All of mining operations are conducted on Alabama properties 100% owned or leased by Warrior Met Coal, Inc.
Contractor | Contract | Description | Ref. Date | Source |
Alabama Power Company
|
Power supply
|
All of operations (Mine No.4, Mine No.7) receive power provided by Alabama Power Company.
|
Dec 31, 2024
|
|
Summary:
Sediments of the Upper Pottsville Mary Lee coal zone are Lower Pennsylvanian in age and comprised of cyclic sequences that include sandstone, siltstone, shale, and coal. Located within the middle of the Black Warrior Basin stratigraphic sequence, the Mary Lee and Blue Creek horizon is situated below drainage throughout the Property and is accessed by shafts.
Mineralization
No. 4
Regional coal rank in the BWB generally ranges from a low-volatile coal in the southeastern portion of the basin to a high-volatile coal to the northwest. Due to the value of the Mary Lee and Blue Creek seams in the metallureical coking coal market at the Mine No. 4 operation (and adjoining mines) to the south and east of the Property, the subject coal seams have been extensively mined in the region. Laboratory data for the Property an a dry, clean coal basis indicates an average volatile matter (VM) content of approximately 31% in the northwestern area; whereas, the eastern portion of the Property has a VM content of approximately 27%.
Results of regional trends indicate that coals ranging from Low volatile to High volatile Bituminous coal rank are found in the region, according to ASTM criteria:
> Low Volatile Bituminous, or LVASTIM (VM greater than or equal to 14% and less than 22% on a dry- mineral-matter-free basis, or DMMF);
> Medium Volatile Bituminous, or MVASTM (VM greater than or equal to 22% and less than 31% on a dry-mineral-matter-free basis, or DMMF);
> High Volatile A Bituminous, or HVAASIM (VM greater than 31% on a dry-mineral-matter-free basis, or DMMF, and calorific content greater than or equal to 14,000 Btu/lb. on a moist-mineral-matter- free basis);
> High Volatile B Bituminous, or HVBASTM (greater than or equal to 13,000 and less than 14,000 Btu/lb.)
The mineable seam configuration of Mine No. 4 consists of the Mary Lee, Middleman, and Blue Creek seams, also referred to as "twin seam" mining, with the following thickness ranges:
> The Mary Lee averages approximately 1.3-feet throughout the mine plan area;
> Between the two seams, the "Middleman" parting averages around 1.6-feet; the parting generally thickens to the southeast.
> The Blue Creek seam, which typically represents the better metallurgical quality than the overlying Mary Lee seam, typically averages around 3.5-feet;
> The combined thickness of the Mary Lee through Blue Creek interval ranges from 5.0 to 10.0 feet, averaging approximately 6-feet.
The principal parameters examined in the ASTM method for the determination of rank include (but are not limited to) the following: Fixed Carbon (FC), Volatile Matter (VM), Ash, Sulfur, and Calorific content (typically in Btu/Ib.), as well as Moisture content.
No. 7
Regional coal rank in the BWE generally ranges from a low-volatile coal in the southeastern portion of the basin to a high-volatile coal to the northwest. Due to the value of the Mary Lee and Blue Creek seams in the metallurgical coking coal market at the Mine No. 7 operation (and adjoining mines) to the south and east of the Property, the subject coal seams have been extensively mined in the region.
Laboratory data for the Property on a dry, clean coal (1.50 — 1.55 float) basis indicates a typically low-to medium-volatile bituminous coal product.
Results of regional trends indicate that coals ranging from Low volatile to High volatile Bituminous coal rank are found in the region, according to ASTM criteria:
> Low Volatile Bituminous, (VM greater than or equal to 14% and less than 22% on a dry-mineral-matter-free basis, or DMMF);
> Medium Volatile Bituminous, (VM greater than or equal to 22% and less than 31% on a dry-mineral-matter-free basis, or DMMF);
> High Volatile A Bituminous, (VM greater than 31% on a dry-mineral-matter-free basis, or DMMF, and calorific content greater than or equal to 14,000 Btu/Ib. on a moist-mineral-matter-free basis)
> High Volatile B Bituminous, (greater than or equal to 13,000 on less than 14,000 Btu/Ib.)
The mineable seam configuration of Mine No. 7 consists of the Mary Lee, Middleman, and Blue Creek seams, also referred to as “twin seam” mining, with the follow thickness ranges:
> The Mary Lee typically averages 1.5 feet throughout the mine plan area;
> Between the two seams, the “Middleman” parting averages approximately 2.5 feet within areas where the Mary Lee and Blue Creek seams are projected to be longwall mined together; the parting generally thickens to the south;
> The Blue Creek seam, which typically represents the better metallurgical quality than the overlying Mary Lee seam, averages approximately 3.5 feet in thickness within the current resource areas.
