EX-96.2 109 ex962.htm EX-96.2 ex962
 
ex962p1i0
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
i
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
Central Appalachian Coal Basin
Virginia, USA
February 2024
 
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
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
Statement of Use and Preparation
This Technical
 
Report Summary (
TRS
) was prepared by
Marshall Miller & Associates, Inc. (
MM&A
)
for
 
the
 
sole
 
use
 
of
Coronado
 
Global
 
Resources
 
Inc.
 
(
Coronado
)
and
 
its
 
affiliated
 
and
 
subsidiary
companies and advisors.
 
Copies or
 
references to information in this
 
report may not
 
be used
 
without
the written permission of Coronado.
This report provides a
 
statement of coal resources and
 
coal reserves for Coronado, as
 
defined under
the
Australasian Code
 
for Reporting
 
of Exploration Results,
 
Mineral Resources
 
and Ore Reserves
(
JORC Code
) as well as under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by
the
United States
 
Securities and
 
Exchange Commission
 
(
SEC
)
.
 
Subject to
 
the comments
 
below,
 
this
report
 
was
 
also
 
prepared
 
in
 
accordance
 
with
 
the
Australasian
 
Code
 
for
 
Public
 
Reporting
 
of
Technical
 
Assessments and Valuations of Mineral Assets
(
VALMIN Code
).
 
The statement
 
is based
 
on information
 
provided
 
by Coronado
 
and reviewed
 
by
Qualified Persons
(
QPs
) who are full-time employees of MM&A.
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.
 
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.
 
 
 
 
ex962p2i0
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
The information in this TRS
 
related to coal resources and reserves is
 
based on, and fairly
 
represents,
information compiled by the QPs.
 
At the time of
 
reporting, MM&A’s QPs have sufficient experience
relevant
 
to the
 
style of
 
mineralization
 
and type
 
of deposit
 
under consideration
 
and to
 
the activity
they are undertaking to qualify as a QP as defined by Regulation S-K 1300 and the JORC Code.
 
Each
QP consents
 
to the
 
inclusion in
 
this report
 
of the
 
matters
 
based on
 
their information
 
in the
 
form
and context in which it appears.
Marshall
 
Miller
 
&
 
Associates,
 
Inc.
 
(
MM&A
)
 
hereby
 
consents
 
to
 
the
 
use
 
of
 
the
 
information
contained in this report
 
dated December 31, 2023, relating
 
to estimates of
 
coal resources and coal
reserves controlled by Coronado.
 
Qualified Person:
/s/ Marshall Miller & Associates, Inc.
Date:
February 16, 2024
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
i
Table
 
of Contents
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
ii
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
iii
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
iv
Figures (in Report)
Tables
 
(in Report)
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
v
Appendices
A
 
.....................................................................................................................MM&A
Qualifications
B
 
.................................................................................................................................................
Map
C
 
...........................................................................................................................Glossary of
Terms
D
 
.................................................Initial Economic Assessment for Resources Exclusive
 
of
Reserves
E
 
...................................................................................................................................JORC
Table 1
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
1
1
 
Executive Summary
1.1
 
Property Description
Coronado Global Resources
 
Inc. (
Coronado
)
authorized
Marshall Miller &
 
Associates, Inc. (
MM&A
)
to prepare this
 
Technical Report Summary (
TRS
) of
 
its controlled coal
 
resources and reserves
 
located
at the
Buchanan Division
 
(
Buchanan
)
 
in Buchanan
 
and Tazewell
 
Counties, Virginia
 
(the
Property
).
This TRS updates the
 
TRS titled, "Coronado Global Resources
 
Inc. Statement of Coal Resources
 
and
Reserves for the Buchanan Mine Complex in Accordance with the JORC Code and United States SEC
Regulation S-K 1300 as
 
of December 31,
 
2022 Central Appalachian Coal
 
Basin Virginia, USA February
2023," dated
 
February 15,
 
2023, due
 
to material
 
differences
 
in the
 
key financial
 
modifying factors
including
 
mining
 
plans,
 
coal
 
sales
 
price
 
assumptions,
 
operating
 
costs
 
and
 
capital
 
costs
 
from
December 31, 2022 to
 
December 31, 2023.
 
Mining plans are
 
discussed in
Section 13
 
of the TRS, coal
sales price
 
assumptions are
 
discussed in
 
Sections 12
 
and 16
 
of the
 
TRS, while
 
operating
 
costs and
capital costs are discussed in
Sections 18 and
 
19
 
of the TRS.
 
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
)
.
 
