval above the coal seam.
 
No mining is projected when the interval between
 
overlying and underlying reserves
is less than 12 meters.
>
 
Surface Mining Resources:
 
For classification as a surface-mineable resource, a
seam must be at least 0.3 meters in thickness
 
as a stand-alone (principle) seam
and 0.15 meters in thickness when less than
 
0.8 meters from a principle seam.
 
The
maximum cumulative area mining strip ratio is generally
 
20:1 for thermal coal and
30:1 for metallurgical coal.
 
Some areas were assessed for their economic viability
at higher ratios, and were included as reserves
 
if deemed economic.
 
For contour
surface mining, a minimum of 38-meter bench is
 
provided to support HWM.
>
 
HWM and Auger Mining Resources: HWM cut depth (penetration)
 
is established at
a maximum of 244 meters.
 
The minimum mineable coal thickness is limited
 
at 0.6
meters. For coal seams less than 0.8 meters
 
thick, roof and/or floor characteristics
must allow OSD cutting to maintain a 0.8-meter
 
minimum cutting height.
Auger
mining cut depth is established at an average
 
of 91 meters.
 
The minimum mineable
coal thickness is limited at 0.5 meters.
>
 
The mining dilution factors used.
>
 
Underground Mining Reserves:
 
The planning model assigns minimum mining
heights of 1.4 to 1.8 meters for mains and panel
 
development.
 
At the Buchanan
Mine, a minimum mining height of 1.8 meters
 
was used due to the longwall mining
method being employed.
 
For coal seams thinner than the assigned mining
 
height,
the difference between the coal seam height and assigned
 
mining height consists of
OSD.
 
In all cases a minimum of 0.05 meters
 
of OSD was assumed, with the
exception of the Mon Valley mines, where a minimum 0.15 meters of OSD was
assumed due to weaker floor strata.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
>
 
Surface Mining Reserves:
 
Area mining is generally limited to a cumulative
overburden ratio of 30:1 and a 15:1 ratio for
 
contour mining.
 
Exceptions were
considered for mining of metallurgical grade coal where
 
deemed economical.
 
It is
assumed that careful cleaning of exposed coal pits will
 
result in minimal OSD.
>
 
HWM and Auger Mining Reserves:
 
The mining plan assumes that the HWM cutting
height is a minimum of 76 to 99 centimeters
 
for clearance purposes.
 
When the coal
seam is less than 76 to 99 centimeters thick, OSD
 
assumed and included in the
ROM product.
Because the auger has very limited OSD cutting ability, it is assumed
that an appropriate auger diameter will be
 
chosen based on the coal seam
thickness and that OSD will be minimal.
>
 
The mining recovery factors used.
>
 
Underground Mining Reserves:
 
Mine recovery generally varies between 40 and
 
60
percent for continuous mining panels, and 100
 
percent for longwall.
>
 
Surface Mining Reserves:
 
Mining recovery is 90 percent for virgin areas.
 
Mining
recovery is reduced where second mining is
 
projected in previously underground
and auger mined areas.
>
 
HWM and Auger Mining Reserves:
 
A mine recovery of 40 percent has been applied
for HWM.
A mine recovery of 35 percent has been
 
applied for auger mining.
>
 
Any minimum mining widths used.
>
 
Underground Mining Reserves:
 
Typical entry width is 5.8 to 6.1 meters.
>
 
The manner in which Inferred Mineral Resources
 
are utilised in mining studies
and the sensitivity of the outcome to their inclusion.
>
 
Proved and probable coal reserve were derived
 
from the defined in-situ coal
resource considering relevant processing, economic (including
 
independent
estimates of capital, revenue and cost, marketing, legal,
 
environmental,
socioeconomic, and regulatory factors).
>
 
Mine plan LOM tonnage includes inferred coal and
 
those areas that do not meet the
minimum coal thickness requirement for classification as
 
reserve.
 
Inferred coal
represents approximately 0.6% of the LOM production
 
for Mon Valley and 0.04% of
the total LOM production for Logan.
 
