![ex963p1i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p1i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December
31, 2021
Central Appalachian Coal Basin
West Virginia, USA
February 2022
Prepared for:
Coronado Global Resources Inc.
100 Bill Baker Way
Beckley, West Virginia 25801
Prepared by:
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
582 Industrial Park Road
Bluefield, Virginia 24605
www.mma1.com
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
Statement of Use and Preparation
This Technical Report Summary (
TRS
) was prepared by
Marshall Miller & Associates, Inc.
(
MM&A
)
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
)
.
accordance with the
Australasian Code for Public Reporting of Technical Assessments
and Valuations of Mineral Assets
(
VALMIN Code
).
The statement is based on information provided by Coronado and reviewed by John W.
Eckman, CPG; and Justin S. Douthat, PE, MBA.
As noted above, this report is a “Public Report” for the purposes of the VALMIN Code.
However, in accordance with paragraph 12.1 of the VALMIN Code, it is noted that this report
is not a “Valuation of Mineral Assets”, and it also does not comply with the following
requirements that apply to “Technical Assessments” (as defined in the VALMIN Code):
This report does not include a determination of the status of tenure (as required by
paragraph 7.2 of the VALMIN Code) on the basis that tenure was separately reviewed by
Coronado’s legal advisors.
This report does not include separate commentary on the reasonableness and quality of the
Resources and Reserves estimates and the basis on which they have been reported (as
required by paragraph 7.3 of the VALMIN Code). MM&A did not consider that this was
appropriate in circumstances where MM&A was engaged for the specific purpose of preparing
those estimates and the Resource estimates were prepared by John Eckman and the Reserve
estimates were prepared by Justin Douthat, both of whom are authors of this report. However,
MM&A notes that, in accordance with its usual practice, a separate team of MM&A employees
undertook a peer review of this report and confirmed that both the process followed by the
authors of this report and the estimates prepared were reasonable and comply with the
requirements of the JORC Code.
Justin Douthat is a licensed Professional Engineers and Registered Member of the
Society
of Mining Engineers (
SME
)
, Golden, Colorado, USA. John Eckman is a Registered Member
of the
American Institute of Professional Geologists
(
AIPG
)
. SME and AIPG are
Recognized Professional Organizations (
RPOs
)
. Both are full-time employees of Marshall
Miller & Associates, Inc. and recognized as a
Qualified Persons
(
QPs
).
The information in this TRS related to coal resources and reserves is based on, and fairly
represents, information compiled by the QPs. At the time of reporting, MM&A’s QPs have
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Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
sufficient experience relevant to the style of mineralization and type of deposit under
consideration and to the activity they are undertaking to qualify as a QP as defined by the SEC
and the JORC Code. Each QP consents to the inclusion in this report of the matters based
on their information in the form and context in which it appears.
Marshall Miller & Associates, Inc. (
MM&A
)
contained in this report dated December 31, 2021, relating to estimates of coal resources and
coal reserves controlled by Coronado.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
This report was prepared by:
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
/s/ John W. Eckman
February 18, 2022
John W. Eckman, CPG
Senior Geologist
Direct Line: +1 304 809 0664
Email: john.eckman@mma1.com
Date of Signature
/s/ Justin S. Douthat
February 18, 2022
Justin S. Douthat, PE, MBA
Executive Vice President
Direct Line: +1 304 809 0597
Email:
justin.douthat@mma1.com
Date of Signature
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
Table of Contents
1
1
1.1
1
1.2
2
1.3
3
1.4
3
1.5
3
1.6
4
1.7
4
1.8
5
1.9
5
1.10
7
1.10.1
10
1.10.2
10
1.11
11
1.12
11
2
12
2.1
Registrant and Terms of Reference
12
2.2
12
2.3
13
3
13
3.1
13
3.2
13
3.3
13
3.4
14
3.5
14
4
15
4.1
Topography, Elevation, and Vegetation
15
4.2
15
4.3
15
4.4
15
4.5
16
5
16
5.1
16
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Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
5.2
16
6
17
6.1
17
6.2
18
6.3
18
7
19
7.1
19
7.2
21
7.3
21
7.4
21
7.5
22
8
22
8.1
22
8.2
22
9
DATA VERIFICATION
23
9.1
23
9.2
23
9.3
23
10
24
10.1
24
10.2
RELATIONSHIP OF TESTS TO THE WHOLE
24
10.3
24
10.4
RELEVANT RESULTS
25
11
25
11.1
25
11.1.1
GEOSTATISTICAL ANALYSIS
27
11.2
30
11.3
31
11.3.1
3
2
11.4
32
12
33
12.1
33
12.2
34
12.3
35
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
13
36
13.1
36
13.2
36
13.3
37
13.3.1
37
13.3.2
37
13.3.3
38
13.4
38
13.4.1
38
13.4.2
45
14
48
14.1
36
14.2
Requirements for Energy, Water, Material and Personnel
36
15
49
16
50
16.1
50
16.2
51
16.3
52
17
52
17.1
52
17.2
52
17.3
52
17.4
55
17.5
55
17.6
55
18
55
18.1
56
18.2
56
19
57
19.1
57
19.2
63
19.3
63
20
64
20.1
Information Used
64
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
4
21
64
22
64
22.1
Conclusion
64
22.2
Risk Factors
64
22.2.1
Governing Assumptions
65
22.2.2
Limitations
66
22.2.3
Methodology
66
22.2.4
Development of the Risk Matrix
67
22.2.5
Categorization of Risk Levels and Color Code Convention
69
22.2.6
Description of the Coal Property
69
22.2.7
Summary of Residual Risk Ratings
70
22.2.8
Risk Factors
70
23
77
24
77
25
77
Figures (in Report)
Figure 1-1: Coronado Logan Property Location Map
2
Figure 1-2: CAPEX
5
Figure 1-3: OPEX
6
Figure 1-4: Sensitivity of NPV
11
Figure 6-1: Logan Stratigraphic Column
18
Figure 7-1: Logan Cross-Section
20
28
28
29
30
Figure 11-5: Results of Initial Economic Assessment
32
Figure 15-1: Logan Surface Facilities
50
Figure 18-1: CAPEX
57
Figure 19-1: Cash Costs per Tonne
60
Figure 19-2: Sensitivity of NPV
63
Tables (in Report)
4
4
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
5
5
7
9
26
30
31
32
35
35
464
6
47
48
51
54
57
57
60
61
62
67
68
69
70
71
72
72
73
73
74
75
75
76
76
77
78
Appendices
A
B
C
D
E
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
1
Executive Summary
1.1 Property Description
Coronado Global Resources Inc. (
Coronado
)
authorized Marshall Miller & Associates,
Inc. (
MM&A
)
and reserves located at the
Logan County Complex (
Logan
)
Counties, West Virginia (the
Property
). The report provides a statement of coal resources and
coal reserves for Coronado, as defined under the
Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves
(
JORC Code
) as well as under
Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the
United States
Securities and Exchange Commission (
SEC
)
.
with the
Australasian Code for Public Reporting of Technical Assessments and
Valuations of Mineral Assets
(
VALMIN Code
).
Coal resources and coal reserves are herein reported in metric units of measurement and are
rounded to millions of metric tonnes (
Mt
).
Surface facilities for the operations are located along Buffalo Creek and a
CSX Corporation
(
CSX
)
Figure 1-1
).
The Property is composed of 13,138 total hectares, 13,069 of which are leased from private
landholders under approximately 15 individual leases, and 69 hectares are owned by
Coronado. Subject to Coronado exercising its renewal rights thereunder, a majority of the
leases, covering a majority of the Logan reserves, expire upon exhaustion of the relevant coal
reserves, which is expected to occur in 2053. One lease expires in 2032; however, Coronado
is projected to have previously exhausted the reserves covered thereby.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p11i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p11i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
Figure 1-1: Coronado Logan Property Location Map
1.2 Ownership
The Logan properties started mining in 1945 by
Lorado Mining Company
. The properties
were sold to
Buffalo Mining Company
Pittston Coal Company
(
Pittston
)
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
mine complex and then sold them to
Addington Resources
2005.
Imagin Natural Resources
Cleveland-
Cliffs Inc. (
Cliffs
)
1.3 Geology
Operations at the Logan Mine Complex extract multiple coal seams by both underground and
surface mining methods. The coal-bearing formation of interest at Logan is primarily the
Kanawha Formation, which comprises a major portion of the exposed ridges. The Kanawha
Formation is a coal bearing sequence of sandstones, siltstones, shales, and mudstones with
minor occurrences of siderite, limestone and flint clay.
Coronado
mines several horizons within the Kanawha formation. The horizons are as follows:
Buffalo Creek, Upper Clarion Rider, Clarion, Lower Clarion, Upper Stockton, Lower Stockton,
Upper Coalburg, Lower Coalburg, Lower Dorothy, Upper Winifrede, Lower Winifrede, Chilton-
A, Chilton, Upper Cedar Grove, Middle Cedar Grove, Lower Cedar Grove, 2 Gas, Upper
Powellton, Lower Powellton, Eagle, and Lower War Eagle.
1.4 Exploration Status
The Property has been extensively explored, largely by drilling using continuous coring
methods, rotary drilling but also by obtaining coal measurements at mine exposures. The
majority of the data was acquired or generated by previous owners of the Property. These
sources comprise the primary data used in the evaluation of the coal resources and coal
reserves on the Property. MM&A examined the data available for the evaluation and
incorporated all pertinent information into this TRS. Where data appeared to be anomalous
or not representative, that data was excluded from the digital databases and subsequent
processing by MM&A.
Ongoing exploration has been carried out by Coronado since acquiring the Logan Complex.
The Coronado acquired exploration data has been consistent with past drilling activities.
1.5 Operations and Development
As of December 31, 2021, underground mine operations were active at the Lower War Eagle,
Eagle No. 1 and Muddy Bridge Mines with three, three or two active mining sections,
respectively using the room-and-pillar method. In addition, Coronado operates a single active
underground room-and-pillar section in the Powellton No. 1 Mine. Annual deep mine
production peaks at approximately 2.5 Mt in 2027. One active surface mine, Toney Fork, was
also operating. Surface production is projected to peak at 1.4 Mt in 2034. Highwall miner
production is also projected to resume in 2023 with a peak in 2033 at 0.74 Mt. Overall
production will continue until 2053 with peak production occurring in 2033 at 4.2 Mt.
The Logan County Complex includes the Saunders Preparation Plant in addition to the mines.
The plant site includes raw coal storage, clean coal storage, a railroad loadout, and refuse
disposal area. The plant has a feed rate capacity of 1,088 raw tonnes per hour.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
4
1.6 Mineral Resource
Mineral resources, representing in-situ coal in which a portion of reserves are derived, are
presented below. A coal resource estimate, summarized in
Table 1-1
, was prepared as of
December 31, 2021, for property controlled by Coronado.
Table 1-1: Coal Resources Summary as of December 31, 2021 (Mt)
Coal Resource (Dry Tonnes, In Situ, MT)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserves
129.6
47.7
0.0
177.3
24
1.0
28
Exclusive of Reserves
45.8
37.0
3.4
86.2
Total 12/31/2021
175.4
84.7
3.4
263.5
Note: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal
reserves are derived.
Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.
Note 3: The Property has 82.8 Mt of dry, in-place measured and indicated resource tonnes exclusive of reserves as of December
31, 2021.
1.7 Mineral Reserve
Reserve tonnage estimates provided herein report coal reserves derived from the in-situ
resource tons presented in
Table 1-1
, and not in addition to coal resources. Proven and
probable coal reserves were derived from the defined coal resource considering relevant
mining, processing, infrastructure, economic (including estimates of capital, revenue, and
cost), marketing, legal, environmental, socio-economic and regulatory factors. The Resource
estimate has been used as the basis for this Reserve calculation, which utilizes a reasonable
Preliminary Feasibility Study, a Life-of Mine (
LOM
) Mine Plan and practical recovery factors.
Production modeling was completed with an effective start date of October 1, 2021. Additions
and depletion have been used to bring the Reserve estimate forward to December 31, 2021.
Factors that would typically preclude conversion of a coal resource to coal reserve, which
include the following: inferred resource classification; absence of coal quality; poor mine
recovery; lack of access; geological encumbrances associated with overlying and underlying
strata; seam thinning; structural complication; and insufficient exploration have all been
considered. Reserve consideration excludes those portions of the resource area which exhibit
the aforementioned geological and operational encumbrances. Coal reserves are presented
on a run-of-mine (
ROM
) basis in
Table 1-2.
Table 1-2: Coal Summary (ROM Basis (Moist)) as of December 31, 2021 (Mt)
Demonstrated Coal Reserves (Mt, Moist ROM)
Quality (Dry)
By Reliability Category
By Mining Type
By Control Type
Area / Mine
Proved
Probable
Total
Surface
UG
Owned
Leased
Ash
Sulfur
Vol
Logan Mine
Complex
94.9
42.0
136.9
38.5
98.4
0.0
136.9
49
0.9
20
Proven and probable coal reserve were derived from the defined in-situ coal resource
considering relevant processing, economic (including technical estimates of capital, revenue
and cost), marketing, legal, environmental, socioeconomic, and regulatory factors. The proven
and probable coal reserves on the Property are summarized below in
Table 1-3.
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![ex963p14i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p14i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
5
Table 1-3: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2021 (Mt)
Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipped, MT)
Quality (Dry Basis)
By Reliability Category
By Mining Type
By Control Type
Property
Proven
Probable
Total
Surface
UG
Owned
Leased
Ash%
Sulfur%
VM%
Logan County
Complex
53.4
20.1
73.4
33.4
40.1
0.0
73.4
8
0.9
35
Note: Marketable reserve tonnes are reported on a moist basis, including a combination of surface and inherent moisture. The
combination of surface and inherent moisture is modeled between 4.5 and 6-percent, depending upon mining method. Actual
product moisture is dependent upon multiple geological factors, operational factors, and product contract specifications and can
exceed 8-percent. As such, the modeled moisture values provide a level of conservatism for reserve reporting.
In summary, Coronado controls a total of 73.4 Mt (moist basis) of marketable coal reserves at
Logan as of December 31, 2021. Of that total, 73 percent are proven, and 27 percent are
probable. All 73.4 Mt are leased coal reserves and are assigned. Approximately 68.7 Mt of
reserves are considered suitable for the metallurgical coal market and 4.8 Mt are projected to
be sold into the thermal coal market.
1.8 Capital Summary
Coronado provided MM&A with an inventory of operating equipment available at Logan.
MM&A’s capital schedules assume that major equipment rebuilds occur over the course of
each machine’s remaining assumed operating life. Replacement equipment was scheduled
based on MM&A’s experience and knowledge of mining equipment and industry standards
with respect to the useful life of such equipment. A summary of the estimated capital for the
Property is provided in
Figure 1-2
Figure 1-2: CAPEX
1.9 Operating Costs
Coronado provided historical and preliminary 5-year projections of operating costs for its active
mines for MM&A’s review. MM&A used the historical and/or budget cost information as a
reference and developed personnel schedules for each mine. Hourly labor rates and salaries
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![ex963p15i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p15i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
6
were based upon information contained in Coronado’s financial summaries. Fringe benefit
costs were developed for vacation and holidays, federal and state unemployment insurance,
retirement, workers’ compensation and pneumoconiosis, casualty and life insurance,
healthcare and bonuses.
For the underground operations, a cost factor for mine supplies was developed that relates
expenditures to mine advance rates for roof control costs and other mine supply costs at
underground mines. Other factors were developed for maintenance and repair costs, rentals,
mine power, outside services and other direct mining costs.
Surface mine direct operating costs were developed as a function of overburden ratio for repair
and maintenance supplies, diesel fuel, explosives and blasting, and miscellaneous supplies
and services.
Operating costs for highwall mines are based on costs per ROM tonne estimates.
Operating costs factors were also developed for the coal preparation plant processing, refuse
handling, coal loading, property taxes, and insurance and bonding.
Appropriate royalty rates were assigned for production from leased coal lands and sales taxes
were calculated for state severance taxes, the federal black lung excise tax, and federal and
state reclamation fees.
A summary of the projected operating costs for the Property is provided in
Figure 1-3
.
Figure 1-3: OPEX
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
7
1.10 Economic Evaluation
The pre-feasibility financial model prepared for this TRS was developed to test the economic
viability of the coal resource area. The results of this financial model are not intended to
represent a bankable feasibility study, required for financing of any current or future mining
operations contemplated for the Coronado properties, but are intended to establish the
economic viability of the estimated coal reserves. Cash flows are simulated on an annual
basis in nominal dollars assuming a 2% inflation rate based on projected production from the
coal reserves. The discounted cash flow analysis presented herein is based on an effective
date of January 1, 2022.
On an un-levered basis, the net present value (
NPV
) of the project cash flow after taxes
represents the Enterprise Value of the project. The project cash flow, excluding debt service,
is calculated by subtracting direct and indirect operating expenses and capital expenditures
from revenue. Direct costs include labor, operating supplies, maintenance and repairs,
facilities costs for materials handling, coal preparation, refuse disposal, coal loading,
reclamation and general and administrative costs. Indirect costs include statutory and legally
agreed upon fees related to direct extraction of the mineral. The indirect costs are the Federal
black lung tax, Federal and State reclamation taxes, property taxes, coal production royalties,
and income taxes.
Table 1-4
P&L
), and earnings before income tax,
depreciation & amortization (
EBITDA
) for Logan.
Table 1-4: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)
LOM
LOM
P&L
LOM
EBITDA
Tonnes
*
Pre-Tax P&L
Per Tonne
EBITDA
Per Tonne
Deep Mines
Camp Br Chilton
Eagle No. 1 (Toney Fork)
Elk Lick Chilton
Lower Powellton
Lower War Eagle
Powellton No. 1
Muddy Br No.2 Gas
Upper Winifrede
Winifrede (Chilton Rider)
Consolidated Deep Mines
Surface Mines
Toney Fork Surf
Buffalo Cr South Area
Sugar Camp Area 1
Surface Mines Consolidated
Highwall Miner (HWM)
Operations
Toney Fork HWM
Buffalo Cr South HWM
Sugar Camp HWM
HWM Consolidated
Grand Total
* The Financial model includes 0.03 million tonnes of inferred coal production. Inferred coal
represents 0.04% of the total production, and none of this coal was included in the estimate of
reserves.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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8
As shown in
Table 1-4,
the Coronado consolidated operations show positive LOM P&L and LOM EBITDA of $1.9
billion and $2.7 billion, respectively.
Coronado’s consolidated Logan cash flow summary in nominal dollars assuming a 2% inflation
rate, excluding debt service, is shown in
Table 1-5
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
9
Table 1-5: Project Cash Flow Summary ($000)
*
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
Total
2022
2023
2024
2025
2026
Production & Sales tonnes
73,441
2,250
2,919
2,903
3,213
3,067
Total Revenue
$9,980,224
$420,654
$344,156
$337,534
$394,845
$389,424
EBITDA
$2,738,028
$200,726
$78,732
$78,233
$110,802
$107,624
Net Income
$1,610,525
$120,459
$34,650
$29,605
$61,436
$59,748
Net Cash Provided by Operating Activities
$2,372,457
$125,587
$89,779
$70,664
$90,037
$94,643
Purchases of Property, Plant, and
Equipment
$(709,361)
$(54,793)
$(27,441)
$(27,989)
$(17,357)
$(13,652)
Net Cash Flow
$1,663,096
$70,794
$62,338
$42,674
$72,680
$80,991
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2027
2028
2029
2030
2031
2032
Production & Sales tonnes
3,396
3,661
3,579
3,326
2,950
3,438
Total Revenue
$431,154
$451,609
$445,987
$420,670
$376,614
$440,781
EBITDA
$117,770
$119,515
$116,897
$111,475
$78,018
$87,218
Net Income
$65,436
$69,828
$70,242
$65,713
$34,306
$33,521
Net Cash Provided by Operating Activities
$100,542
$104,726
$104,191
$100,196
$77,188
$77,404
Purchases of Property, Plant, and
Equipment
$(59,598)
$(28,735)
$(27,081)
$(31,232)
$(48,753)
$(71,927)
Net Cash Flow
$40,944
$75,991
$77,110
$68,964
$28,435
$5,477
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2033
2034
2035
2036
2037
2038
Production & Sales tonnes
4,156
4,105
3,468
3,753
2,854
3,015
Total Revenue
$537,477
$534,901
$465,163
$514,566
$405,973
$421,828
EBITDA
$142,816
$161,080
$119,812
$148,790
$92,000
$117,900
Net Income
$89,651
$103,843
$69,446
$91,589
$53,041
$76,624
Net Cash Provided by Operating Activities
$113,575
$136,352
$113,896
$123,326
$92,161
$99,895
Purchases of Property, Plant, and
Equipment
$(23,808)
$(29,414)
$(13,377)
$(19,641)
$(50,095)
$(29,180)
Net Cash Flow
$89,767
$106,938
$100,519
$103,685
$42,066
$70,715
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2039
2040
2041
2042
2043
2044
Production & Sales tonnes
2,436
2,201
1,845
1,459
1,180
1,112
Total Revenue
$355,369
$338,176
$268,754
$214,586
$172,885
$150,118
EBITDA
$87,011
$83,646
$68,092
$62,920
$44,089
$34,328
Net Income
$55,313
$54,058
$44,925
$45,801
$29,936
$22,534
Net Cash Provided by Operating Activities
$83,815
$71,639
$61,735
$55,327
$42,764
$32,618
Purchases of Property, Plant, and
Equipment
$(15,349)
$(9,482)
$(14,390)
$(5,290)
$(14,378)
$(3,690)
Net Cash Flow
$68,466
$62,157
$47,345
$50,037
$28,386
$28,928
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2045
2046
2047
2048
2049
2050
Production & Sales tonnes
1,047
1,570
1,449
1,206
435
546
Total Revenue
$152,705
$241,778
$219,387
$188,710
$76,217
$101,030
EBITDA
$31,080
$76,832
$69,847
$62,067
$19,753
$38,469
Net Income
$16,163
$53,074
$44,398
$39,304
$4,857
$21,379
Net Cash Provided by Operating Activities
$28,550
$56,069
$60,773
$54,739
$27,203
$29,794
Purchases of Property, Plant, and
Equipment
$(33,303)
$(3,327)
$(23,807)
$(5,664)
$(5,458)
$(1,150)
Net Cash Flow
$(4,752)
$52,742
$36,967
$49,075
$21,745
$28,645
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
10
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2051
2052
2053
2054
2055
2056
Production & Sales tonnes
564
318
21
-
-
-
Total Revenue
$102,990
$60,217
$3,964
$-
$-
$-
EBITDA
$42,382
$26,401
$1,703
$-
$-
$-
Net Income
$24,434
$24,120
$1,383
$(164)
$(84)
$(43)
Net Cash Provided by Operating Activities
$35,071
$18,199
$3,510
$(1,729)
$(882)
$(899)
Purchases of Property, Plant, and
Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$35,071
$18,199
$3,510
$(1,729)
$(882)
$(899)
* The Financial model includes 0.03 million tonnes of inferred coal production. Inferred coal represents 0.04% of the total
production, and none of this coal was included in the estimate of reserves.
Consolidated cash flows are driven by annual sales tonnage, which at steady-state level
ranges from a peak of 4.2 million tonnes in 2033 to a low of 1.0 million tonnes in 2045.
Projected consolidated revenue ranges from $150.1 million to $537.5 million at steady state.
Revenue totals $10.0 billion for the project’s life.
Consolidated cash flow from operations is positive throughout the projected operating period,
with the exception of post-production years, due to end-of-mine reclamation spending.
Consolidated cash flow from operations peaks at $136.5 million in 2034 and totals $2.4 billion
over the project’s life. Capital expenditures total $141.2 million from 2022 through 2026 and
$709.4 million over the project’s life.
1.10.1 Discounted Cash Flow Analysis
Cash flow after tax, but before debt service, generated over the life of the project was
discounted to NPV at a 10.0% discount rate, which represents Coronado’s estimate of the
nominal dollar, risk adjusted weighted average cost of capital (
WACC
) for likely market
participants if the subject reserves were offered for sale. On an un-levered basis, the NPV of
the project cash flows represents the Enterprise Value of the project and amounts to $611.3
million. The pre-feasibility financial model prepared for the TRS was developed to test the
economic viability of each coal resource area. The NPV estimate was made for purposes of
confirming the economics for classification of coal reserves and not for purposes of valuing
Coronado or its Logan assets. Mine plans were not optimized, and actual results of the
operations may be different, but in all cases, the mine production plan assumes the properties
are under competent management.
1.10.2 Sensitivity Analysis
Sensitivity of the NPV results to changes in the key drivers is presented in the chart below.
The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices,
operating costs, and capital costs are increased and decreased in increments of 5% within a
+/- 15% range.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p20i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p20i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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NC
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11
Figure 1-4: Sensitivity of NPV
As shown, NPV is quite sensitive to change in sales price and operating cost estimates, and
slightly sensitive to changes in capital cost estimates.
1.11 Permitting
Coronado has obtained all mining and discharge permits to operate its active mines and
processing, loadout or related support facilities. MM&A is unaware of any obvious or current
Coronado permitting issues that are expected to prevent the issuance of future permits.
Logan, along with all coal producers, is subject to a level of uncertainty regarding future clean
water permits due to
United States Environmental Protection Agency
(
EPA
)
with state programs.
1.12 Conclusion and Recommendations
Sufficient data has been obtained through various exploration and sampling programs and
mining operations to support the geological interpretations of seam structure and thickness for
coal horizons situated on the Logan Property. The data is of sufficient quantity and reliability
to reasonably support the coal resource and coal reserve estimates in this TRS.
The geological data and preliminary feasibility study, which consider mining plans, revenue,
and operating and capital cost estimates are sufficient to support the classification of coal
reserves provided herein.
This geologic evaluation conducted in conjunction with the preliminary feasibility study
concludes that the 73.4 Mt of marketable coal reserves identified on the Property are
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
A
SSOCIATES
,
I
NC
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12
economically mineable under reasonable expectations of market prices for metallurgical coal
products, estimated operation costs, and capital expenditures.
2
Introduction
2.1 Registrant and Terms of Reference
This report was prepared for the sole use of
Coronado Global Resources Inc. (
Coronado
)
and its affiliated and subsidiary companies and advisors. The report provides a statement of
coal resources and coal reserves for Coronado, as defined under the
Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves
(
JORC Code
)
as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by the
United States Securities and Exchange Commission (
SEC
)
.
in accordance with the
Australasian Code for Public Reporting of Technical Assessments
and Valuations of Mineral Assets
(
VALMIN Code
).
The report provides a statement of coal resources and coal reserves for Coronado at Logan.
Exploration results and Resource calculations were used as the basis for the mine planning
and the preliminary feasibility study completed to determine extent and viability of the
��
thereserve.
Coal resources and coal reserves are herein reported in metric units of measurement and are
rounded to millions of metric tonnes (
Mt
).
2.2 Information Sources
This TRS is based on information provided by Coronado and reviewed by John Eckman, CPG;
and Justin S. Douthat, PE, MBA.