This report
 
was also
 
prepared
 
in accordance
 
with the
Australasian
Code
 
for
 
Public
 
Reporting
 
of
 
Technical
 
Assessments
 
and
 
Valuations
 
of
 
Mineral
 
Assets
(
VALMIN
Code
).
Coal
 
resources
 
and
 
coal
 
reserves
 
are
 
herein
 
reported
 
in
 
metric
 
units
 
of
 
measurement
 
and
 
are
rounded to millions of metric tonnes (
Mt
).
 
The
 
Buchanan
 
No.
 
1
 
Mine
 
Complex
 
is
 
located
 
in
 
Buchanan
 
County
 
in
 
southwest
 
Virginia.
 
The
Property is 24
 
kilometers northwest of
 
the town of
 
Richlands, Virginia and
 
65.9 kilometers southeast
of
 
Pikeville,
 
Kentucky.
 
The
 
nearest
 
major
 
population
 
centers
 
are
 
Lexington,
 
Kentucky
 
(290
kilometers
 
northwest)
 
and
 
Roanoke,
 
Virginia
 
(153
 
kilometers
 
northeast)
 
(see
Figure
 
1-1
).
 
The
Property
 
is
 
composed
 
of
 
approximately
 
33,578
 
total
 
hectares,
 
of
 
which
 
25,853
 
are
 
leased
 
or
subleased from private landholders under approximately 150 individual coal lease tracts, and 7,725
hectares are
 
owned by Coronado.
 
Subject to Coronado’s
 
exercising
 
its renewal
 
rights thereunder,
all the
 
leases expire
 
upon exhaustion
 
of the
 
relevant
 
coal reserves,
 
which is
 
expected
 
to occur
 
in
2042.
 
 
 
ex962p2i0 ex962p10i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
2
Figure 1-1:
 
Coronado Buchanan Mine Complex Property Index Map
1.2
 
Ownership
The
 
Property
 
was
 
formerly
 
controlled
 
by
Consolidation
 
Coal
 
Company
 
(
CONSOL
)
.
 
Mine
development
 
was
 
started
 
by CONSOL
 
in 1983
 
and longwall
 
production began
 
in 1987.
 
Coronado
acquired the Buchanan Mine from CONSOL in March 2016.
1.3
 
Geology
Operations
 
at
 
the
 
Buchanan
 
Mine
 
Complex
 
extract
 
the
 
Pocahontas
 
No.
 
3
 
coal
 
bed
 
by
 
longwall
mining methods.
 
Strata of economic interest for
 
this TRS are of the Pennsylvanian-age Pocahontas
Formation and the subject Pocahontas No. 3 seam
 
is the principal coal seam
 
of that formation.
 
Due
to the
 
high value
 
of this low-volatile
 
coking coal,
 
it has been
 
extensively mined
 
in the region.
 
The
seam is situated below drainage throughout the Property and is accessed by existing
 
mine shafts.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
3
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,
 
ongoing
 
drilling
associated with degas activities, and by
 
downhole geophysical methods.
 
Exploration activities from
the surface and underground
 
have continued to the
 
present time (2023), however,
 
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
 
(core
 
drilling,
 
bore
 
scoping
 
of
 
roof
 
strata,
 
and
 
channel
 
sampling)
 
has
 
been
carried
 
out
 
by
 
Coronado
 
since
 
acquiring
 
the
 
Buchanan
 
Mine.
 
The
 
exploration
 
data
 
acquired
 
by
Coronado has been consistent with past drilling and sampling activities.
1.5
 
Operations and Development
Due
 
to
 
its
 
coal
 
reserve
 
and
 
seam
 
characteristics,
 
the
 
Buchanan
 
No.
 
1
 
Mine
 
operates
 
using
 
the
longwall method.
 
The model was therefore generated with longwall-mining constraints in mind for
Buchanan’s
 
underground
 
resources.
 
The
 
mine produces
 
coal
 
that
 
is
 
suitable
 
for
 
the
 
low-volatile
metallurgical coal markets.
The Buchanan
 
No. 1
 
Mine in
 
Buchanan County,
 
Virginia, is
 
the only
 
active longwall
 
mine currently
being operated by Coronado.
Coronado currently
 
operates a
 
coal preparation
 
plant at
 
Buchanan.
 
The Buchanan Plant
 
operates
at a feed rate of approximately 1,270 raw
 
tonnes per hour (
tph)
.
 