None of this coal was included in the estimate
of reserves
 
>
 
The infrastructure requirements of the selected mining
 
methods.
>
 
Underground Mining Resources:
 
The continuous mining method provides for the
extraction of coal from the production faces using
 
continuous miners (and longwall
shearing machine at Buchanan) and haulage using
 
shuttle cars or battery haulers to
a feeder-breaker located at the tail of the section
 
conveyor belt.
 
The feeder-breaker
crushes large pieces of coal and rock and regulates
 
coal feed onto the mine
conveyor.
 
A chain conveyor is used to remove coal from
 
the longwall face at the
Buchanan Mine for placement onto the conveyor belt
 
which is ultimately delivered to
an underground storage bunker.
 
Roof-bolting machines are used to install roof
bolts, and battery scoops are available to clean the
 
mine entries and assist in
delivery of mine supplies to work areas.
 
Surface ventilation fans are installed as
needed to provide a sufficient volume of air to ventilate production
 
sections, coal
haulage and transport entries, battery charging stations,
 
and transformers in
accordance with approved plans.
>
 
Coronado currently operates three coal preparation
 
plants, one each at the
Buchanan, Logan County and Greenbrier Divisions.
 
The Buchanan Plant operates
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
at a feed rate of approximately 907 raw tonnes
 
per hour (
tph
), whereas the
Saunders Plant (Logan County Division) has a nominal
 
feed rate of 816 tph, and the
Mountaineer Plant (Greenbrier Division) operates
 
at 544 tph.
MM&A has included
capital estimates for construction of additional
 
coal preparation plants at the Russell
County and Mon Valley Complex for the purposes of this TRS.
 
>
 
Surface Mining Resources: The surface mining
 
mobile equipment spreads advance
the contour and area mining pits while systematically
 
reclaiming the trailing side of
pits where coal has been removed.
 
The coal haul roads are extended and
maintained as the pits advance.
 
Support facilities are maintained nearby but
 
away
from the active mining, and include storage areas
 
for blasting agents, fuel and
lubricants, and mine supplies along with maintenance
 
facilities and offices.
 
Most of
the surface mine production is transported to a loading
 
point for crushing, blending
and direct-shipment to customers.
 
>
 
HWM and Auger Resources: The HWM equipment advances
 
along with the contour
mining pits.
 
The rate of advance of the contour mining
 
is governed by the
advancement rate of the HWM.
 
A diesel-powered generator trails the highwall
miner and powers the continuous mining unit.
 
Other support facilities are provided
along with the contour mining support facilities.
 
HWM production is all transported
by truck to the coal preparation plant for washing.
Metallurgical
factors or
assumptions
 
>
 
The metallurgical process proposed and the appropriateness
 
of that process to
the style of mineralisation.
>
 
Coarse material is washed in a heavy medium
 
vessel.
 
Intermediate-size material is
washed in heavy medium cyclones.
 
Fine material is washed using conventional
froth flotation cells.
>
 
Whether the metallurgical process is well-tested technology
 
or novel in nature.
>
 
Processes are typical of those used in the
 
coal industry and are in use at adjacent
coal processing plants.
>
 
The nature, amount and representativeness of metallurgical
 
test work
undertaken, the nature of the metallurgical domaining applied
 
and the
corresponding metallurgical recovery factors applied.
>
 
The quality characteristics for the subject coal resources
 
and coal reserves have
been reviewed in detail by MM&A.
 
The drill hole data were utilized to develop
average coal quality characteristics mining site.
 