Coronado engaged MM&A to conduct a coal resource and reserve evaluation of the Coronado
coal properties as of September 30, 2021. Additions and depletion have been used to bring
the Resource and Reserve estimates forward to December 31, 2021, the effective date of this
TRS for Logan. For the evaluation, the following tasks were to be completed:
> Conduct site visits of the mines and mine infrastructure facilities;
> Process the information supporting the estimation of coal resources and reserves into
geological models;
> Develop life-of-reserve mine (
LOM
) plans and financial models;
> Hold discussions with Coronado company management; and
> Prepare and issue a TRS providing a statement of coal resources and reserves which
would include:
-
-
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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SSOCIATES
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-
and the SEC Regulation S-K 1300.
2.3 Personal Inspections
MM&A is very familiar with Logan, having provided a variety of services in recent years and
one of the QP’s involved in this TRS has conducted multiple site visits.
3
Property Description
3.1 Location
The Logan County Complex is located in Logan, Boone, and Wyoming Counties in southern
West Virginia. The Property encompasses the towns of Lorado and Pardee in the northern
portion and Lacoma and Cyclone in the southern portion (approximately 6 kilometers between
the northern and southern towns). The nearest major population centers are Huntington, West
Virginia (145 kilometers northwest) and Charleston, West Virginia (129 kilometers north-
northeast).
The Logan property is composed of 13,138 total leased and owned hectares and is located in
Logan, Boone, and Wyoming Counties. The Property is located on the following
United
States Geological Survey
(
USGS
) Quadrangles: Lorado, Mallory, Amherstdale, and Oceana.
Current mining projections fall within portions of all four quadrangles. The coordinate system
and datum used for the model of the Logan County Complex and the subsequent maps were
produced in the West Virginia State Plane South system, NAD 27.
3.2 Titles, Claims or Leases
The Property is composed of 13,138 total hectares, 13,069 of which are leased from private
landholders under approximately 15 individual leases, and 69 hectares are owned by
Coronado. Subject to Coronado exercising its renewal rights thereunder, a majority of the
leases, covering a majority of the Logan reserves, expire upon exhaustion of the relevant coal
reserves, which is expected to occur in 2053. One lease expires in 2032; however, Coronado
is projected to have previously exhausted the reserves covered thereby. MM&A has not
carried out a separate title verification for the coal properties and has not verified leases,
deeds, surveys or other property control instruments pertinent to the subject resources.
Tenure was separately reviewed by Coronado’s legal advisors. Coronado has represented to
MM&A that it controls the mining rights to the reserves as shown on its property maps, and
MM&A has accepted these as being a true and accurate depiction of the mineral rights
controlled by Coronado. The TRS assumes the properties are developed under responsible
and experienced management.
3.3 Mineral Rights
Coronado supplied property control maps to MM&A related to properties for which mineral
and/or surface property are controlled by Coronado. While MM&A accepted these
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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SSOCIATES
,
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14
representations as being true and accurate, MM&A has no knowledge of past property
boundary disputes or other concerns, through past knowledge of the Property, that would
signal concern over future mining operations or development potential.
Property control in Appalachia can be intricate. Coal mining properties are typically composed
of numerous property tracts which are owned and/or leased from both land holding companies
and private individuals or companies. It is common to encounter severed ownership, with
different entities or individuals controlling the surface and mineral rights. Mineral control in the
region is typically characterized by leases or ownership of larger tracts of land, with surface
control generally comprised of smaller tracts, particularly in developed areas.
Legal mining rights may reflect a combination of fee or mineral ownership and fee or mineral
leases of coal lands through various surface and mineral lease agreements. There is also a
relatively small amount of area where the coal is partially-owned and/or partially leased on a
limited number of individual tracts.
Control of the surface property is necessary to conduct surface mining but is not necessary to
conduct underground mining.
Upon acquisition of mineral control for desired coal seams of surface-mineable economic
interest, it is typical practice in the region for operators to delay the acquisition of surface
control for purposes of surface mining and other surface development until plans are
established for near-future development. Therefore, it is common for an operator to control
mineral for proposed areas of mining for which they have not established the legal right to
surface mine due to the lack of surface control. Acquisition of these rights is typically delayed
in order to limit cost and royalty payments for areas not under consideration for near-future
development. Coronado’s executive management team has a history of surface mining in
Central Appalachia and has conveyed to MM&A that it has been successful in acquiring
surface rights where needed for past operations.
3.4 Encumbrances
No Title Encumbrances are known. By assignment, MM&A did not complete a query related
to Title Encumbrances.
3.5 Other Risks
There is always risk involved in property control. As is common practice, Coronado, and its
predecessors, have had their legal teams examine the deeds and title control in order to
minimize the risk. Historically, property control has not posed any significant challenges
related to Logan’s operations.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
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.
15
4
Accessibility, Climate, Local Resources,
Infrastructure and Physiography
4.1 Topography, Elevation, and Vegetation
Topography of the area surrounding the Logan County Complex is typical of the Central
Appalachian Plateau, being rugged and deeply dissected by v-shaped river valleys, and
generally flanked by steeply sided upland regions, with occasional gentle slopes in select
areas. The drainage system in the region tends to be mostly dendritic in nature. Surface
elevations near the mine complex range from approximately 823 meters above sea level in
upland regions to roughly 338 meters at stream level. The Property is moderately to heavily
vegetated, with oak-hickory forests as the dominant forest type and northern hardwood forest
being less prominent. The Property is not situated near any major urban centers, and the
surrounding area is rural.
4.2 Access and Transport
Access to the Logan Mine property consists of primary, secondary, and unimproved roads,
forming a well-developed transportation network. Highway 119 is the primary highway in the
area running southwest to northeast from the Kentucky-West Virginia line through Mingo,
Logan, and Boone Counties. Secondary roads Route 16 and Route 10 provide the most direct
access through the Property running east-west across the leased area. Numerous other
secondary and unimproved roads provide direct access to the mine property, some being
state- and county-maintained. These roads typically stay open throughout the year.
Additionally, private access roads to existing mines provide transport corridors, and more such
roads may be developed as needed. The Coronado-owned Saunders Preparation Plant
services the mines. The ROM coal is delivered from the Powellton No. 1, Eagle No. 1, Muddy
Bridge and Lower War Eagle Mines via overland conveyor, all remaining production is or will
be delivered to the plant site by truck.
4.3 Proximity to Population Centers
The Logan property lies near the town of Lorado in Logan County, West Virginia,
approximately 145 kilometers southeast of Huntington, West Virginia and 129 kilometers
south-southwest of Charleston, West Virginia. As of the 2020 census, Logan County had a
population of 32,567 residents, Boone County had 21,809 residents, and Wyoming County
had 21,382 residents.
4.4 Climate and Length of Operating Season
The region’s climate is classified as humid, sub-tropical with four distinct seasons: warm
summers, cold winters, and moderate fall and spring seasons. Precipitation in the region is
consistent throughout the year with the most rain falling in spring and the early months of
summer. Average yearly rainfall is 67.69 centimeters. Summer months typically begin in late
May and end in early September and range in average temperature from 53 to 84 degrees
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
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SSOCIATES
,
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NC
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16
Fahrenheit (or 11.6 to 28.9 degrees Celsius). Winters typically begin in mid to late November
and run until mid to late March with average temperatures ranging from 26 to 57 degrees
Fahrenheit (or -3.3 to 13.9 degrees Celsius). Precipitation in the winter typically comes in the
form of snowfall or as a wintery mix (sleet and snow) with severe snowfall events occurring
occasionally. Seasonal variations in climate typically do not affect underground mining in West
Virginia. However, weather events could potentially incumber surface mining and preparation
plant operations on a very limited basis, typically lasting less than a few days.
4.5 Infrastructure
The Logan Mine Complex has sources of water, power, personnel, and supplies readily
available for use. Personnel have historically been sourced from the surrounding communities
in Logan, Boone, Wyoming, and Mingo counties, and have proven to be adequate in numbers
to operate past and current mines. As mining is common in the surrounding areas, the
workforce is generally familiar with mining practices and is comprised of a strong talent pool
of experienced miners. Water is sourced locally from Buffalo Creek Public Service District and
electricity is sourced from
American Electric Power (
AEP
)
. The service industry in the areas
surrounding the mine complex has historically provided supplies, equipment repairs and
fabrication, etc. The Coronado-owned Saunders Preparation plant services the mines and
operates at a rate of 952 tph. The Coronado-owned Elk Lick Loadout serves as the primary
means of shipment and is connected to a CSX rail line, which either serves the domestic
market directly, or transports the coal to the Pier 6 and Dominion terminals at Norfolk, Virginia
for overseas shipment.
5
History
5.1 Previous Operation
The Logan County properties were started in 1945 by
Lorado Mining Company
, were sold
to
Buffalo Mining Company
Pittston Coal Company (
Pittston
)
Pittston operated the properties until the early 1990’s. After being idle for a period, the
properties were then sold to
Addington Resources
Imagin Natural Resources
acquired the properties in 2007, and sold to Cliffs in 2011, which in turn sold the properties to
Coronado in 2014.
Coronado produced approximately 1.8 Mt in 2016, 2.6 Mt in 2017, 2.6 Mt in 2018, 2.7 Mt in
2019, 1.6 Mt in 2020 and 1.9 Mt in 2021.
5.2 Previous Exploration
The Properties have been extensively explored by subsurface drilling efforts carried out by
numerous entities, most of which were completed prior to acquisition by Coronado.
Drill records indicate that independent contract drilling operators have typically been engaged
to carry out drilling on the Properties. Geophysical logging was typically performed by outside
![ex963p26i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p26i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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,
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logging firms. MM&A, via its Geophysical Logging Systems subsidiary, has logged a
significant number of the past exploration holes and gas wells, and currently logs most of the
recently drilled holes.
6
Geological Setting, Mineralization and Deposit
6.1 Regional, Local and Property Geology
The Property lies in the Central Appalachian Coal basin in the Appalachian Plateau
physiographic province.
The coal deposits in the eastern USA are the oldest and most extensively developed coal
deposits in the country. The coal deposits on the Properties are Carboniferous in age, being
of the Pennsylvanian system. Overall, these Carboniferous coals contain two-fifths of the
USA’s bituminous coal deposits and extend over 1,448 kilometers from northern Alabama to
Pennsylvania and are part of what is known as the
Appalachian Basin
. The Appalachian Basin
is more than 402 kilometers wide and, in some portions, contains over 60 coal seams of
varying economic significance.
Seams of economic significance typically range between 0.3 meters and 1.8 meters in
thickness, with relatively little structural deformation. Regional structure is typically
characterized by gently dipping strata to the northwest at less than one percent.
The coal-bearing formation of interest at Logan is the lower section of the Allegheny Formation
and the Kanawha Formation, which comprise a major portion of the exposed ridges. The
Formation are a coal bearing sequence of sandstones, siltstones, shales, and mudstones with
minor occurrences of siderite, limestone and flint clay.
Coronado
mines several horizons within the Kanawha formation. The horizons are as follows:
Buffalo Creek, Upper Clarion Rider, Clarion, Lower Clarion, Upper Stockton, Lower Stockton,
Lower Coalburg, Lower Dorothy, Upper Winifrede, Lower Winifrede, Chilton-A, Chilton, Upper
Cedar Grove, Middle Cedar Grove, Lower Cedar Grove, No. 2 Gas, Upper Powellton, Lower
Powellton, Eagle, and Lower War Eagle seams demonstrate mining potential on this property.
Logan currently has four active underground mines and one active surface mine. The Toney
Fork mine is a surface mine, while the Powellton No. 1, Eagle No. 1, Muddy Bridge and Lower
War Eagle are underground mines. The active Toney Fork surface mine has historically mined
multiple seams including the Upper Winifrede, Lower Winifrede, Upper Clarion Rider, Upper
Clarion, Lower Clarion, Lower Coalburg, Upper Coalburg, Upper Stockton, Lower Stockton,
Chilton-A, and Lower Dorothy Seams. Future surface mine reserve production at Logan is
anticipated to focus on those seams having the best opportunity for sale into the metallurgical
coal markets, namely the Lower Coalburg seam and below. The Powellton No. 1 Mine is
projected to extract the Lower and Upper Powellton jointly in some areas, while other areas
are projected to extract only the Lower Powellton due to seam splitting. The Eagle No. 1 and
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p27i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p27i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
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Muddy Bridge Mines are projected to extract the No. 2 Gas seam. The Lower War Eagle mine
is projected to extract the Lower War Eagle seam.
6.2 Mineralization
The generalized stratigraphic columnar section in
Figure 6-1
relationship of the principal coal seams and rock formations on the Property.
Figure 6-1: Logan Stratigraphic Column
(not to scale)
6.3 Deposits
The coal produced at Logan Mine complex is typically high-volatile (typically 28 percent or
greater volatile matter content) bituminous coal. Quality varies with distance from the cropline,
so some seams will be shipped into both the thermal and metallurgical markets depending on
mining method and ultimate quality. Saleable product from the surface operations is projected
to be sold primarily into the metallurgical coal market; however, some production is planned
to be sold into the thermal coal market due to quality limitations. Underground coal is sold
almost exclusively into the metallurgical markets.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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19
7
Exploration
7.1 Nature and Extent of Exploration
The Properties have been extensively explored by subsurface drilling efforts carried out by
numerous entities, most of which were completed prior to acquisition by Coronado.
Diamond core, rotary, and gas well drilling are the three primary types of exploration on the
Property. Data for correlation and mining conditions are derived from core descriptions and
geophysical logging (e-logging). Coal quality analyses were also employed during the core
exploration process. A total of 1,127 core and rotary holes have been drilled for exploration
purposes on and around the leased property.
Drill records indicate that independent contract drilling operators have typically been engaged
to carry out drilling on the Property. Geophysical logging was typically performed by outside
logging firms. MM&A, via its Geophysical Logging Systems subsidiary, has logged a
significant number of the past exploration holes and gas wells, and currently logs most of the
recently drilled holes.
The location of the drilling is shown on the maps included in
Appendix B
.
The concentration of exploration varies slightly across the Property. Drilling on the Property
is typically sufficient for delineation of potential surface, highwall miner, and deep mineable
benches. Core logging is carried out by professional geologists in cases where roof and floor
strata are of particular interest and in cases where greater resolution and geologic detail are
needed. However, most drill hole data come from simplified driller’s logs, which often lack
specific details regarding geotechnical conditions and specific geology, making correlations
and floor and roof conditions difficult to determine. Geophysical logging (e-logging)
techniques, by contrast, document specific details useful for geologic interpretation and mining
conditions. Given the variability of data-gathering methods,
definitive
conditions may not be possible, but projections and assumptions can be made within a
reasonable
database. Once this was established, stratigraphic columnar sections were generated using
cross-sectional analysis to establish or confirm coal seam correlations.
A typical cross-section is shown in
Figure 7-1
.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p29i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p29i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
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SSOCIATES
,
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Figure 7-1: Logan Cross-Section
Due to the long history of exploration by various parties on the Property, a wide variety of
survey techniques exist for documentation of data point locations. Many of the older
exploration drill holes appear to have been located by survey and more recently-completed
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
21
drill holes are often located by high-resolution Global Positioning System (
GPS
) units.
However, some holes appear to have been approximately located using USGS topography
maps or other methods which are less accurate. Therefore, discretion had to be used
regarding the accuracy for the location and ground surface elevation of some of these older
drill holes. In instances where a drill hole location (or associated coal seam elevations)
appeared to be inconsistent with the overall structural trend (or surface topography for surface-
mineable areas), the data point was not honored for geological modeling. Others with
apparently minor variances were adjusted and then used by MM&A.
Surveying of the underground and surface mined areas has been performed by the mine
operators and/or their consulting surveyors. By assignment, MM&A did not verify the accuracy
or completeness of supplied mine maps but accepted this information as being the work of
responsible engineers and surveyors, as required by both State and Federal Law.
MM&A compiled comprehensive topographic map files by selecting the best available aerial
mapping for each area and filling any gaps with digital USGS topographic mapping.
7.2 Non-Drilling Procedures and Parameters
Some analyses, specifically ultimate ash and sulfur types are not as prevalent as others in the
testing done on samples recovered by drilling. To supplement the information database,
samples have been collected from mine stockpiles and either truck or train shipment samples.
7.3 Drilling Procedures
Core drilling methods utilize NX-size (5.4 centimeters) or similar-sized core cylinders to
recover core samples, which can be used to delineate geologic characteristics, and for coal
quality testing and geotechnical logging. For the core holes, the geophysical logs are
especially useful in verifying the core recovery of both the coal samples (for assurance that
sample is representative of the full seam) and of the roof and floor rock samples (for evaluating
ground control characteristics of deep mineable coal seams). In addition to the core holes,
rotary drilled holes also exist on most of the Properties. Data for the rotary drilled holes is
mainly derived from downhole geophysical logs, which are used to interpret coal and rock
thickness and depth since logging of the drill cuttings is not reliable.
A wide variety of core-logging techniques exist for the properties. For many of the core holes,
the primary data source is a generalized lithology description by the driller, typically
supplemented by a more detailed core log completed by a geologist. These drilling logs were
provided to MM&A as a geological database. MM&A geologists were not involved in the
production of original core logs but did perform a basic check of information within the provided
database. Where geophysical logs for such holes are available, they were used by MM&A
geologists to verify the coal thickness and core recovery of seams.
7.4 Hydrology
Hydrologic testing and forecasting are necessary parts of the permitting process and as such
are routinely considered in the mine planning process.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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NC
.
22
Logan has a lengthy history of operation and five currently active mines with no significant
hydrologic concerns or material issues experienced in its history. Future mining is projected
to occur in areas exhibiting similar hydrogeological conditions as past mining, including stream
undermining and undermining of aquifers. Based upon the successful history of the operation
with regards to hydrogeological features, MM&A assumes that the operation will not be
hindered by such issues in the future.
7.5 Geotechnical Data
Mining plans for potential underground mines were developed by Coronado and modified by
MM&A to fit current property constraints. Pillar stability was tested by MM&A using the
Analysis of Coal Pillar Stability (ACPS)
National Institute
for Occupational Safety and Health (
NIOSH
)
. MM&A reviewed the results from the ACPS
analysis and considered it in the development of the LOM plan. Coal and rock strengths from
core testing are used to verify the empirical assumptions integral to ACPS.
8
Sample Preparation, Analyses and Security
8.1 Prior to Sending to the Lab
Most of the coal samples have been obtained from the Property by subsurface exploration
using core drilling techniques. The protocol for preparing and testing the samples has varied
over time and is not well documented for the older holes drilled on the Property. Typical USA
core drilling sampling technique is for the coal core sample, once recovered from the core
barrel, to be described then wrapped in a sealed plastic sleeve and placed into a covered core
box, which is the length of the sample so that the core can be delivered to a laboratory in
relatively intact condition and with original moisture content. The core identification number
and the depth are scribed on the sample box lid to identify the sample. This process has been
the norm for both historical and ongoing exploration activities at Logan.
This work is typically performed by the supervising driller, geologist or company personnel.
Samples are most often delivered to the company by the driller after each shift or acquired by
company personnel or representatives. Most of the coal core samples were obtained by
previous or current operators on the Property. MM&A did not participate in the collection,
sampling and analysis of the core samples. However, it is reasonable to assume, given the
sophistication level of the previous operators, that these samples were generally collected and
processed under industry best-practices. This assumption is based on MM&A’s familiarity with
the operating companies and the companies used to perform the analysis.
8.2 Lab Procedures
Coal quality testing has been performed over a large number of years by operating companies
using different laboratories and testing regimens. Some of the samples have raw analyses
and washabilities on the full seam (with coal and rock parting layers co-mingled) and are
mainly useful for characterizing the coal quality for projected production from underground and
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
23
highwall mining. Other samples have coal and rock analyzed separately, the results of which
can be manipulated to forecast either surface or underground mining quality. Care has been
taken to use only those analyses that are representative of the coal quality parameters for the
appropriate mining type for each sample.
Standard procedure upon receipt of core samples by the testing laboratory is to log the depth
and thickness of the sample, then perform testing as specified by a representative of the
operating company. Each sample is then analyzed in accordance with procedures defined
under
American Society for Testing and Materials (
ASTM
)
limited to; washability (ASTM D4371); ash (ASTM D3174); sulfur (ASTM D4239); Btu/lb.
(ASTM D5865); volatile matter (ASTM D3175); Free Swell Index (
FSI
) (ASTM D720).
9
Data Verification
9.1 Procedures of Qualified Person
MM&A reviewed the digital geologic database supplied by Coronado. The database consists
of data records, which include drill hole information for holes that lie within and adjacent to the
Property and records for numerous supplemental coal seam thickness measurements. Upon
completion of the database verification, copies of each entry were printed, and cross
referenced to the original document for verification. Once the initial integrity of the database
was established, stratigraphic columnar sections were generated using cross-sectional
analysis to establish or confirm coal seam correlations. Geophysical logs were used wherever
available to assist in confirming the seam correlation and to verify proper seam thickness
measurements and recovery of coal samples.
After establishing and/or verifying proper seam correlation, seam data control maps and
geological cross-sections were generated and again used to verify seam correlations and data
integrity. Once the database was fully vetted, seam thickness, base of seam elevation, roof
and floor lithology, and overburden maps were independently generated for use in the mine
planning process.
9.2 Limitations
As with any exploration program, localized anomalies cannot always be discovered. The
greater the density of the samples taken, the less the risk. Once an area is identified as being
of interest for inclusion in the mine plan, additional samples are taken to help reduce the risk
in those specific areas. In general, provision is made in the mine planning portion of the study
to allow for localized anomalies that are typically classed more as a nuisance than a
hinderance.
9.3 Opinion of Qualified Person
Sufficient data has been obtained through various exploration and sampling programs and
mining operations to support the geological interpretations of seam structure and thickness for
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
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SSOCIATES
,
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24
coal horizons situated on the Property. The data is of sufficient quantity and reliability to
reasonably support the coal resource and coal reserve estimates in this TRS.
10
Mineral Processing and Metallurgical Testing
10.1 Testing Procedures
Separate tabulations have been compiled for basic chemical analyses (both raw and washed
quality), petrographic data, rheological data and chlorine, ash, ultimate and sulfur analysis.
Some of the data categories form the analyses are not as prevalent and have been
supplemented by samples collected from mine stockpiles and either truck or train shipment
samples.
Available coal quality data was tabulated by resource area in a Microsoft® EXCEL workbook
and the details of that work are maintained on file at the offices of Coronado and MM&A.
These tables also provide basic statistical analyses of the coal quality data sets, including
average value; maximum and minimum values; and the number of samples available to
represent each quality parameter of the seam. Coal samples that were deemed by MM&A
geologists to be unrepresentative were not used for statistical analysis of coal quality, as
documented in the tabulations. A representative group of drill hole samples from the
Properties were then checked against the original drill laboratory reports to verify accuracy
and correctness.
The amount and areal extent of coal sampling for geological data is generally sufficient to
represent the quality characteristics of the coal horizons and allow for proper market
placement of the subject coal seams. For some of the coal deposits there are considerable
laboratory data from core samples that are representative of the full extent of the resource
area; and for others there are more limited data to represent the resource area. For example,
in the active operations with considerable previous mining, there may be limited quality data
within some of the remaining resource areas; however, in those cases the core sampling data
can be supplemented with operational data from mining and shipped quality samples
representative of the resource area.
10.2 Relationship of Tests to the Whole
The extensive sampling and testing procedures typically followed in the coal industry result in
an excellent correlation between samples and marketable product. Shipped analyses of the
coal from Logan were reviewed to verify that the coal quality and characteristics were as
expected. The Logan properties have a long history of saleable production, under various
owners, in the high-volatile metallurgical and thermal markets, confirming exploration results.
10.3 Lab Information
Each sample is analyzed at area Laboratories that operate in accordance with procedures
defined under ASTM standards including, but not limited to; washability (ASTM D4371); ash
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
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NC
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25
(ASTM D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865); volatile matter (ASTM D3175);
Free Swell Index (
FSI
) (ASTM D720).
10.4 Relevant Results
No critical factors have been found that would adversely affect the recovery of the Reserve.
Any quality issues that occur, either localized or generally are accounted for in the Marketing
Study done for this TRS.
11
Mineral Resource Estimates
MM&A independently created a geologic model to define the coal resources at Logan. Coal
resources were estimated as of December 31, 2021.
11.1 Assumptions, Parameters and Methodology
Geological data was imported into Carlson Mining
®
®
) geological
modelling software in the form of Microsoft
®
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
for the coal resource and reserve evaluation. These cut-off parameters have been developed
by MM&A based on its experience with the Coronado properties and are typical of mining
operations in the Central Appalachian coal basin. This experience includes technical and
economic evaluations of numerous properties in the region for the purposes of determining
the economic viability of the subject coal reserves.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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SSOCIATES
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Table 11 -1: General Reserve & Resource Criteria
Item
Parameters
Technical Notes & Exceptions*
• General Reserve Criteria
Reserve Classification
Reserve and Resource
Coal resources as reported are inclusive of coal reserves.
Reliability Categories
Reserve (Proven and Probable)
Resource (Measured, Indicated & Inferred)
To better reflect geological conditions of the coal deposits,
distance between points of observation is standard USGS
(in meters), respectively, for measured and indicated and
inferred.
Effective Date of Resource Estimate
December 31, 2021
Coal resources were updated for depletion and non-material
resource additions based on information from Coronado.
Effective date for coal resources is as of December 31,
2021.
Effective Date of Reserve Estimate
December 31, 2021
Coal reserves were updated for depletion and non-material
reserve additions based on information from Coronado.
Effective date for coal reserves is as of December 31, 2021.
Seam Density
Variable, dependent upon seam characteristics
(based on available drill hole quality). In the
absence of laboratory data, estimated by (1)
assuming specific gravity of 1.30 for coal and 2.25 to
2.5 for rock parting, or (2) 1280 kg/m
3
to 1324 kg/m
3
for a "clean" seam)
• Underground-Mineable Criteria
Map Thickness
Total seam thickness
Minimum Seam Thickness
0.76 meters (thermal coal); 0.68 meters
(metallurgical coal)
Minimum Mining Thickness
1.4 to 1.8 meters
Minimum Total Coal Thickness
0.76 meters (thermal coal); 0.68 meters
(metallurgical coal)
Minimum In-Seam Wash Recovery
50 percent; 40 percent where coal is belted directly
to preparation plant
Wash Recovery Applied to Coal
Reserves
Based on average yield for drill holes within reserve
area, or in the absence of laboratory washability
data, based on estimated visual recovery using
specific gravities noted above and 95 percent yield
on "clean" coal
• Underground-Mineable Criteria
Out-of-Seam Dilution Thickness for
Run-of-Mine Tonnes Applied to Coal
Reserves
0.05 meters minimum
2243 kg/m³ density used for dilution tonnage estimate
Mine Barrier
60.96-meter distance from abandoned mines and
sealed or pillared areas; 100-foot distance from
planned highwall miner panels
Minimum Reserve Tonnage
226,796 recoverable tonnes for individual area
(logical mining unit)
Minimum Overburden Depth
30.48 meters
Minimum Interval to Rider Coal
Considered on a case-by-case basis, depending on
interval lithology, etc.
<1.5 meters are resource
Minimum Interval to Overlying or
Underlying Reserves
Considered on a case-by-case basis, depending on
interval lithology, extent and type of extraction, etc.