Blue Creek Project
Regional coal rank in the Black Warrior Basin (BWB) generally ranges from a low-volatile coal in the southeastern portion of the basin to a high-volatile coal to the northwest. Due to the value of the Mary Lee and Blue Creek seams in the low- to medium-volatile coking coal market at its active Mine No. 4 and Mine No. 7 operations (and adjoining mines) to the south and east of the Property, the subject coal seams have been extensively mined in the region. Laboratory data for the Blue Creek Project indicates a typically high volatile (greater than 31% volatile matter) bituminous coal product. Based on analysis of coal samples, the Mary Lee and Blue Creek seams on the Property are considered a high-volatile metallurgical-grade coal product.
Reserves at December 31, 2024
Category | Tonnage | Commodity | Contained Metal |
Proven
|
Mt
|
Coal (metallurgical)
|
109.6 Mt
|
Probable
|
Mt
|
Coal (metallurgical)
|
41.8 Mt
|
Proven & Probable
|
Mt
|
Coal (metallurgical)
|
151.4 Mt
|
Measured
|
60.1 Mt
|
Coal (metallurgical)
|
|
Indicated
|
70.8 Mt
|
Coal (metallurgical)
|
|
Measured & Indicated
|
130.8 Mt
|
Coal (metallurgical)
|
|
Summary:
Warrior operate two underground mines based, Mine No. 4 and Mine No. 7 and own property for the development of the Blue Creek mine. Mine No 4. and Mine No. 7 are deep underground mines with a long history of operations. Mine No. 4, Mine No. 7 and Blue Creek were considered material properties.
Mine No. 7
Due to its coal reserve and seam characteristics, the Property utilizes longwall mining methods with continuous miner (CM) units to support two longwall production units. This report also projects continuous mining-only methods, including pillar extraction using MRS units in areas not conducive to longwall development. Although this practice is not employed, existing infrastructure is sufficient, and minimal additional equipment will be required to mine the CM-only areas.
Run-of-mine coal is transported to the surface via a skip system, which transports coal to the surface vertically. Adjacent to the skip shaft is a service shaft for the transportation of workers, supplies, and equipment to the coal mine. In addition to the portal located adjacent to the preparation plant, Warrior utilizes two additional portals to staff workers and transport employees to production units and outby areas. Bleeder shafts are installed at each longwall district.
Mine No. 7 is active with two longwalls supported by continuous mining units. The mine plan and productivity expectations reflect historical performance, and efforts have been made to adjust the plan to reflect future conditions.
Productivity for continuous mining sections and CM sections reflects typical rates incurred in the region. At a steady state, the mine is projected to produce 4.5 to 5.5 million clean tonnes per year.
Mine No. 4
Due to its coal reserve and seam characteristics, the Property utilizes longwall mining methods with continuous miner units to support the longwall production unit.
Run-of-mine coal is transported to the surface via a skip system which transports coal to the surface vertically. Adjacent to the skip shaft is a service shaft for the transportation of workers, supplies and equipment to the coal mine. Warrior Met is nearing the completion of a new portal site, closer to active faces and future mining reserve areas, which is being utilized in a partial capacity prior to serving longwall needs. Bleeder shafts are installed at each longwall district.
Operating at approximately 2,000 feet below the surface, the Mines No. 4 and No. 7 are two of the deepest underground coal mines in North America. The met coal is mined using longwall extraction technology with development support from continuous miners.
Mine No. 4 has had multiple improvements to the infrastructure by adding new portal facilities in 2019 and 2021. The Mine No. 4 North portal development was completed in 2023. These facilities have helped to decrease travel time to the active sections, as well as improving the safety of the miners by having shafts closer to the main work areas.
Blue Creek
Blue Creek’s production began in the third quarter of 2024 and three CM units are developing the longwall panel. A ramp up to full production is expected in 2027 when the longwall is in operation for the full year.
The mine plan allows for three continuous mining sections and a longwall unit to mine simultaneously through the initial stages of mine development. Warrior will have the ability to add a second longwall subsequent to finalization of development.
Warrior installed and commissioned the service cage, slope belt, slope car and raw coal belt, which allowed to begin development of the initial longwall panel with three continuous miner units, producing 190 thousand metric tons during the 2024.
The project remains on schedule with the longwall scheduled to start up no later than the second quarter of 2026.
Warrior do not expect the tons produced in 2024 and 2025 of approximately 1.1 million metric tons to be sold until the second half of 2025 when the preparation plant comes online.