These average coal quality
characteristics were then utilized as the basis for determining
 
the various markets
into which the saleable coal will likely be placed.
>
 
Any assumptions or allowances made for deleterious
 
elements.
>
 
No significant effects on product quality are anticipated
 
from dilution material; float
product quality was used to model final product
 
quality.
>
 
The existence of any bulk sample or pilot scale
 
test work and the degree to
which such samples are considered representative of
 
the orebody as a whole
>
 
No bulk sample or pilot scale work has been completed.
>
 
For minerals that are defined by a specification,
 
has the ore reserve estimation
been based on the appropriate mineralogy to meet
 
specifications?
>
 
Notwithstanding the complexity of the coal quality data set,
 
the seams of the central
and northern Appalachian coalfields have a long history
 
of providing both high-Btu
thermal coals and high-, mid- and low-volatile coking
 
coals with favorable
metallurgical properties.
Environmental
 
>
 
The status of studies of potential environmental impacts
 
of the mining and
processing operation. Details of waste rock characterisation
 
and the
consideration of potential sites, status of design options
 
considered and, where
>
 
MM&A completed a Limited Phase I Environmental Site
 
Assessment (
ESA
) on the
Buchanan property
 
in April 2016, and on the Logan County
 
and Greenbrier
Properties in May 2017 on behalf of Coronado.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
applicable, the status of approvals for process residue
 
storage and waste
dumps should be reported.
>
 
MM&A identified one REC at Greenbrier associated
 
with stained soil and gravel
near a fueling and maintenance area.
 
Coronado reported to MM&A that satisfactory
clean-up efforts were completed at Greenbrier.
>
 
Based on these former ESAs completed by MM&A,
 
it is MM&A’s opinion that
Coronado has a generally typical coal industry
 
record of compliance with applicable
mining, water quality, and environmental laws.
 
Estimated costs for mine closure,
including water quality monitoring during site reclamation,
 
are included in the TRS
financial models.
Infrastructure
 
>
 
The
 
existence
 
of
 
appropriate
 
infrastructure:
 
availability
 
of
 
land
 
for
 
plant
development, power,
 
water,
 
transportation (particularly
 
for bulk
 
commodities),
labour,
 
accommodation;
 
or
 
the
 
ease
 
with
 
which
 
the
 
infrastructure
 
can
 
be
provided or accessed.
>
 
Coronado currently operates one surface mine (Toney Fork Mine at the Logan Mine
Complex); Coronado also controls the idle Midland
 
Surface Mine at the Greenbrier
Mine Complex.
 
>
 
Coronado operates five underground mines as follows:
 
Buchanan Mine at the
Buchanan Mine Complex; Powellton #1, Eagle No. 1,
 
Muddy Bridge and Lower War
Eagle Mines in the Logan Mine Complex; the Mountaineer
 
#1 Mine at the
Greenbrier Mine Complex is currently idle.
>
 
All ROM production is currently planned for either
 
truck transportation from the
mines to the processing or shipping facilities, or
 
in some cases there is either a
current or planned mine mouth preparation plant and
 
barge/rail loading facility.
 
>
 
There is a network of public highways that provide
 
serviceable coal haul routes and
private, internal roads on the Properties would
 
be developed as may be needed.
 
Rail service to the Properties is most readily
 
provided by NS and CSX
with
connections to both domestic consumers and international
 
trans-shipment points.
 
NS track is located across the Monongahela
 
River from the proposed Pangburn
Hollow load-out facility.
 
Coal would be shipped to customers via barge
 
and rail and
sold as both metallurgical and thermal products.
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
Costs
 
>
 
The derivation of, or assumptions made, regarding
 
projected capital costs in
the study.
>
 
The methodology used to estimate operating costs.
>
 
Coronado provided historical and 5-year budget operating
 
costs for its active mines
for MM&A’s review.
 
MM&A used the historical and/or budget cost
 
information as a
reference and developed personnel schedules for
 
each mine.
 
Hourly labor rates
and salaries were based upon information contained
 
in Coronado’s financial
summaries.
 
Fringe benefit costs were developed for vacation
 
and holidays, federal
and state unemployment insurance, retirement, workers’
 
compensation and
pneumoconiosis, casualty and life insurance, healthcare
 
and bonuses.
 
A cost factor
for mine supplies was developed that relates expenditures
 
to mine advance rates for
roof control costs and other mine supply costs at
 
underground mines.
 
