Coal Operations



We currently operate seven mining complexes in two operating regions: Illinois Basin and Appalachia.


At December 31, 2022, our mining operations had access to approximately 580.7 million tons of proven and probable coal mineral reserves and 1.17 billion tons of measured, indicated and inferred coal mineral resources in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Substantially, all of our measured, indicated and inferred coal mineral resources and 464.8 million tons of our coal mineral reserves are owned or leased by Alliance Resource Properties and are currently leased or subleased or held for lease or sublease to our mining operations or others. We produce a diverse range of thermal and metallurgical coal with varying sulfur and heat contents, which enables us to satisfy the broad range of specifications required by our customers. In 2022, we sold 35.6 million tons of coal and produced 35.5 million tons. Of the 35.6 million tons sold, approximately two-thirds were leased from Alliance Resource Properties. The coal we sold in 2022 was approximately 4.4% low-sulfur coal, 60.4% medium-sulfur coal, and 35.2% high-sulfur coal. In 2022, approximately 82.4% of our tons sold were purchased by domestic electric utilities and 12.5% were sold into the international markets through brokered transactions. The balance of our tons sold was to third-party resellers and industrial consumers. For tons sold to domestic electric utilities, 100.0% were sold to utility plants with installed pollution control devices. The Btu content of our coal ranges from 11,450 to 13,200.


 

Appalachia


Excel Mining, LLC operates MC Mining, located near the city of Pikeville in Pike County, Kentucky. The underground operation utilizes continuous mining units employing room-and-pillar mining techniques to produce low-sulfur coal. The preparation plant has a throughput capacity of 1,000 tons of raw coal per hour.

MC MINING

Annual Production:
1.5 million tons in 2022
Reserve Estimates:
11.1 million tons (as of 12/31/22)




Tunnel Ridge, LLC operates the Tunnel Ridge Mine, located near Wheeling, West Virginia. Tunnel Ridge utilizes the longwall mining technique to produce medium/high-sulfur coal. The Tunnel Ridge preparation plant has a throughput capacity of 2,000 tons of raw coal per hour.

TUNNEL RIDGE

Annual Production:
8.3 million tons in 2022
Reserve Estimates:
120.0 million tons (as of 12/31/22)




Mettiki Coal (WV), LLC operated the Mountain View Mine, located in Tucker County, West Virginia. The Mountain View mine utilizes the longwall mining technique to produce medium-sulfur coal. Mettiki is capable of producing a coal for both the steam coal and metallurgical coal markets. The preparation plant has a throughput capacity of 1,350 tons of raw coal per hour.

METTIKI - Mountain View Mine

Annual Production:
1.4 million tons in 2022
Reserve Estimates:
10.3 million tons (as of 12/31/22)



Illinois Basin


Hamilton County Coal, LLC operates Mine #1, which is an underground mine located near the city of Dahlgren in Hamilton County, Illinois. Mine #1 utilizes longwall mining techniques to produce high-sulfur coal. The preparation plant at Hamilton County Coal has a throughput capacity of 2,000 tons of raw coal per hour.

HAMILTON COUNTY COAL


Annual Production:
4.7 million tons in 2022
Reserve Estimates:
125.9 million tons (as of 12/31/22)





River View Coal, LLC operates the River View mine, which is an underground mine located near Morganfield in Union County, Kentucky. River View utilizes continuous mining units employing room-and-pillar mining techniques to produce high-sulfur coal and is the largest mine of its type in the nation. River View's preparation plant has a throughput capacity of 2,700 tons of raw coal per hour.

RIVER VIEW

Annual Production:
10.2 million tons in 2022
Reserve Estimates:
204.7 million tons (as of 12/31/22)





Gibson County Coal, LLC operates the Gibson South Mine, located near the city of Princeton in Gibson County, Indiana. Gibson South is an underground mine and utilizes continuous mining units employing room-and-pillar mining techniques to produce low/medium-sulfur coal. The Gibson South mine's preparation plant has a throughput capacity of 1,800 tons of raw coal per hour.

GIBSON SOUTH

Annual Production:
5.3 million tons in 2022
Reserve Estimates:
49.0 million tons (as of 12/31/22)





Warrior Coal, LLC operates the Cardinal mine, located near Madisonville in Hopkins County, Kentucky. Warrior utilizes continuous mining units employing room-and-pillar mining techniques. Warrior’s preparation plant has a throughput capacity of 1,200 tons of raw coal per hour.

WARRIOR

Annual Production:
4.1 million tons in 2022
Reserve Estimates:
59.7 million tons (as of 12/31/22)





The Mt. Vernon Transfer Terminal leases land and operates a coal-loading terminal on the Ohio River at Mt. Vernon, Indiana. Coal is delivered to Mt. Vernon by both rail and truck. The terminal has a capacity of 8.0 million tons per year with existing ground storage of approximately 200,000 tons. In 2022, the terminal loaded approximately 1.9 million tons for customers of Gibson County Coal and Hamilton.

MT. VERNON

Operated By: Mt. Vernon Transfer Terminal, LLC
Status:
Active
Transportation Options:
Served by the EVWR and Truck

Mt. Vernon, Indiana, 47620
Ph: (812) 838-5531
Fax: (812) 838-3215

Coal Royalties

Our Coal Royalties segment includes approximately 464.8 million tons of proven and probable reserves and substantially all of the 1.17 billion tons of our measured, indicated and inferred coal mineral resources. Our coal mineral reserves and resources are located in the Appalachia and Illinois Basins in the United States. We lease our reserves and resources to our mining complexes under long-term leases. Approximately two-thirds of our royalty-based leases have initial terms of five to 40 years, with substantially all lessees having the option to extend the lease for additional terms.

Under our standard royalty lease, we grant the lessees the right to mine and sell our reserves and resources in exchange for royalty payments based on a percentage of the sale price or a fixed royalty per ton of coal mined and sold. Lessees calculate royalty payments due to us and are required to report tons of coal mined and sold as well as the sales prices of the extracted coal.