Processes are typical of
 
those used
in the coal industry and are in use at adjacent coal processing plants.
1.6
 
Mineral Resource
Mineral
 
resources,
 
representing
 
in-situ
 
coal
 
from
 
a
 
portion
 
of
 
which
 
reserves
 
are
 
derived,
 
are
presented below.
 
A coal resource estimate, summarized
 
in
Table 1-1
, was prepared as
 
of December
31, 2023, for property controlled by Coronado.
Table 1-1:
 
Coal Resources Summary as of December 31, 2023
 
Coal Resource (Dry Tonnes, In Situ, Mt)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserves
158.9
9.2
0.0
168.1
16
0.8
18
Exclusive of Reserves
30.7
4.3
0.0
34.9
Total 12/31/2023
189.6
13.4
0.0
203.0
 
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 contains 34.9 Mt of dry, in-place measured and indicated coal resources exclusive of reserves as of December 31, 2023.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
4
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, socioeconomic 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,
 
2023.
 
Additions and
 
depletion have
 
been used
 
to bring
 
the Reserve
estimate forward to
 
December 31, 2023.
Factors
 
that
 
would
 
typically
 
preclude
 
conversion
 
of
 
a
 
coal
 
resource
 
to
 
coal
 
reserve,
 
include
 
the
following:
 
inferred
 
resource
 
classification;
 
absence
 
of
 
coal
 
quality;
 
poor
 
mine
 
recovery;
 
lack
 
of
access; geological
 
encumbrances
 
associated
 
with
 
overlying
 
and underlying
 
strata;
 
seam thinning;
structural
 
complication;
 
and
 
insufficient
 
exploration
 
have
 
all
 
been
 
considered.
 
Reserve
consideration
 
excludes
 
those
 
portions
 
of
 
the
 
resource
 
area
 
which
 
exhibit
 
the
 
aforementioned-
geological and operational encumbrances.
 
Coal reserves are
 
presented on
 
a run-of-mine
 
(
ROM
) basis in
Table
 
1-2
.
 
Proven and
 
probable coal
reserves
 
were
 
derived
 
from
 
the
 
defined
 
in-situ
 
coal
 
resource
 
considering
 
relevant
 
processing,
economic
 
(including
 
technical
 
estimates
 
of
 
capital,
 
revenue,
 
and
 
cost),
 
marketing,
 
legal,
environmental,
 
socioeconomic, and regulatory
 
factors.
 
The proven
 
and probable
 
coal reserves
 
on
the Property are summarized below in
Table 1-3
.
Table 1-2:
 
Coal Summary (ROM (Moist))
 
as of December 31, 2023
 
Demonstrated Coal Reserves (Mt, Moist ROM)
Quality (Dry)
 
By Reliability Category
By Mining Type
By Control Type
Area /
Mine
Proven
Probable
Total
Surface
UG
Owned
Leased
Subleased
Ash
Sulfur
Vol
Buchanan
145.9
8.5
154.4
0.0
154.4
20.2
125.8
8.4
44
0.7
12
Table 1-3:
 
Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2023
 
Demonstrated Coal Reserves (Wet Ton
 
nes, Washed or Direct Shipped, Mt)
Quality (Dry Basis)
 
By Reliability Category
By Mining Type
By Control Type
Area / Mine
Proven
Probable
Total
Surface
UG
Owned
Leased
Subleased
Ash%
Sulfur%
VM%
Buchanan Mine Complex
87.1
5.0
92.1
0.0
92.1
13.6
73.8
4.8
6
0.7
20
 
Note: Marketable reserve tonnes are reported on a moist basis, including a combination of surface and inherent moisture.
 
The combination of
surface and inherent moisture is modeled at 6-percent.
 
Actual product moisture is dependent upon multiple geological factors, operational
factors, and product contract specifications and can exceed 8-percent.
 
As such, the modeled moisture values provide a level of conservatism
for reserve reporting.
In
 
summary,
 
Coronado
 
controls
 
a
 
total
 
of
 
92.1
 
Mt
 
(moist
 
basis)
 
of
 
marketable
 
coal
 
reserves,
 
at
Buchanan,
 
as
 
of
 
December
 
31,
 
2023.
 
Of
 
that
 
total,
 
95
 
percent
 
are
 
proven,
 
and
 
5
 
percent
 
are
probable.
 
There are 13.6 Mt of owned
 
coal reserves and 73.8 Mt
 
of leased coal reserves and
 
4.8 Mt
of subleased reserves.
 
All the Buchanan reserves are considered suitable for the metallurgical
 
coal
market, and all of the Buchanan reserves are assigned.
 
 
ex962p2i0 ex962p13i2 ex962p13i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
5
1.8
 
Capital Summary
Coronado
 
provided
 
MM&A
 
with
 
an
 
inventory
 
of
 
operating
 
equipment
 
available
 
at
 
Buchanan.
 
