EX-96.4 122 ex964.htm EX-96.4 ex964
ex964p1i0.jpg
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December 31, 2021
Northern Appalachian Coal Basin
Pennsylvania, 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
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, 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 Scott Peterson, 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
 
Scott
 
Peterson
 
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.
 
Scott Peterson
 
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 sufficient experience
relevant
 
to the
 
style of
 
mineralization
 
and type
 
of deposit
 
under consideration
 
and to
 
the activity
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
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.
 
 
 
ex964p2i0.jpg
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
This report was prepared by:
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
/s/ Scott Peterson
February 18, 2022
Scott Peterson, CPG
Sr.
 
Principal Geologist
Direct Line: +1 304 809 0630
 
Date of Signature
/s/ Justin S. Douthat
February 18, 2022
Justin S. Douthat, PE, MBA
Executive Vice President
Direct Line: +1 304 809 0597
Date of Signature
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
Table of
 
Contents
1
1
1.1
1
1.2
2
1.3
2
1.4
2
1.5
3
1.6
3
1.7
3
1.8
4
1.9
5
1.10
6
1.10.1
10
1.10.2
10
1.11
11
1.12
11
2
11
2.1
11
2.2
12
2.3
12
3
12
3.1
12
3.2
13
3.3
13
3.4
14
3.5
14
4
14
4.1
14
4.2
14
4.3
14
4.4
15
4.5
15
5
15
5.1
15
5.2
15
6
16
6.1
16
6.2
17
6.3
18
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
7
19
7.1
19
7.2
20
7.3
20
7.4
21
7.5
21
8
22
8.1
22
8.2
22
9
23
9.1
23
9.2
23
9.3
23
10
23
10.1
23
10.2
24
10.3
24
10.4
24
11
24
11.1
25
11.1.1
26
11.2
29
11.3
30
12
30
12.1
30
12.2
32
12.3
33
13
33
13.1
33
13.2
34
13.3
35
13.4
36
13.4.1
36
13.4.2
38
13.4.3
39
14
40
14.1
40
14.2
40
15
41
16
41
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport
 
Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
16.1
41
16.2
42
16.3
42
17
43
17.1
43
17.2
43
17.3
43
17.4
44
17.5
44
17.6
44
18
45
18.1
45
18.2
45
19
47
19.1
47
19.2
49
19.3
53
20
54
20.1
54
21
54
22
55
22.1
55
22.2
55
22.2.1
56
22.2.2
56
22.2.3
56
22.2.4
57
22.2.5
60
22.2.6
60
22.2.7
61
22.2.8
61
23
67
24
67
25
68
Figures (in Report)
2
5
6
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
4
10
18
20
27
27
28
29
38
45
49
54
Tables
 
(in Report)
3
4
4
7
7
26
29
30
32
32
35
42
47
47
50
51
7
58
59
60
61
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
5
62
63
63
64
64
65
66
66
67
67
68
Appendices
A
Biographies
 
B
Maps
 
C
Glossary of Te
 
rms
 
D
JORC Table
 
1
 
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, 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
 
for
 
the
 
Mon
 
Valley
 
Complex
 
in
 
southwestern
 
Pennsylvania
 
(Mon
Valley or 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
).
The
 
Mon
 
Valley
 
property
 
is
 
comprised
 
of
 
three
 
separate
 
reserve
 
holdings,
 
namely,
 
the
Pangburn,
 
Shaner
 
and
 
Fallowfield
 
proposed
 
underground
 
mines
 
in
 
the
 
Upper
 
Freeport
seam.
 
All three
 
respective reserve
 
areas are
 
greenfield sites
 
and are
 
undeveloped.
 
The
three
 
mines
 
have
 
been
 
projected
 
to
 
operate
 
independently,
 
with
 
production
 
initially
beginning at Pangburn.
 
Shaner is projected
 
to come online as
 
replacement production for
Pangburn, and Fallowfield represents expanded
 
Mon Valley production after Pangburn is in
full production.
 
In addition
 
to the
 
individual mine/plant
 
sites, a
 
barge loading
 
dock on
 
the
Monongahela River adjacent
 
to the Pangburn
 
site is proposed
 
and will be
 
used to ship
 
clean
coal
 
for
 
all
 
three
 
mines.
 
Each
 
mine
 
site
 
will
 
include
 
a
 
coal
 
preparation
 
plant
 
and
 
all
necessary surface facilities.
Coal resources
 
and coal reserves
 
are herein reported
 
in metric
 
units of
 
measurement and
are rounded to millions of metric tonnes (
Mt
).
 
The
 
Mon
 
Valley
 
properties
 
are
 
located
 
approximately
 
16
 
kilometers
 
to
 
32
 
kilometers
southeast of
 
Pittsburgh, Pennsylvania
 
(see
Figure 1-1
).
 
The property
 
is composed
 
of 41,615
total
 
hectares,
 
of which
 
1,339
 
are
 
leased
 
from private
 
landholders under
 
two
 
leases,
 
and
40,276
 
hectares
 
are
 
owned
 
by
 
Coronado.
 
Subject
 
to
 
Coronado’s
 
exercising
 
its
 
renewal
rights thereunder,
 
both of the
 
leases expire upon exhaustion
 
of the relevant
 
coal reserves,
which is expected to occur in 2099.
 
 
ex964p2i0.jpg ex964p11i1.jpg
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
Figure 1-1:
 
Mon Valley Complex Property Location Map
1.2
 
Ownership
Mineral rights
 
for the Property
 
were formerly controlled
 
by
Consolidation Coal Company
(
CONSOL
)
.
 
Coronado acquired the Mon Valley properties from CONSOL in March 2016.
1.3
 
Geology
There
 
are
 
currently
 
no active
 
operations
 
in
 
the
 
Mon
 
Valley
 
complex.
 
Strata
 
of
 
economic
interest
 
for
 
this
 
TRS
 
are
 
of
 
the
 
Pennsylvanian-age
 
Allegheny
 
Formation,
 
and
 
the
 
subject
Upper
 
Freeport
 
seam
 
is
 
the
 
principal
 
coal
 
seam
 
of
 
interest
 
for
 
Coronado.
 
The
 
Upper
Freeport
 
seam
 
has
 
been
 
mined
 
extensively
 
in
 
the
 
region.
 
The
 
seam
 
is
 
situated
 
below
drainage
 
throughout
 
the
 
Property
 
and
 
will
 
be
 
accessed
 
by
 
constructed
 
mine
 
shafts
 
and
slopes.
1.4
 
Exploration Status
The
 
Property
 
has
 
been
 
explored
 
extensively,
 
largely
 
by
 
drilling
 
using
 
continuous
 
coring
method, rotary
 
drilling, and
 
by downhole
 
geophysical methods.
 
The majority
 
of the
 
data was
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
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
information was excluded from
 
the digital databases and
 
subsequent processing by MM&A.
 
Ongoing
 
exploration
 
has
 
been
 
carried
 
out
 
by
 
Coronado
 
since
 
acquiring
 
the
 
Mon
 
Valley
properties.
 
1.5
 
Operations and Development
Coronado
 
currently
 
has
 
no
 
active
 
operations
 
in
 
the
 
Mon
 
Valley
 
complex.
 
The
 
mines
 
will
produce coal that is suitable for the high-volatile metallurgical coal markets.
The preliminary design for the Pangburn mine surface facilities was provided by Coronado.
 
The facilities include offices, warehouses,
 
shops, a bathhouse for personnel, a preparation
plant
 
to
 
process
 
run-of-mine
 
(
ROM
)
 
coal,
 
a
 
refuse
 
area
 
with
 
a
 
designed
 
capacity
 
of
approximately 35 million refuse tonnes, raw coal storage at the plant totaling approximately
100,000
 
tonnes, clean
 
coal
 
storage at
 
the plant
 
site of
 
approximately 54,000
 
tonnes, and
three clean coal stockpiles
 
adjacent to the dock
 
loading facility on the
 
Monongahela River.
 
The
 
three
 
river
 
stockpiles
 
have
 
a
 
designed
 
capacity
 
of
 
approximately
 
266,000
 
tonnes.
 
Processes are expected to be typical
 
of those used at operating coal-processing
 
plants and
the coal
 
industry in
 
general.
 
The river
 
dock is
 
anticipated to
 
also support
 
production from
the planned
 
Fallowfield and
 
Shaner operations.
 
Room-and-pillar mining
 
will be
 
employed
at these properties.
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
 
Coal Resource (Dry Tonnes, In Situ, Mt)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserve
291.0
213.5
9.3
513.8
31
1.4
26
Exclusive of Reserve
0.0
0.0
0.0
0.0
Total 12/31/2021
291.0
213.5
9.3
513.8
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 Mon Valley properties do not have any 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 tonnes 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
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
4
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 May 1,
2031.
 
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; 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.
 
Table 1-2:
 
Coal Summary (ROM Basis (Moist)) as of December
 
31, 2021 (Mt)
 
Demonstrated Coal Reserves (Mt, Moist ROM)
 
 
 
 
By Reliability Category
By Mining Type
By Control Type
Quality (Dry)
Area /
Mine
Proved
Probable
Total
Surface
UG
Owned
Leased
Ash
Sulfur
Vol
Mon Valley
113.9
83.2
197.1
0.0
197.1
195.7
1.4
37
1.2
23
Coal
 
reserves
 
are
 
presented
 
on
 
a
 
ROM
 
basis
 
in
Table
 
1-2
.
 
Proven
 
and
 
probable
 
coal
reserves
 
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
.
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%
Mon Valley
77.8
56.6
134.4
0.0
134.4
133.4
1.0
8
1.2
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 at 6-percent.
 
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.
 
Life-of-mine sulfur for Pangburn is an estimated 1.21%;
however, overall Mon Valley Complex reserve average is 1.36% sulfur.
In summary, Coronado controls
 
a total
 
of 134.4 Mt
 
(moist basis)
 
of marketable
 
coal reserves
at
 
Mon
 
Valley,
 
as
 
of
 
December
 
31,
 
2021.
 
Of
 
that
 
total,
 
58
 
percent
 
are
 
proven,
 
and
 
42
percent are probable.
 
There are 133.4 Mt
 
of owned coal reserves
 
and 1.0 Mt of
 
leased coal
reserves.
 
All of the
 
Mon Valley
 
reserves are considered
 
suitable for the
 
metallurgical coal
market.
 
All of the Mon Valley reserves are unassigned.
1.8
 
Capital Summary
The
 
MM&A
 
financial
 
model
 
includes
 
provisions
 
for
 
operating
 
equipment
 
at
 
the
 
proposed
Mon Valley
 
operations.
 
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.
 
 
ex964p2i0.jpg ex964p14i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
5
Figure 1-2:
 
CAPEX
1.9
 
Operating Costs
MM&A
 
used
 
the
 
Coronado
 
historical
 
and/or
 
budget
 
cost
 
information
 
for
 
comparable
operations
 
as
 
a
 
reference
 
and
 
developed
 
personnel
 
schedules
 
for
 
the
 
mine
 
and
 
support
facilities.
 
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.
 
Operating-cost 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 the
federal black lung excise tax, and federal reclamation fees.
A summary of the projected operating costs for the Property is provided in
Figure 1-3
.
 
 
ex964p2i0.jpg ex964p15i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
6
Figure 1-3:
 
OPEX
1.10
 
Economic Evaluation
The pre-feasibility
 
financial model
 
prepared 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,
 
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
 
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 each proposed Coronado mine at Mon Valley.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
7
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
Pangburn
14,376
$701,483
$48.80
$1,259,113
$87.59
Fallowfield
72,640
$4,712,144
$64.87
$6,688,054
$92.07
Shaner
48,294
$4,656,184
$96.41
$5,641,238
$116.81
Consolidated PA Deep Mines
135,309
$10,069,811
$74.42
$13,588,405
$100.42
Note:
 
*Financial model includes 0.9
 
million tonnes of inferred
 
coal production.
 
Inferred coal represents
0.6% of the total production, and none of this coal was included in the estimate of reserves.
As
 
shown
 
in
Table
 
1-4,
 
all
 
of
 
the
 
mines
 
analyzed
 
show
 
positive
 
EBITDA
 
over
 
the
 
LOM.
 