Typically, 12.19 meters
Minimum Interval to Overlying or
Underlying Mined Areas
Considered on a case-by-case basis, depending on
interval lithology, extent and type of extraction, etc.
Adjustments Applied to Coal Reserves
6 percent moisture increase; 5 percent preparation
plant inefficiency
Surface Mineable Criteria
Topographic Map Source
Reserves estimated based on aerial topography,
where available, and best available aerial
topography for other areas. Pre-law highwalls also
based on aerial topography, where available
Map Thickness
Total mineable seam thickness (excluding removal
partings)
Mine Recovery Applied to Coal
Reserves
90 percent; 25 percent for previously underground
mined areas.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
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Item
Parameters
Technical Notes & Exceptions*
Wash Recovery
Not Applicable for most reserves estimated on a
direct-ship basis. Where surface mineable coal is
projected to be washed, based on average yield for
drill holes within reserve area, or in the absence of
laboratory washability data, based on estimated
visual recovery using specific gravities noted above
and 95 percent yield on "clean" coal
Minimum Thickness
0.3 meter for principal seam (principle seam is any
that is >0.76 meters from another mineable coal
bench)
0.15 meters for a split of a principal seam (split is
within 0.76 meters of another mineable coal bench)
Minimum thickness of recoverable coal
within single seam CTR/Area/HWM
areas
0.6 meters
Removable Rock Parting Thickness
0.07 meters
Maximum Cumulative Area Mining Strip
Ratio
30:1 – Area
15:1 - CTR
Exceptions considered for metallurgical grade coal products
if deemed economical
Design Bench Width for Contour/HWM
Areas
38.1 meters (Contour reserves estimated in
conjunction with potential HWM reserves)
Adjustments Applied to Marketable
Coal Reserves
4.5 percent moisture increase
Out-of-Seam Dilution Thickness
Applied to Coal Reserves
NA
2% adjustment (addition) made to product coal quality ash to
account for dilution
Surface Property Control
Reserves considered where surface is controlled;
tonnage not estimated or classified as resource
where surface is uncontrolled.
Highwall Miner Reserves
Penetration Depth
91.4 – 243.8 meters
Seam Density & Wash Recovery
Similar to underground-mineable reserves
Mine Recovery Applied to Coal
Reserves
40 percent
Minimum Coal Thickness
0.6 meter
Minimum Mining Height
0.9 meter
Adjustments Applied to Marketable
Coal Reserves
6 percent moisture increase and 5 percent
preparation plant inefficiency
Out-of-Seam Dilution Thickness
Applied to Coal Reserves
0.9 meter less seam height
2242 to 2402 kg/m
3
estimate
Note: Exceptions for application of these criteria to resource and reserve estimation are made as warranted and demonstrated by either actual
mining experience or detailed data that allows for empirical evaluation of mining conditions. Final classification of coal reserve is made based
on the pre-feasibility evaluation.
11.1.1 Geostatistical Analysis
MM&A completed a geostatistical analysis on drill holes within the reserve boundaries to
determine the applicability of the common United States classification system for measured
and indicated and inferred coal resources. Historically, the United States has assumed that
coal within 0.4-kilometer of a point of observation represents a measured resource whereas
coal between 0.4 kilometer and 1.2 kilometer from a point of observation is classified as
indicated. Inferred resources are commonly assumed to be located between 1.2 kilometers
and 4.8 kilometers from a point of observation. Per SEC regulations, only measured and
indicated resources may be considered for reserve classification, respectively as proven and
probable reserves.
MM&A performed a geostatistical analysis test of the Logan data set using the Drill Hole
Spacing Analysis (
DHSA
) method. This method attempts to quantify the uncertainty of
applying a measurement from a central location to increasingly larger square blocks and
provides recommendations for determining the distances between drill holes for measured,
indicated, and inferred resources.
To perform DHSA the data set was processed to remove any erroneous data points, clustered
data points, as well as directional trends. This was achieved through the use of histograms,
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p37i2.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p37i2.jpg)
![ex963p37i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p37i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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NC
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28
as seen in
Figure 11-1
, color coded scatter plots showing the geospatial positioning of the
borings,
Figure 11-2
, and trend analysis.
Figure 11-1: Histogram of the Total Seam
Thickness for the No. 2 Gas Seam Present
in the Logan Complex
Figure 11-2: Scatter plot of the Total
Seam Thickness for the No. 2 Gas Seam
Present in the Logan Complex
Following the completion of data processing, a variogram of the data set was created,
Figure
11
-3
. The variogram plots average square difference against the separation distance between
the data pairs. The separation distance is broken up into separate bins defined by a uniform
lag distance (e.g., for a lag distance of 152 meters the bins would be 0 – 152 meters, 153 –
305 meters, etc.). Each pair of data points that are less than one lag distance apart are
reported in the first bin. If the data pair is further apart than one lag distance but less than two
lag distances apart, then the variance is reported in the second bin. The numerical average
for differences reported for each bin is then plotted on the variogram. Care was taken to define
the lag distance in such a way as to not overestimate any nugget effect present in the data
set. Lastly, modeled equations, often spherical, gaussian, or exponential, are applied to the
variogram in order to represent the data set across a continuous spectrum.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p38i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p38i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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29
Figure 11-3: Variogram of the Total Seam Thickness for the No. 2 Gas Seam
Present in the Logan Complex
The estimation variance is then calculated using information from the modeled variogram as
well as charts published by Journel and Huijbregts (1978). This value estimates the variance
from applying a single central measurement to increasingly larger square blocks. Care was
taken to ensure any nugget effect present was added back into the data. This process was
repeated for each test block size.
The final step of the process is to calculate the global estimation variance. In this step the
number square blocks that would fit inside the selected study area is determined for each
block size that was investigated in the previous step. The estimation variance is then divided
by the number of blocks that would fit inside the study area for each test block size. Following
this determination, the data is then transformed back to represent the relative error in the 95
th
-
percentile range.
Figure 11-4
shows the results of the DHSA performed on the No. 2 Gas seam data for the
Logan Complex
.
DHSA provides hole to hole spacing values, these distances need to be
converted to radius from a central point in order to compare to the historical standards. A
summary of the radius data is shown in
Table 11-3
. DHSA prescribes measured, indicated,
and inferred drill hole spacings be determined at the 10-percent, 20-percent, and 50-percent
levels of relative error, respectively.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p39i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p39i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
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30
Figure 11-4: Result of DHSA for the No. 2 Gas Seam Present in the Logan Complex
Table 11 -2: DHSA Results Summary for Radius from a Central Point
Model:
Measured Radial Distance
(10% Relative Error)
Indicated Radial
Distance
(20% Relative Error)
Inferred Radial
Distance
(50% Relative Error)
(km)
(km)
(km)
Gaussian:
0.99
1.66
3.94
Spherical:
0.87
1.53
3.53
Exponential:
0.87
1.53
3.53
Comparing the results of the DHSA to the historical standards, it is evident that the historical
standards are more conservative than even the most conservative DHSA model with regards
to determining measured resources. The Exponential and Spherical models recommend
using a radius of 0.87 kilometers for measured resources compared to the historical value of
0.4 kilometers. With respect to indicated resources the Spherical and Exponential models
recommend using a radius 1.53 kilometers. The historical radius of 1.2 kilometers is therefore
also more conservative than the DHSA results for indicated resources. These results have
led the QP’s to report the data following the historical classification standards, rather than use
the results of the DHSA.
11.2 Qualified Person’s Estimates
Mineral resources, representing in-situ coal in which a portion of reserves are derived, are
presented below. Based on the work described and detailed modelling of the areas
considering all the parameters defined, a coal resource estimate, summarized in
Table 11-3
,
was prepared as of December 31, 2021, for property controlled by Coronado.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
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31
Table 11 -3: Coal Resources Summary as of December 31, 2021 (Mt)
Coal Resource (Dry Tonnes, In Situ, MT)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserves
129.6
47.7
0.0
177.3
24
1.0
28
Exclusive of Reserves
45.8
37.0
3.4
86.2
Total 12/31/2021
175.4
84.7
3.4
263.5
Note: Resource tonnes are inclusive of reserve tonnes since they include the in-situ tonnes from which recoverable coal
reserves are derived.
Note 2: Coal resources are reported on a dry basis. Surface moisture and inherent moisture are excluded.
Note 3: The Property has 82.8 Mt of dry, in-place measured and indicated resource tonnes exclusive of reserves as of December
31, 2021.
11.3 Resources Exclusive of Reserves
The Property contains multiple resource blocks which were not deemed to exhibit reserve
potential at the time of the study. These underground-mineable resources, formally identified
as resources exclusive of reserves, are located in the No. 2 Gas, Lower Powellton, Peerless,
Lower Winifrede, Middle Cedar Grove and Beckley coal seams. There are also surface
mineable resources exclusive of reserves in various seams. Reasons which may preclude
elevation of resources to reserves include, but are not limited to:
1. Unfavorable economics at the PFS level, yet economics could become attractive in the
future under different market conditions.
2. Exclusion from LOM planning by mining operator due to remaining resource blocks which
are relatively small, isolated blocks and not currently attractive from an operational
perspective.
11.3.1 Initial Economic Assessment
MM&A completed an initial economic assessment to determine the potential economic viability
of resources exclusive of reserves. Unlike the economic analysis presented in Chapter 19
developed to test reserves, the initial economic assessment below is presented on a real basis
in 2022 dollars. MM&A applied relevant technical factors to estimate potential saleable tonnes
without the resource blocks, should the resources be extracted via deep, continuous mining
methods or surface area methods. MM&A developed cash cost profiles for the resource
blocks, including direct cash costs (labor, supplies, roof control, maintenance and repair,
power, and other); washing, trucking, materials handling, general and administrative, and
environmental costs; and indirect cash costs (royalties, production taxes, property tax,
insurance). Costs were developed based off relevant cost drivers (per-meter, per-bank cubic
meter, per-raw-tonne, per-clean-tonne). Additionally, MM&A estimated capital costs to extract
resources. Capital costs associated with mine development were amortized across the
resource’s potential saleable tonnages. Additional non-cash items (depreciation of equipment
and depletion) and cash costs were compared to an assumed sale price of $130 per tonne
(FOB loadout) for underground-mineable resources, representing the long-term average price
forecast for HVB provided by Coronado. Surface resources were assessed at a sales price
of $52 per tonne (FOB loadout) based on estimated historical pricing for Coronado’s surface
operations. Results of the analysis are shown below and demonstrate potential profitability on
a fully loaded cost basis. Detailed summaries are shown in
Appendix D
.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p41i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p41i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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NC
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32
Table 11 -4: Results of Initial Economic Assessment
Mine
Resource
Block
Direct
Cash
Transportation,
Washing,
Enviro, G&A
Indirect
Non-
Cash
Total
Cost
Fully
Loaded
P&L
Toney Fork #2
N2G
$106.30
Pardee
N2G
$111.54
Sugar Camp
N2G
$130.03
Lower Powellton
LPOW
$103.42
N2G Peerless
LPOW
$116.35
N2G Peerless
Peer
$128.94
Beckley
Bec
$103.45
Middle Cedar Grove
MCG
$123.88
Ramaco
N2G
$117.22
Lower Winifrede
LWIN
Thermal Area Mines
(S)
S
Figure 11-5: Results of Initial Economic Assessment
11.4 Qualified Person’s Opinion
While there is some level of stratigraphically controlled seam-thickness variability due to seam
splitting, sand channels, etc., the coal seams on the mine property in Logan County
demonstrate reasonable thickness consistency according to the classification system of
measured
indicated
inferred
kilometers). MM&A geologists and engineers modeled the deposit and delineated mineable
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
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SSOCIATES
,
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NC
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33
regions to reflect the nature of each seam and the practicality of mining constraints. Based on
MM&A’s geostatistical analysis, it would be possible to extend the measured, indicated and
inferred arcs slightly beyond historically accepted practices due to consistent geological
settings
.
The QP’s have again elected not to extend arc distances, introducing a level of
conservatism in measured and indicated coal classification.
Based on the data review, the attendant work done to verify the data integrity and the creation
of an independent geologic model, the QPs believe
of the Logan coal resources.
12
Mineral Reserve Estimates
12.1 Assumptions, Parameters and Methodology
Coal Reserves are classified as
proven
probable
mining, metallurgical, economic, marketing, legal, environmental, social and governmental
factors.
>
Proven Coal Reserves
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
resource, and in some circumstances a measured coal resource, adjusted for diluting
materials and allowances for losses when the material is mined. It is based on
appropriate assessment and studies in consideration of and adjusted for reasonably
assumed modifying factors. These assessments demonstrate that extraction could be
reasonably justified at the time of reporting.
Upon completion of delineation and calculation of coal resources, MM&A generated a LOM
plan for Logan. The footprint of each reserve area is shown on the maps in
Appendix B
. The
Mine plan was generated based on the forecast mine plan and permit plan provided by
Coronado with modifications by MM&A where necessary due to current property control limits,
modifications to geologic mapping, or other factors determined during the evaluation.
Carlson Mining software was used to generate the LOM plan for Logan. The mine plan was
sequenced based on productivity schedules provided by Coronado. MM&A judged the
productivity estimates and plans to be reasonable based on experience and current industry
practice.
Raw, ROM production data outputs from LOM plan sequencing were processed into
Microsoft
®
economic model. Average seam densities were estimated to determine raw coal tonnes
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
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SSOCIATES
,
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NC
.
34
produced from the LOM plan. Average mine recovery and wash recovery factors were applied
to determine coal reserve tonnes.
Coal reserve tonnes in this evaluation are reported at a 4.5 percent to 6.0 percent moisture
and represent the saleable product from the Property.
Pricing data as provided by Coronado is described in
Section 16.2
. The pricing data assumes
respective HVA, HVB, specialty markets and thermal FOB-mine prices of approximately $224,
$123, and $51 per metric tonne for calendar year 2022. HVA, HVB, and thermal prices
respectively decrease to approximately $145, $115, and $51 per metric tonne through year
2026, and then increase to $227, $189, and $51 per metric tonne through year 2050 (after
which sales prices were held constant).
The coal resource mapping and estimation process, described in this report was used as a
basis for the coal reserve estimate. Proven and probable coal reserves were derived from the
defined coal resource considering relevant processing, economic (including technical
estimates of capital, revenue, and cost), marketing, legal, environmental, socio-economic, and
regulatory factors and are presented on a moist, recoverable basis.
As is customary in the US, the categories for proven and probable coal reserves are based on
the distances from valid points of measurement as determined by the QPs for the area under
consideration. For this evaluation, measured resource, which may convert to a proven
reserve, is based on a 0.4-kilometer radius from a valid point of observation.
Points of observation include exploration drill holes, gas wells, and mine measurements which
have been fully vetted and processed into a geologic model. The geologic model is based on
seam depositional modeling, the interrelationship of overlying and underlying strata on seam
mineability, seam thickness trends, the impact of seam structure (i.e., faulting), intra-seam
characteristics, etc. Once the geologic model was completed, a statistical analysis, described
in
Section 11.1.1
was selected to define Measured Resources.
Likewise, the distance between 0.4 and 1.2 of a kilometer radius was selected to define
Indicated Resources. Indicated Resources may convert to Probable Reserves.
Inferred Resources (greater than a 1.2-kilometer radius from a valid point of observation) have
been excluded from Reserve consideration.
12.2 Qualified Person’s Estimates
Reserve tonnage estimates provided herein report coal reserves derived from the in-situ
resource tonnes presented in
Table 11-3
, and not in addition to coal resources. Proven and
probable coal reserves were derived from the defined coal resource considering relevant
mining, processing, infrastructure, economic (including estimates of capital, revenue, and
cost), marketing, legal, environmental, socio-economic and regulatory factors. The coal
reserves, as shown in
Table 12-2
, are based on a technical evaluation of the geology and a
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
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SSOCIATES
,
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35
preliminary feasibility study of the coal deposits. The extent to which the coal reserves may
be affected by any known environmental, permitting, legal, title, socio-economic, marketing,
political, or other relevant issues has been reviewed rigorously. Similarly, the extent to which
the estimates of coal reserves may be materially affected by mining, metallurgical,
infrastructure and other relevant factors has also been considered. Coal reserves are
presented on a ROM basis in
Table 12-1.
Table 12-1: Coal Reserves Summary (ROM Basis (Moist)) as of December 31, 2021 (Mt)
Demonstrated Coal Reserves (Mt, Moist ROM)
Quality (Dry)
By Reliability Category
By Mining Type
By Control Type
Area / Mine
Proved
Probable
Total
Surface
UG
Owned
Leased
Ash
Sulfur
Vol
Logan Mine
Complex
94.9
42.0
136.9
38.5
98.4
0.0
136.9
49
0.9
20
In the financial analysis some of the projected mines were not economically viable. The tonnes
projected to be mined from these locations have not been included in the Reserve Base.
Table 12-2: Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2021 (Mt)
Demonstrated Coal Reserves (Wet Tons, Washed or Direct Shipped, MT)
Quality (Dry Basis)
By Reliability Category
By Mining Type
By Control Type
Property
Proven
Probable
Total
Surface
UG
Owned
Leased
Ash%
Sulfur%
VM%
Logan County
Complex
53.4
20.1
73.4
33.4
40.1
0.0
73.4
8
0.9
35
Note: Marketable reserve tonnes are reported on a moist basis, including a combination of surface and inherent moisture. The
combination of surface and inherent moisture is modeled between 4.5 and 6-percent, depending upon mining method. Actual
product moisture is dependent upon multiple geological factors, operational factors, and product contract specifications and can
exceed 8-percent. As such, the modeled moisture values provide a level of conservatism for reserve reporting.
The results of this TRS define an estimated 73.4 Mt of proven and probable marketable coal
reserves. Of that total, 73 percent are proven, and 27 percent are probable. All 73.4 Mt are
leased coal reserves and are assigned. Approximately 68.7 Mt of reserves are considered
suitable for the metallurgical coal market and 4.8 Mt are projected to be sold into the thermal
coal market.
12.3 Qualified Person’s Opinion
The estimate of coal reserves was determined in accordance with the JORC Code along with
SEC Regulation S-K 1300.
The LOM mining plan for Logan was prepared to the level of preliminary feasibility. Mine
projections were prepared, and timing scheduled to match production with coal seam
characteristics. Production timing was carried out from current locations to depletion of the
coal reserve area. Coal reserve estimates could be materially affected by the risk factors
described in
Section 22.2
.
Based on the Preliminary Feasibility Study and the attendant Economic Review, the QPs
believe this is a fair and accurate calculation of the Logan coal reserves.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
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SSOCIATES
,
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NC
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36
13
Mining Methods
Nine underground and three surface mining areas were modeled and tested economically.
Once the Resources were calculated, mine plans were created to project operating each
resource area to depletion, with crews and equipment scheduled to move to subsequent
mining areas as depletion occurs. Underground mine operations are projected to be
exhausted in 2042, surface mines deplete in 2051 and the highwall miners finish in 2053.
13.1 Geotech and Hydrology
Mining plans for potential underground mines were developed by Coronado and MM&A. Pillar
stability was tested by MM&A using the
Analysis of Coal Pillar Stability (ACPS)
was developed by the
National Institute for Occupational Safety and Health (
NIOSH
)
.
MM&A reviewed the results from the ACPS and ALPS analysis and considered them in the
development of the LOM plan.
For the HWM operation, Mining cuts are approximately 2.9 meters wide, and cuts are typically
laid out on approximately 5.03-meter centers. A 2.1-meter to 2.4-meter solid coal fender is
left in place between cuts. The mining plan provides that larger barrier pillars be provided
periodically, depending on overburden depth and characteristics and the immediate roof
composition, typically after 15 to 20 cuts. Although this plan, with minor variations, is common
throughout Appalachia, specific rock and coal strength information is used to verify whether or
not this plan provided a sufficient factor of safety.
Hydrology has not been an issue of concern at Logan. Based on numerous site visits to both
the surface and underground portions of the Property by the QPs, it has been determined that
this is not a significant concern. Mining of future reserves is projected to occur in areas which
exhibit similar hydrogeological characteristics as those formerly mined areas.
13.2 Production Rates
Operations at Logan by Coronado and its predecessors have been on-going for many years.
The mine plan and productivity expectations reflect historical performance and efforts have
been made to adjust the plan to reflect future conditions. MM&A is confident that the mine
plan is reasonably representative to provide an accurate estimation of coal reserves. Mine
development and operation have not been optimized within the TRS.
Carlson Mining software was used by MM&A to generate mine plans for the mineable coal
seams. Mine plans were sequenced based on productivity schedules provided by Coronado,
which were based on historically achieved productivity levels. All production forecasting ties
assumed production rates to geological models as constructed by MM&A’s team of geologists
and mining engineers.
The projected underground mines are set up similarly to the four currently active operations.
Each mine is scheduled to operate one to three production sections. All sections are
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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SSOCIATES
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37
configured as full supersections with two continuous miners per section. In all cases, mines
are forecasted to produce coal two or three shifts each day. In most cases the third shift is
reserved for maintenance and belt and power moves. Production is scheduled Monday
through Friday each week, and every other Saturday.
Three surface resource areas were modeled. Mining operations are projected to utilize area
mining as well as contour mining (
CTR
) methods. The projected operations will employ
equipment capable of a combined production rate of approximately 11,100 bcm/shift between
two spreads of equipment in 2026. In 2027, additional equipment is added in order to increase
production levels to 19,100 bcm/shift. Further equipment is projected for 2032 and beyond in
order to increase production levels for the remaining LOM production to 27,100 bcm/shift. The
production model assumes that the mines continue at this production rate until 2047 when the
equipment suites are selectively phased out of production due to a reduction in available
working areas. Final surface production ceases in 2051 as the last permitted area is depleted,
whereas the HWM production finishes in 2053. The models assume that the operations will
work two, 10-hour production shifts, 5 days per week plus every other Saturday, with sufficient
staffing to float vacation during the year. A total of 115 employees are assumed for the surface
mines at full production.
Coals from the surface operations are hauled to the loadout for direct ship or to the preparation
plant for washing ultimately to be blended to shipment’s specifications. Saleable product from
the surface operations is projected to be sold primary into the thermal coal market on a raw
basis; however, some production is planned to be washed for the metallurgical coal market.
The three areas planned for highwall mining are assumed to be mined by a contractor;
therefore, the contractor costs included in the financial model assume that the contractor is
responsible for staffing those operations along with providing necessary equipment capital.
Spoil for final highwall reclamation is expected to come from strategic placement of spoil on
pre-existing benches by haul trucks such that they are within the push distance of the
reclamation dozer.
13.3 Mining Related Requirements
13.3.1 Underground
A mine plan with sequenced mining projections was prepared for each logical mining unit. For
each mine plan, the appropriate number of production units is selected for the resource area,
and a productivity level assigned, expressed in meters of advance per unit-shift of production.
The productivity is based on the equipment and personnel configuration, mining height and
expected physical conditions.
13.3.2 Surface Mine
A mine plan with sequenced mining projections was prepared for each logical mining unit. The
mobile equipment spreads selected are representative of Coronado’s equipment fleets and
deemed to be appropriate for the local mining conditions.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
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SSOCIATES
,
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NC
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38
13.3.3 HWM
Contract HWM units are available for assignment to contour surface mining pits in the Logan
County Division. HWM substantially increases coal recovery from contour mining benches
and is ideally suited for coal resource areas characterized by thin coal seams and irregular or
narrow boundaries that are not well-suited for underground mining. The contour mining bench
will extend into the highwall to the maximum overburden stripping ratio that is economically
feasible or the minimum bench requirement for operation of the HWM unit.
13.4 Required Equipment and Personnel
13.4.1 Underground Mines
13.4.1.1 Powellton No. 1
The Powellton No. 1 Mine is active with one continuous mining section. The Upper Powellton
seam is accessed via a shallow slope and crop. This mine produces metallurgical coal from
leased mineral.
Production is scheduled for approximately 265 days each year, which represents production
on Monday through Friday and every other Saturday. On each day, two production sections
are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and
mine conveyor belt and power moves. The production section is configured as a full super
section with two continuous miners. Productivity is planned at the rate of 48.8 meters to 76.6
meters of advance (55.5 meters to 87.2 meters of retreat). A total of 50 employees are
assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle
cars, and two scoops. Coal is extracted from the production face with the continuous miner
and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged
from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors
carry the coal to the outside, where it is transported via overland conveyor to the preparation
plant and load-out.
The Powellton No. 1 Mine is an operating facility; all necessary infrastructure and utilities are
in place. All necessary permits have been obtained. Estimated expenditures for site closure
and reclamation are included in the financial model for this site. Expected annual production
averages approximately 204,000 marketable tonnes. The mine is scheduled to terminate
during 2042.
13.4.1.2 Lower War Eagle
The Lower War Eagle Mine is active with three production sections. The Lower War Eagle
seam is accessed via an existing slope. This mine is a metallurgical coal operation with all
remaining production on leased mineral property.
Production is scheduled for approximately 265 days each year, which represents production
on Monday through Friday and every other Saturday. On each day, three production sections
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
39
are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and
mine conveyor belt and power moves. The sections are configured as one single section with
one continuous miner and two super sections with two continuous miners available for
production. Productivity is planned at the rate of 34.8 meters to 78.8 meters of advance (40.3
meters to 90.9 meters of retreat) per shift of operation. A total of 176 employees are assigned
to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle
cars, and two scoops. Coal is extracted from the production face with the continuous miner
and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged
from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors
carry the coal to the outside, where it is transported to the preparation plant and load-out via
overland conveyor.
The Lower War Eagle Mine is an operating facility; all necessary infrastructure and utilities are
in place. All necessary permits have been obtained. Estimated expenditures for site closure
and reclamation are included in the financial model for this site. Expected annual production
averages approximately 684,000 marketable tonnes. The mine is scheduled to terminate
during 2033.
13.4.1.3 Eagle No. 1/Toney Fork #1
The Eagle No. 1 (Toney Fork #1) Mine is an active mine in the Eagle (No. 2 Gas Lower) seam.
This mine is a metallurgical coal operation on leased mineral property and is accessed via drift
entries from the outcrop.
Production is scheduled for approximately 265 days each year, which represents production
on Monday through Friday and every other Saturday. On each day, three production sections
are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and
mine conveyor belt and power moves. All three sections are full super sections with two
continuous miners per section. Productivity is planned at the rate of 37.2 meters to 52.2
meters of advance per shift (44.2 meters to 62.2 meters of retreat) for the super sections. A
total of 177 employees are assigned to the mine.
Principal production equipment per section includes two continuous miners, two roof bolters,
four shuttle cars, and two scoops. Coal is extracted from the production face with the
continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the
coal is discharged onto a feeder breaker for transfer onto the conveyor. The conveyors carry
the coal to the outside, where it is stacked on the ground to await truck transport to the
preparation plant and load-out.
The Eagle No. 1 Mine is an operating facility; all necessary infrastructure and utilities are in
place. All necessary permits have been obtained; the underground footprint area expansion
is pending final approval. Estimated expenditures for mine closure and site reclamation are
included in the financial model.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
40
Expected annual production averages approximately 697,000 marketable tonnes.
The mine is scheduled to terminate during 2041.
13.4.1.4 Muddy Bridge
The Muddy Bridge Mine is an active mine in the Eagle (No. 2 Gas Lower) seam. This mine is
a metallurgical coal operation on leased mineral property and is accessed via drift entries from
the outcrop.