Comminution
Crushers and Mills
Milling equipment has not been reported.
Processing
- Spiral concentrator / separator
- Crush & Screen plant
- CHPP
- Wash plant
- Vacuum filtration
- Flotation
- Dense media separation
- Magnetic separation
- Dewatering
Summary:
Mine No. 4 Plant
Warrior Met currently operates a coal preparation plant at the Property. The Mine No. 4 Plant operates at a feed rate of approximately 1,180 raw tonnes per hour (tph). Coarse material is washed in a heavy media vessel, the intermediate-size material is washed in heavy media cyclones. Fine material is washed using reflux classifiers, and ultrafine material is cleaned by froth flotation. These processes are supported by the requisite screens, centrifuges, vacuum filters, sumps, pumps, and distribution systems. Processes and equipment are typical of those used in the coal industry and are in use in nearly all plants in the Black Warrior Basin. Warrior's No. 4 Plant includes an ultrafine coal cleaning technology, namely that developed by Somerset, for additional recovery of coal fines.
Mine No. 4 preparation plant has also routinely been upgraded with the latest technology. This preparation plant runs the most modern circuits, including an ultrafine coal recovery system. The preparation plant has had numerous upgrades since its original construction, which has helped it to continue to capture a higher percentage of coal with each upgrade. Mine No. 4 preparation plant most recently completed a new fine coal recovery system in 2020, to further improve overall plant recovery.
The No.7 Mine Preparation Plant
There are two preparation plants associated with the No.7 Mine production. The No.7 Mine Preparation Plant has a capacity to process 1,260 raw tonnes per hour. The second plant is located at the No.5 Mine portal site, and coal is transported to that location via an overland conveyor belt installed specifically to access the No.5 Preparation Plant. The No.5 Plant has a capacity to process 900 raw tonnes per hour.
Both plants are capable of cleaning with cyclones, spirals/reflux classifiers, and flotation circuits. Warrior’s No.7 Plant includes ultrafine coal cleaning technologies, namely those developed by Somerset and MRC, for additional recovery of coal fines.
Underground mine production hoisted to the surface is processed through two (2) separate run-of-mine crushing and sizing facilities consisting of a 60-inch reciprocating feeder, an 8-foot x 20-foot double deck incline screen, and a 10-foot x 24-foot rotary breaker. Oversize material from the screen is fed to the rotary breaker where large rock is removed and sent to the refuse dump. All material smaller than 2 inches is carried by conveyor belt to the raw coal stacking tube and raw coal storage pile at the No. 7 Preparation Plant, or directed to the overland belt for transportation to the No. 5 Preparation Plant.
The dry slurry system is scheduled to phase into full operating status at Mine No. 7 in early 2025.
Blue Creek
In 2024, Warrior began construction on the dry slurry processing system and made significant progress on the construction of the preparation plant, which is projected to be online during the middle of 2025.
Run-of-mine coal will be processed in a new preparation plant with a capacity of 1,800 raw-tons-perhour (1,633 raw tonnes-per-hour). MM&A’s assessment of coal quality information suggests that the operation will be capable of producing a 10-percent ash, sub-1-percent sulfur, high volatile-A coking coal in Resource and Reserve areas tagged as A through D. Clean coal production will be transported to a newly constructed barge loadout on the Black Warrior River via an overland conveyor.
A new coal processing plant is being constructed to handle the run-of-mine coal from the proposed longwall operation. Following initial sizing of the material, the coarse coal (2-inch by 1-mm) is to be cleaned using a dense media cyclone (DMC) with the overflow from the DMC being dried via clean coal centrifuges.
The undersize material (sub-1-mm) will be divided at 100-mesh via classifying cyclones. The underflow material from the cyclones (greater than 100-mesh) is processed by spirals. The overflow stream from the classifying cyclones (smaller than 100-mesh) is to be treated using stack cell flotation technology.
The cleaned coal from the flotation and spiral units will be combined and dewatered using a screen bowl centrifuge (SBC).
Warrior Met is planning to utilize various novel dewatering techniques and is planning to utilize test batches of coal from bottom development to fine-tune the preparation plant. Warrior Met reports success in utilizing such processes at its active plants.
Summary:
Water is sourced from local municipalities and various freshwater pumps.
Freshwater is primarily used for processing coal or sent underground for use in mining operations, such as dust control. This optimizes the performance of mining machinery and helps create and maintain a safe environment for workforce.
Through commitment to reducing the use of fresh water in operations, Warrior invested in an innovative dry-coal slurry system to optimize water use throughout the coal production process. Warrior full-scale dry slurry system received final regulatory approvals and permits in 2024.