Overall, Coronado’s consolidated operations show
 
positive LOM P&L and LOM EBITDA
 
of
$10.1 billion and $13.6 billion, respectively.
Coronado’s consolidated Mon Valley cash flow summary in nominal dollars assuming a 2%
inflation rate, excluding debt service, is shown in
Table
 
1-5
 
below.
Table 1-5:
 
Project Cash Flow Summary (000)
*
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
Total
2026
2027
2028
2029
2030
Production & Sales tonnes
135,311
-
-
-
-
-
Total Revenue
$32,678,158
$-
$-
$-
$-
$-
EBITDA
$11,822,150
$(369)
$(369)
$(369)
$(369)
$(369)
Net Income
$5,925,986
$(369)
$(369)
$(369)
$(369)
$(369)
Net Cash Provided by Operating Activities
$9,042,337
$(369)
$(369)
$(369)
$(369)
$(312)
Purchases of Property, Plant, and Equipment
$(3,293,945)
$-
$(5,087)
$(29,721)
$(35,261)
$(215,753)
Net Cash Flow
$5,748,391
$(369)
$(5,456)
$(30,090)
$(35,629)
$(216,065)
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2031
2032
2033
2034
2035
2036
Production & Sales tonnes
399
1,810
1,875
1,958
2,029
2,030
Total Revenue
$57,415
$266,199
$281,967
$301,091
$319,037
$326,330
EBITDA
$31,974
$163,768
$175,562
$191,169
$204,833
$209,981
Net Income
$(43,182)
$84,520
$86,628
$82,382
$94,260
$106,329
Net Cash Provided by Operating Activities
$25,910
$135,802
$160,145
$157,652
$168,511
$179,238
Purchases of Property, Plant, and Equipment
$(199,931)
$(1,928)
$-
$(21,158)
$(19,527)
$(204,537)
Net Cash Flow
$(174,021)
$133,874
$160,145
$136,494
$148,984
$(25,299)
 
 
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
8
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2037
2038
2039
2040
2041
2042
Production & Sales tonnes
2,062
1,960
1,762
2,366
1,804
1,724
Total Revenue
$338,825
$329,205
$302,680
$415,404
$307,404
$305,722
EBITDA
$217,762
$206,113
$179,715
$261,905
$167,920
$166,433
Net Income
$94,184
$107,142
$79,588
$136,843
$92,275
$83,239
Net Cash Provided by Operating Activities
$190,294
$179,925
$156,327
$197,122
$130,469
$131,680
Purchases of Property, Plant, and Equipment
$(178,362)
$(11,413)
$(10,070)
$(18,939)
$(6,627)
$(11,701)
Net Cash Flow
$11,932
$168,512
$146,257
$178,183
$123,842
$119,979
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2043
2044
2045
2046
2047
2048
Production & Sales tonnes
1,717
1,641
1,719
1,657
1,582
1,704
Total Revenue
$307,825
$296,435
$323,078
$319,329
$311,207
$346,423
EBITDA
$166,345
$155,468
$176,197
$172,276
$164,044
$190,984
Net Income
$97,162
$102,577
$115,995
$111,938
$105,580
$121,920
Net Cash Provided by Operating Activities
$134,459
$126,566
$132,835
$135,759
$130,416
$145,691
Purchases of Property, Plant, and Equipment
$(70,898)
$(32,130)
$(1,608)
$(3,445)
$(20,197)
$(42,226)
Net Cash Flow
$63,561
$94,436
$131,226
$132,313
$110,218
$103,465
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2049
2050
2051
2052
2053
2054
Production & Sales tonnes
1,656
1,732
1,702
1,596
1,642
1,750
Total Revenue
$341,272
$366,419
$363,743
$344,653
$358,264
$385,655
EBITDA
$185,001
$203,854
$199,083
$181,885
$190,949
$208,272
Net Income
$117,207
$139,379
$136,063
$119,219
$124,332
$139,625
Net Cash Provided by Operating Activities
$148,383
$156,450
$155,343
$145,611
$148,945
$159,944
Purchases of Property, Plant, and Equipment
$(21,985)
$(2,264)
$(17,661)
$(35,030)
$(22,841)
$-
Net Cash Flow
$126,398
$154,185
$137,682
$110,580
$126,104
$159,944
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2055
2056
2057
2058
2059
2060
Production & Sales tonnes
1,751
2,609
3,576
3,732
3,846
3,762
Total Revenue
$389,797
$586,754
$812,425
$856,469
$891,518
$881,012
EBITDA
$209,937
$293,768
$402,164
$424,215
$445,248
$430,456
Net Income
$159,520
$155,760
$230,828
$240,983
$258,267
$235,432
Net Cash Provided by Operating Activities
$177,985
$239,301
$313,658
$343,495
$359,216
$357,509
Purchases of Property, Plant, and Equipment
$(503,004)
$(81,075)
$(26,163)
$(36,932)
$(20,244)
$(124,371)
Net Cash Flow
$(325,019)
$158,226
$287,495
$306,563
$338,972
$233,138
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2061
2062
2063
2064
2065
2066
Production & Sales tonnes
3,488
3,390
3,466
3,397
2,961
2,826
Total Revenue
$825,025
$810,082
$836,766
$828,451
$729,294
$703,094
EBITDA
$384,291
$373,425
$383,395
$380,242
$330,841
$317,117
Net Income
$197,731
$249,775
$251,050
$244,672
$199,779
$187,067
Net Cash Provided by Operating Activities
$332,663
$309,606
$303,605
$304,427
$278,545
$263,255
Purchases of Property, Plant, and Equipment
$(48,371)
$(18,997)
$(56,143)
$(55,800)
$(106,035)
$(48,026)
Net Cash Flow
$284,292
$290,609
$247,461
$248,627
$172,510
$215,229
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2067
2068
2069
2070
2071
2072
Production & Sales tonnes
2,479
2,318
2,289
1,438
1,988
1,993
Total Revenue
$623,079
$588,566
$587,014
$372,607
$520,312
$526,958
EBITDA
$274,027
$245,996
$243,975
$120,878
$208,565
$209,313
Net Income
$157,110
$137,332
$132,150
$60,913
$125,427
$130,499
Net Cash Provided by Operating Activities
$236,473
$211,681
$204,662
$72,113
$144,108
$165,794
Purchases of Property, Plant, and Equipment
$(105,470)
$(32,972)
$(35,968)
$(21,665)
$(40,884)
$(29,483)
Net Cash Flow
$131,003
$178,708
$168,694
$50,448
$103,224
$136,311
 
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
9
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2073
2074
2075
2076
2077
2078
Production & Sales tonnes
1,822
2,098
2,055
2,107
1,883
2,129
Total Revenue
$486,489
$513,364
$508,098
$526,120
$474,939
$542,425
EBITDA
$180,965
$192,961
$185,766
$199,986
$169,269
$204,346
Net Income
$110,565
$131,576
$121,087
$124,925
$102,184
$132,803
Net Cash Provided by Operating Activities
$151,740
$149,923
$150,163
$155,728
$139,913
$152,938
Purchases of Property, Plant, and Equipment
$-
$-
$(38,951)
$(73,146)
$(11,367)
$(3,092)
Net Cash Flow
$151,740
$149,923
$111,2
 
12
$82,582
$128,546
$149,846
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2079
2080
2081
2082
2083
2084
Production & Sales tonnes
1,937
1,723
2,242
1,568
2,285
1,637
Total Revenue
$498,511
$448,125
$588,782
$416,070
$612,359
$443,292
EBITDA
$172,232
$139,209
$217,859
$113,527
$222,506
$118,656
Net Income
$108,806
$74,410
$128,734
$54,853
$144,403
$63,019
Net Cash Provided by Operating Activities
$140,295
$115,386
$153,758
$109,676
$151,887
$113,810
Purchases of Property, Plant, and Equipment
$(20,499)
$(63,240)
$(32,548)
$(7,363)
$(18,926)
$(35,128)
Net Cash Flow
$119,796
$52,146
$121,210
$102,313
$132,961
$78,682
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2085
2086
2087
2088
2089
2090
Production & Sales tonnes
1,982
1,477
1,857
1,616
1,993
1,305
Total Revenue
$542,129
$408,032
$518,052
$455,417
$567,535
$375,427
EBITDA
$169,637
$89,713
$145,507
$108,922
$166,892
$55,785
Net Income
$96,625
$31,702
$79,264
$51,566
$96,127
$8,392
Net Cash Provided by Operating Activities
$123,443
$88,067
$104,777
$94,796
$120,752
$66,853
Purchases of Property, Plant, and Equipment
$(35,870)
$(53,613)
$(23,904)
$(32,182)
$-
$(31,114)
Net Cash Flow
$87,573
$34,453
$80,873
$62,614
$120,752
$35,738
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2091
2092
2093
2094
2095
2096
Production & Sales tonnes
1,637
1,612
1,747
1,355
1,731
1,752
Total Revenue
$475,574
$473,016
$517,712
$405,723
$523,488
$535,336
EBITDA
$103,525
$97,847
$113,758
$40,298
$107,715
$110,329
Net Income
$41,301
$32,537
$52,174
$(4,344)
$49,211
$50,915
Net Cash Provided by Operating Activities
$75,371
$81,436
$89,571
$46,746
$76,088
$90,203
Purchases of Property, Plant, and Equipment
$(71,872)
$(66,089)
$-
$-
$(42,121)
$-
Net Cash Flow
$3,499
$15,347
$89,571
$46,746
$33,967
$90,203
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2097
2098
2099
2100
2101
2102
Production & Sales tonnes
1,387
916
393
-
-
-
Total Revenue
$428,077
$285,625
$123,638
$-
$-
$-
EBITDA
$46,344
$27,079
$5,340
$-
$-
$-
Net Income
$2,394
$(3,736)
$(11,836)
$-
$-
$-
Net Cash Provided by Operating Activities
$50,190
$27,994
$(197,622)
$-
$-
$-
Purchases of Property, Plant, and Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$50,190
$27,994
$(197,622)
$-
$-
$-
●
 
Financial model includes 0.9 million tonnes of inferred coal production.
 
Inferred coal represents 0.6% 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 grows from
 
0.4 million
tonnes in
 
2031 to
 
a peak
 
of 3.8
 
million tonnes
 
in 2059.
 
Between years
 
2060 and
 
2089, sales
ranges
 
from
 
1.5
 
million
 
to
 
2.7
 
million
 
tonnes
 
and
 
between
 
years
 
2090-2099,
 
sales
 
range
from 0.4
 
million tonnes
 
to 1.3
 
million tonnes.
 
Projected consolidated
 
revenue grows
 
from
$57.4 million in
 
2031 to
 
a peak
 
of $891.5
 
million in
 
2059.
 
Revenue totals
 
$32.7 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
 
$359.2
 
million
 
in
 
2059
 
and
 
 
ex964p2i0.jpg
 
 
 
ex964p19i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
10
totals $9.0 billion over the project’s life.
 
Capital expenditures total $485.8 million during the
first five years and $3.3 billion 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
$287.3 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 Mon
 
Valley
 
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.
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.
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
11
1.11
 
Permitting
Due
 
to
 
the
 
projected
 
start-up
 
date
 
of
 
the
 
Mon
 
Valley
 
mines,
 
initial-stage
 
permit
 
work
 
has
been completed to date;
 
however, no
 
permit applications have been
 
submitted to the state
or
 
federal
 
regulatory
 
agencies.
 
The
 
proposed
 
mines
 
are
 
located
 
in
 
an
 
area
 
with
 
a
 
long
history of coal mining, with
 
numerous permitted operations in close proximity.
 
Coal mining
permits
 
are
 
routinely
 
obtained;
 
a
 
2
 
to
 
3-year
 
lead
 
time
 
is
 
recommended.
 
Estimated
expenditures for
 
mine closure
 
and site
 
reclamation are
 
included in
 
the financial
 
model for
each mine or
 
plant site.
 
MM&A is unaware
 
of any obvious
 
or current Coronado
 
permitting
issues that
 
are expected
 
to prevent
 
the issuance
 
of future permits.
 
All coal
 
producers are
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,
 
sampling
 
programs,
 
and
mining operations to support the geological interpretations of seam structure and thickness
for coal horizons situated on the Property.
 
The data are 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
 
134.4
 
Mt
 
of
 
marketable
 
underground
 
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.
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
 
Mon
 
Valley
 
property
 
is
 
comprised
 
of
 
three
 
separate
 
reserve
 
holdings,
 
namely,
 
the
Pangburn,
 
Shaner
 
and
 
Fallowfield
 
proposed
 
underground
 
mines
 
in
 
the
 
Upper
 
Freeport
seam.
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
12
The report
 
provides a
 
statement of
 
coal resources
 
and coal
 
reserves for
 
Coronado at
 
the
Property.
 
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 Scott
 
Peterson,
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 December 31, 2021, the
 
effective date of
 
this TRS for Mon
Valley.
 
For the evaluation, the following tasks were to be completed:
 
>
 
Conduct a site visit to the projected resource/reserve area;
>
 
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.
-
 
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 the
 
Mon Valley properties,
 
having provided
 
a variety
 
of geological
and
 
engineering
 
evaluations
 
of
 
the
 
subject
 
property
 
and
 
neighboring
 
properties
 
in
 
recent
years.
 
No facilities are constructed on the properties.
3
Property Description
3.1
 
Location
The Mon
 
Valley
 
Complex will
 
include the
 
Pangburn, Shaner,
 
and Fallowfield
 
underground
mines
 
in
 
the
 
Upper
 
Freeport
 
coal
 
seam.
 
The
 
properties
 
are
 
located
 
approximately
 
22.5
kilometers southeast of Pittsburgh.
 
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
13
The
 
property
 
is
 
located
 
in
 
Allegheny,
 
Washington,
 
and
 
Westmoreland
 
Counties,
Pennsylvania.
 