Production is scheduled for approximately 265 days each year, which represents production
on Monday through Friday plus every other Saturday. On each day, two production sections
are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and
mine conveyor belt and power moves. The sections are configured as full super sections with
two continuous miners available for production on each section. Productivity is planned at the
rate of 43.3 meters to 62.5 meters of advance and retreat per shift of operation. A total of 114
employees are assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle
cars, and two scoops. Coal is extracted from the production face with the continuous miner
and hauled to the mine conveyor via shuttle cars. At the conveyor belt, the coal is discharged
from the haulage units onto a feeder breaker for transfer onto the conveyor. The conveyors
carry the coal to the outside, where it is stacked on the ground to await truck transport to the
Lower War Eagle mine for placement onto the overland conveyor leading to the preparation
plant and load-out.
The Muddy Bridge Mine is an operating facility; all necessary infrastructure and utilities are in
place. All necessary permits have been obtained. Coal mining permits are routinely obtained.
Estimated expenditures for mine closure and site reclamation are included in the financial
model.
Expected annual production averages approximately 712,000 marketable tonnes at steady
state production levels.
The mine is scheduled to terminate during 2027.
13.4.1.5 Elklick Chilton
The proposed Elklick Chilton Mine is scheduled to begin production in 2027. The Chilton seam
is accessed via drift entry. The seam is above drainage. This mine is projected to be a
metallurgical coal operation on leased mineral property.
Production is scheduled for approximately 265 days each year, which represents production
on Monday through Friday plus every other Saturday. On each day, one production section
is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine
conveyor belt and power moves. The sections are configured as full super sections with two
continuous miners available for production on each section. Productivity is planned at the rate
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
41
of 73.2 meters of advance (109.8 meters of retreat) per shift of operation. A total of 50
employees are assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle
cars, and two scoops. Coal is extracted from the production face with the continuous miner
and hauled to the mine conveyor via shuttle cars. At the conveyor belt, the coal is discharged
from the haulage units onto a feeder breaker for transfer onto the conveyor. The conveyors
carry the coal to the outside, where it is stacked on the ground to await truck transport to the
preparation plant and load-out.
The Elklick Chilton mine is a permitted mine with surface infrastructure in place. The proposed
mine is located in an area with a long history of coal mining, with numerous permitted
operations in close proximity. Estimated expenditures for mine closure and site reclamation
are included in the financial model.
Expected annual production averages approximately 290,000 marketable tonnes at steady
state production levels.
The mine is scheduled to begin production in 2027 and terminate during 2040.
13.4.1.6 Camp Branch Chilton
The Camp Branch Chilton Mine is proposed mine in the Chilton seam which is accessed via
drift entry from the outcrop and is scheduled to begin production in 2027. This mine is a
metallurgical coal operation on leased mineral property.
Production is scheduled for approximately 265 days each year, which represents production
on Monday through Friday plus every other Saturday. On each day, one production section
is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine
conveyor belt and power moves. The sections are configured as full super sections with two
continuous miners available for production on each section. Productivity is planned at the rate
of 73.2 meters of advance (109.8 meters of retreat) per shift of operation. A total of 50
employees are assigned to the mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle
cars, and two scoops. Coal is extracted from the production face with the continuous miner
and hauled to the mine conveyor via shuttle cars. At the conveyor belt, the coal is discharged
from the haulage units onto a feeder breaker for transfer onto the conveyor. The conveyors
carry the coal to the outside, where it is stacked on the ground to await truck transport to the
preparation plant and load-out.
Due to the projected starting date for the Camp Branch Chilton Mine, no detailed design of
infrastructure or surface facilities has been completed to date. The proposed mine is located
in the Appalachian Basin, which has an extensive history (>100 years) of coal mining. There
is a sufficient population base within commuting distance of the proposed operation; no Camp
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
42
or Town construction will be required. Estimated mine access and utility capital expenditures
are included in the financial model for the mine.
The proposed Camp Branch Chilton Mine has an existing permit. Estimated expenditures for
mine closure and site reclamation are included in the financial model.
Expected annual production averages approximately 335,000 marketable tonnes at steady
state production levels.
The mine is scheduled to begin production in 2027 and terminate during 2032.
13.4.1.7 Winifrede
The proposed Winifrede (North Fork) Mine is scheduled to begin production in 2023. The
Upper Winifrede seam is accessed via drift along the outcrop. This mine is permitted and
projected to be a metallurgical coal operation on leased mineral property.
Production is scheduled for approximately 265 days each year, which represents production
on Monday through Friday plus every other Saturday. On each day, one production section
is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine
conveyor belt and power moves. The section is configured as a super section with two
continuous miners per section available for production. Productivity is planned at the 38.1
meters to 45.1 meters of advance (53.4 meters to 63.1 meters of retreat) per shift. A total of
38 employees are assigned to the mine.
Principal production equipment per section includes two continuous miners, two roof bolters,
four shuttle cars, and one scoop. Coal is extracted from the production face with the
continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the
coal is discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor.
The conveyors carry the coal to the outside, where it is stacked on the ground to await truck
transport to the preparation plant and load-out.
There is an existing mine faceup constructed for seam access. The proposed mine is located
in the Appalachian Basin, which has an extensive history (>100 years) of coal mining. There
is a sufficient population base within commuting distance of the proposed operation; no Camp
or Town construction will be required.
The proposed Winifrede Mine at North Fork is permitted. Estimated expenditures for mine
closure and site reclamation are included in the financial model.
Expected annual production averages approximately 215,000 marketable tonnes at steady
state levels.
The mine is scheduled to begin production in 2023 and terminate during 2024.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
43
13.4.1.8 Lower Powellton
The proposed Lower Powellton Mine is scheduled to begin production in 2031. The Lower
Powellton seam is accessed via a proposed drift along the outcrop. This mine is projected to
be a metallurgical coal operation on leased mineral property.
Production is scheduled for approximately 265 days each year, which represents production
on Monday through Friday plus every other Saturday. On each day, two production sections
are scheduled to produce coal on two shifts; the third shift is reserved for maintenance and
mine conveyor belt and power moves. Both sections are configured as a super section with
two continuous miners per section available for production. Productivity is planned at the 73.2
meters of advance per shift (85.4 meters of retreat per shift). A total of 114 employees are
assigned to the mine during steady state production.
Principal production equipment per section includes two continuous miners, two roof bolters,
four shuttle cars, and one scoop. Coal is extracted from the production face with the
continuous miner and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the
coal is discharged from the shuttle cars onto a feeder breaker for transfer onto the conveyor.
The conveyors carry the coal to the outside, where it is stacked on the ground to await truck
transport to the preparation plant and load-out. The truck haul cost is estimated to be $1.98
per tonne.
Due to the projected starting date for the Lower Powellton Mine, no detailed design of
infrastructure or surface facilities has been completed to date. The proposed mine is located
in the Appalachian Basin, which has an extensive history (>100 years) of coal mining. There
is a sufficient population base within commuting distance of the proposed operation; no Camp
or Town construction will be required. Estimated mine access and utility capital expenditures
are included in the financial model for the mine.
Due to the projected start-up date of the Lower Powellton Mine, no permit work has been
completed to date. The proposed mine is located in an area with a long history of coal mining,
with numerous permitted operations in close proximity. Coal mining permits are routinely
obtained. Estimated expenditures for mine closure and site reclamation are included in the
financial model for each mine or plant site.
Expected annual production averages approximately 521,000 marketable tonnes at steady
state levels.
The mine is scheduled to begin production in 2031 and terminate during 2041.
13.4.1.9 Upper Winifrede
The proposed Upper Winifrede Mine is scheduled to begin production in 2032. The Upper
Winifrede seam is accessed via a proposed drift along the outcrop. This mine is projected to
be a metallurgical coal operation on leased mineral property.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
44
Production is scheduled for approximately 265 days each year, which represents production
on Monday through Friday plus every other Saturday. On each day, one production section
is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine
conveyor belt and power moves. The sections are configured as full super sections with two
continuous miners available for production on each section. Productivity is planned at the rate
of 73.2 meters of advance per shift of operation. A total of 50 employees are assigned to the
mine.
Principal production equipment includes two continuous miners, two roof bolters, four shuttle
cars, and two scoops. Coal is extracted from the production face with the continuous miner
and hauled to the mine conveyor in shuttle cars. At the conveyor belt, the coal is discharged
from the shuttle cars onto a feeder breaker for transfer onto the conveyor. The conveyors
carry the coal to the outside, where it is stacked on the ground to await truck transport to the
preparation plant and load-out. The truck haul cost is estimated to be $4.03 per tonne.
Due to the projected starting date for the Upper Winifrede Mine, no detailed design of
infrastructure or surface facilities has been completed to date. The proposed mine is located
in the Appalachian Basin, which has an extensive history (>100 years) of coal mining. There
is a sufficient population base within commuting distance of the proposed operation; no Camp
or Town construction will be required. Estimated mine access and utility capital expenditures
are included in the financial model for the mine.
Due to the projected start-up date of the Upper Winifrede Mine, no permit work has been
completed to date. The proposed mine is located in an area with a long history of coal mining,
with numerous permitted operations in close proximity. Coal mining permits are routinely
obtained. Estimated expenditures for mine closure and site reclamation are included in the
financial model for each mine or plant site.
Expected annual production averages approximately 417,000 marketable tonnes at steady
state levels.
The mine is scheduled to begin production in 2032 and terminate during 2036.
At the underground mines, ventilation fans are installed to provide a sufficient volume of air to
ventilate production sections, coal haulage and transport entries, battery charging stations,
and transformers in accordance with approved plans. High-voltage cables deliver power
throughout the mine where transformers reduce voltage for specific equipment requirements.
The Mine Improvement and New Emergency Response Act of 2006
MINER Act
) requires that
carbon monoxide detection systems be installed along mine conveyor belts and that electronic
two-way tracking and communications systems be installed throughout underground mines.
Water is required to control dust at production sections and along conveyor belts, and to cool
electric motors. Water is available from nearby sources and is distributed within the mine by
pipelines as required.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
45
13.4.2 Surface Mines and Highwall Miners
Mining operations are projected to utilize area mining as well as contour mining (
CTR
)
methods. The projected operations will employ equipment capable of a combined production
rate of approximately 6,500 bcm/shift in 2022 between two spreads of equipment in 2022 to
16,700 bcm/shift between three spreads of equipment in 2026. In 2027, additional equipment
is added in order to increase production levels to 19,100 bcm/shift. Further equipment is
projected for 2032 and beyond in order to increase production levels for the remaining LOM
production to 27,100 bcm/shift. The production model assumes that the mines continue at
this production rate until 2048 when the equipment suites are selectively phased out of
production due to a reduction in available working areas. All surface and/or HWM production
finishes in 2053. The models assume that the operations will work two, 10-hour production
shifts, 5 days per week plus every other Saturday, with sufficient staffing to float vacation
during the year. A total of 115 employees are assumed for the surface mines.
It is assumed that most of the spoil movement goes through a shovel or loader bucket and is
eventually returned to the pit for final reclamation. The dozer’s primary responsibility is cutting
the initial benches for the drill and shaping the reclaimed contour highwall.
All highwall mining are assumed to be performed by a contractor. The contractor is
responsible for staffing those operations along with providing necessary equipment capital.
Spoil for final highwall reclamation is expected to come from strategic placement of spoil on
pre-existing benches by haul trucks such that they are within the push distance of the
reclamation dozer.
13.4.2.1 Toney Fork
Toney Fork surface mining operations are projected to be mined from 2022 to 2039, with
emphasis placed on preparing space for HWM operations. Expected production for the
operations average approximately 372,000 marketable tonnes.
The Toney Fork HWM operates in 2023 to 2043 and mines an additional 252,000 marketable
tonnes at steady state levels.
13.4.2.2 Buffalo Creek South
The Buffalo Creek South surface and/or HWM mining operations are projected to operate
between 2027 and 2053, with emphasis placed on preparing space for HWM operations.
Expected surface production for the operations totals approximately 383,000 marketable
tonnes at steady state levels. The Buffalo Creek HWM mines an additional 287,000
marketable tonnes at steady state levels.
13.4.2.3 Sugar Camp
Sugar Camp surface mining operations are projected to be mined from 2032 to 2051.
Expected production for the operations average approximately 267,000 marketable tonnes.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
46
The Sugar Camp HWM operates from 2040 to 2047 and mines an additional 265,000
marketable tonnes.
As shown in
Tables 13-1 through 13-3
, the areas planned for underground production continue
until 2042, whereas surface and auger/HWM production is projected to finish in 2053. Clean
coal production varies directly with coal thickness in the case of the underground mines, and
overburden removal for the surface mines.
Table 13-1: Underground Summary of Production by Year (000)
Mine Name
2022
2023
2024
2025
2026
2027
2028
2029
Camp Br Chilton
0
0
0
0
0
125
371
344
Eagle No. 1 (Toney
Fork)
786
805
778
769
744
767
764
749
Elk Lick Chilton
0
0
0
0
0
56
250
255
Lower Powellton
0
0
0
0
0
0
0
0
Lower War Eagle
615
652
639
664
706
756
841
790
Powellton No. 1
40
0
33
205
205
206
203
205
Muddy Br No.2 Gas
683
660
689
804
786
565
0
0
Upper Winifrede
0
0
0
0
0
0
0
0
Winifrede (Chilton
Rider)
0
215
63
0
0
0
0
0
2,123
2,332
2,202
2,442
2,441
2,475
2,429
2,342
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
47
Mine Name
2030
2031
2032
2033
2034
2035
2036
2037
Camp Br Chilton
338
288
142
0
0
0
0
0
Eagle No. 1 (Toney
Fork)
701
650
625
640
662
687
728
580
Elk Lick Chilton
271
283
303
252
272
308
371
327
Lower Powellton
0
166
495
510
490
503
508
517
Lower War Eagle
721
452
179
90
0
0
0
0
Powellton No. 1
212
209
209
213
215
201
196
199
Muddy Br No.2 Gas
0
0
0
0
0
0
0
0
Upper Winifrede
0
0
230
564
378
309
314
0
Winifrede (Chilton
Rider)
0
0
0
0
0
0
0
0
2,243
2,049
2,183
2,267
2,016
2,008
2,117
1,623
Mine Name
2038
2039
2040
2041
2042
2043
2044
2045
Camp Br Chilton
0
0
0
0
0
0
0
0
Eagle No. 1 (Toney
Fork)
417
197
169
287
0
0
0
0
Elk Lick Chilton
320
323
217
0
0
0
0
0
Lower Powellton
510
502
658
236
0
0
0
0
Lower War Eagle
0
0
0
0
0
0
0
0
Powellton No. 1
197
198
189
188
156
0
0
0
Muddy Br No.2 Gas
0
0
0
0
0
0
0
0
Upper Winifrede
0
0
0
0
0
0
0
0
Winifrede (Chilton
Rider)
0
0
0
0
0
0
0
0
1,444
1,220
1,234
711
156
0
0
0
Table 13-2: Surface Summary of Production by Year (000)
Mine Name
2022
2023
2024
2025
2026
2027
2028
2029
Toney Fork Surf
126
380
530
563
525
243
196
291
Buffalo Cr South
Area
0
0
0
0
0
287
522
555
Sugar Camp Area 1
0
0
0
0
0
0
0
0
126
380
530
563
525
530
718
846
Mine Name
2030
2031
2032
2033
2034
2035
2036
2037
Toney Fork Surf
411
291
266
322
452
431
476
318
Buffalo Cr South
Area
476
463
407
481
434
248
241
174
Sugar Camp Area 1
0
0
141
346
466
387
363
50
887
754
815
1,149
1,352
1,066
1,079
543
Mine Name
2038
2039
2040
2041
2042
2043
2044
2045
Toney Fork Surf
627
248
0
0
0
0
0
0
Buffalo Cr South
Area
257
351
310
379
441
227
562
372
Sugar Camp Area 1
135
34
77
165
149
510
283
398
1,020
633
387
544
590
737
845
770
Mine Name
2046
2047
2048
2049
2050
2051
2052
2053
Toney Fork Surf
0
0
0
0
0
0
0
0
Buffalo Cr South
Area
459
582
460
41
0
0
0
0
Sugar Camp Area 1
421
374
378
117
160
265
0
0
880
955
838
158
160
265
0
0
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
48
Table 13-3: Highwall Summary of Production by Year (000)
Mine Name
2022
2023
2024
2025
2026
2027
2028
2029
Toney Fork HWM
0
207
171
207
101
227
253
182
Buffalo Cr South
HWM
0
0
0
0
0
164
261
208
Sugar Camp HWM
0
0
0
0
0
0
0
0
0
207
171
207
101
391
514
390
Mine Name
2030
2031
2032
2033
2034
2035
2036
2037
Toney Fork HWM
0
0
195
421
401
200
281
332
Buffalo Cr South
HWM
196
148
246
319
337
194
276
357
Sugar Camp HWM
0
0
0
0
0
0
0
0
196
148
441
740
738
394
556
688
Mine Name
2038
2039
2040
2041
2042
2043
2044
2045
Toney Fork HWM
298
264
214
289
291
171
0
0
Buffalo Cr South
HWM
254
319
286
220
406
0
0
34
Sugar Camp HWM
0
0
80
81
15
272
267
243
552
582
580
590
713
443
267
277
Mine Name
2046
2047
2048
2049
2050
2051
2052
2053
Toney Fork HWM
0
0
0
0
0
0
0
0
Buffalo Cr South
HWM
302
338
368
277
386
299
318
21
Sugar Camp HWM
388
156
0
0
0
0
0
0
690
494
368
277
386
299
318
21
14
Processing and Recovery Methods
14.1 Description or Flowsheet
The Logan County Division includes the Saunders Preparation Plant in addition to the mines.
The plant site includes raw coal storage, clean coal storage, a railroad loadout, and refuse
disposal area. The plant has a feed rate capacity of 1,088 raw tonnes per hour. Primary
separation equipment includes a heavy media vessel, heavy media cyclones, classifying
cyclones, spirals, flotation cells, and column flotation, supported by the requisite screens,
centrifuges, vacuum filters, sumps, pumps, and distribution systems. Coarse and fine refuse
are disposed separately in an adjacent refuse area which incorporates slurry cells.
Processes and equipment are typical of those used in the coal industry and are in use in nearly
all plants in the Central Appalachian Basin.
14.2 Requirements for Energy, Water, Material and Personnel
Personnel have historically been sourced from the surrounding communities in Logan, Boone,
Wyoming, and Mingo counties, and have proven to be adequate in numbers to operate past
and current mines. As mining is common in the surrounding areas, the workforce is generally
familiar with mining practices and is comprised of a strong talent pool of experienced miners.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
49
Water is sourced locally from Buffalo Creek Public Service District and/or locally from streams
via water withdrawal permits, and electricity is sourced from AEP. The service industry in the
areas surrounding the mine complex has historically provided supplies, equipment repairs and
fabrication, etc.
15
Infrastructure
The Coronado-owned Saunders Preparation Plant services the mines. The ROM coal is
delivered from the Powellton No. 1, Eagle No. 1, Muddy Bridge and Lower War Eagle Mines
via overland conveyor, all remaining production is or will be delivered to the plant site by truck.
The CSX rail line serves as the main means of transport from the mine complex/loadout.
As an active operation, the necessary support infrastructure for Logan is in place.
As new areas are developed, the infrastructure requirements will change. These changes
have been considered in the LOM plans and financial model.
Most of the seams lie below drainage; however, several metallurgical coal seams are situated
above drainage. The underground mining resource areas which are located above-drainage
require an access road and mine access development along the outcrop, whereas below-
drainage mines are accessed based on other proposed surface infrastructure locations and/or
surface property control. In some cases, the access and face-up may be developed as part
of surface mining activities. A mine transformer and water tank are located at the face-up,
along with the mine fan, stacker conveyor, supply facilities, shop, office, and bath house.
The surface mining mobile equipment spreads advance the contour and area mining pits while
systematically reclaiming the trailing side of pits where coal has been removed. The coal haul
roads are extended and maintained as the pits advance. Support facilities are maintained
nearby but away from the active mining, and include storage areas for blasting agents, fuel
and lubricants, and mine supplies along with maintenance facilities and offices.
The HWM equipment advances along with the contour mining pits. The rate of advance of the
contour mining is somewhat constrained by the advancement rate of the HWM. A diesel-
powered generator trails the highwall miner and powers the continuous mining unit. Other
support facilities are provided along with the contour mining support facilities.
A map of the existing facilities in
Figure 15-1
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p59i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p59i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
50
Figure 15-1: Logan Surface Facilities
16
Market Studies
16.1 Market Description
The quality characteristics for the subject coal resources and coal reserves have been
reviewed in detail by MM&A. The drill hole data were utilized to develop average coal quality
characteristics for the mining site. These average coal quality characteristics were then
utilized as the basis for determining the various markets into which the saleable coal will likely
be placed.
The projected quality specifications for the Logan products are as shown in
Table 16-1
.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
51
Table 16-1: Quality Specifications by Product
HVA
HVB
Thermal
(A/R)
Moisture (%)
7.50
8.00
7.50
Ash (%)
7.50
8.00
12.50
Sulfur (%)
0.90
0.95
1.00
Volatile Matter (%)
32.5
37.0
36.0
Btu/lb.
N/A
N/A
12,300
Fluidity (ddpm)
30,000
25,000
N/A
MMR (%)
1.04
0.93
N/A
CSR
62
58
N/A
FSI
8.00
8.00
N/A
Note: All Specs are dry basis except Moisture and Thermal
The mine production serves the both the high-volatile metallurgical and the thermal markets.
16.2 Price Forecasts
Coronado provided MM&A with price forecasts for its active operations. Customer coal pricing
is derived from market observed forward estimates based on global economic supply and
demand analysis which is applied to mine plan sales volumes and product mix and is
supplemented with Coronado’s in-house knowledge of applicable rail transportation charges,
ocean freight charges and port charges. MM&A utilized this data for price forecasting in
financial modeling. Concurrent with aforementioned-quality parameters in the preceding
section, production from the proposed operations is assumed to be primarily sold in
metallurgical markets with limited thermal sales. Pricing was provided through calendar year
2050 (after which sales prices were held constant).
Coal price forecasts for the Logan products were provided by Coronado for various coal
markets in terms of US nominal dollars per metric tonne.
16.3 Contract Requirements
Some contracts are necessary for successful marketing of the coal. For Logan, since all
mining, preparation and marketing is done in-house, the remaining contracts required are:
>
Transportation
the domestic customers or to the Pier 6 and Dominion terminals at Norfolk, Virginia for
overseas shipment.
>
Sales
– Sales contracts are a mix of spot and contract sales. With the volatility of the
market, long-term contracts are not typically written.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
52
17
Environmental Studies, Permitting and Plans,
Negotiations or Agreements with Local
Individuals
17.1 Results of Studies
MM&A completed a Limited Phase I Environmental Site Assessment (
ESA
) on the Logan
Property in May 2017 on behalf of Coronado. Coronado reports not having conducted such a
study since the MM&A studies. The ESA
review of historical records, a database search of State and Federal regulatory records and
interviews to identify potential recognized environmental conditions (
RECs
) that may create
environmental liability for the sites. MM&A concluded that no long-term liabilities existed at
the time of these ESAs.
Based on these former ESAs completed by MM&A, it is the QPs’
generally typical coal industry record of compliance with applicable mining, water quality, and
environmental laws. Estimated costs for mine closure, including water quality monitoring
during site reclamation, are included in the financial models.
17.2 Requirements and Plans for Waste Disposal
The original design for the North Fork Refuse Area (
North Fork
) at the Logan Property
projected a crest to elevation 686 meters. The present elevation of the deck is ±685meters.
In 2018 MSHA approved an expansion plan to raise the cross-valley crest to elevation 802
meters, and from there converting to a sidehill fill. This will allow for a total volume of 50 million
CM which would be sufficient capacity for all the refuse generated by the LOM plan that
underpins the current Logan County Division reserves. Further plans for the North Fork site
call for conversion of the fill to a total cross-valley configuration, predicated on completion of
surface mining on the ridge between North Fork and Middle Fork. This has the potential of
providing an additional 10 million CM of capacity.
17.3 Permit Requirements and Status
All mining operations are subject to federal and state laws and must obtain permits to operate
mines, coal preparation and related facilities, haul roads, and other incidental surface
disturbances necessary for mining to occur. Permits generally require that the permittee post
a performance bond in an amount established by the regulatory program to provide assurance
that any disturbance or liability created during mining operations is properly restored to an
approved post-mining land use and that all regulations and requirements of the permits are
fully satisfied before the bond is returned to the permittee. Significant penalties exist for any
permittee who fails to meet the obligations of the permits including cessation of mining
operations, which can lead to potential forfeiture of the bond. Any company, and its directors,
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
53
owners and officers, which are subject to bond forfeiture can be denied future permits under
the program.
1
New permits or permit revisions will occasionally be necessary to facilitate the expansion or
addition of new mining areas on the properties, such as amendments to existing permits and
new permits for mining of reserve areas. Exploration permits also are required. Property
under lease includes provisions for exploration among the terms of the lease. New or modified
mining permits are subject to a public advertisement process and comment period, and the
public is provided an opportunity to raise objections to any proposed mining operation. MM&A
is not aware of any specific prohibition of mining on the subject property and given sufficient
time and planning, Coronado should be able to secure new permits to maintain its planned
mining operations within the context of current regulations. Necessary permits are in place to
support current production on the properties, but future permits are required to maintain and
expand production. Portions of the properties are located near local communities.
Regulations prohibit mining activities within 91.4 meters of a residential dwelling, school,
church, or similar structure unless written consent is first obtained from the owner of the
structure. Where required, such consents have been obtained where mining is proposed
beyond the regulatory limits.
Coronado has obtained all mining and discharge permits to operate its mines and processing,
loadout or related facilities. MM&A is unaware of any obvious or current Coronado permitting
issues that are expected to prevent the issuance of future permits. Logan, along with all coal
producers, is subject to a level of uncertainty regarding future clean water permits due to
United States Environmental Protection Agency
(
EPA
)
The Mining permits currently held by Logan are shown in
Table 17-1.
1
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
54
Table 17-1: Logan Mining Permits
Type
Permit ID
Permit Name
$ Bond
Current Status
Issued
Date
Expiration Date
Hectares
NPDES No.