Other factors
were developed for maintenance and repair costs,
 
rentals, mine power, outside
services and other direct mining costs
>
 
Surface mine direct operating costs were developed
 
as a function of overburden
ratio for repair and maintenance supplies, diesel
 
fuel, explosives and blasting, and
miscellaneous supplies and services.
 
Operating costs for highwall mines are based
on costs per ROM tonne estimates.
 
Other cost factors were developed for
 
coal
preparation plant processing, refuse handling,
 
coal loading, trucking, property taxes,
and insurance and bonding.
 
Appropriate royalty rates were assigned for production
from leased coal lands and sales taxes were calculated
 
for state severance taxes,
the federal black lung excise tax, and federal and
 
state reclamation fees.
>
 
Capital schedules were developed by MM&A for mine
 
development, infrastructure,
and on-going capital requirements for the life of
 
each projected mine.
>
 
Staffing levels were prepared and operating costs estimated
 
by MM&A for each
projected mine.
 
MM&A utilized historical cost data provided by Coronado
 
and its
own knowledge and experience to estimate direct
 
and indirect operating costs.
 
>
 
Allowances made for the content of deleterious elements.
>
 
No allowances have been made for deleterious
 
elements; no impact to quality from
deleterious elements is anticipated.
>
 
The derivation of assumptions made of metal or commodity
 
price(s), for the
principal minerals and co- products.
>
 
Coronado provided MM&A with price forecasts for all
 
Properties.
 
Customer coal
pricing is derived from market observed forward
 
estimates based on global
economic supply and demand analysis which is applied
 
to mine plan sales volumes
and product mix and is supplemented with Coronado’s
 
in-house knowledge of
applicable rail transportation charges, ocean freight
 
charges and port charges.
 
Coal
price forecasts for the various products were provided
 
by Coronado for various coal
markets in terms of US nominal dollars per metric
 
tonne.
 
MM&A utilized this data
for price forecasting in financial modeling.
>
 
Derivation of transportation charges.
>
 
Coronado provided MM&A with price forecasts
 
for all Properties.
 
Customer coal
pricing is derived from market observed forward
 
estimates based on global
economic supply and demand analysis which is applied
 
to mine plan sales volumes
and product mix and is supplemented with Coronado’s
 
in-house knowledge of
applicable rail transportation charges, ocean freight
 
charges and port charges.
 
Coal
price forecasts for the various products were provided
 
by Coronado for various coal
markets in terms of US nominal dollars per metric
 
tonne.
 
MM&A utilized this data
for price forecasting in financial modeling.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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Criteria
JORC Code explanation
Commentary
>
 
The basis for forecasting or source of treatment and
 
refining charges, penalties
for failure to meet specification, etc.
>
 
MM&A utilized historical cost data provided by
 
Coronado and its own knowledge
and experience to estimate direct and indirect operating
 
costs.
 
All ROM production
is currently planned for either truck transportation from
 
the mines to the processing
or shipping facilities, or in some cases there is either
 
a current or planned mine
mouth preparation plant and barge/rail loading facility.
>
 
The allowances made for royalties payable, both
 
Government and private.
>
 
Appropriate royalty rates were assigned for production
 
from leased coal lands and
sales taxes were calculated for state severance taxes,
 
the federal black lung excise
tax, and federal and state reclamation fees.
Revenue factors
 
>
 
The derivation of, or assumptions made regarding
 
revenue factors including
head grade, metal or commodity price(s) exchange
 
rates, transportation and
treatment charges, penalties, net smelter returns, etc.
>
 
Coronado provided MM&A with price forecasts
 
for all Properties.
 
Customer coal
pricing is derived from market observed forward estimates
 
based on global
economic supply and demand analysis which is applied
 
to mine plan sales volumes
and product mix and is supplemented with Coronado’s
 
in-house knowledge of
applicable rail transportation charges, ocean freight
 
charges and port charges.
 
Coal
price forecasts for the various products were provided
 
by Coronado for various coal
markets in terms of US nominal dollars per metric
 
tonne.
 
MM&A utilized this data
for price forecasting in financial modeling.
>
 
The derivation of assumptions made of metal or commodity
 
price(s), for the
principal metals, minerals and co-products.
>
 
Coal sales prices as defined above.
 