Mining operations here have not yet been initiated.
 
The Property is located
on
 
portions
 
of
 
eight
United
 
States
 
Geological
 
Survey
(
USGS
)
 
quadrangles:
 
Irwin;
Glassport;
 
Monongahela;
 
Donora;
 
Smithton;
 
California;
 
Ellsworth;
 
and
 
Hackett.
 
The
coordinate system and datum
 
used for the model
 
of Mon Valley
 
and the subsequent maps
were produced in the Pennsylvania State Plane South system, NAD 27.
3.2
 
Titles, Claims or Leases
The property is composed
 
of 41,615 total hectares,
 
of which 1,339 are
 
leased from private
landholders
 
under
 
two
 
leases,
 
and
 
40,276
 
hectares
 
are
 
owned
 
by
 
Coronado.
 
Subject
 
to
Coronado’s
 
exercising
 
its
 
renewal
 
rights
 
thereunder,
 
both
 
of
 
the
 
leases
 
expire
 
upon
exhaustion of
 
the relevant
 
coal reserves,
 
which is
 
expected to
 
occur in
 
2099.
 
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
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.
 
Control of the surface property is necessary to conduct surface mining but is not necessary
to conduct underground mining.
 
Given that the vicinity of the Mon Valley properties has an
extensive history of
 
coal mining, Coronado
 
and its predecessors
 
have a successful history
of obtaining any necessary rights and the associated permits to mine.
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
14
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.
 
Coronado and its predecessor, CONSOL,
have both had their legal
 
teams examine the deeds and title
 
control in order to minimize
 
the
risk.
 
4
Accessibility, Climate, Local Resources,
Infrastructure and Physiography
4.1
 
Topography,
 
Elevation and Vegetation
Topography
 
of
 
the
 
area
 
surrounding
 
the
 
proposed
 
Mon
 
Valley
 
complex
 
is
 
typical
 
of
 
the
Northern Appalachian
 
Plateau consisting
 
of broad
 
river valleys
 
and rolling
 
hills, with
 
some
upland regions.
 
Surface elevations near
 
the Property range
 
from approximately 396
 
meters
above sea
 
level in
 
upland regions
 
to approximately
 
220 meters
 
at stream
 
level.
 
The property
is moderately
 
vegetated by
 
primarily oak
 
hardwood forests,
 
but the
 
majority of
 
the land
 
is
developed for
 
farm and
 
residential use.
 
The property
 
is situated
 
near the
 
major urban
 
center
of Pittsburgh, PA and is considered suburban.
 
4.2
 
Access and Transport
There is general
 
access to the
 
Mon Valley property via
 
a well-developed network
 
of primary,
secondary,
 
and unimproved
 
roads.
 
The Monongahela
 
and Youghiogheny
 
Rivers traverse
the
 
Property
 
from
 
south
 
to
 
north.
 
There
 
are
 
numerous
 
four-lane
 
limited-access
 
roads
situated within or
 
adjacent to the Property
 
as well as
 
a network of
 
improved two-lane state
and county
 
roads.
 
U.S. Interstate
 
70 and
 
Pennsylvania Route
 
51 traverse
 
the Fallowfield
and
 
Pangburn
 
properties,
 
respectively.
 
Numerous
 
secondary
 
and
 
unimproved
 
roads
provide direct access to
 
the mine property, some being state-
 
and town- maintained.
 
These
roads typically stay open throughout the
 
year.
 
There are numerous transportation/logistical
options for
 
shipping product.
 
The primary
 
means of
 
transport for
 
produced coal
 
would be
by barge
 
on the
 
Monongahela River/Ohio
 
River system.
 
Additionally, a CSX
 
rail line
 
located
along the banks of
 
the Monongahela River would
 
provide another option for
 
the shipment of
coal.
4.3
 
Proximity to Population Centers
 
The Mon Valley property lies
 
near the communities
 
of Bentleyville, Lockview, Monongahela,
Elizabeth, Sutersville, and
 
Irwin, Pennsylvania approximately
 
16 kilometers to
 
32 kilometers
southeast
 
of
 
Pittsburgh,
 
and
 
16
 
kilometers
 
to
 
32
 
kilometers
 
from
 
Washington
 
and
McKeesport, Pennsylvania.
 
As of the 2020 census Pittsburgh had a population of 302,971
residents; McKeesport, 18,825; and Washington, 13,176.
 
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
15
4.4
 
Climate and Length of Operating Season
The climate of the region is classified
 
as warm-summer humid continental 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
 
53.1
 
centimeters.
 
Summer
 
months
typically begin
 
in late
 
May and
 
end in
 
early September
 
and range
 
in average
 
temperature
from 51 to 84 degrees
 
Fahrenheit (or 10.6 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 22 to
 
50 degrees Fahrenheit
 
(or -5.6 to
 
10 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
 
Pennsylvania.
 
However, weather events could
 
potentially negatively
impact efficiency
 
of surface
 
and preparation
 
plant operations
 
on a
 
very limited
 
basis, typically
lasting less than a few days.
4.5
 
Infrastructure
The
 
Mon
 
Valley
 
property
 
has
 
sources
 
of
 
water,
 
power,
 
personnel,
 
and
 
supplies
 
readily
available
 
for
 
use.
 
Personnel
 
have
 
historically
 
been
 
sourced
 
from
 
the
 
surrounding
communities in
 
Allegheny,
 
Washington,
 
and Westmoreland
 
Counties, and
 
have proven
 
to
be
 
adequate
 
in
 
numbers to
 
operate
 
the mines.
 
As
 
mining
 
is common
 
in
 
the
 
surrounding
areas, the workforce is
 
generally familiar with mining
 
practices, and many are
 
experienced
miners.
 
Water is expected to be sourced locally
 
from nearby public water sources
 
or rivers.
 
Electricity is anticipated to be sourced from
West Penn Power
(
West Penn
)
 
or
Duquesne
Light
(
Duquesne Light
)
.
 
The service industry in the areas surrounding
 
the proposed mine
complex has
 
historically provided
 
supplies, equipment
 
repairs and
 
fabrication, etc.
 
Barge
transport
 
on
 
the
 
Monongahela
 
River/Ohio
 
River
 
system
 
will
 
serve
 
as
 
the
 
main
 
means
 
of
product transport
 
from the
 
mine, and
 
currently serve as
 
a means
 
of coal
 
transportation for
neighboring
 
Pittsburgh seam
 
operations.
 
Rail access
 
is provided
 
by a
 
CSX Corporation
(
CSX
)
 
rail line.
 
5
History
5.1
 
Previous Operation
The
 
property
 
was
 
formerly
 
controlled
 
by
Consolidation
 
Coal
 
Company
(
CONSOL
).
 
Historic
 
underground
 
operations
 
were
 
active
 
in
 
the
 
area
 
in
 
the
 
early
 
1900’s
 
and
 
contour
surface mining was
 
performed in the
 
1950 to 1960
 
era.
 
Coronado acquired the
 
properties
from CONSOL in March 2016.
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.
 
The
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
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ILLER
&
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SSOCIATES
,
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NC
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16
majority of the drilling was accomplished using vertical continuous (diamond) coring
 
and air
rotary methods.
Drill
 
records
 
indicate
 
that
 
independent
 
contract
 
drilling
 
operators
 
have
 
been
 
engaged
periodically to carry out exploration drilling
 
on the properties.
 
Geophysical logging on those
properties
 
acquired
 
from
 
CONSOL
 
was
 
often
 
performed
 
by
 
both
 
CONSOL’s
 
in-house
logging services and outside logging firms.
 
6
Geological Setting, Mineralization and Deposit
6.1
 
Regional, Local and Property Geology
The
 
property
 
lies
 
in
 
the
 
Northern
 
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
 
roughly
 
two-fifths
 
of
 
the
 
bituminous
 
coal
 
deposits
 
in
 
the
 
United
 
States
 
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
 
to
 
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.
Seams of the Allegheny Formation have historically been mined in
 
the Pennsylvania region
with the Upper Freeport seam being one of the principal seams in the formation.
 
Coal from
the area has historically sold in thermal and metallurgical markets.
Future operations
 
at the
 
Mon Valley
 
properties will
 
extract the
 
Upper Freeport
 
coal seam,
which covers large
 
areas of Pennsylvania,
 
Ohio, Maryland, and
 
West Virginia.
 
The Upper
Freeport
 
seam is
 
situated at
 
the top
 
of the
 
Allegheny Group
 
of
 
the middle
 
Pennsylvanian
period (307-315 million years ago).
 
The top of the Upper Freeport seam is commonly used
as
 
the
 
marker
 
between
 
the
 
top
 
of
 
the
 
Allegheny
 
Formation
 
and
 
the
 
overlying
 
Upper
Pennsylvanian
 
Conemaugh
 
Group.
 
The
 
Allegheny
 
Formation
 
is
 
made
 
up
 
of
 
laminated
cyclothemic sequences of
 
coal, shale, limestone,
 
and clay.
 
The Upper Freeport
 
seam lies
generally
 
around
 
183
 
meters
 
below
 
the
 
Pittsburgh
 
seam.
 
Deposits
 
associated
 
with
 
the
Upper Freeport are often irregular and
 
dislocated deposits (formed in domed peat swamps
commonly referred to as “peat islands”).
 
The
 
primary
 
structural
 
controls
 
on
 
the
 
Upper
 
Freeport
 
coal
 
basin
 
are
 
localized
 
syn-
depositional anticlines and
 
synclines that directly
 
influence the accumulation
 
of peat
 
bogs.
 
These structures
 
create gently
 
folded and
 
rolling coal strata.
 
The axis of
 
the Waynesburg
and
 
Port
 
Royal
 
(Irwin)
 
synclines
 
pass
 
through
 
the
 
center
 
and
 
eastern
 
portions
 
of
 
the
properties
 
with
 
a
 
trend
 
and
 
incline
 
to
 
the
 
Northeast.
 
The
 
Amity,
 
Murrysville,
 
and
 
Belle
Vernon anticlines (listed
 
from west to east) reside to the center and western portions of the
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
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ILLER
&
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SSOCIATES
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properties.
 
These anticlines
 
often coincide
 
with thicker
 
coal seams
 
where peat
 
accumulated
in
 
domes
 
along
 
the
 
anticlinal
 
crest.
 
It
 
is
 
understood
 
that
 
local
 
anticlines
 
represent
 
the
upthrown side of syn-depositionally active deep faults.
 
Inversely, fluvial channel sediments
were deposited on the structural downthrown side within synclines.
 
Within
 
the
 
Pangburn,
 
Shaner,
 
and
 
Fallowfield
 
mine-plan
 
areas,
 
the
 
Upper
 
Freeport
 
is
typically 183
 
meters to 335
 
meters below
 
the ground surface.
 
Mine access
 
is therefore to
be
 
provided
 
by
 
shaft
 
and
 
slope
 
development.
 
The
 
planned
 
Pangburn
 
shaft
 
depth
 
is
approximately
 
195
 
meters
 
in
 
depth.
 
The
 
shaft
 
depths
 
at
 
the
 
projected
 
locations
 
for
 
the
Shaner and Fallowfield shafts range from approximately 232 meters to 268 meters.
 
6.2
 
Mineralization
The coal to be produced at The Mon
 
Valley Complex is typically high volatile (>31% volatile
matter) bituminous coal.
 
The
 
generalized
 
stratigraphic
 
columnar
 
section
 
in
Figure
 
6-1
 
demonstrates
 
the
 
vertical
relationship of the principal coal seams and rock formations on the Property.
 
 
ex964p2i0.jpg
 
 
 
 
ex964p27i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
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ILLER
&
A
SSOCIATES
,
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Figure 6-1:
 
Stratigraphic Column
(not to scale)
6.3
 
Deposits
Historic underground
 
mining has
 
occurred in
 
the overlying
 
Pittsburgh Seam
 
on this
 
property.
 
Contour
 
surface
 
mining
 
on
 
the
 
Pittsburgh
 
and
 
Redstone
 
outcrop
 
has
 
occurred
 
within
 
the
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
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ILLER
&
A
SSOCIATES
,
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NC
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19
areas projected for the coal refuse disposal area, the slope portal area
 
and the preparation
plant area.
 
The three proposed
 
mines (Pangburn, Shaner, and
 
Fallowfield) are all
 
projected
to be deep mines in the Upper Freeport seam.
 
Mining is projected in areas where the total
seam thickness exceeds 1.2 meters.
 
Areas of sandstone washout and seam thinning have
been excluded
 
from projections by
 
MM&A personnel.
 
Additional exploration could
 
identify
additional
 
geologically
 
limiting
 
features,
 
which
 
could
 
alter
 
the
 
proposed
 
mine
 
plan.
 