Blue Creek project
The Project's water system is designed to deliver water to multiple end-use locations across the mine complex and maintain storage capacity in the freshwater impoundment. A freshwater pump in a proximal waterway will provide the majority of water for the operation, including firefighting water, plant make-up water and water for mining needs.
Potable water will be needed at several surface locations such as the bathhouse, plant, and mine office. Additionally, potable water is required for emulsion hydraulic system for longwall equipment, preventing algae buildup in the hydraulic system. Public water is available locally through Oakman Water Works, Inc. (Oakman).
Public sewers are not available in the area, requiring the construction of a sewage treatment facility to handle the raw sewage prior to discharge. Multiple systems may be required to service the preparation plant and the deep mine. Permitting actions through the Health Department and National Pollutant Discharge Elimination System (NPDES) may be required.
Production
Commodity | Units | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
Coal (metallurgical)
|
Mt
| 7.5 | 6.9 | 5.7 | 5.1 | 7.1 | 7.7 | 7 | 6.1 | 3.1 | 4.9 |
All production numbers are expressed as clean coal.
^ Guidance / Forecast.
Operational metrics
Metrics | 2024 | 2023 | 2021 | 2018 | 2017 | 2016 |
Annual production capacity
| 8.2 M tons of clean coal | 7.3 Mt of clean coal | 7 Mt of clean coal | 7.3 Mt of clean coal | 7.3 Mt of clean coal | 7 Mt of clean coal |
Production Costs
| Commodity | Units | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
Cash costs (sold)
|
Coal (metallurgical)
|
USD
|
138.1 / t
|
132.6 / t
|
138.35 / t
|
96.4 / t
|
92.3 / t
|
99.2 / t
|
103.35 / t
|
99.9 / t
|
Financials
| Units | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
Capital expenditures (planned)
|
M USD
| | | | | |
|
|
|
Sustaining costs
|
M USD
| | | | 45.2 | 53 |
89
|
69
|
62
|
Capital expenditures
|
M USD
| | | | 71.4 | 78 |
107
|
102
|
93
|
Revenue
|
M USD
| 1,500 | 1,648 | 1,708 | 1,028 | 761.9 |
1,236
|
1,343
|
1,125
|
Operating Income
|
M USD
| 254.9 | 541.4 | 801.4 | 243.8 | -27.1 |
383.4
|
508.3
|
423.4
|
Pre-tax Income
|
M USD
| 283.7 | 551.4 | 783.1 | 200 | -55.9 |
367.1
|
471
|
416.5
|
After-tax Income
|
M USD
| 250.6 | 478.6 | 641.3 | 150.9 | -35.8 |
301.7
|
696.8
|
455
|
EBITDA
|
M USD
| 447.8 | 698.9 | 994.2 | 457 | 108.3 |
478.7
|
601
|
517.7
|
Operating Cash Flow
|
M USD
| 367.4 | 701.1 | 841.9 | 351.5 | |
|
|
|
Heavy Mobile Equipment
HME Type | Model | Quantity |
Shearer
|
Komatsu 7LS-1D
|
3
|
Personnel
Job Title | Name | Profile | Ref. Date |
Buyer
|
Heather Eagle
|
|
Mar 22, 2024
|
Deputy Mine Manager
|
Ricky Rose
|
|
Mar 22, 2024
|
Deputy Mine Manager
|
Phillip Mcgilton
|
|
Mar 22, 2024
|
Director of Operations
|
Glenn Smith
|
|
Feb 20, 2025
|
Engineering Manager
|
Tyler Hall
|
|
Mar 22, 2024
|
General Manager
|
Craig Dickerson
|
|
Mar 22, 2024
|
Maintenance Manager
|
Herman Preston
|
|
Mar 22, 2024
|
Maintenance Manager
|
John Denny
|
|
Mar 22, 2024
|
Maintenance Manager
|
Todd O'Brien
|
|
Mar 22, 2024
|
Mining Manager
|
Pete Richardson
|
|
Mar 22, 2024
|
Sr. Vice President Engineering & Operations
|
Philip K. Saunders
|
|
Feb 20, 2025
|
Employees | Contractors | Total Workforce | Year |
|
|
1,265
|
2024
|
|
|
921
|
2023
|
442
|
412
|
854
|
2022
|
|
|
662
|
2021
|
|
|
1,248
|
2020
|
|
|
1,261
|
2019
|
|
|
1,238
|
2018
|
|
|
1,141
|
2017
|
|
|
682
|
2016
|
|
|
1,368
|
2015
|