All reported reserves are on a marketable
basis.
Market assessment
 
>
 
The demand, supply and stock situation for the particular
 
commodity,
consumption trends and factors likely to affect supply and
 
demand into the
future.
>
 
Coronado provided MM&A with price forecasts
 
for all Properties.
 
Customer coal
pricing is derived from market observed forward
 
estimates based on global
economic supply and demand analysis which is applied
 
to mine plan sales volumes
and product mix and is supplemented with Coronado’s
 
in-house knowledge of
applicable rail transportation charges, ocean freight
 
charges and port charges.
 
Coal
price forecasts for the various products were provided
 
by Coronado for various coal
markets in terms of US nominal dollars per metric
 
tonne.
 
MM&A utilized this data
for price forecasting in financial modeling.
>
 
A customer and competitor analysis along with the identification
 
of likely market
windows for the product.
>
 
All of the mine production serves metallurgical and thermal
 
markets.
 
The
metallurgical coal is marketed as high-volatile (typically
 
28 percent or greater volatile
matter content); mid-volatile (typically 23- to 27-percent
 
volatile matter content) and
low-volatile (typically less than 23 percent volatile
 
matter content) products.
>
 
Raw ROM production that requires washing is
 
currently processed through
Coronado owned and operated coal preparation
 
plants.
 
>
 
ROM coal that does not require further processing
 
is delivered directly to the loading
points for sizing and delivery to customers.
 
Coronado has access to two rail-loading
points serviced by the
Norfolk Southern Corporation (
NS
)
 
and two rail-loading
points serviced by
CSX Corporation (
CSX
)
.
>
 
Price and volume forecasts and the basis for these
 
forecasts.
>
 
Carlson Mining 2020
®
 
was used by MM&A to generate mine
 
plans for underground-
and surface-mineable coal seams.
 
Underground mine plans were sequenced
based on productivity schedules provided by Coronado,
 
which were based on
historically achieved productivity levels.
 
Surface mine plans were generated under
productivity assumptions (bank cubic yard per shift) as
 
provided by Coronado and
reviewed by MM&A, again based heavily on productivity
 
levels achieved by
Coronado.
 
All production forecasting ties assumed production
 
rates to geological
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
models as constructed independently by MM&A’s team of geologists and mining
engineers.
>
 
Coronado provided MM&A with price forecasts
 
for all Properties.
 
Customer coal
pricing is derived from market observed forward
 
estimates based on global
economic supply and demand analysis which is applied
 
to mine plan sales volumes
and product mix and is supplemented with Coronado’s
 
in-house knowledge of
applicable rail transportation charges, ocean freight
 
charges and port charges.
 
Coal
price forecasts for the various products were provided
 
by Coronado for various coal
markets in terms of US nominal dollars per metric
 
tonne.
 
MM&A utilized this data
for price forecasting in financial modeling.
Economic
 
>
 
The inputs to the economic analysis to produce the
 
net present value (NPV) in
the study, the source and confidence of these economic inputs including
estimated inflation, discount rate, etc.
>
 
On an unlevered basis, the NPV of the project
 
cash flows after taxes was estimated
for the purpose of classifying coal reserves.
 
The project cash flows, excluding debt
service, are calculated by subtracting direct and indirect
 
operating expenses and
capital expenditures from revenue.
 
Direct costs include labor, drilling and blasting,
operating supplies, maintenance and repairs, facilities costs
 
for materials handling,
coal preparation, refuse disposal, coal loading, sampling
 
and analysis services,
reclamation and general and administrative costs.
 
Indirect costs include statutory
and legally agreed upon fees related to direct
 
extraction of the mineral.
 
The indirect
costs are the Federal black lung tax, Federal
 
and State reclamation taxes, property
taxes, local transportation prior to delivery at
 
rail or barge loading sites, coal
production royalties, sales and use taxes, income
 
taxes and State severance taxes.
Coronado’s historical costs provided a useful reference
 
for MM&A’s cost estimates.
>
 
Coronado provided MM&A with price forecasts
 
for all Properties.
 