The
Upper Freeport seam in the
 
projected areas ranges from 0.7
 
meters to 3.1 meters thick
 
and
averages 1.95 meters thick.
7
Exploration
7.1
 
Nature and Extent of Exploration
Extensive
 
exploration
 
in
 
the
 
form
 
of
 
subsurface
 
drill
 
efforts
 
has
 
been
 
carried
 
out
 
on
 
the
Property by numerous entities, most
 
of which efforts were completed
 
prior to the acquisition
by Coronado.
 
Diamond core and rotary
 
drilling are the 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 approximately
 
750 core
 
and rotary
 
holes have
 
been drilled
for exploration.
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
 
underground
 
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.
 
Generally speaking, 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
.
 
 
ex964p2i0.jpg ex964p29i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
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Figure 7-1:
 
Mon Valley 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
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.
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
All
 
pertinent
 
data
 
used
 
to
 
characterize
 
the
 
coal
 
resources
 
and
 
coal
 
reserves
 
have
 
been
acquired via exploration-based
 
drilling methods.
 
The region has
 
historically produced and
sold
 
Upper
 
Freeport-based
 
coal
 
into
 
metallurgical
 
and
 
thermal
 
markets,
 
enhancing
 
the
confidence of the marketability and quality of the resource.
 
7.3
 
Drilling Procedures
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,
 
for
 
coal-
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
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ILLER
&
A
SSOCIATES
,
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NC
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21
quality
 
testing,
 
and
 
for
 
geotechnical
 
logging.
 
With
 
core
 
holes,
 
geophysical
 
logs
 
are
especially useful in verifying the core recovery of both the coal samples (for assurance that
the
 
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
 
Property.
 
Data for the rotary-drilled
holes are mainly derived
 
from downhole geophysical
 
logs, which are used
 
to interpret coal
and rock
 
thickness and
 
depth, since
 
logging of
 
the drill
 
cuttings is
 
unreliable.
 
Exploratory
drilling generally
 
requires drilling to
 
depths of over
 
152 meters
 
to penetrate
 
the target
 
coal
seam at Mon Valley.
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 were available, they were used
by MM&A geologists to verify the coal thickness and core recovery of seams.
 
7.4
 
Hydrology
Based on historical successful production of Upper
 
Freeport, and stratigraphically proximal
seams in the region,
 
the Mon Valley
 
Complex is not expected to
 
have hydrologic concerns
of
 
material
 
issue.
 
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
 
mining
 
in
 
the
 
region
 
with
 
regards
 
to
hydrogeological features, MM&A assumes that
 
the operations will not be hindered
 
by such
issues.
The Pittsburgh
 
seam has
 
been mined
 
extensively above
 
the Upper
 
Freeport seam
 
on the
Property.
 
The interval (approximately 183
 
meters) between the seams is
 
anticipated to be
adequate to
 
minimize inflow
 
of water
 
to the
 
planned operations
 
from the
 
overlying Pittsburgh
works.
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 them in the development of the LOM plan.
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
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ILLER
&
A
SSOCIATES
,
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NC
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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
core-drilling
 
sampling
 
methods
 
for
 
coal
 
in
 
the
 
United
 
States
 
involves
 
drilling
 
through
 
the
seam, removing the core from the barrel, describing the lithology, wrapping the sample in a
sealed
 
plastic
 
sleeve
 
and
 
placing
 
it
 
lengthwise
 
into
 
a
 
covered
 
core
 
box,
 
and
 
carefully
marking hole ID
 
and depth intervals
 
on each box
 
and lid, allowing
 
the core to
 
be delivered
to a
 
laboratory in
 
correct stratigraphic
 
order, and with
 
original moisture
 
content.
 
This process
has been the norm for both historical and ongoing exploration activities at the Property.
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
consistency of quality from 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 analyses.
 
8.2
 
Lab Procedures
Coal
 
quality
 
testing
 
has
 
been
 
performed
 
over
 
many
 
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 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.
 
Unlike many Appalachian properties, Mon Valley
only
 
has
 
interest
 
in
 
one
 
deep
 
seam;
 
therefore,
 
the
 
analyses
 
have
 
likely
 
been
 
completed
following a consistent protocol.
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).
 
 
ex964p2i0.jpg
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
23
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 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.
 
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.
 
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
24
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
Property
 
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 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.
 
The Upper Freeport
seam has a long
 
history of saleable production in
 
the high-volatile metallurgical and thermal
markets, consistent with
 
exploration results.
 
Degradation of
 
coking coal
 
characteristics over
time is not anticipated to be an issue.
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
(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
 
the Property.
 
Coal resources were estimated as of December 31, 2021.
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
25
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
 
Northern
 
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.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources
 
and Reserves for the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
26
Table 11
 
-1:
 
General Reserve and Resource Criteria
Item
Parameters
Technical Notes & Exceptions*
•
 
General Reserve Criteria
 
 
Reserve Classification
Reserve and Resource
Reliability Categories
Reserve (Proven and Probable)
To better reflect geological conditions of the coal
deposits, distance between points of observation
 
are
standard USGS (in meters), respectively, for
measured and indicated and inferred.
Effective Date of Resource
Estimate
December 31, 2021
Effective Date of Reserve
Estimate
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
1.2 meters (locally <1.2 m for limited areas
integral to the mine plan)
Pangburn was mapped at 0.92-meter cutoff in
conjunction with Coronado mine plan.
Minimum Mining Thickness
1.4 meters
Minimum In-Seam Wash
Recovery
40 percent
 
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
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
61-meter distance from abandoned mines and
sealed or pillared areas.
Adjustments Applied to Coal
Reserves
6 percent moisture increase; 5 percent
preparation plant inefficiency
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-kilometers
 
of
 
a
 
point
 
of
 
observation
 
represents
 
a
 
measured
 
resource
whereas
 
coal
 
between
 
0.4
 
kilometers
 
and
 
1.2
 
kilometers
 
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
 
Mon
 
Valley
 
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.
 
 
ex964p2i0.jpg ex964p36i2.jpg ex964p36i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
27
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,
 
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 Upper Freeport Seam
Present in the Mon Valley Complex
Figure 11-2: Scatter plot of the Total Seam
Thickness for the Upper Freeport Seam
Present in the Mon Valley 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.
 
 
ex964p2i0.jpg ex964p37i1.jpg
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
28
Figure 11-3:
 
Variogram of the Total Seam Thickness for the Upper Freeport Seam
 
Present in the Mon Valley 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 Upper
 
Freeport data
 
for the
Mon Valley 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
 
11-2
.
 
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.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ex964p38i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
29
Figure 11-4:
 
Result of DHSA for the Upper Freeport Seam Present
 
in the Mon Valley
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:
0.72
1.42
3.53
Spherical:
0.72
1.42
3.53
Exponential:
0.75
1.43
3.49
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
 
Gaussian
 
and
 
Spherical
 
models
recommend
 
using
 
a
 
radius
 
of
 
0.72
 
kilometers
 
for
 
measured
 
resources
 
compared
 
to
 
the
historical value of 0.4 kilometers.
 
With respect to indicated resources the
 
DHSA falls in line
closely with the historical standards.
 
The Exponential model recommends
 
using a radius of
1.43
 
kilometers,
 
while
 
the
 
Spherical
 
and
 
Gaussian
 
models
 
recommend
 
a
 
radius
 
of
 
1.42
kilometers,
 
respectively.
 
These
 
values
 
line
 
up
 
closely
 
with
 
the
 
historical
 
radius
 
of
 
1.2
kilometers.
 
These
 
results
 
have
 
led
 
the
 
QPs
 
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
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
30
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.
Table 11
 
-3:
 
Coal Resources Summary as of December 31, 2021
 
Coal Resource (Dry Tonnes, In Situ, Mt)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserve
291.0
213.5
9.3
513.8
31
1.4
26
Exclusive of Reserve
0.0
0.0
0.0
0.0
Total 12/31/2021
291.0
213.5
9.3
513.8
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 Mon Valley properties do not have any resource
 
tonnes exclusive of reserves as of December
 
31, 2021.
11.3
 
Qualified Person’s Opinion
While
 
there
 
is
 
some
 
level
 
of
 
stratigraphically
 
controlled
 
seam-thickness
 
variability
 
due
 
to
sand
 
channels,
 
etc.,
 
the
 
Upper
 
Freeport
 
coal
 
seam
 
on
 
the
 
mine
 
property
 
at
 
Mon
 
Valley
demonstrate
 
reasonable
 
thickness
 
consistency
 
according
 
to
 
the
 
classification
 
system
 
of
measured
 
(0 kilometers – 0.4 kilometers),
indicated
 
(0.4 kilometers to 1.2 kilometers),
 
and
inferred
 
(1.2 kilometers
 
to 4.8
 
kilometers).
 
MM&A geologists
 
and engineers
 
modeled the
deposit
 
and
 
delineated
 
mineable
 
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 QPs 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 Mon Valley
 
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
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
31
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 each of the
 
projected mines within the Mon
 
Valley
 
Complex.
 
The footprint of each
reserve area is shown on the maps
 
in
Appendix B
.
 
The mine plans were 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 Mon
 
Valley.
 
The mine plan
was sequenced
 
based on
 
productivity schedules
 
provided by
 
Coronado.
 
MM&A determined
the
 
productivity
 
estimates
 
and
 
plans
 
to
 
be
 
reasonable
 
based
 
on
 
experience
 
and
 
current
industry practice.
At the Mon Valley mines, a minimum mining
 
height of 1.4 meters was
 
generally used due to
the continuous mining method being
 
employed; however, Pangburn was mapped at a
 
0.92-
meter cutoff
 
in conjunction with
 
the Coronado mine
 
plan.
 
For coal seams
 
thinner than the
assigned mining height, the
 
difference between the
 
coal seam height and
 
assigned mining
height consists of
 
out-of-seam dilution (
OSD
).
 
Mine recovery generally
 
varies between 40
percent
 
and
 
55
 
percent
 
for
 
continuous
 
mining
 
panels.
 
Plant
 
recovery
 
is
 
a
 
function
 
of
 
in-
seam recovery,
 
OSD and
 
plant efficiency
 
factor,
 
which is
 
set at
 
95 percent.
 
Typical
 
entry
width is 5.8 meters.
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
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 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 HVB domestic
 
and export FOB-mine
 
prices of approximately
 
$137 and $120
 
per
metric tonne for
 
calendar year 2027.
 
HVB domestic and
 
export prices respectively
 
increase
to approximately $221
 
and $193 per
 
metric tonne through
 
year 2050, and
 
then increased by
1% annual inflation thereafter.
The coal resource mapping and estimation process, described in the 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.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
32
As is customary
 
in the
 
USA, 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,
 
degas holes, 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)
are to be excluded from Reserve consideration.
12.2
 
Qualified Person’s Estimates
Reserve
 
tonnage
 
estimates
 
provided
 
herein
 
report
 
coal
 
reserves
 
derived
 
from
 
the
 
in-situ
resource tons presented in
Table 11
 
-3
, and not
 
in addition to coal
 
resources.
 
Coal reserves
are
 
presented
 
on
 
a
 
ROM
 
basis
 
in
Table
 
12-1
.
 
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 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.
Table 12-1:
 
Coal Summary (ROM Basis (Moist)) as of December 31,
 
2021 (Mt)
 
Demonstrated Coal Reserves (Mt, Moist ROM)
 
 
 
 
By Reliability Category
By Mining Type
By Control Type
Quality (Dry)
Area /
Mine
Proved
Probable
Total
Surface
UG
Owned
Leased
Ash
Sulfur
Vol
Mon Valley
113.9
83.2
197.1
0.0
197.1
195.7
1.4
37
1.4
23
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%
Mon Valley
77.8
56.6
134.4
0.0
134.4
133.4
1.0
8
1.4
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 at 6-percent.
 
Actual product moisture is dependent upon
 
multiple
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
33
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
 
134.4 Mt
 
of proven
 
and probable
 
marketable
coal reserves.
 
Of that total,
 
58 percent are
 
proven, and 42 percent
 
are probable.
 
There are
133.4 Mt of owned coal reserves and 1.0 Mt of
 
leased coal reserves.
 
All of the Mon Valley
reserves
 
are
 
considered
 
to
 
be
 
suitable
 
for
 
the
 
metallurgical
 
coal
 
market.
 
All
 
of
 
the
 
Mon
Valley reserves are unassigned.
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 plans for
 
Mon Valley
 
were 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 Mon Valley coal reserves.
13
Mining Methods
Three separate
 
underground mine
 
areas were
 
modeled and
 
tested economically
 
for the
 
Mon
Valley
 
Complex.
 
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 2099.
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 analysis and considered
 
them in the
development of the LOM plan.
Hydrology is not
 
expected to be
 
an issue of
 
concern at Mon
 
Valley.
 
Extensive mining has
occurred in the Pittsburgh
 
seam, 183 meters above
 
the Upper Freeport
 
horizon.
 
The Upper
Freeport
 
coal
 
has
 
been
 
mined
 
in
 
the
 
region—based
 
on
 
successful
 
historical
 
mining
 
in
comparable geologic
 
settings, material
 
impacts related
 
to hydrology
 
are not
 
anticipated to
be of concern.
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
34
13.2
 
Production Rates
The Mon Valley
 
Complex is not yet
 
active, with three distinct
 
mines and preparation plants
planned.
 