MM&A’s
 
capital
 
schedules assume
 
that
 
major
 
equipment
 
rebuilds
 
occur over
 
the
 
course
 
of each
machine’s
 
remaining
 
assumed
 
operating
 
life.
 
Replacement
 
equipment
 
was
 
scheduled
 
based
 
on
MM&A’s
 
experience and
 
knowledge of
 
mining equipment
 
and industry
 
standards
 
with respect
 
to
the useful life of such equipment.
 
A summary of the estimated capital for the Property
 
is provided
in
Figure 1-2
 
below.
Figure 1-2:
 
CAPEX
1.9
 
Operating Costs
Coronado
 
provided
 
historical
 
and
 
preliminary
 
5-year
 
projections
 
of operating
 
costs
 
for
 
Buchanan
for MM&A’s
 
review.
 
MM&A used the historical and/or budget cost information
 
as a reference and
developed personnel
 
schedules for the mine
 
and support facilities.
 
Hourly labor rates
 
and salaries
were
 
based upon
 
information
 
contained
 
in Coronado’s
 
financial summaries.
 
Fringe-benefit
 
costs
were developed for vacation and holidays,
 
federal and state unemployment insurance,
 
retirement,
workers’ compensation and
 
pneumoconiosis, casualty and life insurance,
 
healthcare, and bonuses.
 
A cost factor
 
for mine supplies
 
was developed that
 
relates expenditures
 
to mine advance
 
rates for
roof-control
 
costs
 
and
 
other
 
mine-supply
 
costs
 
at
 
underground
 
mines.
 
Other
 
factors
 
were
developed for maintenance and repair costs, rentals, mine power, outside services and other direct
mining costs.
 
 
 
ex962p2i0 ex962p14i2 ex962p14i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
6
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
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
 
year-end 2023 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, 2024.
 
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
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
7
handling,
 
coal
 
preparation,
 
refuse
 
disposal,
 
coal
 
loading,
 
reclamation
 
and
 
general
 
and
administrative costs.
 
Indirect costs include statutory and legally agreed
 
upon fees related to direct
extraction
 
of
 
the
 
mineral.
 
The
 
indirect
 
costs
 
are
 
the
 
federal
 
black
 
lung
 
tax,
 
federal
 
and
 
state
reclamation taxes, property
 
taxes, coal production royalties,
 
and income taxes.
 
Table
 
1-4
 
shows LOM tonnage, profit
 
& loss (
P&L
), and earnings before income tax,
 
depreciation &
amortization (
EBITDA
) for Buchanan.
Table 1-4:
 
Life-of-Mine Tonnage,
 
P&L before Tax,
 
and EBITDA
 
LOM
LOM
P&L
LOM
EBITDA
 
Tonnes
Pre-Tax P&L
Per Tonne
EBITDA
Per Tonne
Buchanan
92,135
$5,590,394
$60.68
$7,386,829
$80.17
As
 
shown
 
in
Table
 
1-4,
 
the
 
Buchanan
 
Mine
 
shows
 
positive
 
EBITDA
 
over
 
the
 
LOM.
 
Overall,
 
the
Coronado consolidated operations show positive LOM P&L and
 
LOM EBITDA of $5.6 billion and
 
$7.4
billion, respectively.
 
Coronado’s
 
consolidated Buchanan
 
cash flow
 
summary in nominal
 
dollars assuming
 
a 2%
 
inflation
rate, excluding debt
 
service, is shown in
Table 1-5
 
below.
Table 1-5:
 
Project Cash Flow Summary (000)
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
Total
2024
2025
2026
2027
2028
Production & Sales tonnes
92,136
3,738
4,186
4,249
4,980
5,210
Total Revenue
$15,924,429
$643,698
$586,802
$585,176
$703,140
$753,693
EBITDA
$7,386,829
$207,113
$163,862
$184,715
$277,497
$315,709
Net Income
$4,381,299
$113,324
$64,939
$71,959
$135,601
$156,242
Net Cash Provided by Operating Activities
$6,095,981
$136,440
$157,841
$166,973
$228,295
$268,684
Purchases of Property, Plant, and
 