Customer coal
pricing is derived from market observed forward
 
estimates based on global
economic supply and demand analysis which is applied
 
to mine plan sales volumes
and product mix and is supplemented with Coronado’s
 
in-house knowledge of
applicable rail transportation charges, ocean freight
 
charges and port charges.
 
Coal
price forecasts for the various products were provided
 
by Coronado for various coal
markets in terms of US nominal dollars per metric
 
tonne.
 
MM&A utilized this data
for price forecasting in financial modeling.
>
 
All costs and prices are based on 2021 nominal United
 
States dollars.
>
 
A pre-feasibility LOM plan was prepared
 
by MM&A for active and proposed mines.
 
MM&A prepared mine projections and production timing
 
forecasts based on coal
seam characteristics.
 
Production timing was carried out from 2022
 
to depletion
(exhaustion) of the coal reserve areas, which is projected
 
for the year 2099.
>
 
The all-mines average cash cost ranges between approximately
 
$56 and $311 per
tonne for most of the operating period.
>
 
NPV ranges and sensitivity to variations in the
 
significant assumptions and
inputs.
>
 
An estimate of NPV at a base discount rate of
 
10.0% was included in Section 19 of
the TRS.
>
 
NPV of the Buchanan, Russell, Mon Valley, Logan and Greenbrier Properties was
estimated to be $1.580 billion, $89.7 million, $287.3
 
million, $611.3 million and
$66.0 million, respectively.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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JORC Code explanation
Commentary
>
 
The sensitivity study shows the NPV at the 10.0%
 
discount rate when Base Case
sales prices, operating costs, and capital costs are
 
increased and decreased in
increments of 5% within a +/- 15% range.
 
Social
 
>
 
The status of agreements with key stakeholders
 
and matters leading to social
license to operate.
>
 
Portions of the properties are located near
 
local communities.
 
Regulations prohibit
mining activities within 91 meters of a residential
 
dwelling, school, church, or similar
structure unless written consent is first obtained from
 
the owner of the structure.
 
Where required, such consents have been obtained
 
where mining is proposed
beyond the regulatory limits.
Other
 
To the extent relevant, the impact of the following on the project and/or on the
estimation and classification of the Ore Reserves:
>
 
Any identified material naturally occurring risks.
>
 
No material naturally occurring risks have been identified.
>
 
The status of material legal agreements and
 
marketing arrangements.
>
 
The Coronado coal resources are located in Buchanan,
 
Russell and Tazewell
Counties, Virginia; Greenbrier, Logan, Boone, Wyoming and Greenbrier Counties,
West Virginia; Allegheny, Washington and Westmoreland Counties, Pennsylvania.
>
 
MM&A has not carried out separate title verification for
 
the coal properties and has
not verified leases, deeds, surveys or other property
 
control instruments pertinent to
the subject resources.
>
 
Coronado has represented to MM&A that it controls the
 
mining rights to the reserves
as shown on its property maps, and MM&A
 
has accepted these as being a true and
accurate depiction of the mineral rights controlled
 
by Coronado.
 
The TRS assumes
the properties are developed under responsible and
 
experienced management.
>
 
The status of government agreements and approvals
 
critical to the viability of
the project, such as mineral tenement status and
 
government and statutory
approvals. There must be reasonable grounds
 
to expect that all necessary
Government approvals will be received within the
 
timeframes anticipated in the
Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any
unresolved matter that is dependent on a third part
 
on which extraction of the
reserve is contingent.
>
 
Coronado has obtained all mining and discharge permits
 
to operate 34 underground
mines, 13 surface mines, and 18 processing, loadout
 
or related facilities.
 
MM&A is
unaware of any obvious or current Coronado
 
permitting issues that are expected to
prevent the issuance of future permits.
 