The
 
mine
 
plan
 
and
 
productivity
 
expectations
 
reflect
 
historical
 
performance
 
of
similar operations 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
 
has not
 
been optimized within
the TRS.
Production is
 
scheduled for
 
approximately 273
 
days each
 
year, which represents production
on Monday through
 
Friday plus every
 
other Saturday with
 
allowances for holidays.
 
On each
day, the continuous mining sections 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 per section.
 
Productivity is planned
 
at the
 
rate
of 272 meters of advance per shift for the super sections.
Carlson Mining
 
software was
 
used by
 
MM&A to
 
generate mine
 
plans for
 
the underground
mineable coal
 
seam.
 
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.
As shown in
Table 13-1
, the areas planned for underground mines produce coal until 2099.
 
Clean coal production varies directly with coal thickness.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
35
Table 13-1:
 
Production Summary by Mine by Year (000)
Mine Name
2030
2031
2032
2033
2034
2035
2036
2037
Pangburn
0
440
1,995
2,067
2,158
2,237
2,238
1,868
Fallowfield
0
0
0
0
0
0
0
0
Shaner
0
0
0
0
0
0
0
404
 
Total
0
440
1,995
2,067
2,158
2,237
2,238
2,273
 
 
 
 
 
 
 
 
 
Mine Name
2038
2039
2040
2041
2042
2043
2044
2045
Pangburn
1,476
702
665
0
0
0
0
0
Fallowfield
0
0
0
0
0
0
0
0
Shaner
684
1,240
1,944
1,989
1,901
1,892
1,809
1,895
 
Total
2,160
1,943
2,608
1,989
1,901
1,892
1,809
1,895
 
 
 
 
 
 
 
 
 
Mine Name
2046
2047
2048
2049
2050
2051
2052
2053
Pangburn
0
0
0
0
0
0
0
0
Fallowfield
0
0
0
0
0
0
0
0
Shaner
1,826
1,744
1,879
1,825
1,909
1,876
1,759
1,810
 
Total
1,826
1,744
1,879
1,825
1,909
1,876
1,759
1,810
 
 
 
 
 
 
 
 
 
Mine Name
2054
2055
2056
2057
2058
2059
2060
2061
Pangburn
0
0
0
0
0
0
0
0
Fallowfield
0
0
947
1,962
2,215
2,212
2,191
2,000
Shaner
1,929
1,930
1,929
1,980
1,899
2,028
1,957
1,845
 
Total
1,929
1,930
2,876
3,942
4,114
4,239
4,147
3,844
 
 
 
 
 
 
 
 
 
Mine Name
2062
2063
2064
2065
2066
2067
2068
2069
Pangburn
0
0
0
0
0
0
0
0
Fallowfield
1,827
2,051
2,087
2,087
2,060
2,060
1,881
2,087
Shaner
1,910
1,770
1,658
1,176
1,055
672
674
436
 
Total
3,737
3,821
3,745
3,264
3,115
2,732
2,555
2,523
 
 
 
 
 
 
 
 
 
Mine Name
2070
2071
2072
2073
2074
2075
2076
2077
Pangburn
0
0
0
0
0
0
0
0
Fallowfield
1,585
2,191
2,197
2,008
2,098
2,055
2,107
1,883
Shaner
0
0
0
0
0
0
0
0
 
Total
1,585
2,191
2,197
2,008
2,098
2,055
2,107
1,883
 
 
 
 
 
 
 
 
 
Mine Name
2078
2079
2080
2081
2082
2083
2084
2085
Pangburn
0
0
0
0
0
0
0
0
Fallowfield
2,129
1,937
1,723
2,242
1,568
2,285
1,637
1,982
Shaner
0
0
0
0
0
0
0
0
 
Total
2,129
1,937
1,723
2,242
1,568
2,285
1,637
1,982
 
 
 
 
 
 
 
 
 
Mine Name
2086
2087
2088
2089
2090
2091
2092
2093
Pangburn
0
0
0
0
0
0
0
0
Fallowfield
1,477
1,857
1,616
1,993
1,305
1,637
1,612
1,747
Shaner
0
0
0
0
0
0
0
0
 
Total
1,477
1,857
1,616
1,993
1,305
1,637
1,612
1,747
 
 
 
 
 
 
 
 
 
Mine Name
2094
2095
2096
2097
2098
2099
2100
2101
Pangburn
0
0
0
0
0
0
0
0
Fallowfield
1,355
1,731
1,752
1,387
916
393
0
0
Shaner
0
0
0
0
0
0
0
0
 
Total
1,355
1,731
1,752
1,387
916
393
0
0
13.3
 
Mining Related Requirements
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.
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
36
13.4
 
Required Equipment and Personnel
Production from the proposed Mon
 
Valley Complex mines will be conducted using the
 
room
and pillar
 
method, utilizing
 
continuous miners
 
and haulage
 
using shuttle
 
cars 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.
 
Roof-bolting
machines are
 
used for
 
to support
 
the roof
 
on the
 
continuous miner
 
sections.
 
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.
 
Other
 
supplemental
equipment, such as personnel carriers, supply vehicles, etc., are also used daily.
Mine conveyors typically range in width
 
up to 1.5 meters.
 
Multiple belt flights are arranged
in
 
series
 
to
 
deliver
 
raw
 
coal
 
to
 
the
 
underground
 
storage.
 
Along
 
the
 
main
 
and
 
sub-main
entries
 
and
 
panels,
 
a
 
travel
 
way
 
is
 
provided
 
for
 
personnel
 
and
 
materials
 
by
 
rubber-tired
equipment or on rail.
 
The Mon Valley mines will use conveyors to transport ROM coal from
the
 
underground
 
production
 
sections
 
to
 
the
 
surface
 
where
 
the
 
coal
 
may
 
be
 
sampled,
crushed, washed in the preparation plant, and stockpiled to await shipment.
 
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.
 
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.
13.4.1
 
Mine:
 
Pangburn
The Pangburn mine is
 
proposed to start in
 
2031 with three
 
continuous mining sections.
 
The
Upper Freeport
 
seam will
 
be accessed
 
via decline
 
slope and
 
vertical shaft.
 
This mine
 
will
produce metallurgical and steam coal from leased and owned mineral.
Production is
 
scheduled for
 
approximately 273
 
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.
 
Each section is configured as full
supersection with
 
two continuous
 
miners available
 
for production.
 
Productivity is
 
planned
at
 
the
 
rate
 
of
 
272
 
meters
 
of
 
advance
 
per
 
shift
 
for
 
the
 
super
 
sections.
 
A
 
total
 
of
 
203
employees are assigned to the mine.
Principal production
 
equipment on
 
each 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
 
from
 
the
 
shuttle
 
cars
 
onto
 
a
 
feeder
 
breaker
 
for
 
transfer
 
onto
 
the
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
37
conveyor.
 
The conveyors carry the coal to the outside, where it is transported via overland
conveyor
 
to
 
the
 
proposed
 
Pangburn
 
preparation
 
plant
 
and
 
barge
 
load-out
 
on
 
the
Monongahela River.
 
Rail access is provided by a
CSX rail line.
The
 
proposed
 
Pangburn
 
mine
 
will
 
be
 
located
 
approximately
 
1.6
 
kilometers
 
south
 
of
 
the
community of
 
Elizabeth, Pennsylvania.
 
Main paved
 
roads exist
 
both east
 
and west
 
of the
site.
 
The proposed
 
dock, located
 
on the
 
western boundary
 
of the
 
proposed Pangburn
 
permit
area, is currently used for bulk material transshipment.
 
The area has hosted both industrial
and
 
residential development
 
for an
 
extensive time
 
period.
 
No
 
extraordinary
 
measures or
expenses will be required to establish infrastructure or utilities at the Pangburn site.
 
The preliminary design for the Pangburn mine surface facilities was provided by Coronado.
 
The
 
facilities
 
include
 
offices,
 
warehouses,
 
shops,
 
and
 
a
 
bathhouse
 
for
 
personnel;
 
a
preparation
 
plant
 
to
 
process
 
ROM
 
coal;
 
a
 
refuse
 
area
 
with
 
a
 
designed
 
capacity
 
of
approximately 35 million refuse tonnes; raw coal storage at the
 
plant totaling approximated
100,000
 
tonnes, clean
 
coal
 
storage at
 
the plant
 
site of
 
approximately 54,000
 
tonnes, and
three clean coal stockpiles
 
adjacent to the dock
 
loading facility on the
 
Monongahela River.
 
The three river stockpiles have a designed capacity of approximately 266,000 tonnes.
A
 
study
 
completed
 
and
 
approved
 
through
 
the
Pennsylvania
 
Department
 
of
Environmental Protection
 
on behalf of Coronado has identified
 
a Preferred Site for refuse
disposal
 
at
 
Pangburn
 
with
 
capacity
 
of
 
22.6
 
million
 
cubic
 
meters.
 
MM&A’s
 
estimated
requirements
 
for
 
Pangburn and
 
Shaner
 
combined is
 
29.7 million
 
tonnes or
 
approximately
13.2 million cubic meters.
The preliminary design layout of the Pangburn facilities is shown
Figure 13-1
.
 
 
ex964p47i0.jpg
 
ex964p47i1.jpg
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
38
Figure 13-1:
 
Proposed Pangburn Plant and Mine Site Infrastructure
13.4.2
 
Mine: Shaner
The Shaner mine is
 
a proposed mine in
 
the Upper Freeport seam
 
and is scheduled to
 
begin
production in
 
2037 as
 
the Pangburn
 
reserve is
 
depleted.
 
This mine
 
is a
 
metallurgical and
steam coal operation on leased and owned mineral property.
Production is
 
scheduled for
 
approximately 273
 
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 272
meters of advance per
 
shift for the
 
super sections.
 
A total of 203
 
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
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
39
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 and to the preparation plant and load-out.
The
 
Shaner
 
mine
 
will
 
be
 
located
 
approximately
 
1.6
 
kilometers
 
north
 
of
 
the
 
community
 
of
Sutersville, Pennsylvania,
 
between the
 
Youghiogheny and Monongahela Rivers.
 
Numerous
improved
 
roads
 
traverse
 
the
 
Property.
 
An
 
additional
 
shaft
 
and
 
slope
 
will
 
be
 
required
 
to
access
 
Upper
 
Freeport
 
seam
 
reserves
 
west
 
of
 
the
 
Monongahela
 
River,
 
accessed
 
across
the
 
1
st
 
Street
 
bridge
 
and
 
Douglass
 
Run
 
Road.
 
The
 
immediate
 
vicinity
 
of
 
the
 
proposed
Shaner surface facilities
 
is well developed;
 
no extraordinary measures
 
or expenses will
 
be
required to
 
establish infrastructure
 
or utilities
 
at the
 
Fallowfield site.
 
Due to
 
the projected
starting
 
date
 
for
 
the Shaner
 
mine,
 
no detailed
 
design
 
of
 
infrastructure
 
or surface
 
facilities
has been
 
completed to
 
date.
 
The proposed
 
mines
 
are 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 operations; no
 
Camp or Town construction
will
 
be
 
required.
 
Mine
 
opening
 
capital
 
expenditures
 
are
 
included
 
in
 
the
 
MM&A
 
financial
model.
Due to the projected start-up date of the Shaner 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
 
in
 
this
 
region;
 
a
 
2-year
 
to
 
3-year
 
lead
 
time
 
is
 
recommended.
 
Estimated
expenditures for
 
mine closure
 
and site
 
reclamation are
 
included in
 
the financial
 
model for
each mine or plant site.
Infrastructure for Shaner will resemble that shown in
Figure 13-1
 
for Pangburn.
13.4.3
 
Mine: Fallowfield
The Fallowfield mine is
 
proposed to start in
 
2056 with three
 
production sections.
 
The Upper
Freeport seam
 
will be accessed
 
via a decline
 
slope and
 
vertical shaft.
 
This mine will
 
be a
metallurgical coal and steam coal operation on leased and owned mineral property.
Production is
 
scheduled for
 
approximately 273
 
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.
 
The
 
sections
 
are
 
configured as
super sections with two continuous miners available for production.
 
Productivity is planned
at the
 
rate of 272
 
meters of
 
advance per
 
shift of
 
operation.
 
A total of
 
203 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 Fallowfield preparation plant
 
and
truck load-out via overland conveyor.
 
 
 
ex964p2i0.jpg
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
40
The Fallowfield property boundary is traversed
 
by the four-lane limited-access Mon-Fayette
Expressway in addition
 
to numerous improved
 
roads.
 
Previous mining and
 
coal preparation
facilities have existed in the immediate vicinity of the proposed
 
Fallowfield surface facilities.
 
No extraordinary
 
measures or
 
expenses will
 
be required
 
to establish
 
infrastructure or
 
utilities
at the
 
Fallowfield site.
 