Equipment
$(1,360,951)
$(135,370)
$(149,944)
$(113,912)
$(94,118)
$(83,209)
Net Cash Flow
$4,735,031
$1,070
$7,897
$53,061
$134,177
$185,475
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2029
2030
2031
2032
2033
2034
Production & Sales tonnes
5,728
5,545
5,782
5,882
5,936
5,268
Total Revenue
$924,020
$912,413
$970,382
$1,007,050
$1,036,474
$938,266
EBITDA
$459,985
$437,470
$477,050
$500,805
$518,098
$430,129
Net Income
$263,089
$241,288
$280,342
$310,395
$330,940
$268,398
Net Cash Provided by Operating Activities
$360,606
$373,729
$392,820
$411,198
$422,794
$372,147
Purchases of Property, Plant, and
 
Equipment
$(70,177)
$(49,244)
$(72,844)
$(58,404)
$(48,601)
$(65,801)
Net Cash Flow
$290,429
$324,486
$319,977
$352,794
$374,193
$306,346
 
 
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
8
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2035
2036
2037
2038
2039
2040
Production & Sales tonnes
5,590
5,378
4,984
5,236
5,589
4,183
Total Revenue
$1,015,529
$996,590
$942,014
$1,009,435
$1,099,026
$839,126
EBITDA
$493,255
$471,648
$463,185
$557,984
$630,017
$392,781
Net Income
$319,755
$303,536
$295,288
$366,694
$422,733
$244,806
Net Cash Provided by Operating Activities
$393,113
$391,050
$382,466
$436,349
$494,321
$365,966
Purchases of Property, Plant, and
 
Equipment
$(54,932)
$(67,914)
$(63,646)
$(75,866)
$(42,226)
$(35,019)
Net Cash Flow
$338,181
$323,135
$318,820
$360,483
$452,095
$330,947
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2041
2042
2043
2044
2045
2046
Production & Sales tonnes
3,390
1,285
-
-
-
-
Total Revenue
$693,501
$268,094
$-
$-
$-
$-
EBITDA
$336,112
$69,413
$-
$-
$-
$-
Net Income
$203,036
$(341)
$(6,037)
$(2,443)
$(1,255)
$(649)
Net Cash Provided by Operating Activities
$290,379
$132,563
$(48,316)
$(16,427)
$(8,378)
$(4,273)
Purchases of Property, Plant, and
 
Equipment
$(49,148)
$(30,577)
$-
$-
$-
$-
Net Cash Flow
$241,231
$101,986
$(48,316)
$(16,427)
$(8,378)
$(4,273)
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2047
2048
2049
2050
2051
2052
Production & Sales tonnes
-
-
-
-
-
-
Total Revenue
$-
$-
$-
$-
$-
$-
EBITDA
$-
$-
$-
$-
$-
$-
Net Income
$(341)
$(0)
$(0)
$(0)
$(0)
$(0)
Net Cash Provided by Operating Activities
$(4,358)
$-
$-
$-
$-
$-
Purchases of Property, Plant, and
 
Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$(4,358)
$-
$-
$-
$-
$-
Consolidated cash flows are driven
 
by annual sales
 
tonnage, which at steady-state level ranges from
a peak of 5.9 million
 
tonnes in 2033 to
 
a low of 1.2 million tonnes
 
in 2042.
 
Projected consolidated
revenue ranges from $585.2 million to $1.099 billion at a steady state.
 
Revenue totals $15.9 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 $494.3 million in
 
2039 and totals $6.1 billion over
 
the project’s
life.
 
Capital expenditures total $576.6 million through 2028 and $1.4 billion over the project’s
 
life.
 
1.10.1
 
Discounted Cash Flow Analysis
Cash flow after
 
tax, but before
 
debt service, generated
 
over the life
 
of the project
 
was discounted
to NPV
 
at a 10.0%
 
discount rate,
 
which represents
 
Coronado’s
 
estimate of
 
the nominal dollar,
 
risk
adjusted
 
weighted
 
average
 
cost
 
of
 
capital
 
(
WACC
)
 
for
 
likely
 
market
 
participants
 
if
 
the
 
subject
reserves were offered for sale.
 
On an un-levered basis,
 
the NPV of
 
the project cash
 
flows represents
the Enterprise Value of
 
the project and
 
amounts to
 
$1.804 billion.
 
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
 
the
 
purpose
 
of
 
confirming
 
the
 
economics
 
for
 
classification
 
of
 
coal
reserves
 
and not
 
for
 
purposes of
 
valuing
 
Coronado
 
or its
 
Buchanan 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.
 
 
ex962p2i0
 
ex962p17i2 ex962p17i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
9
1.10.2
 
Sensitivity Analysis
Sensitivity
 
of the
 
NPV
 
results
 
to
 
changes
 
in
 
the
 
key
 
drivers
 
is presented
 
in the
 
chart below.
 