Other
O001984
North Fork Refuse
1
$1,033,200
Renewed
4/11/1984
4/11/2024
116.03
WV0095699
Other - Loadout Only
O009283
Elk Lick Dock
$33,000
Renewed
6/10/1983
6/10/2023
13.31
WV1023071
Other
O009883
Saunders Prep Plant
$223,200
Renewed
6/24/1983
6/24/2023
36.04
WV0095699
Other - Refuse
Disposal
O012383
Middle Fork Refuse
1
$364,800
Renewed
9/27/1983
9/27/2023
46.13
WV0096156
Other - Loadout Only
O500513
Toney Fork Loadout
$32,000
Renewed
9/11/2014
9/11/2024
12.67
WV1028081
Other - Refuse
Disposal
O501108
Elklick Branch Haulroad/Refuse
1
$281,600
Renewed
11/13/2008
11/13/2023
5.83
WV1029843
Coal Surface Mine
S500417
North Fork Winifrede Contour Mine
$390,000
Not Started
2/13/2018
2/13/2023
50.59
WV1028430
Coal Surface Mine
S500709
Toney Fork Surface Mine No. 3
$2,625,000
Renewed
11/20/2013
11/20/2023
340.83
WV1019902
Coal Surface Mine
S501210
Toney Fork West Surface Mine
$1,670,000
Inactive
2/29/2012
2/28/2022
134.30
WV1024990
Coal Surface Mine
S501410
Elklick Surface Mine
$2,760,800
Inactive
8/16/2013
8/16/2023
327.47
WV1025015
Coal Surface Mine
S503395
TONEY FORK SURFACE #2
$5,605,000
Renewed
5/28/1998
5/28/2023
453.61
WV1016750
Coal Underground
U004485
Dingess Br. No. 1
$0
Completely
Released
6/12/1985
PHII Released
4.05
WV1008340
Coal Underground
U400299
Paynter Branch Mine No. 1
$81,000
Renewed
4/5/2002
4/5/2022
10.01
WV1018728
Coal Underground
U500109
Chilton Deep Mine No. 1
$30,800
Inactive
1/31/2011
1/31/2026
5.53
WV1019821
Coal Underground
U500789
WA #1 Mine
$0
Completely
Released
7/31/1990
PHII Released
0
WV0096385
Coal Underground
U500919
North Fork Winifrede Deep Mine
$12,240
New
03/03/2020
3/3/2025
2.21
Coal Underground
U501311
Eagle No. 1 Mine
$91,080
Not Started
5/20/2013
5/20/2023
14.71
WV1025139
Coal Underground
U502008
Dingess Br-Chilton Mine No. 2
$42,920
Phase 1 Released
10/10/2008
PHI Released
11.62
WV1029908
Coal Underground
U505392
ALMA NO. 1 MINE
$283,480
Renewed
3/3/1995
3/3/2025
39.25
WV1013408
Coal Underground
U506686
Camp Branch Deep Mine
$96,200
Renewed
1/26/1987
1/26/1997
26.24
WV0093122
Coal Surface Mine
S500615
Toney Fork A-Ridge Surface Mine
$80,000
Phase 1 Released
2/24/2016
2/24/2026
15.80
WV1028278
Coal Underground
U501015
CB Chilton #1 Mine
$10,600
Not Started
12/28/2016
12/28/2021
1.68
WV1028316
Coal Underground
U503496
Muddy Bridge Branch #1
$35,280
Renewed
08/04/1997
08/04/2022
5.46
WV1016954
Coal Underground
U503596
Muddy Bridge Branch #2
$65,520
Renewed
08/04/1997
08/04/2022
10.35
WV1016954
River Dock
810-8037
Big Sandy Dock
$210,700
In-Active
7/10/1986
7/10/2021
2.99
KYG040724
Notes:
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
55
17.4 Local Plans, Negotiations or Agreements
MM&A found no indication of agreements beyond the scope of Federal or State Regulations.
17.5 Mine Closure Plans
Applicable regulations require that mines be properly closed, and reclamation commenced
immediately upon abandonment. In general, site reclamation includes removal of structures,
backfilling, regrading, and revegetation of disturbed areas. For surface mines, the majority of
the expense for backfilling and regrading is completed as part of ongoing mining operations,
with only reclamation of final pits and HWM benches required at end-of-mine life. Sediment
control is required during the establishment of vegetation, and bond release generally requires
a minimum five-year period of site maintenance, water sampling, and sediment control
following mine completion. This requirement is reduced to two years for certain operations
involving re-mining. Reclamation of underground mines includes closure and sealing of mine
openings such as portals and shafts in addition to the items listed above.
Estimated costs for mine closure, including water quality monitoring during site reclamation,
are included in the financial models. As with all mining companies, an accretion calculation is
performed annually so the necessary Asset Retirement Obligations (
ARO
) can be shown as a
Liability on the Balance Sheet.
17.6 Qualified Person’s Opinion
The Logan complex is an operating facility; all necessary permits for current production have
been obtained. The QPs know
cannot be obtained.
Estimated expenditures for site closure and reclamation are included in the financial model for
this site.
18
Capital and Operating Costs
18.1 Capital Cost Estimate
The production sequence selected for a property must consider the proximity of each reserve
area to coal preparation plants, river docks and railroad loading points, along with suitability of
production equipment to coal seam conditions. The in-place infrastructure was evaluated, and
any future needs were planned to a level suitable for a Preliminary Feasibility Study and
included in the Capital Forecast.
Coronado provided MM&A with an inventory of operating equipment available at Logan.
MM&A’s capital schedules assume that major equipment rebuilds occur over the course of
each machine’s remaining assumed operating life. Replacement equipment was scheduled
based on MM&A’s experience and knowledge of mining equipment and industry standards
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p14i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p14i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
56
with respect to the useful life of such equipment. As one mine is depleted, the equipment is
moved to its replacement.
A summary of the estimated capital for the Property is provided in
Figure 18-1
Figure 18-1: CAPEX
18.2 Operating Cost Estimate
Coronado provided historical and a preliminary 5-year projection of operating costs for
MM&A’s review. MM&A used the historical and/or budget cost information as a reference and
developed a personnel schedule for the mine. Hourly labor rates and salaries were based
upon information contained in Coronado’s financial summaries. Fringe benefit costs were
developed for vacation and holidays, federal and state unemployment insurance, retirement,
workers’ compensation and pneumoconiosis, casualty and life insurance, healthcare and
bonuses. A cost factor for mine supplies was developed that relates expenditures to mine
advance rates for roof control costs and other mine supply costs experienced at underground
mines. Other factors were developed for maintenance and repair costs, rentals, mine power,
outside services and other direct mining costs.
Other cost factors were developed for coal preparation plant processing, refuse handling, coal
loading, property taxes, and insurance and bonding. Appropriate royalty rates were assigned
for production from leased coal lands and sales taxes were calculated for state severance
taxes, the federal black lung excise tax, and federal and state reclamation fees.
Mandated Sales Related Costs such as Black Lung Excise are summarized in
Table 18-1
.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
57
Table 18-1: Estimated Coal Production Taxes and Sales Costs
Description of Tax or Sales Cost
Basis of Assessment
Cost
Federal Black Lung Excise Tax -
Underground
Per Tonne
$1.21
Federal Black Lung Excise Tax - Surface
Per Tonne
$0.61
Federal Black Lung Excise Tax - Highwall
Miner
Per Tonne
$0.61
Federal Reclamation Fees – Underground
Per Tonne
$0.13
Federal Reclamation Fees – Surface
Per Tonne
$0.31
Federal Reclamation Fees - Highwall Miner
Per Tonne
$0.31
West Virginia Reclamation Tax -
Underground
Per Tonne
$0.308
West Virginia Reclamation Tax - Surface
Per Tonne
$0.308
West Virginia Reclamation Tax - Highwall
Miner
Per Tonne
$0.308
West Virginia Severance Tax
Percentage of Revenue
1 to 5%
Royalties – Underground
Percentage of Revenue
5 to 8%
Royalties – Surface
Percentage of Revenue
9%
Royalties - Highwall Miner
Percentage of Revenue
9%
Notes: 1. Federal black lung excise tax is paid only on coal sold domestically. MM&A assumed
45% of total coal sales to be domestic in the economic analysis discussed below.
A summary of the projected Operating Costs is in
Table 18-2
.
Table 18-2: Logan Operating Costs
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
Remainin
g
LOM
Average
Total
2022
2023
2024
2025
2026
2027
2028
2029
ROM Production Tonnes
Yield
50.16%
39.12
%
40.50
%
40.20
%
39.27
%
39.32
%
42.21
%
47.16
%
45.81
%
55.94%
Saleable Production
Tonnes
*
Thermal Tonnes
Domestic Met Tonnes
Export Met Tonnes
Cash Costs per Tonne:
Mining Costs
$65.37
$61.54
$59.28
$61.82
$60.25
$63.24
$62.37
$60.89
$61.61
Processing and Transport
$17.85
$17.36
$14.27
$14.04
$14.48
$14.42
$13.96
$14.43
Sales Related Costs
$15.64
$12.12
$11.13
$12.16
$12.11
$13.44
$13.79
$13.85
G&A
$97.76
$90.92
$89.32
$88.41
$91.89
$92.29
$90.70
$91.95
* The Financial model includes 0.03 million tonnes of inferred coal production. Inferred coal represents 0.04% of the total
production, and none of this coal was included in the estimate of reserves.
19
Economic Analysis
19.1 Assumptions, Parameters and Methods
A pre-feasibility LOM plan was prepared by MM&A for the Logan operations. MM&A prepared
mine projections and production timing forecasts based on coal seam characteristics.
Production timing was carried out from 2022 to depletion (exhaustion) of the coal reserve
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
58
areas, which is projected for the year 2053. All costs and prices are based on 2021 nominal
United States dollars.
The Mine plan, productivity expectations and cost estimates generally reflect historical
performance by Coronado and efforts have been made to adjust plans and costs to reflect
future conditions. MM&A is confident that the mine plan and financial model are reasonably
representative to provide an accurate estimation of coal reserves.
Capital schedules were developed by MM&A for mine development, infrastructure, and on-
going capital requirements for the life of the mine. Staffing levels were prepared, and operating
costs estimated by MM&A. MM&A utilized historical cost data provided by Coronado and its
own knowledge and experience to estimate direct and indirect operating costs.
The preliminary feasibility financial model, prepared for this TRS, was developed to test the
economic viability of the coal reserve area. The results of this financial model are not intended
to represent a bankable feasibility study, required for financing of any current or future mining
operations, but are intended to prove the economic viability of the estimated coal reserves. All
costs and prices are based on 2021 nominal United States dollars assuming a 2% inflation
rate.
On an unlevered basis, the NPV of the project cash flows after taxes was estimated for the
purpose of classifying coal reserves. The project cash flows, excluding debt service, are
calculated by subtracting direct and indirect operating expenses and capital expenditures from
revenue. Direct costs include labor, drilling and blasting, operating supplies, maintenance and
repairs, facilities costs for materials handling, coal preparation, refuse disposal, coal loading,
sampling and analysis services, reclamation and general and administrative costs. Indirect
costs include statutory and legally agreed upon fees related to direct extraction of the mineral.
The indirect costs are the Federal black lung tax, Federal and State reclamation taxes,
property taxes, local transportation prior to delivery at rail or barge loading sites, coal
production royalties, sales and use taxes, income taxes and State severance taxes.
Coronado’s historical costs provided a useful reference for MM&A’s cost estimates.
Sales revenue is based on the metallurgical coal price information provided to MM&A by
Coronado.
Projected debt service is excluded from the P&L and cash flow model in order to determine
Enterprise Value.
The financial model expresses coal sales prices, operating costs, and capital expenditures in
current day dollars without adjustment for inflation. Capital expenditures and reclamation
costs are included based on engineering estimates for each mine by year. The Coronado
division’s existing allocations of administrative costs are continued in the future projections.
Coronado will pay royalties for the various current and projected operations. The royalty rates
vary by mining method and location. The royalty rates for Logan are estimated to be 5 to 9%
of the sales revenue.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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59
The projection model also includes consolidated income tax calculations at the Coronado
level, incorporating statutory depletion calculations, as well as state income taxes, and a
federal tax rate of 21%. To the extent the mine generates net operating losses for tax
purposes, the losses are carried over to offset future taxable income. The terms “cash flows”
and “project cash flows” used in this report refer to after tax cash flows.
Consolidated cash flows are driven by annual sales tonnage, which at steady-state level
ranges from a peak of 4.2 million tonnes in 2033 to a low of 1.0 million tonnes in 2045.
Projected consolidated revenue ranges from $150.1 million to $537.5 million at steady state.
Revenue totals $10.0 billion for the project’s life.
Consolidated cash flow from operations is positive throughout the projected operating period,
with the exception of post-production years, due to end-of-mine reclamation spending.
Consolidated cash flow from operations peaks at $136.5 million in 2034 and totals $2.4 billion
over the project’s life. Capital expenditures total $141.2 million from 2022 through 2026 and
$709.4 million over the project’s life.
Coal price forecasts for coal products were prepared by Coronado for its proposed operations.
Such prices were used for the revenue input into the financial model. Sales variable costs
such as production royalties and severance taxes were based upon the revenue input.
19.2 Results
The pre-feasibility financial model, prepared by MM&A for this TRS, was developed to test the
economic viability of each coal resource area. The results of this financial model are not
intended to represent a bankable feasibility study, as may be required for financing of any
current or future mining operations contemplated but are intended to prove the economic
viability of the estimated coal reserves. Optimization of the LOM plan was outside the scope
of the engagement.
Figure 19-1
Table 19-1
P&L, and EBITDA for Logan.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p69i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p69i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
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Figure 19-1: Cash Costs per Tonne
As shown above, the Logan’s average cash cost ranges between approximately $89 and $116
per tonne for most of the operating period.
Table 19-1: Life-of-Mine Tonnage, P&L before Tax, and EBITDA ($000)
LOM
LOM
P&L
LOM
EBITDA
Tonnes
*
Pre-Tax P&L
Per Tonne
EBITDA
Per Tonne
Deep Mines
Camp Br Chilton
Eagle No. 1 (Toney Fork)
Elk Lick Chilton
Lower Powellton
Lower War Eagle
Powellton No. 1
Muddy Br No.2 Gas
Upper Winifrede
Winifrede (Chilton Rider)
Consolidated Deep Mines
Surface Mines
Toney Fork Surf
Buffalo Cr South Area
Sugar Camp Area 1
Surface Mines Consolidated
Highwall Miner (HWM)
Operations
Toney Fork HWM
Buffalo Cr South HWM
Sugar Camp HWM
HWM Consolidated
Grand Total
* The Financial model includes 0.03 million tonnes of inferred coal production. Inferred coal
represents 0.04% of the total production, and none of this coal was included in the estimate of
reserves.
As shown in
Table 19-1,
Coronado’s consolidated operations show positive LOM P&L and LOM EBITDA of $1.9 billion
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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.
61
and $2.7 billion, respectively. A summary of the key financial performance metrics projected
through 2029 is provided below in
Table 19-2
.
Table 19-2: Summary of Logan Key Financial Performance Metrics (2022-2029)
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
YE
12/31
Remainin
g
LOM
Average
Total
2022
2023
2024
2025
2026
2027
2028
2029
ROM Production Tonnes
Yield
50.16%
39.12
%
40.50
%
40.20
%
39.27
%
39.32
%
42.21
%
47.16
%
45.81
%
55.94%
Saleable Production
Tonnes
*
Thermal Tonnes
Domestic Met Tonnes
Export Met Tonnes
Cash Costs per Tonne:
Mining Costs
$61.54
$59.28
$61.82
$60.25
$63.24
$62.37
$60.89
$61.61
Processing and Transport
$17.85
$17.36
$14.27
$14.04
$14.48
$14.42
$13.96
$14.43
Sales Related Costs
$15.64
$12.12
$11.13
$12.16
$12.11
$13.44
$13.79
$13.85
G&A
$97.76
$90.92
$89.32
$88.41
$91.89
$92.29
$90.70
$91.95
EBITDA per Tonne
$89.22
$26.97
$26.95
$34.49
$35.09
$34.68
$32.64
$32.66
Expansion CapEx ($M)
Maintenance CapEx ($M)
* The Financial model includes 0.03 million tonnes of inferred coal production. Inferred coal represents 0.04% of the total
production, and none of this coal was included in the estimate of reserves.
After Tax Cash Flows were developed in order to calculate the NPV for this Property. The
NPV is estimated to be $611.3 million at a discount rate of 10.0%. A summary of the Logan
after-tax cash flow is shown in
Table 19-3
.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
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&
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SSOCIATES
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62
Table 19-3: Project Cash Flow Summary ($000)
*
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
Total
2022
2023
2024
2025
2026
Production & Sales tonnes
73,441
2,250
2,919
2,903
3,213
3,067
Total Revenue
$9,980,224
$420,654
$344,156
$337,534
$394,845
$389,424
EBITDA
$2,738,028
$200,726
$78,732
$78,233
$110,802
$107,624
Net Income
$1,610,525
$120,459
$34,650
$29,605
$61,436
$59,748
Net Cash Provided by Operating Activities
$2,372,457
$125,587
$89,779
$70,664
$90,037
$94,643
Purchases of Property, Plant, and
Equipment
$(709,361)
$(54,793)
$(27,441)
$(27,989)
$(17,357)
$(13,652)
Net Cash Flow
$1,663,096
$70,794
$62,338
$42,674
$72,680
$80,991
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2027
2028
2029
2030
2031
2032
Production & Sales tonnes
3,396
3,661
3,579
3,326
2,950
3,438
Total Revenue
$431,154
$451,609
$445,987
$420,670
$376,614
$440,781
EBITDA
$117,770
$119,515
$116,897
$111,475
$78,018
$87,218
Net Income
$65,436
$69,828
$70,242
$65,713
$34,306
$33,521
Net Cash Provided by Operating Activities
$100,542
$104,726
$104,191
$100,196
$77,188
$77,404
Purchases of Property, Plant, and
Equipment
$(59,598)
$(28,735)
$(27,081)
$(31,232)
$(48,753)
$(71,927)
Net Cash Flow
$40,944
$75,991
$77,110
$68,964
$28,435
$5,477
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2033
2034
2035
2036
2037
2038
Production & Sales tonnes
4,156
4,105
3,468
3,753
2,854
3,015
Total Revenue
$537,477
$534,901
$465,163
$514,566
$405,973
$421,828
EBITDA
$142,816
$161,080
$119,812
$148,790
$92,000
$117,900
Net Income
$89,651
$103,843
$69,446
$91,589
$53,041
$76,624
Net Cash Provided by Operating Activities
$113,575
$136,352
$113,896
$123,326
$92,161
$99,895
Purchases of Property, Plant, and
Equipment
$(23,808)
$(29,414)
$(13,377)
$(19,641)
$(50,095)
$(29,180)
Net Cash Flow
$89,767
$106,938
$100,519
$103,685
$42,066
$70,715
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2039
2040
2041
2042
2043
2044
Production & Sales tonnes
2,436
2,201
1,845
1,459
1,180
1,112
Total Revenue
$355,369
$338,176
$268,754
$214,586
$172,885
$150,118
EBITDA
$87,011
$83,646
$68,092
$62,920
$44,089
$34,328
Net Income
$55,313
$54,058
$44,925
$45,801
$29,936
$22,534
Net Cash Provided by Operating Activities
$83,815
$71,639
$61,735
$55,327
$42,764
$32,618
Purchases of Property, Plant, and
Equipment
$(15,349)
$(9,482)
$(14,390)
$(5,290)
$(14,378)
$(3,690)
Net Cash Flow
$68,466
$62,157
$47,345
$50,037
$28,386
$28,928
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2045
2046
2047
2048
2049
2050
Production & Sales tonnes
1,047
1,570
1,449
1,206
435
546
Total Revenue
$152,705
$241,778
$219,387
$188,710
$76,217
$101,030
EBITDA
$31,080
$76,832
$69,847
$62,067
$19,753
$38,469
Net Income
$16,163
$53,074
$44,398
$39,304
$4,857
$21,379
Net Cash Provided by Operating Activities
$28,550
$56,069
$60,773
$54,739
$27,203
$29,794
Purchases of Property, Plant, and
Equipment
$(33,303)
$(3,327)
$(23,807)
$(5,664)
$(5,458)
$(1,150)
Net Cash Flow
$(4,752)
$52,742
$36,967
$49,075
$21,745
$28,645
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
![ex963p72i1.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p72i1.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
63
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
2051
2052
2053
2054
2055
2056
Production & Sales tonnes
564
318
21
-
-
-
Total Revenue
$102,990
$60,217
$3,964
$-
$-
$-
EBITDA
$42,382
$26,401
$1,703
$-
$-
$-
Net Income
$24,434
$24,120
$1,383
$(164)
$(84)
$(43)
Net Cash Provided by Operating Activities
$35,071
$18,199
$3,510
$(1,729)
$(882)
$(899)
Purchases of Property, Plant, and
Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$35,071
$18,199
$3,510
$(1,729)
$(882)
$(899)
* The Financial model includes 0.03 million tonnes of inferred coal production. Inferred coal represents 0.04% of the total
production, and none of this coal was included in the estimate of reserves.
19.3 Sensitivity
Sensitivity of the NPV results to changes in the key drivers is presented in the chart below.
The sensitivity study shows the NPV at the 10.0% discount rate when Base Case sales prices,
operating costs, and capital costs are increased and decreased in increments of 5% within a
+/- 15% range.
Figure 19-2: Sensitivity of NPV
As shown, NPV is quite sensitive to change in sales price and operating cost estimates, and
slightly sensitive to changes in capital cost estimates.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
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&
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SSOCIATES
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64
20
Adjacent Properties
20.1 Information Used
No Proprietary information associated with neighboring properties was used as part of this
study.
21
Other Relevant Data and Information
MM&A performed a previous audit of all the Properties in year 2017 for Coronado based on
SEC Industry Guide 7 standards. In addition, MM&A completed a Limited Phase I
Environmental Site Assessment (
ESA
) on the Property in 2017 on behalf of Coronado. MM&A
conducted a Joint Ore Reserve Committee (
JORC
) compliant resource and reserve
assessment of the assets effective January 1, 2018. By assignment, the JORC assessment
included a preliminary feasibility level study of the subject coal reserves, encompassing
detailed mine planning and cost analysis through depletion of Logan’s JORC-compliant coal
reserves. MM&A utilized this former preliminary feasibility study as the basis of an updated
study which meets those standards set forth by the SEC.
22
Interpretation and Conclusions
22.1 Conclusion
Sufficient data has been obtained through various exploration and sampling programs and
mining operations to support the geological interpretations of seam structure and thickness for
coal horizons situated on the Property. The data is of sufficient quantity and reliability to
reasonably support the coal resource and coal reserve estimates in this TRS.
The geological data and preliminary feasibility study, which consider mining plans, revenue,
and operating and capital cost estimates are sufficient to support the classification of coal
reserves provided herein.
This geologic evaluation conducted in conjunction with the preliminary feasibility study is
sufficient to conclude that the 73.4 Mt of marketable coal reserves identified on the Property
are economically mineable under reasonable expectations of market prices for metallurgical
coal products, estimated operation costs, and capital expenditures.
22.2 Risk Factors
Risks have been identified for operational, technical and administrative subjects addressed in
the Pre-Feasibility Study. A risk matrix has been constructed to present the risk levels for all
the risk factors identified and quantified in the risk assessment process. The risk matrix and
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
65
risk assessment process are modelled to that presented in the Australian and New Zealand
Standard on Risk Management (AS/NZS 4360).
The purpose of the characterization of the project risk components is to inform the project
stakeholders of key aspects of the Coronado projects that can be impacted by events whose
consequences can affect the success of the venture. The significance of an impacted aspect
of the operation is directly related to both the probability of occurrence and the severity of the
consequences. The initial risk for a risk factor is herein defined as the risk level after the
potential impact of the risk factor is addressed by competent and prudent management utilizing
control measures readily available. Residual risk for a risk factor is herein defined as the risk
level following application of special mitigation measures if management determines that the
initial risk level is unacceptable. Initial risk and residual risk can be quantified numerically,
derived by the product of values assigned to probability and consequence ranging from very
low risk to very high risk.
The probability and consequence parameters are subjective numerical estimates made by
practiced mine engineers and managers. Both are assigned values from 1 to 5 for which the
value 1 represents the lowest probability and least consequence, and the value 5 represents
the highest probability and greatest consequence. The products, which define the Risk Level,
are classified from very low to very high.
Risk Level Table (R = P x C)
Risk Level (R)
Very Low (1 to 2)
Low (3 to 5)
Moderate (6 to 11)
High (12 to 19)
Very High (20 to 25)
Risk aspects identified and evaluated during this assignment total 13. No residual risks are
rated Very High. One (1) residual risk is rated High. Eight (8) of the risk aspects could be
associated with Moderate residual risk. Four (4) of the risk aspects were attributed Low or
Very Low residual risks.
22.2.1 Governing Assumptions
The listing of the aspects is not presumed to be exhaustive. Instead that listing is presented
based on the experiences of the contributors to the TRS.
1. The probability and consequence ratings are subjectively assigned, and it is assumed
that this subjectivity reasonably reflects the condition of the active and projected mine
operations.
2. The Control Measures shown in the matrices presented in this chapter are not
exhaustive. They represent a condensed collection of activities that the author of the
risk assessment section has observed to be effective in coal mining scenarios.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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NC
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66
3. Mitigation Measures listed for each risk factor of the operation are not exhaustive. The
measures listed, however, have been observed by the author to be effective.
4. The monetary values used in ranking the consequences are generally-accepted
quantities for the coal mining industry.
22.2.2 Limitations
The risk assessment proposed in this report is subject to the limitations of the information
currently collected, tested, and interpreted at the time of the writing of the report.
22.2.3 Methodology
The numerical quantities (i.e., risk levels) attributable to either “initial” or “residual” risks are
derived by the product of values assigned to probability and consequence ranging from very
low risk to very high risk.
R = P x C
Where:
R = Risk Level
P = Probability of Occurrence
C = Consequence of Occurrence
The Probability (P) and Consequence (C) parameters recited in the formula are subjective
numerical estimates made by practiced mine engineers and managers. Both P and C are
assigned integer values ranging from 1 to 5 for which the value 1 represents the lowest
probability and least consequence, and the value 5 represents the highest probability and
greatest consequence. The products (R = P x C) which define the Risk Level, are thereafter
classified from very low to very high.
Risk Level Table
Risk Level (R)
Very Low (1 to 2)
Low (3 to 5)
Moderate (6 to 11)
High (12 to 19)
Very High (20 to 25)
Very high initial risks are considered to be unacceptable and require corrective action well in
advance of project development. In short, measures must be applied to reduce very high initial
risks to a tolerable level.
As shown and discussed above, after taking into account the operational, technical, and
administrative actions that have been applied or are available for action when required, the
residual risk can be determined. The residual risk provides a basis for the management team
to determine if the residual risk level is acceptable or tolerable. If the risk level is determined
to be unacceptable, further actions should be considered to reduce the residual risk to
acceptable or tolerable levels to provide justification for continuation of the proposed operation.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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.
67
22.2.4 Development of the Risk Matrix
Risks have been identified for the technical, operational, and administrative subjects
addressed in the TRS. The risk matrix and risk assessment process is modelled to that
presented in the Australian and New Zealand Standard on Risk Management (AS/NZS 4360).
22.2.4.1 Probability Level Table
Table 22-1: Probability Level Table
Category
Probability Level (P)
1
Remote
Not likely to occur except in exceptional circumstances.
<10%
2
Unlikely
Not likely to occur; small in degree.
10 - 30%
3
Possible
Capable of occurring.
30 - 60%
4
Likely
High chance of occurring in most circumstances.
60 - 90%
5
Almost Certain
Event is expected under most circumstances; impossible to
avoid.
>90%
The lowest rated probability of occurrence is assigned the value of 1 and described as remote,
with a likelihood of occurrence of less than 2 percent. Increasing values are assigned to each
higher probability of occurrence, culminating with the value of 5 assigned to incidents
considered to be almost certain to occur.