Due to
 
the projected
 
starting date
 
for the
 
Fallowfield mine,
 
no detailed
design
 
of
 
infrastructure
 
or
 
surface
 
facilities
 
has
 
been
 
completed
 
to
 
date.
 
The
 
proposed
mines are
 
located in
 
the Appalachian
 
Basin, which
 
has an
 
extensive history
 
(greater than
100 years) of coal mining.
 
There is a sufficient population base within commuting distance
of the proposed operations; no
 
Camp or Town
 
construction will be required.
 
Mine opening
capital expenditures are included in the MM&A financial model.
Due
 
to
 
the
 
projected
 
start-up
 
date
 
of
 
the
 
Fallowfield
 
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; a two-
 
to three-year lead time
 
is recommended.
 
Estimated expenditures
for mine
 
closure and
 
site reclamation
 
are included
 
in the
 
financial model
 
for each
 
mine or
plant site.
Infrastructure for Fallowfield will resemble that shown in
Figure 13-1
 
for Pangburn.
14
Processing and Recovery Methods
14.1
 
Description or Flowsheet
Due to
 
the projected
 
starting date
 
for the
 
Mon Valley
 
Complex, only
 
preliminary design
 
of
preparation plant or associated
 
material handling facilities has
 
been initiated to date.
 
Coal
processing is
 
a well
 
understood science—it
 
is anticipated
 
that typical
 
coal sizing,
 
cleaning
and dewatering
 
equipment will
 
be utilized
 
for processing
 
of run-of-mine
 
coal at
 
Pangburn,
including combinations
 
of vibratory
 
screens, classifying
 
cyclones, heavy
 
media baths,
 
heavy
media
 
cyclones,
 
spirals,
 
froth
 
flotation,
 
and
 
drain-and-rinse
 
screens,
 
screen-bowl
centrifuges, among
 
others.
 
No novel
 
technologies will
 
be required
 
to process
 
run-of-mine
material.
 
14.2
 
Requirements for Energy, Water,
 
Material and Personnel
The
 
Mon
 
Valley
 
property
 
has
 
sources
 
of
 
water,
 
power,
 
personnel,
 
and
 
supplies
 
readily
available
 
for
 
use.
 
Personnel
 
have
 
historically
 
been
 
sourced
 
from
 
the
 
surrounding
communities in
 
Allegheny,
 
Washington,
 
and Westmoreland
 
Counties, and
 
have proven
 
to
be
 
adequate
 
in
 
numbers to
 
operate
 
the mines.
 
As
 
mining
 
is common
 
in
 
the
 
surrounding
areas, the workforce is
 
generally familiar with mining
 
practices, and many are
 
experienced
miners.
 
Water is expected to be sourced locally
 
from nearby public water sources
 
or rivers.
 
Electricity
 
is
 
anticipated
 
to
 
be
 
sourced
 
from
 
West
 
Penn
or
 
Duquesne
 
Light.
 
The
 
service
industry
 
in
 
the
 
areas
 
surrounding
 
the
 
proposed
 
mine
 
complex
 
has
 
historically
 
provided
supplies,
 
equipment
 
repairs
 
and
 
fabrication,
 
etc.
 
Barge
 
transport
 
on
 
the
 
Monongahela
River/Ohio River
 
system will serve
 
as the
 
main means
 
of product
 
transport from
 
the mine,
 
 
ex964p2i0.jpg
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
41
and
 
currently
 
serve
 
as
 
a
 
means
 
of
 
coal
 
transportation
 
for
 
neighboring
 
Pittsburgh
 
seam
operations.
15
Infrastructure
Due
 
to
 
the
 
projected
 
starting
 
date
 
for
 
the
 
Mon
 
Valley
 
mines,
 
only
 
conceptual
 
design
 
of
infrastructure and surface facilities has been completed to date.
 
The
 
proposed
 
Pangburn
 
mine
 
will
 
be
 
located
 
approximately
 
1.6
 
kilometers
 
south
 
of
 
the
community of
 
Elizabeth, PA.
 
Main paved
 
roads exist
 
both east
 
and west
 
of the
 
site.
 
The
proposed dock, located on the western boundary of the proposed Pangburn permit area, is
currently
 
used
 
for
 
bulk
 
material
 
transhipment.
 
The
 
area
 
has
 
hosted
 
both
 
industrial
 
and
residential
 
development
 
for
 
an
 
extensive
 
time
 
period.
 
No
 
extraordinary
 
measures
 
or
expenses will be required to establish infrastructure or utilities at the Pangburn site.
 
The
 
Shaner
 
mine
 
will
 
be
 
located
 
approximately
 
1.6
 
kilometers
 
north
 
of
 
the
 
community
 
of
Sutersville, PA, between the Youghiogheny and Monongahela Rivers.
 
Numerous improved
roads traverse the Property.
 
An additional shaft and slope will be required
 
to access Upper
Freeport
 
seam
 
reserves
 
west
 
of
 
the
 
Monongahela
 
River,
 
accessed
 
across
 
the
 
1
st
 
Street
bridge
 
and
 
Douglass Run
 
Road.
 
The
 
immediate
 
vicinity of
 
the
 
proposed
 
Shaner
 
surface
facilities
 
is
 
well
 
developed;
 
no
 
extraordinary
 
measures
 
or
 
expenses
 
will
 
be
 
required
 
to
establish infrastructure or utilities at the Shaner site.
The
 
Fallowfield
 
property
 
boundary
 
is
 
traversed
 
by
 
the
 
4-lane
 
limited-access
 
Mon-Fayette
Expressway in addition
 
to numerous improved
 
roads.
 
Previous mining and
 
coal preparation
facilities have existed in the immediate vicinity of the proposed
 
Fallowfield surface facilities.
 
No extraordinary
 
measures or
 
expenses will
 
be required
 
to establish
 
infrastructure or
 
utilities
at the
 
Fallowfield site.
 
Due to
 
the projected
 
starting date
 
for the
 
Fallowfield mine,
 
no detailed
design of infrastructure or surface facilities has been completed to date.
 
A CSX
 
rail line
 
and loadout
 
on the
 
Monongahela River
 
as well
 
as barge
 
transportation on
the river are expected to serve as the primary means of transport for produced coal.
 
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.
 
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
42
The projected quality specifications
 
for the Mon Valley
 
products are as shown
 
in
Table
 
16-
1
.
Table 16-1:
 
Quality Specifications by Product
 
HVB
Moisture (%)
7.50
Ash (%)
7.50
Sulfur (%)
1.2
Volatile Matter (%)
35
Btu/lb.
N/A
Fluidity (ddpm)
26,000
MMR (%)
0.98
CSR
55
FSI
7.50
Note:
 
All Specs are dry basis except Moisture.
 
Life-
of-mine sulfur for Pangburn is an estimated 1.21%;
however, overall Mon Valley Complex reserve
average is 1.36% sulfur.
All of the mine production is
 
projected to serve the metallurgical markets.
 
The metallurgical
coal is marketed as a high-volatile (typically greater
 
than 31 percent volatile matter content)
product on both the domestic and export 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 extrapolated the
 
provided data for
the greenfield Mon
 
Valley
 
operations.
 
Concurrent with aforementioned
 
quality parameters
in the preceding section, production from the proposed operations is assumed to be sold in
high volatile
 
domestic and
 
export coal
 
markets with
 
respective percentages
 
of 66
 
percent
and 34
 
percent.
 
The pricing
 
data assumes
 
HVB domestic
 
and export
 
FOB-mine prices of
approximately $137 and $120 per metric tonne for calendar year 2027.
 
HVB domestic and
export
 
prices
 
respectively
 
increase
 
to
 
approximately
 
$221
 
and
 
$193
 
per
 
metric
 
tonne
through year 2050, and then increased by 1% annual inflation thereafter.
Coal
 
price
 
forecasts
 
for
 
the
 
Mon
 
Valley
 
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 Mon Valley,
 
since
all
 
mining,
 
preparation
 
and
 
marketing
 
is
 
done
 
in-house,
 
the
 
remaining
 
contracts
 
required
are:
>
Transportation
 
– The Mine contracts with barge transportation companies or with CSX
Railroad to transport the coal to either of the domestic customers ports for overseas
shipments.
 
 
ex964p2i0.jpg
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
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ILLER
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43
>
Handling
 
– Contracts for loading vessels for export sales are necessary.
 
These are
typically handled by annual negotiations based on projected shipments.
>
Sales
– Sales contracts are a mix of spot and contract sales.
 
With the volatility of the
market, long-term contracts are not typically written.
17
Environmental Studies, Permitting and Plans,
Negotiations or
 
Agreements with Local
Individuals
 
17.1
 
Results of Studies
MM&A is not
 
aware of any
 
Phase I Environmental
 
Site Assessment (
ESA
) completed on
 
the
Mon Valley
 
property on behalf of
 
Coronado.
 
Coronado reports not having
 
conducted such
a study.
 
Based on our experience with Coronado, it is the QPs’ 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 financial models.
17.2
 
Requirements and Plans for Waste Disposal
A study completed on behalf of Coronado
 
has identified a Preferred Site for refuse
 
disposal
at
 
Pangburn
 
with
 
capacity
 
of
 
22.6
 
million
 
cubic
 
meters.
 
Estimated
 
requirements
 
for
Pangburn and
 
Shaner combined
 
is 29.7 million
 
tonnes or approximately
 
13.2 million
 
cubic
meters.
 
Permitting for such a facility is anticipated to be achievable.
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, owners,
 
and officers,
 
which are
 
subject to
 
bond forfeiture
can be denied future permits under the program.
1
The refuse
 
disposal area
 
will receive
 
combined coarse
 
refuse from
 
the proposed
 
preparation
plant by conveyor
 
belts.
 
The fine
 
material will
 
be processed by
 
filter press
 
technology where
1
 
Monitored under the Applicant Violator System (AVS) by the Federal Office of Surface Mining.
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
44
the majority
 
of the
 
water is
 
removed.
 
The filter
 
cake material
 
will be
 
placed on
 
the refuse
conveyor for disposal with the coarse portion of the refuse material.
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.
 
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.
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
 
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.
 
17.4
 
Local Plans, Negotiations or Agreements
MM&A found no indication of requirements for 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.
 
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 model.
 
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 QPs know
 
of no reason that any permits that may be required cannot be obtained.
 
 
 
ex964p2i0.jpg
 
ex964p14i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
45
Estimated expenditures for site closure and reclamation are included
 
in the financial model
for these sites.
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.
MM&A
developed capital spending estimates for the proposed operations in the Mon Valley
Complex.
 
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 18-1
 
below.
 
Figure 18-1:
 
CAPEX
18.2
 
Operating Cost Estimate
Coronado
 
provided
 
a
 
historical
 
summary
 
of
 
operating
 
costs
 
for
 
similar
 
operations
 
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,
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
46
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 federal
black
 
lung
 
excise
 
tax,
 
and
 
federal
 
reclamation
 
fees.
 
There
 
are
 
currently
 
no
 
state
 
coal
severance or reclamation taxes required in Pennsylvania.
Mandated Sales Related Costs such as Black Lung Excise are summarized in
 
Table
 
18-1.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
47
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 Reclamation Fees – Underground
Per Tonne
$0.13
 
Royalties – Underground
Percentage of Revenue
7%
Note:
 
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:
 
Mon Valley Operating Costs
 
 
YE
12/31
2022
YE
12/31
2023
YE
12/31
2024
YE
12/31
2025
YE
12/31
2026
YE
12/31
2027
YE
12/31
2028
YE
12/31
2029
Remaining
 
Total
LOM
Average
ROM Production Tonnes
198.4
-
-
-
-
-
-
-
-
2.8
Yield
68.19%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
68.19%
Saleable Production
Tonnes
*
135.3
-
-
-
-
-
-
-
-
2.0
 
Thermal Tonnes
-
-
-
-
-
-
-
-
-
-
Domestic Met Tonnes
89.3
-
-
-
-
-
-
-
-
1.3
Export Met Tonnes
46.0
-
-
-
-
-
-
-
-
0.7
 
Total Saleable Tonnes
135.3
-
-
-
-
-
-
-
-
2.0
 
Cash Costs per Tonne:
Mining Costs
$98.16
$-
$-
$-
$-
$-
$-
$-
$-
 
$98.16
 
Processing and
Transport
 
$36.04
 
$-
$-
$-
$-
$-
$-
$-
$-
 
$36.04
 
Sales Related Costs
 
$1.73
 
$-
$-
$-
$-
$-
$-
$-
$-
 
$1.73
 
G&A
 
$5.42
 
$-
$-
$-
$-
$-
$-
$-
$-
 
$5.42
 
 
Total Cash Costs
 
$141.35
 
$-
$-
$-
$-
$-
$-
$-
$-
 
$141.33
 
Financial model includes 0.9 million tonnes of inferred coal
 
production.
 
Inferred coal represents 0.6% 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 proposed Mon Valley operations.
 
MM&A
 
prepared
 
mine
 
projections
 
and
 
production
 
timing
 
forecasts
 
based
 
on
 
coal
 
seam
characteristics.
 