Coronado, along with all Central and
Northern Appalachian basin coal producers, is
 
subject to a level of uncertainty
regarding future clean water permits due to
United States Environmental
Protection Agency
(
EPA
)
 
involvement with state programs.
Classification
 
>
 
The basis for the classification of the Ore Reserves
 
into varying confidence
categories. Whether the result appropriately reflects
 
the Competent Person’s
view of the deposit. The proportion of Probable
 
Ore Reserves that have been
derived from Measured Mineral Resources (if
 
any).
>
 
Measured and indicated resources have been
 
converted to proved and probable
reserves, respectively.
>
 
None of the probable coal reserves have been
 
derived from measured resources.
>
 
In a limited number of cases where there was
 
only very limited data available to
demonstrate the metallurgical suitability of a given
 
coal deposit, that deposit was
classified as a probable reserve instead of a
 
proved reserve.
>
 
The results of this TRS define an estimated total
 
initial ROM recoverable ore (coal)
reserve estimate of 556 million tonnes for Coronado
 
as follows:
a)
 
Buchanan =
 
160 Mt
b)
 
Logan
 
=
 
137 Mt
c)
 
Greenbrier=
 
12 Mt
d)
 
Russell =
 
50 Mt
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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JORC Code explanation
Commentary
e)
 
Mon Valley =
 
197 Mt
 
>
 
Coronado controls a total of 342 Mt (moist basis)
 
of marketable coal reserves for
Coronado as of December 31, 2021.
 
Of that total, 72 percent are proved, and
 
28
percent are probable.
 
Total reserves by complex are as follows:
a)
 
Buchanan =
 
98 Mt
b)
 
Logan
 
=
 
73 Mt
c)
 
Greenbrier=
 
7 Mt
d)
 
Russell =
 
30 Mt
e)
 
Mon Valley =
 
134 Mt
 
Audits or reviews
>
 
The results of any audits or reviews of Ore
 
Reserve estimates.
>
 
MM&A completed prepared a statement of coal resources
 
and reserves for the
Properties in accordance with the JORC Code
 
as of December 31, 2017.
 
MM&A
also subsequently updated the estimate of resources
 
and reserves for depletion as
of December 31, 2018, December 31, 2019, and
 
December 31, 2020.
>
 
MM&A performed a previous audit of the Properties
 
in year 2017 for Coronado
based on
U.S. Securities and Exchange Commission (
SEC
)
 
Industry Guide 7
standards.
 
Earlier audits were performed by various
 
independent consultants for
predecessors-in-title to Coronado and at various
 
levels of detail depending on the
clients concerns and the allotted time for completion.
 
Previous audits and reviews
defined the primary coal resource areas and estimated
 
the recoverable tonnes for
each seam based on the expected mining methods.
>
 
Additionally, MM&A has performed proprietary evaluations for predecessors-in-title
to Coronado, which encompass portions of the Properties
 
included in this TRS.
Discussion of
relative accuracy/
confidence
 
>
 
Where appropriate a statement of the relative accuracy
 
and confidence level in
the Ore Reserve estimate using an approach
 
or procedure deemed appropriate
by the Competent Person. For example, the application
 
of statistical or
geostatistical procedures to quantify the relative accuracy
 
of the reserve within
stated confidence limits, or, if such an approach is not deemed
 
appropriate, a
qualitative discussion of the factors which could affect the relative
 
accuracy
and confidence of the estimate.
>
 
Operations on the Properties by Coronado and
 
its predecessors have been on-
going for many years.
 
>
 
MM&A is confident that the mine plans and
 
financial models are reasonably
representative to provide an accurate estimation of
 
coal reserves.
>
 
Mine development and operation have not been optimized
 
within the TRS.
>
 
The statement should specify whether it relates
 
to global or local estimates,
and, if local, state the relevant tonnages, which
 
should be relevant to technical
and economic evaluation. Documentation should include
 
assumptions made
and the procedures used.
>
 
Proved and probable coal reserve were derived
 
from the defined in-situ coal
resource considering relevant processing, economic (including
 
independent
estimates of capital, revenue and cost), marketing, legal,
 
environmental,
socioeconomic, and regulatory factors on a global
 
scale as current local data
reflects the global assumptions.
>
 
Accuracy and confidence discussions should extend to
 
specific discussions of
any applied Modifying Factors that may have
 
a material impact on Ore Reserve
viability, or for which there are remaining areas of uncertainty at the current
study stage.
The major risk factors for the active Coronado
 
mines and future resource development
are summarized below:
>
 
Mine Accidents
>
 
Highwall Failure.
 