The
sensitivity study shows
 
the NPV at
 
the 10.0% discount rate
 
when Base Case sales
 
prices, operating
costs, and capital costs are increased and decreased in increments
 
of 5% within a +/- 15% range.
Figure 1-4:
 
Sensitivity of NPV
As shown, NPV is quite sensitive to changes 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
 
mine
 
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.
 
Buchanan, 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
)
 
and
United States Fish and Wildlife (
USFW
)
involvement with state
 
programs.
1.12
 
Conclusion and Recommendations
Sufficient data have 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 are
 
of sufficient
 
quantity and reliability
 
to reasonably
support the coal resource and coal reserve estimates in this TRS.
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
10
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
 
92.1
 
Mt
 
of
 
marketable
 
underground
 
coal
 
reserves
 
identified
 
on
 
the
 
Property
 
are
economically
 
mineable
 
under
 
reasonable
 
expectations
 
of
 
market
 
prices
 
for
 
metallurgical
 
coal
products, estimated operation costs,
 
and capital expenditures.
2
 
Introduction
2.1
 
Registrant and Terms
 
of Reference
This report
 
was prepared
 
for
 
the sole
 
use of
Coronado Global
 
Resources
 
Inc. (
Coronado
)
and
 
its
affiliated and subsidiary companies and
 
advisors.
 
This TRS updates the
 
TRS titled, "Coronado Global
Resources
 
Inc.
 
Statement
 
of
 
Coal
 
Resources
 
and
 
Reserves
 
for
 
the
 
Buchanan
 
Mine
 
Complex
 
in
Accordance with the
 
JORC Code and
 
United States SEC Regulation
 
S-K 1300
 
as of December
 
31, 2022
Central
 
Appalachian
 
Coal
 
Basin
 
Virginia,
 
USA
 
February
 
2023,"
 
dated
 
February
 
15,
 
2023,
 
due
 
to
material
 
differences
 
in the
 
key
 
financial modifying
 
factors
 
including mining
 
plans, coal
 
sales price
assumptions,
 
operating
 
costs
 
and
 
capital
 
costs
 
from
 
December
 
31,
 
2022
 
to
 
December
 
31,
 
2023.
 
Mining plans
 
are discussed
 
in
Section 13
 
of the
 
TRS, coal
 
sales price
 
assumptions are
 
discussed in
Sections 12
 
and 16
 
of the TRS,
 
while operating
 
costs and
 
capital costs
 
are discussed in
Sections 18
and
 
19
 
of
 
the
 
TRS.
 
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
)
.
 
This report was also
 
prepared in accordance with the
Australasian Code for Public
 
Reporting
of Technical
 
Assessments and Valuations of Mineral Assets
(
VALMIN Code
).
This
 
report
 
provides
 
a
 
statement
 
of
 
coal
 
resources
 
and
 
coal
 
reserves
 
for
 
Coronado
 
at
 
Buchanan.
 
Exploration results and Resource
 
calculations were used as the basis for the mine planning and the
preliminary feasibility study completed to determine
 
the extent and viability of the reserve.
Coal
 
resources
 
and
 
coal
 
reserves
 
are
 
herein
 
reported
 
in
 
metric
 
units
 
of
 
measurement
 
and
 
are
rounded to millions of metric tonnes (
Mt
).
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
11
2.2
 
Information Sources
This TRS
 
is based on
 
information provided
 
by Coronado
 
and reviewed
 
by MM&A.
 
Sources of data
and information are listed below in
Table 2-1
:
Table
 
2-1:
 
Information Provided to MM&A by Coronado
Category
Information Provided by Coronado
Report
Section
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
Waste
Disposal
Engineering data and estimates representing
 
remaining capacities for coarse
 
and fine coal
waste disposal
17.2
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
Note: While the sources
 
of data listed
 
in Table
 
2-1 are not
 
exhaustive, they represent
 
a significant portion
 
of information which
 
supports this TRS.
 
MM&A
 
reviewed
 
the
 
provided
 
data
 
and
 
found
 
it
 
to
 
be
 
reasonable
 
prior
 
to
 
incorporating
 
it
 
into
 
the
 
TRS.
 
The
 
TRS
 
contains
 
“forward-looking
information” including
 
forecasts
 
of productivity
 
and annual
 
coal production,
 
operating and
 
capital cost
 
estimates, coal
 
sales price
 
forecasts,
 
the
assumption that
 
Coronado
 
will
 
continue
 
to
 
acquire
 
necessary permits,
 
and
 
other assumptions.
 