Production timing
 
was
 
carried out
 
from 2031
 
to
 
depletion (exhaustion)
 
of
the coal reserve areas, which
 
is projected for the year 2099.
 
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
 
 
ex964p2i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
48
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 with one noted exception.
 
An inflation rate of 1% was applied
to the sales price after year 2050.
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
reclamation
 
taxes,
 
property
 
taxes,
 
local
 
transportation
 
prior
 
to
 
delivery
 
at
 
rail
 
or
 
barge
loading sites, coal
 
production royalties, sales
 
and use taxes,
 
and income 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 Mon
 
Valley
 
are estimated
to be 7% of the sales revenue.
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 grows from 0.4
 
million
tonnes in
 
2031 to
 
a peak
 
of 3.8
 
million tonnes
 
in 2059.
 
Between years
 
2060 and
 
2089, sales
 
 
ex964p2i0.jpg ex964p58i1.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
49
ranges
 
from
 
1.5
 
million
 
to
 
2.7
 
million
 
tonnes
 
and
 
between
 
years
 
2090-2099,
 
sales
 
range
from 0.4
 
million tonnes
 
to 1.3
 
million tonnes.
 
Projected consolidated
 
revenue grows
 
from
$57.4 million in
 
2031 to
 
a peak
 
of $891.5
 
million in
 
2059.
 
Revenue totals
 
$32.7 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
 
$359.2
 
million
 
in
 
2059
 
and
totals $9.0 billion over the project’s life.
 
Capital expenditures total $485.8 million during the
first five years and $3.3 billion over the project’s life.
 
Coal price forecasts
 
for coal products were
 
prepared by Coronado for
 
its active operations
and modified appropriately
 
by MM&A for
 
its greenfield operations.
 
Such prices were
 
used
for
 
the
 
revenue
 
input
 
into
 
the
 
financial
 
model.
 
Sales
 
variable
 
costs
 
such
 
as
 
production
royalties 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 each proposed Coronado mines in Mon Valley
 
.
Figure 19-1:
 
Cash Costs per Tonne
As
 
shown
 
above,
 
the
 
mines’
 
average
 
cash
 
cost
 
ranges
 
between
 
approximately
 
$56
 
and
$311 per tonne for most of the operating period.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
50
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
Pangburn
14,376
$701,483
$48.80
$1,259,113
$87.59
Fallowfield
72,640
$4,712,144
$64.87
$6,688,054
$92.07
Shaner
48,294
$4,656,184
$96.41
$5,641,238
$116.81
Consolidated PA Deep Mines
135,309
$10,069,811
$74.42
$13,588,405
$100.42
Note:
 
*Financial model includes 0.9
 
million tonnes of inferred
 
coal production.
 
Inferred coal represents
0.6% of the total production, and none of this coal was included in the estimate of reserves.
As
 
shown
 
in
Table
 
19-1,
 
the
 
mines
 
show
 
positive
 
EBITDA
 
over
 
the
 
LOM.
 
Overall,
Coronado’s
 
consolidated
 
operations
 
show
 
positive
 
LOM
 
P&L
 
and
 
LOM
 
EBITDA
 
of
 
$10.0
billion and $13.6 billion,
 
respectively.
 
A summary of the
 
key financial performance metrics
projected for years is provided below in
Table
 
19-2
.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
51
Table 19-2:
 
Summary of Mon Valley Key Financial Performance Metrics (2021-2029)
 
 
YE
12/31
2022
YE
12/31
2023
YE
12/31
2024
YE
12/31
2025
YE
12/31
2026
YE
12/31
2027
YE
12/31
2028
YE
12/31
2029
Remaining
 
Total
LOM
Average
ROM Production Tonnes
198.4
-
-
-
-
-
-
-
-
2.8
Yield
68.19%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
68.19%
Saleable Production
Tonnes
*
135.3
-
-
-
-
-
-
-
-
2.0
 
Thermal Tonnes
-
-
-
-
-
-
-
-
-
-
Domestic Met Tonnes
89.3
-
-
-
-
-
-
-
-
1.3
Export Met Tonnes
46.0
-
-
-
-
-
-
-
-
0.7
 
Total Saleable Tonnes
135.3
-
-
-
-
-
-
-
-
2.0
 
Cash Costs per Tonne:
Mining Costs
$98.16
$-
$-
$-
$-
$-
$-
$-
$-
$98.13
Processing and
Transport
$36.04
$-
$-
$-
$-
$-
$-
$-
$-
$36.04
Sales Related Costs
$1.73
$-
$-
$-
$-
$-
$-
$-
$-
$1.73
G&A
$5.42
$-
$-
$-
$-
$-
$-
$-
$-
$5.42
 
Total Cash Costs
$141.35
$-
$-
$-
$-
$-
$-
$-
$-
$141.33
 
EBITDA per Tonne
$100.15
$-
$-
$-
$-
$-
$-
$-
$-
$100.18
 
Expansion CapEx ($M)
$35.82
$1.02
$-
$-
$-
$-
$5.09
$29.72
$-
$-
Maintenance CapEx ($M)
$3,258.12
$-
$-
$-
$-
$-
$-
$-
$35.26
$43.58
 
Total CapEx
$3,293.95
$1.02
$-
$-
$-
$-
$5.09
$29.72
$35.26
$43.58
●
 
Financial model includes 0.9 million tonnes of inferred coal production.
 
Inferred coal represents 0.6% 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 $287.3 million at
 
a discount rate of
 
10.0%.
 
A summary of
 
the Mon
Valley after-tax
 
cash flow is shown in
Table
 
19-3
.
Table 19-3:
 
Project Cash Flow Summary (000)
*
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
Total
2026
2027
2028
2029
2030
Production & Sales tonnes
135,311
-
-
-
-
-
Total Revenue
$32,678,158
$-
$-
$-
$-
$-
EBITDA
$11,822,150
$(369)
$(369)
$(369)
$(369)
$(369)
Net Income
$5,925,986
$(369)
$(369)
$(369)
$(369)
$(369)
Net Cash Provided by Operating Activities
$9,042,337
$(369)
$(369)
$(369)
$(369)
$(312)
Purchases of Property, Plant, and Equipment
$(3,293,945)
$-
$(5,087)
$(29,721)
$(35,261)
$(215,753)
Net Cash Flow
$5,748,391
$(369)
$(5,456)
$(30,090)
$(35,629)
$(216,065)
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2031
2032
2033
2034
2035
2036
Production & Sales tonnes
399
1,810
1,875
1,958
2,029
2,030
Total Revenue
$57,415
$266,199
$281,967
$301,091
$319,037
$326,330
EBITDA
$31,974
$163,768
$175,562
$191,169
$204,833
$209,981
Net Income
$(43,182)
$84,520
$86,628
$82,382
$94,260
$106,329
Net Cash Provided by Operating Activities
$25,910
$135,802
$160,145
$157,652
$168,511
$179,238
Purchases of Property, Plant, and Equipment
$(199,931)
$(1,928)
$-
$(21,158)
$(19,527)
$(204,537)
Net Cash Flow
$(174,021)
$133,874
$160,145
$136,494
$148,984
$(25,299)
 
 
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
52
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2037
2038
2039
2040
2041
2042
Production & Sales tonnes
2,062
1,960
1,762
2,366
1,804
1,724
Total Revenue
$338,825
$329,205
$302,680
$415,404
$307,404
$305,722
EBITDA
$217,762
$206,113
$179,715
$261,905
$167,920
$166,433
Net Income
$94,184
$107,142
$79,588
$136,843
$92,275
$83,239
Net Cash Provided by Operating Activities
$190,294
$179,925
$156,327
$197,122
$130,469
$131,680
Purchases of Property, Plant, and Equipment
$(178,362)
$(11,413)
$(10,070)
$(18,939)
$(6,627)
$(11,701)
Net Cash Flow
$11,932
$168,512
$146,257
$178,183
$123,842
$119,979
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2043
2044
2045
2046
2047
2048
Production & Sales tonnes
1,717
1,641
1,719
1,657
1,582
1,704
Total Revenue
$307,825
$296,435
$323,078
$319,329
$311,207
$346,423
EBITDA
$166,345
$155,468
$176,197
$172,276
$164,044
$190,984
Net Income
$97,162
$102,577
$115,995
$111,938
$105,580
$121,920
Net Cash Provided by Operating Activities
$134,459
$126,566
$132,835
$135,759
$130,416
$145,691
Purchases of Property, Plant, and Equipment
$(70,898)
$(32,130)
$(1,608)
$(3,445)
$(20,197)
$(42,226)
Net Cash Flow
$63,561
$94,436
$131,226
$132,313
$110,218
$103,465
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2049
2050
2051
2052
2053
2054
Production & Sales tonnes
1,656
1,732
1,702
1,596
1,642
1,750
Total Revenue
$341,272
$366,419
$363,743
$344,653
$358,264
$385,655
EBITDA
$185,001
$203,854
$199,083
$181,885
$190,949
$208,272
Net Income
$117,207
$139,379
$136,063
$119,219
$124,332
$139,625
Net Cash Provided by Operating Activities
$148,383
$156,450
$155,343
$145,611
$148,945
$159,944
Purchases of Property, Plant, and Equipment
$(21,985)
$(2,264)
$(17,661)
$(35,030)
$(22,841)
$-
Net Cash Flow
$126,398
$154,185
$137,682
$110,580
$126,104
$159,944
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2055
2056
2057
2058
2059
2060
Production & Sales tonnes
1,751
2,609
3,576
3,732
3,846
3,762
Total Revenue
$389,797
$586,754
$812,425
$856,469
$891,518
$881,012
EBITDA
$209,937
$293,768
$402,164
$424,215
$445,248
$430,456
Net Income
$159,520
$155,760
$230,828
$240,983
$258,267
$235,432
Net Cash Provided by Operating Activities
$177,985
$239,301
$313,658
$343,495
$359,216
$357,509
Purchases of Property, Plant, and Equipment
$(503,004)
$(81,075)
$(26,163)
$(36,932)
$(20,244)
$(124,371)
Net Cash Flow
$(325,019)
$158,226
$287,495
$306,563
$338,972
$233,138
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2061
2062
2063
2064
2065
2066
Production & Sales tonnes
3,488
3,390
3,466
3,397
2,961
2,826
Total Revenue
$825,025
$810,082
$836,766
$828,451
$729,294
$703,094
EBITDA
$384,291
$373,425
$383,395
$380,242
$330,841
$317,117
Net Income
$197,731
$249,775
$251,050
$244,672
$199,779
$187,067
Net Cash Provided by Operating Activities
$332,663
$309,606
$303,605
$304,427
$278,545
$263,255
Purchases of Property, Plant, and Equipment
$(48,371)
$(18,997)
$(56,143)
$(55,800)
$(106,035)
$(48,026)
Net Cash Flow
$284,292
$290,609
$247,461
$248,627
$172,510
$215,229
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2067
2068
2069
2070
2071
2072
Production & Sales tonnes
2,479
2,318
2,289
1,438
1,988
1,993
Total Revenue
$623,079
$588,566
$587,014
$372,607
$520,312
$526,958
EBITDA
$274,027
$245,996
$243,975
$120,878
$208,565
$209,313
Net Income
$157,110
$137,332
$132,150
$60,913
$125,427
$130,499
Net Cash Provided by Operating Activities
$236,473
$211,681
$204,662
$72,113
$144,108
$165,794
Purchases of Property, Plant, and Equipment
$(105,470)
$(32,972)
$(35,968)
$(21,665)
$(40,884)
$(29,483)
Net Cash Flow
$131,003
$178,708
$168,694
$50,448
$103,224
$136,311
 
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
53
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2073
2074
2075
2076
2077
2078
Production & Sales tonnes
1,822
2,098
2,055
2,107
1,883
2,129
Total Revenue
$486,489
$513,364
$508,098
$526,120
$474,939
$542,425
EBITDA
$180,965
$192,961
$185,766
$199,986
$169,269
$204,346
Net Income
$110,565
$131,576
$121,087
$124,925
$102,184
$132,803
Net Cash Provided by Operating Activities
$151,740
$149,923
$150,163
$155,728
$139,913
$152,938
Purchases of Property, Plant, and Equipment
$-
$-
$(38,951)
$(73,146)
$(11,367)
$(3,092)
Net Cash Flow
$151,740
$149,923
$111,2
 