22.2.4.2 Consequence Level Table
Table 22-2
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
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&
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SSOCIATES
,
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NC
.
68
Table 22-2: Consequence Level Table
Correlation of Events in Key Elements of the Project Program to Event Severity Category
Category
Severity of
the Event
Financial
Impact of the
Event
Unplanned
Loss of
Production
(Impact on
Commercial
Operations)
Events Impacting
on the
Environment
Events Affecting the
Program's Social and
Community Relations
Resultant Regulatory /
Sovereign Risk
Events Affecting Occupational Health &
Safety
1
Insignificant
< USD $0.5
million
≤ 12 hours
Insignificant loss of
habitat; no
irreversible effects
on water, soil and
the environment.
Occasional nuisance impact on
travel.
-
Event recurrence avoided by corrective
action through established procedures
(Engineering, guarding, training).
2
Minor
USD $0.5 million
to $2.0 million
≤ 1 day
No significant
change to species
populations; short-
term reversible
perturbation to
ecosystem function.
Persistent nuisance impact on
travel. Transient adverse media
coverage.
-
First aid – lost time.
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.
requires modification to established
corrective action procedures and staff
retraining.
Change to laws (tax;
bonds; standards).
5
Critical
>USD $50.0
million
>1 month
Species extinction;
irreversible damage
to ecosystem
function.
Loss of social license.
Withdraw / failure to
secure essential
approval / license.
Multiple fatalities.
Avoiding event
recurrence requires major overhaul of
policies and procedures.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
69
The lowest rated consequence is assigned the value of 1 and is described as Insignificant
Consequence parameters of which include non-reportable safety incidents with zero days lost
accidents, no environmental damage, loss of production or systems for less than one week
and cost of less than USD $0.5 million. Increasing values are assigned to each higher
consequence, culminating with the value of 5 assigned to critical consequences, the
parameters of which include multiple-fatality accidents, major environmental damage, and loss
of production or systems for longer than one month and cost of greater than USD $50.0 million.
Composite Risk Matrix R = P x C and Color-Code Convention
The risk level, defined as the product of probability of occurrence and consequence, ranges in
value from 1 (lowest possible risk) to 25 (maximum risk level). The values are color-coded to
facilitate identification of the highest risk aspects.
Table 22-3: Risk Matrix
P x C = R
Consequence (C)
Insignificant
Minor
Moderate
Major
Critical
1
2
3
4
5
Probability Level (P)
Remote
1
1
2
3
4
5
Unlikely
2
2
4
6
8
10
Possible
3
3
6
9
12
15
Likely
4
4
8
12
16
20
Almost
Certain
5
5
10
15
20
25
22.2.5 Categorization of Risk Levels and Color Code Convention
Very high risks are considered to be unacceptable and require corrective action. Risk
reduction measures must be applied to reduce very high risks to a tolerable level.
22.2.6 Description of the Coal Property
The Logan Mine Complex (
Logan
) is located in Logan, Boone, and Wyoming Counties, West
Virginia –is an active operation with four underground mines and one surface mine. Active
underground operations within the Logan Mine Complex all utilize continuous mining
production sections. Large mining operations are conducted at the Muddy Bridge, Eagle No.
1 Mine and Lower War Eagle Mine. Coronado also operates a single section active
underground room-and-pillar section in the Powellton Mine. Other operations are projected
on relatively small reserve blocks to be developed sequentially to sustain production levels as
each reserve is depleted. The method provides continuity, preserving skilled work groups and
enabling effective utilization of production equipment
.
Mines located above drainage have
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
70
access via drift entries. A few of the coal seams are below drainage and are accessed with
slopes and shafts or box cuts.
The Logan Mine Complex also includes one active surface mine (Toney Fork) and one idle
surface mine (Elklick). Both area and contour surface mining are employed. Highwall mining
is conducted by contract operators. The surface operations are relatively small and developed
sequentially to sustain production levels. Similar to the underground operations, the method
provides continuity while preserving skilled work groups and enabling effective utilization of
production equipment. The surface mining methods selected utilize hydraulic shovels, front-
end loaders, large tractors and rock trucks for overburden removal.
22.2.7 Summary of Residual Risk Ratings
Each risk factor is numbered, and a risk level for each is determined by multiplying the
assigned probability by the assigned consequence. The risk levels are plotted on a risk matrix
to provide a composite view of the Coronado risk profile. The average risk level is 7.5, which
is defined as Moderate.
Table 22-4: Risk Assessment Matrix
Consequence
Critical
>$50 MM
8, 9
Major
$10-50MM
6
Moderate
$2-10 MM
12
4
1, 2, 3
Minor
$0.5-$2 MM
13
5, 10
7
Low
<$0.5 MM
11
<10%
10-30%
30-60%
60-90%
>90%
Remote
Unlikely
Possible
Likely
Almost
Certain
22.2.8 Risk Factors
A high-level approach is utilized to characterize risk factors that are generally similar across a
number of the active and proposed mining operations. Risk factors that are unique to a specific
operation or are particularly noteworthy are addressed individually.
22.2.8.1 Geological and Coal Resource
Coal mining is accompanied by risk that, despite exploration efforts, mining areas will be
encountered where geological conditions render extraction of the resource to be uneconomic,
or that coal quality characteristics disqualify the product for sale into target markets.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
71
Offsetting the geological and coal resource risk are the massive size of the controlled property
which allows large areas to be mined sufficiently away from areas where coal quality and
mineability may be less favorable. In addition, several mines are designed to operate with
multiple production sections, which lessens the immediate impact when one section
encounters difficulties. The large reserve areas also provide a mitigation strategy of
developing an additional (spare) section at each mine, or additional mines, which can be
activated when adverse conditions are encountered, thereby maintaining consistent
production and quality. The spare section or mines require additional mine extension cost but
increase flexibility and performance consistency.
The larger reserve areas will be developed with multiple production sections and the small,
replacement production reserve areas provide ready access to alternative locations if
geological and coal resource characteristics require abandonment of an active production
area.
Table 22-5: Geological and Coal Resource Risk Assessment (Risks 1 and 2)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Recoverable coal
tonnes recognized to
be significantly less
than previously
estimated.
Reserve base is
adequate to serve market
commitments and
respond to opportunities
for many years. Local
adverse conditions may
increase frequency and
cost of production unit
relocations.
Previous and ongoing
exploration and
extensive regional
mining history provide
a high level of
confidence of coal
seam correlation,
continuity of the coal
seams, and coal
resource tonnes.
4
4
16
Optimize mine
plan to increase
resource
recovery;
develop mine
plan to provide
readily available
alternate mining
locations to
sustain expected
production level.
3
3
9
Coal quality locally
proves to be lower
than initially
projected.
If uncontrolled, production
and sale of coal that is
out of specification can
result in rejection of
deliveries, cancellation of
coal sales agreements
and damage to
reputation.
Exploration and vast
experience and history
in local coal seams
provide confidence in
coal quality; limited
excursions can be
managed with careful
product segregation
and blending.
3
5
15
Develop mine
plan to provide
readily available
alternate mining
locations to
sustain expected
production level;
modify coal sales
agreements to
reflect coal
quality.
3
3
9
22.2.8.2 Environmental
MM&A completed a Limited Phase I Environmental Site Assessment (
ESA
) on the Logan
County Property in May 2017 on behalf of Coronado. MM&A concluded that no long-term
liabilities existed at the time of this ESA.
Water quality and other permit requirements are subject to modification and such changes
could have a material impact on the capability of the operator to meet modified standards or
to receive new permits and modifications to existing permits . Permit protests may result in
delays or denials to permit applications.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
72
Environmental standards and permit requirements have evolved significantly over the past 50
years and to-date, mining operators and regulatory bodies have been able to adapt
successfully to evolving environmental requirements.
Table 22-6: Environmental (Risks 3 and 4)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Environmental
performance
standards are
modified in the future.
Delays in receiving new
permits and modifications
to existing permits; cost
of testing and treatment
of water and soils
Work with regulatory
agencies to
understand and
influence final
standards; implement
testing, treatment and
other actions to comply
with new standards.
3
4
12
Modify mining
and reclamation
plans to improve
compliance with
new standards
while reducing
cost of
compliance.
3
3
9
New permits and
permit modifications
are increasingly
delayed or denied.
Interruption of production
and delayed
implementation of
replacement production
from new mines.
Comply quickly with
testing, treatment and
other actions required;
continue excellent
compliance
performance within
existing permits.
2
4
8
Establish and
maintain close
and constructive
working
relationships with
regulatory
agencies, local
communities and
community
action groups.
2
3
6
22.2.8.3 Regulatory Requirements
Federal and state health and safety regulatory agencies occasionally amend mine laws and
regulations. The impact is industry-wide. Mining operators and regulatory agencies have
been able to adapt successfully to evolving health and safety requirements.
Table 22-7: Regulatory Requirements (Risk 5)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Federal and state
mine safety and
health regulatory
agencies amend
mine laws and
regulations.
Cost of training,
materials, supplies and
equipment; modification
of mine examination and
production procedures;
modification of mining
plans.
Participate in hearings
and workshops when
possible to facilitate
understanding and
implementation; work
cooperatively with
agencies and
employees to facilitate
implementation of new
laws and regulations.
4
3
12
Familiarity and
experience with
new laws and
regulations
results in
reduced impact
to operations and
productivity and
improved
supplies and
equipment
options.
4
2
8
22.2.8.4 Market and Transportation
Most of the current and future production is expected to be directed to domestic and
international metallurgical markets. Historically the metallurgical markets have been cyclical
and highly volatile. Thermal coal markets are also cyclical and domestic markets have been
adversely affected by competition from natural gas and subsidized renewable energy sources
and regulation.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
73
Table 22-8: Market and Transportation (Risk 6)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Volatile coal prices
drop precipitously.
Loss of revenue
adversely affects
profitability; reduced cash
flow may disrupt capital
expenditures plan.
Cost control measures
implemented; capital
spending deferred.
4
5
20
High-cost
operations
closed, and
employees
temporarily
furloughed.
4
4
16
Occasional delay or interruption of rail, river and terminals service may be expected
.
The
operator can possibly minimize the impact of delays by being a preferred customer by fulfilling
shipment obligations promptly and maintaining close working relationships.
Table 22-9: Market and Transportation (Risk 7)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Rail or river transport
is delayed; storage
and shipping access
at river and ocean
terminals is not
available.
Fulfillment of coal sales
agreements delayed;
limited coal storage at
mines may increase cost
of rehandling; production
may be temporarily idled.
Provide adequate
storage capacity at
mines; coordinate
continuously with
railroad and shipping
companies to respond
quickly and effectively
to changing
circumstances.
5
3
15
Provide back-up
storage facility
along with
personnel,
equipment and
rehandle plan to
sustain
production and
fulfill sales
obligations
timely.
5
2
10
22.2.8.5 Mining Plan
Occupational health and safety risks are inherent in mining operations. Comprehensive
training and retraining programs, internal safety audits and examinations, regular mine
inspections, safety meetings, along with support of trained fire brigades and mine rescue
teams are among activities that greatly reduce accident risks. Employee health monitoring
programs coupled with dust and noise monitoring and abatement reduce health risks to
miners.
As underground and surface mines are developed and extended, observation of geological,
hydrogeological and geotechnical conditions lead to modification of mine plans and
procedures to enable safe work within the mine environments.
Highlighted below are selected examples of safety and external factors relevant to Coronado
operations.
22.2.8.5.1 Methane Management
Coalbed methane is present in coal operations below drainage. Often the methane
concentration in shallow coal seams is at such low levels that it can be readily managed with
frequent testing and monitoring, vigilance and routine mine ventilation. Very high methane
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
74
concentrations may be present at greater depths. High methane concentrations may require
degasification of the coal seam to assure safe mining. Due to the seams being targeted and
their depths, excessive methane is not expected to be encountered at Logan.
Table 22-10: Methane Management (Risk 8)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Methane hazard is
present in mines
operating below
drainage.
Injury or loss of life;
possible ignition of gas
and mine explosion;
potential loss of mine and
equipment temporarily or
permanently; additional
mine fan, mine power,
ventilation, monitoring
and examination
requirements.
Low to moderate levels
can be managed with
frequent examinations,
testing and monitoring
within the mine
ventilation system.
Excellent rock dust
maintenance
minimizes explosion
propagation risk should
an ignition occur.
1
5
5
Very high-level
methane
concentrations
may require coal
seam
degasification
and gob
degasification if
longwall or pillar
extraction
methods are
employed.
1
5
5
22.2.8.5.2 Mine Fires
Mine fires, once common at mine operations, are rare today. Most active coal miners have
not encountered a mine fire. Vastly improved mine power and equipment electrical systems,
along with safe mine practices reduce mine fire risks. Crew training and fire brigade support
and training improve response for containment and control if a fire occurs. Spontaneous
combustion within coal mines, which is the source of most fires that occur today, is not
expected to commonly occur at the Logan property. When spontaneous combustion
conditions are present, monitoring systems are employed for early detection and mine plans
are designed to facilitate isolation, containment and rapid extinguishment.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
75
Table 22-11 : Mine Fires (Risk 9)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Mine fire at
underground or
surface mine
operation.
Injury or loss of life;
potential loss of mine
temporarily or
permanently; damage to
equipment and mine
infrastructure.
Inspection and
maintenance of mine
power, equipment and
mine infrastructure;
good housekeeping;
frequent examination
of conveyor belt
entries; prompt
removal of
accumulations of
combustible materials.
1
5
5
If spontaneous
combustion
conditions are
present,
enhanced
monitoring and
examination
procedures will
be implemented;
mine design will
incorporate
features to
facilitate
isolation,
containment and
extinguishment
of spontaneous
combustion
locations.
1
5
5
22.2.8.5.3 Highwall Failure
Contour surface mining, area surface mining and highwall mining all expose miners and
production equipment to the risk of highwall failure. The highwall can be designed to
incorporate safety precautions to address geotechnical and hydrogeological concerns. Drilling
and blasting design can be modified to fit soil and strata conditions to enhance highwall
stability. Foremen and crews are trained to examine the highwalls frequently to observe
changes and indications of failure. Highwall designs incorporate adequate web thickness and
safety pillar width to assure highwall stability.
Table 22-12: Highwall Failure (Risk 10)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Highwall failure
occurs at surface or
highwall mining
operations.
Injury or loss of life;
catastrophic damage to
equipment; production
interruption.
Regular inspection for
change and signs of
failure; conservative
design of HWM web
thickness and safety
pillar width;
conservative wall slope
and bench width in
design.
4
3
12
Optimize drilling
and blasting
plan; increase
safety factors for
wall slope and
bench width;
install
instrumentation
and frequent
survey to detect
movement;
dewater to
reduce wall
pressure.
4
2
8
22.2.8.5.4 Availability of Supplies and Equipment
The industry has periodically experienced difficulty receiving timely delivery of mine supplies
and equipment. Availability issues often accompanied boom periods for coal demand. Any
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
76
future delivery of supplies and equipment delays are expected to be temporary with limited
impact on production.
Table 22-13: Availability of Supplies and Equipment (Risk 11)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Disruption of
availability for
supplies and
equipment.
Temporary interruption of
production.
Force majeure
provision in coal sales
agreements to limit
liability for delayed or
lost sales.
3
2
6
Work closely with
customers to
assure delayed
coal delivery
rather than
cancelled sales;
monitor external
conditions and
increase
inventory of
critical supplies;
accelerate
delivery of
equipment when
possible.
3
1
3
22.2.8.5.5 Labor
Work stoppage due to labor protests are considered to be unlikely and accompanied by limited
impact should it occur. Excellent employee relations and communications limit the exposure
to outside protesters. Loss of supervisors and skilled employees to retirement is inevitable;
the impact can be lessened with succession planning and training and training and mentorship
of new employees.
Table 22-14: Labor – Work Stoppage (Risk 12)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk
Level
P
C
R
P
C
R
Work stoppage due
to strikes, slowdowns
or secondary boycott
activity.
Loss of production and
coal sales; damaged
customer and employee
relations; reputation loss.
Maintain excellent
employee relations and
communications;
maintain frequent
customer
communications.
2
3
6
Develop plan for
employee
communications
and legal support
to minimize
impact of
secondary
boycott activities.
1
3
3
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
77
Table 22-15: Labor – Retirement (Risk 13)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation Measures
Residual Risk
Level
P
C
R
P
C
R
Retirement of
supervisors and
skilled employees.
Loss of leadership
and critical skills to
sustain high levels of
safety, maintenance
and productivity.
Monitor demographics
closely and maintain
communications with
employees who are
approaching retirement
age; maintain employee
selection and training
programs.
3
3
9
Maintain selection of
candidates and
implementation of in-
house or third-party
training for electricians
and mechanics;
develop employee
mentoring program.
3
2
6
23
Recommendations
Coronado is continuing to work both internally and with outside assistance to continue to
further define their Resource Base and to Optimize the LOM Plan.
24
References
Publicly available information from various State and Federal agencies was used where
relevant.
25
Reliance on Information Provided by the
Registrant
For the purpose of this TRS, MM&A utilized the Geological data provided by Coronado. This
information was subjected to verification of its integrity and completeness.
Historical productivity and operating costs were also supplied by Coronado. This information
was combined with the experience and knowledge of the QP’s to forecast the LOM plan.
A summary of the information provided by Coronado relied upon by MM&A for the purposes
of this TRS is provided in
Table 25-1
.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Coronado Global Resources Inc.
Statement of Coal Resources and Reserves for the
Logan County Complex in Accordance with
the JORC Code and United States SEC Regulation S-K 1300 as
of December 31, 2021
Central Appalachian Coal Basin
West Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
78
Table 25-1: Information from Registrant Relied Upon by MM&A
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
![ex963p88i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p88i0.jpg)
APPENDIX
A
BIOGRAPHIES
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APPENDIX
B
MAPS
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APPENDIX
C
GLOSSARY OF TERMS
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Appendix C
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Glossary of Abbreviations and Definitions
Abbreviation
Definition
AIPG
American Institute of Professional Geologists
ARMPS
Analysis of Retreat Mining Pillar Stability
ASTM
American Society for Testing and Materials
AVS
Applicant Violator System
bcm
Bank cubic meters
Btu/lb.
British Thermal Unit per pound
CAT
®
Caterpillar Inc.
C.P.G.
Certified Professional Geologist
Carlson
Carlson Mining – formerly SurvCADD
®
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
Pounds per sulfur dioxide per million British thermal units
LJ Hughes
LJ Hughes & Sons, Inc. - drilling Company
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Appendix C
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Abbreviation
Definition
LOM
Life-of-mine
M&R
Maintenance and repair
M.B.A.
Master of Business Administration
Measured
Resources
Measured resources are those lying within 0.4-kilometer radius from a
valid point of measurement and reported herein as in-situ mineral
resources.
MINER Act
Mine Improvement and New Emergency Response Act of 2006
Mineral Reserve
“…the economically mineable part of a Measured and/or Indicated
Mineral Resource. It includes dilution materials and allowances for
losses, which occur when the material is mined or extracted and is
defined by studies at Preliminary Feasibility or Feasibility level as
appropriate that include Modifying Factors. Such studies demonstrate
that, at the time of reporting, extraction of the mineral reserve is
economically viable under reasonable investment and marketing
assumptions.”
Mineral Resource
“…a concentration or occurrence of solid material of economic interest
or on the Earth’s crust in such form, grade or quality that there are
reasonable prospects for eventual economic extraction. The location,
quantity, grade, continuity and other geological characteristics and
continuity of a Mineral Resource are known, estimated or interpreted
from specific geological evidence and knowledge, including sampling.”
MM&A
Marshall Miller & Associates, Inc.
Modifying Factors
“…considerations used to convert Mineral Resources to Mineral
Reserves. These include, but are not restricted to, mining, processing,
metallurgical, infrastructure, economic, marketing, legal, environmental
compliance, plans, negotiations, or agreements with local individuals or
groups and governmental factors.”
MRMR
Mineral Resources to Mineral Reserves
MSHA
United States Department of Labor Mine Safety and Health
Administration
MSL
Mean sea level
Mt
Million metric tonnes
NAIP
National Agricultural Imagery Program
NIOSH
National Institute for Occupational Safety and Health
NS
Norfolk Southern Corporation, a rail-based freight transportation
company
O&M
Operating and maintenance
OSD
Out-of-seam dilution
OSM
U.S. Office of Surface Mining Reclamation and Enforcement
P&L
Profit and loss before tax
P.E.
Professional Engineer
Preliminary
Feasibility Study
“…as a comprehensive study of a range of options for the technical and
economic viability of a mineral project that has advanced to a stage
where a qualified person has determined (in the case of underground
mining) a preferred mining method, or in the case of surface mining) a
pit configuration, and in all cases has determined an effective method of
mineral processing and an effective plan to sell the product. The study’s
financial analysis must have the level of detail necessary to
demonstrate, at the time of reporting, that extraction is economically
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Appendix C
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Abbreviation
Definition
viable. In addition, as noted in the proposed definition of a pre-feasibility
study, while a pre-feasibility study is less comprehensive and results in
a lower confidence level than a feasibility study, a pre- feasibility study
is more comprehensive and results in a higher confidence level than an
initial assessment.”
Property(ies)
Bituminous coal deposits located in Boone, Logan, and Wyoming
Counties, West Virginia.
QP
Qualified Person
Qualified Person
“…a person who is a mineral industry professional with at least five
years of relevant experience in the type of mineralization and type of
deposit under consideration and in the specific type of activity that
person is undertaking on behalf of the registrant. In addition, the
proposed definition requires a qualified person to be an eligible member
or licensee in good standing of a recognized professional organization
at the
time the technical report is prepared.”
Rec.
Recovery
RECs
Recognized Environmental Conditions
Resource
Database
The Resource Database is established by the collection, validation,
recording, storing and processing of data and forms the foundation
necessary for the estimation of Mineral Resource and Mineral Reserve.
A quality assurance and quality control program is essential and must
be established to govern the collection of all data. In reporting, a
Mineral Resource must meet the minimum requirement of “reasonable
prospects for economic extraction”. This will require the concurrent
collection and storage of preliminary economic, mining, metallurgical,
environmental, legal and social data and other information for use in the
estimation of MRMR.
The Resource Database will include both “primary” (observation and
measurement) and “interpreted” data. It is recommended that data be
stored digitally, using a documented, standard format and a reliable
storage medium that allows for easy and complete retrieval of the data.
ROM
Run-of-mine
RPO
Recognized Professional Organizations
S-K 1300
United States Securities and Exchange Commission Regulation S-K
1300 Modernization of Property Disclosures
SEC
U.S. Securities and Exchange Commission
SMCRA
Surface Mining Control and Reclamation Act of 1977 is the primary
federal law that regulates the environmental effects of coal mining in the
United States.
SME
Society for Mining Engineers
Strip Ratio
Represented by bcm of overburden to recoverable coal tonnes
tph
tonnes per hour
TRS
Technical Report Summary
USA
United States of America
USGS
United States Geologic Survey
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Appendix C
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Abbreviation
Definition
VALMIN Code
Australasian Code for Public Reporting of Technical Assessments and
Valuations of Mineral Assets
Vulcan™
Vulcan™ software is a product of Maptek™, a provider of software for
the global mining industry.
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APPENDIX
D
INITIAL ECONOMIC ASSESSMENT FOR
RESOURCES EXCLUSIVE OF RESERVES
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APPENDIX
E
JORC TABLE 1
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Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Section 1 Sampling Techniques and Data
Criteria
JORC Code explanation
Commentary
Sampling
techniques
>
Nature and quality of sampling (e.g. cut channels, random chips, or specific
specialised industry standard measurement tools appropriate to the minerals
under investigation, such as downhole gamma sondes, or handheld XRF
instruments, etc.). These examples should not be taken as limiting the broad
meaning of sampling.
>
Include reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement tools or systems used.
>
Aspects of the determination of mineralisation that are Material to the Public
Report. In cases where ‘industry standard’ work has been done this would be
relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay’). In other cases, more explanation may be required, such as where
there is coarse gold that has inherent sampling problems. Unusual
commodities or mineralisation types (e.g. submarine nodules) may warrant
disclosure of detailed information.
> Most of the coal samples have been obtained from the Properties by subsurface
exploration using core drilling techniques. The protocol for preparing and testing
the samples has varied over time and is not well documented for the older holes
drilled on the Properties.
> Typical USA core drilling sampling technique is for the coal core sample, once
recovered from the core barrel, to be described then wrapped in a sealed plastic
sleeve and placed into a covered core box, which is the length of the sample so
that the core can be delivered to a laboratory in relatively intact condition and with
original moisture content.
> It is reasonable to assume, given the sophistication level of the previous operators,
that these samples were generally collected and processed under industry best-
practices. This assumption is based on MM&A’s familiarity with the operating
companies and the companies used to perform the analysis.
> Some of the drill holes were air rotary bored and no coal core samples were
collected. Seam thickness for rotary-drilled bore holes is verified by calibrated
downhole gamma-density logs.
> Coal samples that were deemed by MM&A geologists to be unrepresentative were
not used for statistical analysis of coal quality, as documented in the tabulations. A
representative group of drill hole samples from the Properties were then checked
against the original drill laboratory reports to verify accuracy and correctness.
Drilling
techniques
>
Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast,
auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or other type, whether core is
oriented and if so, by what method, etc.).
> The Properties have been extensively explored by subsurface drilling efforts carried
out by numerous entities, most of which were completed prior to acquisition by
Coronado. The majority of the drilling was accomplished using vertical continuous
(diamond) coring or air rotary methods.
> Core drilling methods utilize NX-size (5.4 centimeter) or similar-sized core cylinders
to recover core samples, which can be used to delineate geologic characteristics,
and for coal quality testing and geotechnical logging.
> Data for the rotary drilled holes is mainly derived from downhole geophysical logs,
which are used to interpret coal and rock thickness and depth since logging of the
drill cuttings is not reliable.
> Geophysical logging was performed on many of the holes, either by Geological
Logging Systems (a division of MM&A), other geophysical logging contractors, and
on those properties acquired from CONSOL geophysical logging was often
performed by CONSOL’s in-house logging services.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Drill sample
recovery
> Method of recording and assessing core and chip sample recoveries and
results assessed.
> Measures taken to maximise sample recovery and ensure representative
nature of the samples.
> Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
> Where available, core recovery thickness of coal samples was reconciled with the
thickness interpreted from geophysical logs.
> Core recovery of the older coal samples lacking geophysical logs is sometimes not
well-documented: however, when the laboratory results for such holes had
anomalous values, the data was disqualified and not used.
Logging
> Whether core and chip samples have been geologically and geotechnically
logged to a level of detail to support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
> Whether logging is qualitative or quantitative in nature. Core (or costean,
channel, etc.) photography.
> The total length and percentage of the relevant intersections logged.
> A wide variety of core-logging techniques exist for the properties. For many of the
core holes, the primary data source is a generalized lithology description by the
driller, in some cases supplemented by a more detailed core log completed by a
geologist.
> The logging of core thickness and depth is quantitative. With the exception of the
coal seams, logging of rock strata type is more subjective and best considered as
qualitative.
Sub-sampling
techniques and
sample
preparation
> If core, whether cut or sawn and whether quarter, half or all core taken.