The
 
TRS
 
statements
 
and
 
conclusions
 
are
 
not
 
a
guarantee of future performance and undue reliance should not be placed on them.
 
The ability of Coronado to recover the estimated coal reserves
is dependent on multiple factors beyond the
 
control of MM&A including, but not
 
limited to geologic factors, mining conditions, regulatory approvals,
and changes in regulations.
 
In all cases, the plans assume the Property is under competent management.
Coronado engaged MM&A to conduct a coal resource and reserve evaluation
 
of the Coronado coal
properties as of
 
September 30, 2023.
 
Additions and
 
depletion have been
 
used to
 
bring the
 
Resource
and Reserve estimates
 
forward to December
 
31, 2023, the effective date
 
of this TRS for Buchanan.
 
For the evaluation, the following tasks were
 
to be completed:
 
>
Conduct site visits of the mines and mine infrastructure facilities;
 
>
Process the information supporting
 
the estimation of
 
coal resources and
 
reserves into geological
models;
 
>
Develop life-of-reserve mine
 
(
LOM
) plans and financial models;
>
Hold discussions with Coronado company management; and
 
>
Prepare
 
and
 
issue
 
a
 
TRS
 
providing
 
a
 
statement
 
of
 
coal
 
resources
 
and
 
reserves
 
which
 
would
include:
-
A description of the mine and facilities.
 
-
A description of the evaluation process.
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
12
-
An estimation of coal resources and reserves with compliance elements as stated under the
JORC Code and the SEC Regulation S-K 1300.
2.3
 
Personal Inspections
MM&A is very familiar with Buchanan,
 
having provided a variety of services
 
in recent years, and the
QPs involved in this TRS have
 
conducted multiple site visits.
3
 
Property Description
3.1
 
Location
The Buchanan Mine Complex is located in Buchanan County in southwestern Virginia (see
Figure 1-
1
above) approximately
 
16 kilometers
 
southeast of
 
Grundy,
 
which is
 
the county
 
seat of
 
Buchanan
County.
 
Surface facilities for the shaft mine are located along
 
Garden Creek and a Norfolk Southern
(NS) rail line about 6.4 kilometers south-southeast of Oakwood, Virginia.
The Property
 
is located
 
within portions
 
of the
 
following ten
 
(10)
United States
 
Geological Survey
(
USGS
)
 
7.5-Minute Quadrangles:
 
>
Amonate
>
Big A Mountain
>
Bradshaw
>
Honaker
>
Keen Mountain
 
>
Jewell Ridge
>
Prater
>
Richlands
>
Vansant
>
War
 
Current
 
mining projections
 
fall within
 
the Bradshaw,
 
Keen Mountain
 
,
 
Jewell Ridge,
 
and Patterson
Quadrangles.
 
The
 
coordinate
 
system
 
and
 
datum
 
used
 
for
 
the
 
model
 
of Buchanan
 
No. 1
 
and
 
the
subsequent maps were produced in the Virginia State
 
Plane South system, NAD 83.
 
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
13
3.2
 
Titles, Claims or Leases
The Buchanan coal reserves are located in Buchanan and Tazewell
 
Counties, Virginia.
 
The Property
is composed of approximately
 
33,578 total hectares, of which 25,853
 
are leased or subleased from
private
 
landholders under
 
approximately
 
150 individual
 
coal lease
 
tracts,
 
and 7,725
 
hectares
 
are
owned by Coronado.
 
Subject to Coronado’s
 
exercising its renewal
 
rights thereunder,
 
all the leases
expire upon exhaustion of the relevant
 
coal reserves, which is expected to occur in 2042.
 
MM&A has
 
not carried
 
out a
 
separate
 
title verification
 
for
 
the coal
 
property
 
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 Property is developed under responsible and experienced management.
3.3
 
Mineral Rights
Coronado supplied property control maps to MM&A related to properties for which mineral and/or
surface
 
property
 
are
 
controlled
 
by
 
Coronado.
 
While
 
MM&A
 
accepted
 
these
 
representations
 
as
being
 
true
 
and
 
accurate,
 
MM&A
 
has
 
no
 
knowledge
 
of
 
past
 
property
 
boundary
 
disputes
 
or
 
other
concerns, through
 
past knowledge
 
of the
 
Property,
 
that would
 
signal concern
 
over future
 
mining
operations or development potential.
Property control
 
in Appalachia
 
can be
 
intricate.
 