Highwall failures are likely to result in
 
a temporary mine closure
and should not have a material impact on the
 
mine sustainability.
 
The risk is
considered to be probable.
 
>
 
Adverse Geological Conditions.
 
Adverse geological conditions include such
conditions as faults and sandstone washes.
 
The risk is considered to be probable.
 
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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JORC Code explanation
Commentary
The impact is expected to be temporary with
 
little material impact on mine
sustainability.
>
 
Environmental Risk.
 
Numerous federal and state permits are required
 
to operate
coal mines and mine surface facilities. Permitting rules
 
are complex and may
change over time, making compliance difficult or impossible.
>
 
Water Quality.
 
Permit requirements to fulfill Clean Water Act obligations are
 
subject
to modification.
 
The probability of water quality changes having
 
a material impact
on mine operations is possible.
 
As a contemporary example, the selenium
discharge issue that affects western Canadian and Central Appalachian
 
Basin
operators has only recently emerged as a concern
 
and its ultimate impact has not
been determined.
>
 
New Permits.
 
Permit protests by environmental groups and
 
individuals can
contribute to permit delays or denial and increase
 
the cost of permitting and delay
development.
 
Surface mining activities, coal refuse disposal and
 
construction of
access roads in mountainous terrain often require
 
storage of material in valley fills.
 
Authority to dispose of fill material into waters of
 
the United States must be granted
by the
United States Army Corps of Engineers
 
(
COE
)
.
 
COE permits are
increasingly difficult to obtain.
>
 
Regulatory Requirements.
 
Adverse impact from regulatory changes is
 
considered
to be probable.
 
The impact will likely affect the broader industry
 
and is not expected
to result in mine closure.
>
 
Market Risk.
 
Metallurgical and thermal coal markets ultimately depend
 
upon the
global steel and thermal coal demand and are
 
considered to be volatile.
 
Currently,
the US coal market has seen a decline
 
in demand for thermal coal due to thermal
plant closures, as a result of new air and
 
water pollution regulations, and
competition from other commodities used for power
 
generation such as natural gas.
 
This has resulted in an overall decline in CAPP
 
coal production.
 
Continued
regulatory changes and declining demand could result
 
in material changes in
domestic and global coal markets.
 
The impact cannot be predicted at this time;
however, while MM&A expects the coal reserve within this TRS to
 
remain
economically viable throughout the life of the projected
 
mines, the LOM financial
model is very sensitive to changes in coal sales
 
price and therefore market risk is
not insignificant.
>
 
Labor Risk.
 
Work stoppage due to organized labor protests
 
is considered to be
unlikely and not likely to lead to permanent mine
 
closure.
 
The mines are likely to
suffer the loss of key supervisors and skilled employees
 
due to retirement as the
workforce ages.
 
The problem is industry-wide and the impact
 
is expected to be
temporary and have no sustained impact on
 
coal production.
>
 
Availability of Equipment and Supplies.
 
Risk of equipment and supply availability is
likely to be temporary and should not have a sustained
 
adverse impact on the
production of coal.
 
 
ex963p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of
 
December 31, 2021
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Criteria
JORC Code explanation
Commentary
>
 
Transportation Delay.
 
Interruption of coal transport services by river
 
or rail is
considered to be probable but unlikely to have a
 
sustained impact on coal
production.
>
 
It is recognised that this may not be possible or appropriate
 
in all
circumstances. These statements of relative accuracy and
 
confidence of the
estimate should be compared with production data,
 
where available.
>
 
Mine plans, productivity expectations and cost estimates
 
generally reflect historical
performance and efforts have been made to adjust plans
 
and costs to reflect future
conditions.