> If non-core, whether riffled, tube sampled, rotary split, etc. and whether
sampled wet or dry.
> For all sample types, the nature, quality and appropriateness of the sample
preparation technique.
> Quality control procedures adopted for all sub-sampling stages to maximise
representivity of samples.
> Measures taken to ensure that the sampling is representative of the in situ
material collected, including for instance results for field duplicate/second-half
sampling.
> Whether sample sizes are appropriate to the grain size of the material being
sampled.
> Typical US practice in the Appalachian Basin is that core samples for deep
mineable core samples are not sawn or subsampled (since seams are not of great
thickness and the entire seam is mined and co-mingled).
> Oftentimes, core for surface-mineable coal seams are bench sampled separately
by the various coal and rock layers (plies).
> MM&A has exercised diligence to use only those analyses that are representative
of the coal quality parameters for the appropriate mining type for each sample.
Quality of assay
data and
laboratory tests
> The nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or total.
> For geophysical tools, spectrometers, handheld XRF instruments, etc., the
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
> Nature of quality control procedures adopted (e.g. standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (i.e. lack of bias) and precision have been established.
> Sample analysis was typically carried out by accredited US laboratories.
> Standard procedure upon receipt of core samples by the testing laboratory is to log
the depth and thickness of the sample, then perform testing as specified by a
representative of the operating company. Each sample is then analyzed in
accordance with procedures defined under
American Society for Testing and
Materials (
ASTM
)
D4371); ash (ASTM D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865); volatile
matter (ASTM D3175); Free Swell Index (
FSI
) (ASTM D720).
> Geophysical tools are calibrated by the logging company and where possible,
validated using a calibration hole.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Verification of
sampling and
assaying
> The verification of significant intersections by either independent or alternative
company personnel.
> The use of twinned holes.
> Documentation of primary data, data entry procedures, data verification, data
storage (physical and electronic) protocols.
> Discuss any adjustment to assay data.
> All coal intersection data used to generate the geologic model has been cross
referenced with the lithological and geophysical logs by MM&A.
> Laboratory quality was adjusted from dry basis to reflect the anticipated marketable
product moisture.
> Coal quality results were verified by spot-check with laboratory analysis sheets by
MM&A before inclusion into the geologic model and use in the resource estimate.
Location of data
points
> Accuracy and quality of surveys used to locate drill holes (collar and down-
hole surveys), trenches, mine workings and other locations used in Mineral
Resource estimation.
> Specification of the grid system used.
> Quality and adequacy of topographic control.
> Due to the long history of exploration by various parties on the Properties, a wide
variety of survey techniques exist for documentation of data point locations. Many
of the older exploration drill holes appear to have been located by ground survey;
more recently completed drill holes are often located by high-resolution Global
Positioning System (
GPS
) units.
> Grid systems used are typically the State Plane Coordinate System pertinent to
each property.
> Topography is based on either the USGS topographic 7.5-minute quadrangle maps
or on recent aerial photogrammetry as necessary (subject to availability).
Data spacing and
distribution
> Data spacing for reporting of Exploration Results.
>
Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications
applied.
> Whether sample compositing has been applied.
> Spacing and distribution of data point information may vary from seam to seam
within each mining area. The areas estimated for coal resource and coal reserve
tonnes have been limited so that the data spacing and distribution is sufficient to
establish the degree of geological continuity appropriate for the estimation and
classification of the coal tonnes.
> All of the coal resource tonnes are in the measured, indicated, and inferred
categories, and all of the coal reserve tonnes are in the proved and probable
categories in accordance with the JORC Code and SEC standards.
Orientation of
data in relation to
geological
structure
> Whether the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known, considering the deposit type.
> If the relationship between the drilling orientation and the orientation of key
mineralised structures is considered to have introduced a sampling bias, this
should be assessed and reported if material.
> Drill holes have been vertically drilled. No downhole deviation logs have been
collected and it is therefore not known if the drill holes have deviated away from
vertical. Based on the relatively shallow seam depths, any deviation is expected to
be insignificant and immaterial to the geologic characterization of the property.
> The dip of the coal seams is relatively minor and not a material issue for
representation of seam thickness or quality.
Sample security
The measures taken to ensure sample security.
> Sample handling procedures employed by explorationists follow typical US protocol
and should be adequate to insure sample security.
Audits or reviews
The results of any audits or reviews of sampling techniques and data.
> MM&A has reviewed all available geological information for the Properties in
developing the geologic model. Only that data deemed suitable has been used for
the purpose of generating the resource and reserve estimates.
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Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Section 2 Reporting of Exploration Results
Criteria
JORC Code explanation
Commentary
Mineral tenement
and land tenure
status
> Type, reference name/number, location and ownership including agreements
or material issues with third parties such as joint ventures, partnerships,
overriding royalties, native title interests, historical sites, wilderness or national
park and environmental settings.
> The security of the tenure held at the time of reporting along with any known
impediments to obtaining a licence to operate in the area.
> The Coronado coal resources are located within three of the United State of
America: Virginia; West Virginia; and Pennsylvania. Control of these Properties is
governed by many hundreds of agreements.
> MM&A has not carried out separate title verification for the coal properties and has
not verified leases, deeds, surveys or other property control instruments pertinent
to the subject resources.
> Coronado has represented to MM&A that it controls the mining rights to the coal
deposits as shown on its property maps, and MM&A has accepted these as being
a true and accurate depiction of the mineral rights controlled by Coronado. The
TRS assumes the properties are developed under responsible and experienced
management.
> There are no known legal or environmental encumbrances that would impede
development of the subject coal reserves.
Exploration done
by other parties
> Acknowledgment and appraisal of exploration by other parties.
> The Properties have been extensively explored by subsurface drilling efforts
carried out by numerous entities, most of which were completed prior to acquisition
by Coronado.
> This exploration work was generally performed to prevailing US best practice
standards and deemed adequate for the purposes of this TRS.
Geology
> Deposit type, geological setting and style of mineralisation.
> The Coronado coal resources are located within the Northern and Central
Appalachian Coal Basins.
> The coal deposits are Carboniferous in age, being of the Pennsylvanian system.
> Seam of economic significance typically range between 0.3 meters and 1.8 meters
in thickness, with relatively little structural deformation.
> Regional structure is typically characterized by gently dipping strata to the
northwest at less than one percent.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Drill hole
Information
> A summary of all information material to the understanding of the exploration
results including a tabulation of the following information for all Material drill
holes:
● easting and northing of the drill hole collar
● elevation or RL (Reduced Level – elevation above sea level in metres) of
the drill hole collar
● dip and azimuth of the hole
● down hole length and interception depth
● hole length.
> If the exclusion of this information is justified on the basis that the information
is not Material and this exclusion does not detract from the understanding of
the report, the Competent Person should clearly explain why this is the case.
> MM&A reviewed and entered all pertinent data into a digital geologic database for
each Coronado property. The database consists of thousands of data records,
which include drill hole and supplemental coal seam thickness measurements from
outcrop and mine exposures.
> All drill holes in the database are provided with a collar elevation and the State
Plane Coordinate System easting and northing coordinate.
> After MM&A confirmed proper coal seam thickness and correlation, the seam data
was modelled and compiled into coal resource maps.
> The maps are provided in the TRS; however, a tabulation of the thousands of
individual data records is not practical to include.
Data aggregation
methods
> In reporting Exploration Results, weighting averaging techniques, maximum
and/or minimum grade truncations (e.g. cutting of high grades) and cut-off
grades are usually Material and should be stated.
> Where aggregate intercepts incorporate short lengths of high grade results
and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such
aggregations should be shown in detail.
> The assumptions used for any reporting of metal equivalent values should be
clearly stated.
> Where a coal seam has been bench sampled (typically for surface mining) the
individual analyses for the coal plies are normally weight-averaged to represent the
total of recoverable coal.
> Coal quality summary results have been documented in the TRS. Average coal
quality on a per-seam basis is used to represent the coal resources within a given
mining area.
> Average coal quality for each Coronado complex is provided in Tables 1-1, 1-2 and
1-3 of this TRS.
> No other data aggregations methods are used.
Relationship
between
mineralisation
widths and
intercept lengths
> These relationships are particularly important in the reporting of Exploration
Results.
> If the geometry of the mineralisation with respect to the drill hole angle is
known, its nature should be reported.
> If it is not known and only the down hole lengths are reported, there should be
a clear statement to this effect (e.g. ‘down hole length, true width not known’).
> Coal thickness values from all coal intersections and down hole geophysical logs
are considered to be vertical thicknesses. Seam dip of approximately 2.0 to 3.0
degrees has little effect on the vertical thickness of the seam.
Diagrams
> Appropriate maps and sections (with scales) and tabulations of intercepts
should be included for any significant discovery being reported These should
include, but not be limited to a plan view of drill hole collar locations and
appropriate sectional views.
> Diagrams and maps showing the coal seam intercepts are presented in the TRS.
Balanced
reporting
> Where comprehensive reporting of all Exploration Results is not practicable,
representative reporting of both low and high grades and/or widths should be
practiced to avoid misleading reporting of Exploration Results.
> All of the available, qualified exploration data has been included within the
tabulations, maps, and diagrams for this TRS.
> Both coal thickness and quality data are deemed by MM&A to be reasonably
sufficient within the resource areas. Therefore, there is a reasonable level of
confidence in the geologic interpretations required for coal resource determination
based on the available data and the techniques applied to the data.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Other substantive
exploration data
> Other exploration data, if meaningful and material, should be reported
including (but not limited to): geological observations; geophysical survey
results; geochemical survey results; bulk samples – size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
> Informational material available from the U.S. Geological Survey and the respective
State Surveys was used to assist in the Resource estimate.
Further work
> The nature and scale of planned further work (e.g. tests for lateral extensions
or depth extensions or large-scale step-out drilling).
> Diagrams clearly highlighting the areas of possible extensions, including the
main geological interpretations and future drilling areas, provided this
information is not commercially sensitive.
> Further work is expected to include additional exploration, geotechnical testing,
coal quality analyses, and coal property acquisition.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code explanation
Commentary
Database
integrity
> Measures taken to ensure that data has not been corrupted by, for example,
transcription or keying errors, between its initial collection and its use for
Mineral Resource estimation purposes.
> Data validation procedures used.
> MM&A confirmed coal seam thickness and correlations in databases used for coal
deposit modelling. Representative records were spot-checked for data entry
validation.
> Geophysical logs were used wherever available to assist in confirming the seam
correlation and to verify proper seam thickness measurements and recovery of coal
samples.
Site
visits
> Comment on any site visits undertaken by the Competent Person and the
outcome of those visits.
> If no site visits have been undertaken indicate why this is the case.
> MM&A is very familiar with the Properties and has conducted multiple site visits
throughout the years.
Geological
interpretation
> Confidence in (or conversely, the uncertainty of) the geological interpretation of
the mineral deposit.
> Nature of the data used and of any assumptions made.
> The effect, if any, of alternative interpretations on Mineral Resource estimation.
> The use of geology in guiding and controlling Mineral Resource estimation.
> The factors affecting continuity both of grade and geology.
> Due to the relative structural simplicity of the deposits and the reasonable continuity
of the tabular coal beds, the principal geological interpretation necessary to define
the geometry of the coal deposits is the proper modeling of their thickness and
elevation.
> Both coal thickness and quality data are deemed by MM&A to be reasonable within
the resource areas.
> Therefore, there is a reasonable level of confidence in the geologic interpretations
required for coal resource determination based on the available data and the
techniques applied to the data.
Dimensions
> The extent and variability of the Mineral Resource expressed as length (along
strike or otherwise), plan width, and depth below surface to the upper and lower
limits of the Mineral Resource.
> The subject coal resource areas mostly exist in discreet, individual deposits of highly
variable dimensions, shapes and depth below the ground surface.
> Such factors are best depicted in the maps contained in the TRS.
> Details of the parameters are cited within the TRS and included in the table of Cut-off
Parameters listed in Section 11.1 of the TRS.
Estimation
and
modelling
techniques
> The nature and appropriateness of the estimation technique(s) applied and key
assumptions, including treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of extrapolation from data
points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used.
> The availability of check estimates, previous estimates and/or mine production
records and whether the Mineral Resource estimate takes appropriate account
of such data.
> The assumptions made regarding recovery of by-products.
> Geological data was imported into Carlson Mining
®
®
) geological
modelling software in the form of Microsoft
®
collars, seam and thickness picks, bottom seam elevations and raw and washed coal
quality. These data files were validated prior to importing into the software.
> Once imported, a geologic model was created.
> The geological model was verified and reviewed.
> Resources were estimated by defining seam thickness at each point of observation
and by defining resource confidence arcs around the points of observation.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
> Estimation of deleterious elements or other non-grade variables of economic
significance (e.g. sulphur for acid mine drainage characterisation).
> In the case of block model interpolation, the block size in relation to the
average sample spacing and the search employed.
> Any assumptions behind modelling of selective mining units.
> Any assumptions about correlation between variables.
> Description of how the geological interpretation was used to control the
resource estimates.
> Discussion of basis for using or not using grade cutting or capping.
> The process of validation, the checking process used, the comparison of model
data to drill hole data, and use of reconciliation data if available.
> Points of observation for Measured and Indicated confidence arcs were defined for
all drill holes that intersected the seam.
> As prescribed by the common United States classification system the following
distances from points of observation were used to define the corresponding
Resource category arcs:
-
feet (4.8 kilometers)
-
-
> The use of the standards commonly used in the United States are appropriate and
customary for this resource jurisdiction and deposition type.
> MM&A performed a geostatistical analysis test of the Coronado data sets using the
Drill Hole Spacing Analysis (
DHSA
) method.
> Based on MM&A’s analysis, it would be possible to extend the measured, indicated
and inferred arcs slightly beyond historically accepted practices due to consistent
geological settings. The QP’s have elected not to extend arc distances, introducing a
level of conservatism in the coal classification.
Moisture
> Whether the tonnages are estimated on a dry basis or with natural moisture,
and the method of determination of the moisture content.
> Coal resource tonnes are presented on a dry, in-situ basis.
> Reserve tonnes are presented on a moist basis at anticipated product moisture
ranging from 4.0 to 6.0 percent. Moisture content based on historic analyses of
shipped coal.
Cut-off
Parameters
> The basis of the adopted cut-off grade(s) or quality parameters applied.
> The cut-off parameters were tailored for each of the Coronado properties to be in
accordance with mining/ processing capabilities and market conditions prevalent at
each operation.
> Examples include minimum recoverable coal thickness, acceptable ash content and
wash recovery, and manageable overburden to coal ratio for surface mineable coal.
> Details of the parameters are cited within the TRS and included in the table of Cut-off
Parameters listed in Section 11.1 of this TRS.
> These cut-off parameters have been developed by MM&A based on its experience
with the Coronado properties and other mining operations of the Central Appalachian
coal basin. This experience includes technical and economic evaluations of
numerous properties in the region for the purposes of determining the economic
viability of the subject coal reserves.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Mining factors or
assumptions
> Assumptions made regarding possible mining methods, minimum mining
dimensions and internal (or, if applicable, external) mining dilution. It is always
necessary as part of the process of determining reasonable prospects for
eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
> Mining factors such as dilution, mining and washing recovery are variable and have
been applied at the coal deposits at each operation based on site-specific
characteristics.
> Details of the factors are cited within the TRS.
> Factors that would typically preclude conversion of a coal resource to coal reserve
include the following: inferred resource classification; absence of coal quality; poor
mine recovery; lack of access; insufficient exploration; or uncontrolled surface
property for areas of proposed for surface mining.
> While such factors were used to preclude the conversion of a very limited number of
coal resources to coal reserves in this report, the extensive history of mining on the
Properties would suggest that there are reasonable prospects for eventual economic
extractions of all coal resources under favorable market conditions.
Metallurgical
factors or
assumptions
> The basis for assumptions or predictions regarding metallurgical amenability. It
is always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential metallurgical methods,
but the assumptions regarding metallurgical treatment processes and
parameters made when reporting Mineral Resources may not always be
rigorous. Where this is the case, this should be reported with an explanation of
the basis of the metallurgical assumptions made.
> The products mined from coal resources controlled by Coronado can be sold into
high-, mid-, and low-volatile metallurgical coal markets because of their inherent
quality characteristics.
> Run-of-mine production is washed at the coal preparation plants as needed for
quality control.
> Coronado may blend production from multiple sources to manage ash and sulfur
content along with the rheological and petrographic characteristics of the shipped
products.
Environmental
factors or
assumptions
> Assumptions made regarding possible waste and process residue disposal
options. It is always necessary as part of the process of determining reasonable
prospects for eventual economic extraction to consider the potential
environmental impacts of the mining and processing operation. While at this
stage the determination of potential environmental impacts, particularly for a
greenfields project, may not always be well advanced, the status of early
consideration of these potential environmental impacts should be reported.
Where these aspects have not been considered this should be reported with an
explanation of the environmental assumptions made.
> MM&A completed a Limited Phase I Environmental Site Assessment (ESA) on the
Buchanan property in April 2016, and on the Logan County and Greenbrier
Properties in May 2017 on behalf of Coronado. Coronado reports not having
conducted such a study since the MM&A studies.
> The ESAs completed by MM&A included a site inspection, review of historical
records, a database search of State and Federal regulatory records and interviews to
identify potential recognized environmental conditions (RECs) that may create
environmental liability for the sites.
> MM&A identified one REC at Greenbrier associated with stained soil and gravel near
a fueling and maintenance area. Coronado reported to MM&A that satisfactory
clean-up efforts were completed at Greenbrier.
> Based on these former ESAs completed by MM&A, it is MM&A’s opinion that
Coronado has a generally typical coal industry record of compliance with applicable
mining, water quality, and environmental laws. Estimated costs for mine closure,
including water quality monitoring during site reclamation, are included in the TRS
financial models.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
Bulk density
> Whether assumed or determined. If assumed, the basis for the assumptions. If
determined, the method used, whether wet or dry, the frequency of the
measurements, the nature, size and representativeness of the samples.
> The bulk density for bulk material must have been measured by methods that
adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit.
> Discuss assumptions for bulk density estimates used in the evaluation process
of the different materials.
> Laboratory derived seam densities measured in specific gravity were used where
available. As needed, these data were supplemented by estimated seam density
values based on the relative proportion of coal and non-coal material within the seam
(typically at 1.30 and 2.25 specific gravity, respectively).
> Average seam density was determined for each coal deposit and used to convert
coal volumes into coal tonnage estimates.
Classification
> The basis for the classification of the Mineral Resources into varying confidence
categories.
> Whether appropriate account has been taken of all relevant factors (i.e. relative
confidence in tonnage/grade estimations, reliability of input data, confidence in
continuity of geology and metal values, quality, quantity and distribution of the
data).
> Whether the result appropriately reflects the Competent
> Person’s view of the deposit.
> The Resource has been classified based on suitable distances from points of
observations prescribed in the common United States classification system.
> The use of the United States standards is appropriate and customary for this
resource jurisdiction and deposition type.
> MM&A performed a geostatistical analysis test of the Coronado data sets using the
Drill Hole Spacing Analysis (
DHSA
) method.
> Based on MM&A’s analysis, it would be possible to extend the measured, indicated
and inferred arcs slightly beyond historically accepted practices due to consistent
geological settings. The QP’s have elected not to extend arc distances, introducing a
level of conservatism in the coal classification.
> All relevant factors have been accounted for and reflect the Competent Person’s
view of the deposit.
Audits or reviews
> The results of any audits or reviews of Mineral Resource estimates.
> MM&A completed prepared a statement of coal resources and reserves for the
Properties in accordance with the JORC Code as of December 31, 2017. MM&A
also subsequently updated the estimate of resources and reserves for depletion as
of December 31, 2018, December 31, 2019, and December 31, 2020.
> MM&A performed a previous audit of the Properties in year 2017 for Coronado
based on U.S. Securities and Exchange Commission (SEC) Industry Guide 7 and
USGS Circular 891 standards.
> Earlier audits were performed by various independent consultants for predecessors-
in-title to Coronado and at various levels of detail depending on the clients concerns
and the allotted time for completion. Previous audits and reviews defined the
primary coal resource areas and estimated the recoverable tonnes for each seam
based on the expected mining methods.
> Additionally, MM&A has performed proprietary evaluations for predecessors-in-title
to Coronado, which encompass portions of the Properties included in this TRS.
Discussion of
relative
accuracy/
confidence
> Where appropriate a statement of the relative accuracy and confidence level in
the Mineral Resource estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the application of statistical
or geostatistical procedures to quantify the relative accuracy of the resource
within stated confidence limits, or, if such an approach is not deemed
> The relative accuracy of and confidence in the coal tonnage and quality estimates
provided herein are judged to be in conformance with current industry best-practices.
> The representation of average coal quality characteristics should be understood to
represent a reasonably representative sampling that is generally indicative of coal
quality and does not represent a statistically rigorous approach to coal quality
modeling.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
appropriate, a qualitative discussion of the factors that could affect the relative
accuracy and confidence of the estimate.
> The statement should specify whether it relates to global or local estimates,
and, if local, state the relevant tonnages, which should be relevant to technical
and economic evaluation. Documentation should include assumptions made
and the procedures used.
> These statements of relative accuracy and confidence of the estimate should be
compared with production data, where available.
> Resource estimation has been completed using standard coal estimation methods
which are deemed appropriate for this deposit.
Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code explanation
Commentary
Mineral Resource
estimate for
conversion to Ore
Reserves
> Description of the Mineral Resource estimate used as a basis for the
conversion to an Ore Reserve.
> The coal resource estimate was prepared as part of the report Coronado Global
Resources Inc. Statement of Coal Resources and Reserves in Accordance with
JORC Code and United States SEC Standards as of December 31, 2021 –
Northern and Central Appalachian Coal Basins – Virginia, West Virginia and
Pennsylvania, USA – February 2022 prepared by MM&A.
> The resource estimation criteria were developed by MM&A based on the capabilities
of the mining equipment used within the production model and on industry-accepted
standards to assure that the basic geologic characteristics of the coal resources are
in reasonable conformity with those to be mined and marketed by Coronado.
> Clear statement as to whether the Mineral Resources are reported additional
to, or inclusive of, the Ore Reserves.
> Coal resources generally are reported inclusive of the coal reserves. In some
cases, resources are reported in addition to coal reserves. Tables 1-1 and 11 -3 of
the TRS clearly identify resources “inclusive of mine plan” from which coal reserves
were estimated along with those resources “exclusive of mine plan” from which no
reserves were estimated.
Site visits
> Comment on any site visits undertaken by the Competent Person and the
outcome of those visits.
> MM&A is very familiar with the Properties and has conducted multiple site visits
throughout the years.
Study status
> The type and level of study undertaken to enable Mineral Resources to be
converted to Ore Reserves.
> A preliminary feasibility LOM plan was prepared by MM&A for active and proposed
mines.
> The Code requires that a study to at least Pre-Feasibility Study level has been
undertaken to convert Mineral Resources to Ore Reserves. Such studies will
have been carried out and will have determined a mine plan that is technically
achievable and economically viable, and that material Modifying Factors have
been considered.
> This geologic evaluation conducted in accordance with JORC and SEC standards
and in conjunction with the preliminary feasibility study is sufficient to conclude that
the surface, highwall miner and underground coal reserves identified on the
Properties are economically mineable under reasonable expectations of market
prices for thermal and metallurgical coal products, estimated operation costs, and
capital expenditures.
> The pre-feasibility financial models, prepared by MM&A for this TRS, was developed
to test the economic viability of each coal resource area.
> Proved and probable coal reserve were derived from the defined in-situ coal
resource considering relevant processing, economic (including independent
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
estimates of capital, revenue and cost, marketing, legal, environmental,
socioeconomic, and regulatory factors).
Cut-off parameters
> The basis of the adopted cut-off grade(s) or quality parameters applied.
> The cut-off parameters were tailored for each of the Coronado properties to be in
accordance with mining/ processing capabilities and market conditions prevalent at
each operation.
> Examples include minimum recoverable coal thickness, acceptable ash content and
wash recovery, and manageable overburden to coal ratio for surface mineable coal.
> Details of the parameters are cited within the TRS and included in the table of Cut-
off Parameters listed in Section 11.1 of this TRS.
> These cut-off parameters have been developed by MM&A based on its experience
with the Coronado properties and are typical of mining operations in the Central
Appalachian coal basin. This experience includes technical and economic
evaluations of numerous properties in the region for the purposes of determining the
economic viability of the subject coal reserves.
Mining factors or
assumptions
> The method and assumptions used as reported in the Pre-Feasibility or
Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either
by application of appropriate factors by optimisation or by preliminary or
detailed design).
> After validating coal seam data and establishing correlations, the thickness and
elevation for seams of economic interest were used to generate a geologic model.
> A pre-feasibility LOM plan was prepared by MM&A for active and proposed mines.
MM&A prepared mine projections and production timing forecasts based on coal
seam characteristics. Production timing was carried out from 2022 to depletion
(exhaustion) of the coal reserve areas.
> The choice, nature and appropriateness of the selected mining method(s) and
other mining parameters including associated design issues such as pre-strip,
access, etc.
> The room-and-pillar mining method was selected to model the underground mining
resources, utilizing continuous miners for coal extraction, shuttle cars for production
section haulage and roof bolters for roof control, with the exception that the
Buchanan Mine also uses longwall shearers, armored face conveyors, and
hydraulic self-advancing roof support. The resource areas located above drainage
are relatively small and often have irregular boundaries.
The Buchanan Mine in
Buchanan County, Virginia is the only active longwall mine currently being operated
by Coronado.
> The Coronado underground mining resource areas which are located above-
drainage require an access road and mine access development along the outcrop,
whereas below-drainage mines are accessed via shaft or slope based on other
proposed surface infrastructure locations and/or surface property control.
> The surface mining method selected utilizes highly productive hydraulic shovels,
front-end loaders, large tractors and rock trucks for overburden removal. The
mobile equipment spreads adapt readily to winding coal outcrops for contour
surface mining and are effective for point-removal and area mining applications.
> Application of highwall and auger mining units is an effective method to recover coal
resources not suitable for underground mining and under excessive cover for
surface mining.
> The assumptions made regarding geotechnical parameters (e.g. pit slopes,
stope sizes, etc.), grade control and pre-production drilling.
> Mining plans for potential underground mines were developed by MM&A. Pillar
stability was tested by MM&A using the
Analysis of Coal Pillar Stability (ACPS
)
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
program that was developed by the
National Institute for Occupational Safety
and Health (
NIOSH
)
.
> Coronado must obtain approved mining plans from
United States Department of
Labor Mine Safety and Health Administration (
MSHA
)
that define safety
parameters for the highwalls developed during contour and area mining. MM&A’s
planning model does not require input of specific highwall design parameters, but
provides for timing of mining within mine plan polygons that is representative of the
operation performance attained at Central Appalachia surface mines.
> Highwall and auger mining is conducted under highwalls designed and constructed
to meet MSHA permit requirements. To better assure highwall stability and safety
during highwall coal extraction, MSHA requires that coal fenders, or stumps, be left
in place between successive cuts. Periodic barrier pillars must be left in place as an
additional safeguard. MM&A has adjusted the expected mining recovery for
highwall and auger mining resources to reflect highwall stability and safety
requirements.