12
$82,582
$128,546
$149,846
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2079
2080
2081
2082
2083
2084
Production & Sales tonnes
1,937
1,723
2,242
1,568
2,285
1,637
Total Revenue
$498,511
$448,125
$588,782
$416,070
$612,359
$443,292
EBITDA
$172,232
$139,209
$217,859
$113,527
$222,506
$118,656
Net Income
$108,806
$74,410
$128,734
$54,853
$144,403
$63,019
Net Cash Provided by Operating Activities
$140,295
$115,386
$153,758
$109,676
$151,887
$113,810
Purchases of Property, Plant, and Equipment
$(20,499)
$(63,240)
$(32,548)
$(7,363)
$(18,926)
$(35,128)
Net Cash Flow
$119,796
$52,146
$121,210
$102,313
$132,961
$78,682
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2085
2086
2087
2088
2089
2090
Production & Sales tonnes
1,982
1,477
1,857
1,616
1,993
1,305
Total Revenue
$542,129
$408,032
$518,052
$455,417
$567,535
$375,427
EBITDA
$169,637
$89,713
$145,507
$108,922
$166,892
$55,785
Net Income
$96,625
$31,702
$79,264
$51,566
$96,127
$8,392
Net Cash Provided by Operating Activities
$123,443
$88,067
$104,777
$94,796
$120,752
$66,853
Purchases of Property, Plant, and Equipment
$(35,870)
$(53,613)
$(23,904)
$(32,182)
$-
$(31,114)
Net Cash Flow
$87,573
$34,453
$80,873
$62,614
$120,752
$35,738
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2091
2092
2093
2094
2095
2096
Production & Sales tonnes
1,637
1,612
1,747
1,355
1,731
1,752
Total Revenue
$475,574
$473,016
$517,712
$405,723
$523,488
$535,336
EBITDA
$103,525
$97,847
$113,758
$40,298
$107,715
$110,329
Net Income
$41,301
$32,537
$52,174
$(4,344)
$49,211
$50,915
Net Cash Provided by Operating Activities
$75,371
$81,436
$89,571
$46,746
$76,088
$90,203
Purchases of Property, Plant, and Equipment
$(71,872)
$(66,089)
$-
$-
$(42,121)
$-
Net Cash Flow
$3,499
$15,347
$89,571
$46,746
$33,967
$90,203
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2097
2098
2099
2100
2101
2102
Production & Sales tonnes
1,387
916
393
-
-
-
Total Revenue
$428,077
$285,625
$123,638
$-
$-
$-
EBITDA
$46,344
$27,079
$5,340
$-
$-
$-
Net Income
$2,394
$(3,736)
$(11,836)
$-
$-
$-
Net Cash Provided by Operating Activities
$50,190
$27,994
$(197,622)
$-
$-
$-
Purchases of Property, Plant, and Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$50,190
$27,994
$(197,622)
$-
$-
$-
●
 
Financial model includes 0.9 million tonnes of inferred coal production.
 
Inferred coal represents 0.6% 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.
 
 
ex964p2i0.jpg
 
 
ex964p63i0.jpg
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
54
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.
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
 
the
 
Property
 
in
 
2017
 
for
 
Coronado
 
based
 
on
 
SEC
Industry
 
Guide
 
7
 
standards.
 
MM&A
 
conducted
 
a
 
Joint
 
Ore
 
Reserve
 
Committee
 
(
JORC
)
compliant resource and
 
reserve assessment of
 
the Mon Valley
 
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 Mon
 
Valley’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 JORC Code and SEC.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
55
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 134.4 Mt of
 
marketable underground 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
 
risk
 
assessment
 
process
 
are
 
modeled
 
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)
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
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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.
 
Four (4) residual risks are rated High.
 
Six (6) of the risk aspects could be
associated with Moderate residual risk.
 
Three (3) 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.
 
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.
 
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
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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.
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 are
 
modeled to
 
that
presented
 
in
 
the
 
Australian
 
and
 
New
 
Zealand
 
Standard
 
on
 
Risk
 
Management
 
(AS/NZS
4360).
 
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
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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.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
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ILLER
&
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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.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
ARSHALL
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ILLER
&
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SSOCIATES
,
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NC
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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 Mon
 
Valley
 
Reserve (including Pangburn,
 
Shaner and Fallowfield
 
Areas) is
 
located in
Allegheny,
 
Washington,
 
and
 
Westmoreland
 
Counties,
 
Pennsylvania.
 
Mon
 
Valley
underground operations are projected
 
to commence in 2031
 
at the Mon Valley
 
Complex in
the large Upper
 
Freeport seam reserve
 
area.
 
Three mines are
 
planned, and each
 
will utilize
continuous
 
mining
 
methods.
 
The
 
initial
 
operation
 
is
 
designated
 
as
 
the
 
Pangburn
 
Mine;
subsequently,
 
the Shaner
 
Mine is
 
projected for
 
2037 and
 
followed by
 
the Fallowfield
 
Mine
in 2056.
 
The operations are
 
projected to utilize
 
continuous mining production
 
sections.
 
The
method provides continuity, preserving skilled work groups and
 
enabling effective utilization
of
 
production
 
equipment.
 
The
 
Upper
 
Freeport
 
seam
 
is
 
below
 
drainage
 
and
 
therefore
 
all
mines will be accessed with slopes and shafts.
 
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
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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
8.4, which is defined as Moderate.
Table 22-4:
 
Risk Assessment Matrix
 
 
 
 
 
 
 
 
 
Consequence
Critical
>$50 MM
9, 10
 
 
 
 
 
Major
$10-50MM
 
4
1, 2, 3
6
 
 
Moderate
$2-10 MM
 
12
 
 
 
 
Minor
$0.5-$2 MM
 
 
7, 13
5
8
 
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.
To
 
illustrate
 
these
 
points,
 
the
 
Upper
 
Freeport
 
coal
 
seam
 
deposits
 
at
 
Mon
 
Valley
 
are
examined.
 
The coal is deposited
 
in large, elliptical
 
pods.
 
During deposition, the
 
raised peat
deposits were
 
surrounded by
 
areas void
 
of peat
 
and deposited
 
instead with
 
dirt, clay,
 
and
stream channels.
 
Consequently,
 
the perimeter
 
of the
 
peat, and
 
consequent coal
 
deposits
may contain significantly higher concentration of ash and sulfur, and reduced product yield.
 
The
 
perimeter
 
deposits
 
may
 
also
 
be
 
affected
 
by
 
immediate
 
roof
 
and
 
floor
 
conditions
 
that
adversely affect mining cost and
 
productivity.
 
Meandering sandstone channels may
 
reduce
coal seam
 
thickness by
 
scouring action
 
at the
 
top of
 
the coal
 
seam and
 
support the
 
migration
of sulfur to the Upper Freeport seam.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
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ILLER
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Offsetting
 
the
 
geological
 
and
 
coal
 
resource
 
risk
 
are
 
the
 
massive
 
size
 
of
 
the
 
controlled
property which
 
allows large
 
areas to
 
be mined
 
in the
 
three designated
 
mine areas
 
sufficiently
away from
 
areas where
 
coal quality
 
and mineability
 
are less
 
favorable.
 
In addition,
 
the 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 which
 
can be
activated
 
when
 
adverse
 
conditions
 
are
 
encountered,
 
thereby
 
maintaining
 
consistent
production
 
and
 
quality.
 
The
 
spare
 
section
 
requires
 
additional
 
mine
 
extension
 
cost
 
but
increases flexibility and performance consistency.
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
4
12
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
4
12
22.2.8.2
 
Environmental
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.
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.
The
 
Residual
 
Risk
 
has
 
is
 
projected
 
to
 
be
 
slightly
 
higher
 
for
 
the
 
PA
 
reserves
 
due
 
to
 
the
proximity
 
of
 
the
 
rivers and
 
the
 
residual
 
environmental
 
complaints,
 
in
 
the
 
vicinity,
 
left
 
from
mining in the past.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
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M
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&
A
SSOCIATES
,
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.
63
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
4
12
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
4
8
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.
 
The Mon Valley
 
business plan assumes
 
that 75 percent
 
of production can
 
be sold
 
into the
favorably
 
priced
 
metallurgical
 
market.
 
The
 
mining
 
plan
 
must
 
minimize
 
exposure
 
to
 
the
perimeter reserves where quality may not
 
be suitable for the market plan
 
and be flexible to
manage exposure to areas where coal quality fails to meet metallurgical standards.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
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Table 22-8:
 
Market and Transportation (Risks 6 and 7)
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
Coal quality at Mon
Valley Upper
Freeport mines is
not adequate to
support 100 percent
metallurgical sales.
Reduced revenue from a
percentage of thermal
sales jeopardizes
financial performance
and expectations.
Lower preparation
plant gravities for ash
and sulfur reduction;
segregate lower
quality coal when
possible and manage
shipped quality by
blending.
3
5
15
Adjust mine
plan to keep
minimize
exposure to
perimeter coal
and sandstone
channels;
provide spare
section to
sustain
production and
quality when low
quality areas are
encountered.
3
2
6
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 8)
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
 
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.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
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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 is at such low levels that
 
it can be readily managed with frequent testing and
monitoring, vigilance, and routine mine ventilation.
 
Very high methane concentrations may
be present
 
at greater
 
depths.
 
High methane
 
concentrations may
 
require degasification
 
of
the coal seam to assure safe mining.
 
Table 22-10:
 
Methane Management (Risk 9)
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
 
Coronado
 
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.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
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Table 22-11
 
:
 
Mine Fires (Risk 10)
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 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
future delivery of supplies and equipment delays
 
are expected to be temporary with
 
limited
impact on production.
Table 22-12:
 
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
22.2.8.5.4 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
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
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inevitable; the
 
impact can
 
be lessened
 
with succession
 
planning, training,
 
and mentorship
of new employees.
These
 
will
 
be
 
new
 
mines
 
in
 
an
 
historically
 
United
 
Mine
 
Workers
 
of
 
America
 
(
UMWA
)
represented area.
 
Newer mines in the area
 
are not represented so the
 
precedent has been
set.
 
However,
 
the Residual
 
risk is
 
shown as
 
slightly elevated
 
over some
 
other Coronado
properties.
Table 22-13:
 
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.
2
3
6
Table 22-14:
 
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.
 
 
ex964p2i0.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for
 
the
 
Mon Valley Complex Upper Freeport Holdings
 
in Accordance with the JORC Code and
 
United States SEC Regulation S-K 1300 as of December
 
31, 2021
 
Northern Appalachian Coal Basin
Pennsylvania, USA
 
M
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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 QPs
 
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
.
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
ex964p78i0.jpg
 
 
APPENDIX
A
BIOGRAPHIES
 
ex964p79i0.jpg
 
 
 
ex964p80i0.jpg
 
 
 
ex964p81i0.jpg
 
 
APPENDIX
B
MAPS
ex964p82i0.jpg
 
 
 
ex964p83i0.jpg
 
 
 
ex964p84i0.jpg
 
 
ex964p85i0.jpg
 
 
APPENDIX
C
GLOSSARY OF TERMS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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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
LOM
Life-of-mine
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Abbreviation
Definition
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
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Abbreviation
Definition
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 southwestern Pennsylvania.
 
The
Pennsylvania properties include the combined Pangburg, Shaner, and
Fallowfield underground mines in the Upper Freeport seam.
 
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
SME
Society for Mining Engineers
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.
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
 
VALMIN Code
Australasian Code for Public Reporting of Technical
 
Assessments and
Valuations of Mineral Assets
 
 
 
 
 
 
 
 
 
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Abbreviation
Definition
Vulcan™
Vulcan™ software is a product of Maptek™, a provider of software for
the global mining industry.
ex964p90i0.jpg
 
 
APPENDIX
D
JORC TABLE 1
 
 
ex964p2i0.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 D:
 
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.
 
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
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.
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.
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
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.
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).
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
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.
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
M
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SSOCIATES
,
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5
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.
 
 
ex964p2i0.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 D:
 
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.
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
M
ARSHALL
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,
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7
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.
 
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
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NC
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8
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.
>
 
Estimation of deleterious elements or other non-grade variables of economic
significance (e.g. sulphur for acid mine drainage characterisation).
>
 
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.
>
 
Points of observation for Measured and Indicated
 
confidence arcs were defined for all
drill holes that intersected the seam.
 
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
>
 
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.
>
 
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.
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
>
 
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
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
should be reported with an explanation of the
 
basis of the mining assumptions
made.
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.
 
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.
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
M
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Criteria
JORC Code explanation
Commentary
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.3
>
 
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
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.
>
 
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.
>
 
Resource estimation has been completed using standard
 
coal estimation methods
which are deemed appropriate for this deposit.
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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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
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
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
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
)
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
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
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.
>
 
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.
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
M
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,
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15
Criteria
JORC Code explanation
Commentary
>
 
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
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
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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JORC Code explanation
Commentary
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
applicable, the status of approvals for process residue
 
storage and waste
dumps should be reported.
>
 
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.
>
 
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.
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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JORC Code explanation
Commentary
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.
 
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.
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
M
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Criteria
JORC Code explanation
Commentary
>
 
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.
>
 
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.
 
 
ex964p47i0.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 D:
 
JORC Table 1
 
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JORC Code explanation
Commentary
>
 
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
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
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
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.
>
 
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
>
 
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
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
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.
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
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
>
 
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.
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
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Criteria
JORC Code explanation
Commentary
qualitative discussion of the factors which 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.
>
 
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.
 
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
 
 
ex964p2i0.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 D:
 
JORC Table 1
 
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
23
Criteria
JORC Code explanation
Commentary
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.
>
 
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.