> The major assumptions made and Mineral Resource model used for pit and
stope optimisation (if appropriate).
> Underground Mining Resources: For metallurgical resources, minimum coal seam
thickness extends down to between 0.6 and 1.2 meters and a minimum overburden
(depth of cover) of 30.5 meters. A 61-meter horizontal distance is maintained from
abandoned mines and sealed or pillared areas, and a 30-meter horizontal distance
is maintained from planned highwall miner panels. Mine recovery is reduced when
a rider coal seam is present within a 1.5- to 3.0-meter interval above the coal seam.
No mining is projected when the interval between overlying and underlying reserves
is less than 12 meters.
> Surface Mining Resources: For classification as a surface-mineable resource, a
seam must be at least 0.3 meters in thickness as a stand-alone (principle) seam
and 0.15 meters in thickness when less than 0.8 meters from a principle seam. The
maximum cumulative area mining strip ratio is generally 20:1 for thermal coal and
30:1 for metallurgical coal. Some areas were assessed for their economic viability
at higher ratios, and were included as reserves if deemed economic. For contour
surface mining, a minimum of 38-meter bench is provided to support HWM.
> HWM and Auger Mining Resources: HWM cut depth (penetration) is established at
a maximum of 244 meters. The minimum mineable coal thickness is limited at 0.6
meters. For coal seams less than 0.8 meters thick, roof and/or floor characteristics
must allow OSD cutting to maintain a 0.8-meter minimum cutting height.
Auger
mining cut depth is established at an average of 91 meters. The minimum mineable
coal thickness is limited at 0.5 meters.
> The mining dilution factors used.
> Underground Mining Reserves: The planning model assigns minimum mining
heights of 1.4 to 1.8 meters for mains and panel development. At the Buchanan
Mine, a minimum mining height of 1.8 meters was used due to the longwall mining
method being employed. For coal seams thinner than the assigned mining height,
the difference between the coal seam height and assigned mining height consists of
OSD. In all cases a minimum of 0.05 meters of OSD was assumed, with the
exception of the Mon Valley mines, where a minimum 0.15 meters of OSD was
assumed due to weaker floor strata.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Criteria
JORC Code explanation
Commentary
> Surface Mining Reserves: Area mining is generally limited to a cumulative
overburden ratio of 30:1 and a 15:1 ratio for contour mining. Exceptions were
considered for mining of metallurgical grade coal where deemed economical. It is
assumed that careful cleaning of exposed coal pits will result in minimal OSD.
> HWM and Auger Mining Reserves: The mining plan assumes that the HWM cutting
height is a minimum of 76 to 99 centimeters for clearance purposes. When the coal
seam is less than 76 to 99 centimeters thick, OSD assumed and included in the
ROM product.
Because the auger has very limited OSD cutting ability, it is assumed
that an appropriate auger diameter will be chosen based on the coal seam
thickness and that OSD will be minimal.
> The mining recovery factors used.
> Underground Mining Reserves: Mine recovery generally varies between 40 and 60
percent for continuous mining panels, and 100 percent for longwall.
> Surface Mining Reserves: Mining recovery is 90 percent for virgin areas. Mining
recovery is reduced where second mining is projected in previously underground
and auger mined areas.
> HWM and Auger Mining Reserves: A mine recovery of 40 percent has been applied
for HWM.
A mine recovery of 35 percent has been applied for auger mining.
> Any minimum mining widths used.
> Underground Mining Reserves: Typical entry width is 5.8 to 6.1 meters.
> The manner in which Inferred Mineral Resources are utilised in mining studies
and the sensitivity of the outcome to their inclusion.
> Proved and probable coal reserve were derived from the defined in-situ coal
resource considering relevant processing, economic (including independent
estimates of capital, revenue and cost, marketing, legal, environmental,
socioeconomic, and regulatory factors).
> Mine plan LOM tonnage includes inferred coal and those areas that do not meet the
minimum coal thickness requirement for classification as reserve. Inferred coal
represents approximately 0.6% of the LOM production for Mon Valley and 0.04% of
the total LOM production for Logan. None of this coal was included in the estimate
of reserves
> The infrastructure requirements of the selected mining methods.
> Underground Mining Resources: The continuous mining method provides for the
extraction of coal from the production faces using continuous miners (and longwall
shearing machine at Buchanan) and haulage using shuttle cars or battery haulers to
a feeder-breaker located at the tail of the section conveyor belt. The feeder-breaker
crushes large pieces of coal and rock and regulates coal feed onto the mine
conveyor. A chain conveyor is used to remove coal from the longwall face at the
Buchanan Mine for placement onto the conveyor belt which is ultimately delivered to
an underground storage bunker. Roof-bolting machines are used to install roof
bolts, and battery scoops are available to clean the mine entries and assist in
delivery of mine supplies to work areas. Surface ventilation fans are installed as
needed to provide a sufficient volume of air to ventilate production sections, coal
haulage and transport entries, battery charging stations, and transformers in
accordance with approved plans.
> Coronado currently operates three coal preparation plants, one each at the
Buchanan, Logan County and Greenbrier Divisions. The Buchanan Plant operates
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Commentary
at a feed rate of approximately 907 raw tonnes per hour (
tph
), whereas the
Saunders Plant (Logan County Division) has a nominal feed rate of 816 tph, and the
Mountaineer Plant (Greenbrier Division) operates at 544 tph.
MM&A has included
capital estimates for construction of additional coal preparation plants at the Russell
County and Mon Valley Complex for the purposes of this TRS.
> Surface Mining Resources: The surface mining mobile equipment spreads advance
the contour and area mining pits while systematically reclaiming the trailing side of
pits where coal has been removed. The coal haul roads are extended and
maintained as the pits advance. Support facilities are maintained nearby but away
from the active mining, and include storage areas for blasting agents, fuel and
lubricants, and mine supplies along with maintenance facilities and offices. Most of
the surface mine production is transported to a loading point for crushing, blending
and direct-shipment to customers.
> HWM and Auger Resources: The HWM equipment advances along with the contour
mining pits. The rate of advance of the contour mining is governed by the
advancement rate of the HWM. A diesel-powered generator trails the highwall
miner and powers the continuous mining unit. Other support facilities are provided
along with the contour mining support facilities. HWM production is all transported
by truck to the coal preparation plant for washing.
Metallurgical
factors or
assumptions
> The metallurgical process proposed and the appropriateness of that process to
the style of mineralisation.
> Coarse material is washed in a heavy medium vessel. Intermediate-size material is
washed in heavy medium cyclones. Fine material is washed using conventional
froth flotation cells.
> Whether the metallurgical process is well-tested technology or novel in nature.
> Processes are typical of those used in the coal industry and are in use at adjacent
coal processing plants.
> The nature, amount and representativeness of metallurgical test work
undertaken, the nature of the metallurgical domaining applied and the
corresponding metallurgical recovery factors applied.
> The quality characteristics for the subject coal resources and coal reserves have
been reviewed in detail by MM&A. The drill hole data were utilized to develop
average coal quality characteristics mining site. These average coal quality
characteristics were then utilized as the basis for determining the various markets
into which the saleable coal will likely be placed.
> Any assumptions or allowances made for deleterious elements.
> No significant effects on product quality are anticipated from dilution material; float
product quality was used to model final product quality.
> The existence of any bulk sample or pilot scale test work and the degree to
which such samples are considered representative of the orebody as a whole
> No bulk sample or pilot scale work has been completed.
> For minerals that are defined by a specification, has the ore reserve estimation
been based on the appropriate mineralogy to meet specifications?
> Notwithstanding the complexity of the coal quality data set, the seams of the central
and northern Appalachian coalfields have a long history of providing both high-Btu
thermal coals and high-, mid- and low-volatile coking coals with favorable
metallurgical properties.
Environmental
> The status of studies of potential environmental impacts of the mining and
processing operation. Details of waste rock characterisation and the
consideration of potential sites, status of design options considered and, where
> MM&A completed a Limited Phase I Environmental Site Assessment (
ESA
) on the
Buchanan property in April 2016, and on the Logan County and Greenbrier
Properties in May 2017 on behalf of Coronado.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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JORC Code explanation
Commentary
applicable, the status of approvals for process residue storage and waste
dumps should be reported.
> MM&A identified one REC at Greenbrier associated with stained soil and gravel
near a fueling and maintenance area. Coronado reported to MM&A that satisfactory
clean-up efforts were completed at Greenbrier.
> Based on these former ESAs completed by MM&A, it is MM&A’s opinion that
Coronado has a generally typical coal industry record of compliance with applicable
mining, water quality, and environmental laws. Estimated costs for mine closure,
including water quality monitoring during site reclamation, are included in the TRS
financial models.
Infrastructure
> The existence of appropriate infrastructure: availability of land for plant
development, power, water, transportation (particularly for bulk commodities),
labour, accommodation; or the ease with which the infrastructure can be
provided or accessed.
> Coronado currently operates one surface mine (Toney Fork Mine at the Logan Mine
Complex); Coronado also controls the idle Midland Surface Mine at the Greenbrier
Mine Complex.
> Coronado operates five underground mines as follows: Buchanan Mine at the
Buchanan Mine Complex; Powellton #1, Eagle No. 1, Muddy Bridge and Lower War
Eagle Mines in the Logan Mine Complex; the Mountaineer #1 Mine at the
Greenbrier Mine Complex is currently idle.
> All ROM production is currently planned for either truck transportation from the
mines to the processing or shipping facilities, or in some cases there is either a
current or planned mine mouth preparation plant and barge/rail loading facility.
> There is a network of public highways that provide serviceable coal haul routes and
private, internal roads on the Properties would be developed as may be needed.
Rail service to the Properties is most readily provided by NS and CSX
with
connections to both domestic consumers and international trans-shipment points.
NS track is located across the Monongahela River from the proposed Pangburn
Hollow load-out facility. Coal would be shipped to customers via barge and rail and
sold as both metallurgical and thermal products.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Costs
> The derivation of, or assumptions made, regarding projected capital costs in
the study.
> The methodology used to estimate operating costs.
> Coronado provided historical and 5-year budget operating costs for its active mines
for MM&A’s review. MM&A used the historical and/or budget cost information as a
reference and developed personnel schedules for each mine. Hourly labor rates
and salaries were based upon information contained in Coronado’s financial
summaries. Fringe benefit costs were developed for vacation and holidays, federal
and state unemployment insurance, retirement, workers’ compensation and
pneumoconiosis, casualty and life insurance, healthcare and bonuses. A cost factor
for mine supplies was developed that relates expenditures to mine advance rates for
roof control costs and other mine supply costs at underground mines. Other factors
were developed for maintenance and repair costs, rentals, mine power, outside
services and other direct mining costs
> Surface mine direct operating costs were developed as a function of overburden
ratio for repair and maintenance supplies, diesel fuel, explosives and blasting, and
miscellaneous supplies and services. Operating costs for highwall mines are based
on costs per ROM tonne estimates. Other cost factors were developed for coal
preparation plant processing, refuse handling, coal loading, trucking, property taxes,
and insurance and bonding. Appropriate royalty rates were assigned for production
from leased coal lands and sales taxes were calculated for state severance taxes,
the federal black lung excise tax, and federal and state reclamation fees.
> Capital schedules were developed by MM&A for mine development, infrastructure,
and on-going capital requirements for the life of each projected mine.
> Staffing levels were prepared and operating costs estimated by MM&A for each
projected mine. MM&A utilized historical cost data provided by Coronado and its
own knowledge and experience to estimate direct and indirect operating costs.
> Allowances made for the content of deleterious elements.
> No allowances have been made for deleterious elements; no impact to quality from
deleterious elements is anticipated.
> The derivation of assumptions made of metal or commodity price(s), for the
principal minerals and co- products.
> Coronado provided MM&A with price forecasts for all Properties. Customer coal
pricing is derived from market observed forward estimates based on global
economic supply and demand analysis which is applied to mine plan sales volumes
and product mix and is supplemented with Coronado’s in-house knowledge of
applicable rail transportation charges, ocean freight charges and port charges. Coal
price forecasts for the various products were provided by Coronado for various coal
markets in terms of US nominal dollars per metric tonne. MM&A utilized this data
for price forecasting in financial modeling.
> Derivation of transportation charges.
> Coronado provided MM&A with price forecasts for all Properties. Customer coal
pricing is derived from market observed forward estimates based on global
economic supply and demand analysis which is applied to mine plan sales volumes
and product mix and is supplemented with Coronado’s in-house knowledge of
applicable rail transportation charges, ocean freight charges and port charges. Coal
price forecasts for the various products were provided by Coronado for various coal
markets in terms of US nominal dollars per metric tonne. MM&A utilized this data
for price forecasting in financial modeling.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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> The basis for forecasting or source of treatment and refining charges, penalties
for failure to meet specification, etc.
> MM&A utilized historical cost data provided by Coronado and its own knowledge
and experience to estimate direct and indirect operating costs. All ROM production
is currently planned for either truck transportation from the mines to the processing
or shipping facilities, or in some cases there is either a current or planned mine
mouth preparation plant and barge/rail loading facility.
> The allowances made for royalties payable, both Government and private.
> Appropriate royalty rates were assigned for production from leased coal lands and
sales taxes were calculated for state severance taxes, the federal black lung excise
tax, and federal and state reclamation fees.
Revenue factors
> The derivation of, or assumptions made regarding revenue factors including
head grade, metal or commodity price(s) exchange rates, transportation and
treatment charges, penalties, net smelter returns, etc.
> Coronado provided MM&A with price forecasts for all Properties. Customer coal
pricing is derived from market observed forward estimates based on global
economic supply and demand analysis which is applied to mine plan sales volumes
and product mix and is supplemented with Coronado’s in-house knowledge of
applicable rail transportation charges, ocean freight charges and port charges. Coal
price forecasts for the various products were provided by Coronado for various coal
markets in terms of US nominal dollars per metric tonne. MM&A utilized this data
for price forecasting in financial modeling.
> The derivation of assumptions made of metal or commodity price(s), for the
principal metals, minerals and co-products.
> Coal sales prices as defined above. All reported reserves are on a marketable
basis.
Market assessment
> The demand, supply and stock situation for the particular commodity,
consumption trends and factors likely to affect supply and demand into the
future.
> Coronado provided MM&A with price forecasts for all Properties. Customer coal
pricing is derived from market observed forward estimates based on global
economic supply and demand analysis which is applied to mine plan sales volumes
and product mix and is supplemented with Coronado’s in-house knowledge of
applicable rail transportation charges, ocean freight charges and port charges. Coal
price forecasts for the various products were provided by Coronado for various coal
markets in terms of US nominal dollars per metric tonne. MM&A utilized this data
for price forecasting in financial modeling.
> A customer and competitor analysis along with the identification of likely market
windows for the product.
> All of the mine production serves metallurgical and thermal markets. The
metallurgical coal is marketed as high-volatile (typically 28 percent or greater volatile
matter content); mid-volatile (typically 23- to 27-percent volatile matter content) and
low-volatile (typically less than 23 percent volatile matter content) products.
> Raw ROM production that requires washing is currently processed through
Coronado owned and operated coal preparation plants.
> ROM coal that does not require further processing is delivered directly to the loading
points for sizing and delivery to customers. Coronado has access to two rail-loading
points serviced by the
Norfolk Southern Corporation (
NS
)
points serviced by
CSX Corporation (
CSX
)
.
> Price and volume forecasts and the basis for these forecasts.
> Carlson Mining 2020
®
and surface-mineable coal seams. Underground mine plans were sequenced
based on productivity schedules provided by Coronado, which were based on
historically achieved productivity levels. Surface mine plans were generated under
productivity assumptions (bank cubic yard per shift) as provided by Coronado and
reviewed by MM&A, again based heavily on productivity levels achieved by
Coronado. All production forecasting ties assumed production rates to geological
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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JORC Code explanation
Commentary
models as constructed independently by MM&A’s team of geologists and mining
engineers.
> Coronado provided MM&A with price forecasts for all Properties. Customer coal
pricing is derived from market observed forward estimates based on global
economic supply and demand analysis which is applied to mine plan sales volumes
and product mix and is supplemented with Coronado’s in-house knowledge of
applicable rail transportation charges, ocean freight charges and port charges. Coal
price forecasts for the various products were provided by Coronado for various coal
markets in terms of US nominal dollars per metric tonne. MM&A utilized this data
for price forecasting in financial modeling.
Economic
> The inputs to the economic analysis to produce the net present value (NPV) in
the study, the source and confidence of these economic inputs including
estimated inflation, discount rate, etc.
> On an unlevered basis, the NPV of the project cash flows after taxes was estimated
for the purpose of classifying coal reserves. The project cash flows, excluding debt
service, are calculated by subtracting direct and indirect operating expenses and
capital expenditures from revenue. Direct costs include labor, drilling and blasting,
operating supplies, maintenance and repairs, facilities costs for materials handling,
coal preparation, refuse disposal, coal loading, sampling and analysis services,
reclamation and general and administrative costs. Indirect costs include statutory
and legally agreed upon fees related to direct extraction of the mineral. The indirect
costs are the Federal black lung tax, Federal and State reclamation taxes, property
taxes, local transportation prior to delivery at rail or barge loading sites, coal
production royalties, sales and use taxes, income taxes and State severance taxes.
Coronado’s historical costs provided a useful reference for MM&A’s cost estimates.
> Coronado provided MM&A with price forecasts for all Properties. Customer coal
pricing is derived from market observed forward estimates based on global
economic supply and demand analysis which is applied to mine plan sales volumes
and product mix and is supplemented with Coronado’s in-house knowledge of
applicable rail transportation charges, ocean freight charges and port charges. Coal
price forecasts for the various products were provided by Coronado for various coal
markets in terms of US nominal dollars per metric tonne. MM&A utilized this data
for price forecasting in financial modeling.
> All costs and prices are based on 2021 nominal United States dollars.
> A pre-feasibility LOM plan was prepared by MM&A for active and proposed mines.
MM&A prepared mine projections and production timing forecasts based on coal
seam characteristics. Production timing was carried out from 2022 to depletion
(exhaustion) of the coal reserve areas, which is projected for the year 2099.
> The all-mines average cash cost ranges between approximately $56 and $311 per
tonne for most of the operating period.
> NPV ranges and sensitivity to variations in the significant assumptions and
inputs.
> An estimate of NPV at a base discount rate of 10.0% was included in Section 19 of
the TRS.
> NPV of the Buchanan, Russell, Mon Valley, Logan and Greenbrier Properties was
estimated to be $1.580 billion, $89.7 million, $287.3 million, $611.3 million and
$66.0 million, respectively.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Commentary
> The sensitivity study shows the NPV at the 10.0% discount rate when Base Case
sales prices, operating costs, and capital costs are increased and decreased in
increments of 5% within a +/- 15% range.
Social
> The status of agreements with key stakeholders and matters leading to social
license to operate.
> Portions of the properties are located near local communities. Regulations prohibit
mining activities within 91 meters of a residential dwelling, school, church, or similar
structure unless written consent is first obtained from the owner of the structure.
Where required, such consents have been obtained where mining is proposed
beyond the regulatory limits.
Other
To the extent relevant, the impact of the following on the project and/or on the
estimation and classification of the Ore Reserves:
> Any identified material naturally occurring risks.
> No material naturally occurring risks have been identified.
> The status of material legal agreements and marketing arrangements.
> The Coronado coal resources are located in Buchanan, Russell and Tazewell
Counties, Virginia; Greenbrier, Logan, Boone, Wyoming and Greenbrier Counties,
West Virginia; Allegheny, Washington and Westmoreland Counties, Pennsylvania.
> MM&A has not carried out separate title verification for the coal properties and has
not verified leases, deeds, surveys or other property control instruments pertinent to
the subject resources.
> Coronado has represented to MM&A that it controls the mining rights to the reserves
as shown on its property maps, and MM&A has accepted these as being a true and
accurate depiction of the mineral rights controlled by Coronado. The TRS assumes
the properties are developed under responsible and experienced management.
> The status of government agreements and approvals critical to the viability of
the project, such as mineral tenement status and government and statutory
approvals. There must be reasonable grounds to expect that all necessary
Government approvals will be received within the timeframes anticipated in the
Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any
unresolved matter that is dependent on a third part on which extraction of the
reserve is contingent.
> Coronado has obtained all mining and discharge permits to operate 34 underground
mines, 13 surface mines, and 18 processing, loadout or related facilities. MM&A is
unaware of any obvious or current Coronado permitting issues that are expected to
prevent the issuance of future permits. Coronado, along with all Central and
Northern Appalachian basin coal producers, is subject to a level of uncertainty
regarding future clean water permits due to
United States Environmental
Protection Agency
(
EPA
)
Classification
> The basis for the classification of the Ore Reserves into varying confidence
categories. Whether the result appropriately reflects the Competent Person’s
view of the deposit. The proportion of Probable Ore Reserves that have been
derived from Measured Mineral Resources (if any).
> Measured and indicated resources have been converted to proved and probable
reserves, respectively.
> None of the probable coal reserves have been derived from measured resources.
> In a limited number of cases where there was only very limited data available to
demonstrate the metallurgical suitability of a given coal deposit, that deposit was
classified as a probable reserve instead of a proved reserve.
> The results of this TRS define an estimated total initial ROM recoverable ore (coal)
reserve estimate of 556 million tonnes for Coronado as follows:
a) Buchanan = 160 Mt
b) Logan = 137 Mt
c) Greenbrier= 12 Mt
d) Russell = 50 Mt
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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Commentary
e) Mon Valley = 197 Mt
> Coronado controls a total of 342 Mt (moist basis) of marketable coal reserves for
Coronado as of December 31, 2021. Of that total, 72 percent are proved, and 28
percent are probable. Total reserves by complex are as follows:
a) Buchanan = 98 Mt
b) Logan = 73 Mt
c) Greenbrier= 7 Mt
d) Russell = 30 Mt
e) Mon Valley = 134 Mt
Audits or reviews
> The results of any audits or reviews of Ore Reserve estimates.
> MM&A completed prepared a statement of coal resources and reserves for the
Properties in accordance with the JORC Code as of December 31, 2017. MM&A
also subsequently updated the estimate of resources and reserves for depletion as
of December 31, 2018, December 31, 2019, and December 31, 2020.
> MM&A performed a previous audit of the Properties in year 2017 for Coronado
based on
U.S. Securities and Exchange Commission (
SEC
)
standards. Earlier audits were performed by various independent consultants for
predecessors-in-title to Coronado and at various levels of detail depending on the
clients concerns and the allotted time for completion. Previous audits and reviews
defined the primary coal resource areas and estimated the recoverable tonnes for
each seam based on the expected mining methods.
> Additionally, MM&A has performed proprietary evaluations for predecessors-in-title
to Coronado, which encompass portions of the Properties included in this TRS.
Discussion of
relative accuracy/
confidence
> Where appropriate a statement of the relative accuracy and confidence level in
the Ore Reserve estimate using an approach or procedure deemed appropriate
by the Competent Person. For example, the application of statistical or
geostatistical procedures to quantify the relative accuracy of the reserve within
stated confidence limits, or, if such an approach is not deemed appropriate, a
qualitative discussion of the factors which could affect the relative accuracy
and confidence of the estimate.
> Operations on the Properties by Coronado and its predecessors have been on-
going for many years.
> MM&A is confident that the mine plans and financial models are reasonably
representative to provide an accurate estimation of coal reserves.
> Mine development and operation have not been optimized within the TRS.
> The statement should specify whether it relates to global or local estimates,
and, if local, state the relevant tonnages, which should be relevant to technical
and economic evaluation. Documentation should include assumptions made
and the procedures used.
> Proved and probable coal reserve were derived from the defined in-situ coal
resource considering relevant processing, economic (including independent
estimates of capital, revenue and cost), marketing, legal, environmental,
socioeconomic, and regulatory factors on a global scale as current local data
reflects the global assumptions.
> Accuracy and confidence discussions should extend to specific discussions of
any applied Modifying Factors that may have a material impact on Ore Reserve
viability, or for which there are remaining areas of uncertainty at the current
study stage.
The major risk factors for the active Coronado mines and future resource development
are summarized below:
> Mine Accidents
> Highwall Failure. Highwall failures are likely to result in a temporary mine closure
and should not have a material impact on the mine sustainability. The risk is
considered to be probable.
> Adverse Geological Conditions. Adverse geological conditions include such
conditions as faults and sandstone washes. The risk is considered to be probable.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
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The impact is expected to be temporary with little material impact on mine
sustainability.
> Environmental Risk. Numerous federal and state permits are required to operate
coal mines and mine surface facilities. Permitting rules are complex and may
change over time, making compliance difficult or impossible.
> Water Quality. Permit requirements to fulfill Clean Water Act obligations are subject
to modification. The probability of water quality changes having a material impact
on mine operations is possible. As a contemporary example, the selenium
discharge issue that affects western Canadian and Central Appalachian Basin
operators has only recently emerged as a concern and its ultimate impact has not
been determined.
> New Permits. Permit protests by environmental groups and individuals can
contribute to permit delays or denial and increase the cost of permitting and delay
development. Surface mining activities, coal refuse disposal and construction of
access roads in mountainous terrain often require storage of material in valley fills.
Authority to dispose of fill material into waters of the United States must be granted
by the
United States Army Corps of Engineers (
COE
)
. COE permits are
increasingly difficult to obtain.
> Regulatory Requirements. Adverse impact from regulatory changes is considered
to be probable. The impact will likely affect the broader industry and is not expected
to result in mine closure.
> Market Risk. Metallurgical and thermal coal markets ultimately depend upon the
global steel and thermal coal demand and are considered to be volatile. Currently,
the US coal market has seen a decline in demand for thermal coal due to thermal
plant closures, as a result of new air and water pollution regulations, and
competition from other commodities used for power generation such as natural gas.
This has resulted in an overall decline in CAPP coal production. Continued
regulatory changes and declining demand could result in material changes in
domestic and global coal markets. The impact cannot be predicted at this time;
however, while MM&A expects the coal reserve within this TRS to remain
economically viable throughout the life of the projected mines, the LOM financial
model is very sensitive to changes in coal sales price and therefore market risk is
not insignificant.
> Labor Risk. Work stoppage due to organized labor protests is considered to be
unlikely and not likely to lead to permanent mine closure. The mines are likely to
suffer the loss of key supervisors and skilled employees due to retirement as the
workforce ages. The problem is industry-wide and the impact is expected to be
temporary and have no sustained impact on coal production.
> Availability of Equipment and Supplies. Risk of equipment and supply availability is
likely to be temporary and should not have a sustained adverse impact on the
production of coal.
![ex963p2i0.jpg](https://capedge.com/proxy/10-K/0001562762-22-000043/ex963p2i0.jpg)
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2021
Northern and Central Appalachian Coal Basins –
Virginia, West Virginia and Pennsylvania, USA
Appendix E: JORC Table 1
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
23
Criteria
JORC Code explanation
Commentary
> Transportation Delay. Interruption of coal transport services by river or rail is
considered to be probable but unlikely to have a sustained impact on coal
production.
> It is recognised that this may not be possible or appropriate in all
circumstances. These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available.
> Mine plans, productivity expectations and cost estimates generally reflect historical
performance and efforts have been made to adjust plans and costs to reflect future
conditions.