Coal mining
 
properties are
 
typically composed
 
of
numerous property
 
tracts which
 
are owned
 
and/or leased
 
from both
 
land-holding companies
 
and
private
 
individuals
 
or
 
companies.
 
It
 
is
 
common
 
to
 
encounter
 
severed
 
ownership,
 
with
 
different
entities
 
or individuals
 
controlling
 
the
 
surface
 
and mineral
 
rights.
 
Mineral
 
control
 
in the
 
region
 
is
typically characterized by leases or ownership of larger tracts of land,
 
with surface control generally
comprised of smaller tracts, particularly in developed areas.
Legal mining rights may reflect a combination of fee or
 
mineral ownership and fee or mineral leases
of coal lands through various surface and mineral lease agreements.
 
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.
 
Given that
 
the Buchanan
 
Mine has
 
been active
 
dating back
 
to the
1980s, Coronado,
 
and its predecessors,
 
have a
 
successful history of
 
obtaining any
 
necessary rights
and the associated permits to mine.
 
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
14
3.4
 
Encumbrances
No Title Encumbrances are known.
 
By assignment, MM&A did not complete an independent query
related to Title Encumbrances.
 
3.5
 
Other Risks
There is always risk
 
involved in property control.
 
Coronado and its predecessor, CONSOL, have both
had their legal teams examine the deeds and title
 
control in order to minimize the risk.
 
Historically,
property control has not posed any challenges relate
 
d
 
to Buchanan’s operations.
 
4
 
Accessibility,
 
Climate, Local Resources,
Infrastructure and Physiography
4.1
 
Topography,
 
Elevation, and Vegetation
The
 
topography
 
of
 
the
 
area
 
surrounding
 
the
 
Buchanan
 
Mine
 
Complex
 
is
 
typical
 
of
 
the
 
Central
Appalachian Plateau being rugged and deeply dissected by V-shaped
 
river valleys flanked by steep-
sided
 
upland
 
regions.
 
Surface
 
elevations
 
near
 
the
 
mine
 
complex
 
range
 
from
 
approximately
 
823
meters above sea level
 
in upland regions
 
to approximately 579 meters at
 
stream level.
 
The Property
is moderately vegetated, with a mixture of hardwood and conifer forest in the temperate broadleaf
category.
 
The Property
 
is not
 
situated near
 
any major
 
urban centers,
 
and the
 
surrounding area
 
is
considered rural.
4.2
 
Access and Transport
General
 
access to
 
the Buchanan
 
No. 1
 
Mine property
 
is via
 
a well-developed
 
network of
 
primary,
secondary,
 
and unimproved roads.
 
Highway 460 is the primary highway
 
connecting Pike County in
Eastern
 
Kentucky
 
to
 
Buchanan
 
and
 
Tazewell
 
Counties
 
in
 
Southwestern
 
Virginia.
 
Numerous
secondary
 
and
 
unimproved
 
roads
 
provide
 
direct
 
access
 
to
 
the
 
Property,
 
some
 
being
 
state-
 
and
town-maintained.
 
These roads
 
typically stay
 
open throughout
 
the year.
 
A
Norfolk Southern
 
(
NS
)
rail line that is located
 
approximately 6.44 kilometers
 
south-southeast of Oakwood, Virginia serves
as the primary means
 
of transport for
 
produced coal.
 
NS transports coal
 
from the Buchanan Mine
Complex
 
either
 
to
 
domestic
 
customers
 
or
 
to
 
the
 
Pier
 
6
 
export
 
terminal
 
at
 
Norfolk,
 
Virginia
 
for
overseas
 
shipment.
 
A
 
small
 
portion
 
of
 
production
 
is
 
transported
 
via
 
truck
 
haul.
 
An
 
extensive
network
 
of
 
service
 
roads
 
to
 
gob
 
gas
 
and
 
coalbed
 
methane
 
(
CBM
)
 
production
 
wells
 
exist
 
on
 
the
subject property.
 
 
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
15
4.3
 
Proximity to Population Centers
The
 
Buchanan
 
No.
 
1
 
Mine
 
property
 
lies
 
near
 
the
 
town
 
of
 
Grundy
 
in
 
Buchanan
 
County,
 
Virginia
approximately
 
290 kilometers
 
southeast of
 
Lexington,
 
Kentucky
 
and 153
 
kilometers
 
southwest
 
of
Roanoke, Virginia.
 
As of 2023, Buchanan County has an estimated population of 19,233 residents.
 
4.4
 
Climate and Length of Operating Season
The
 
climate
 
of
 
the
 
region
 
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 112.62 centimeters.
 
Summer months typically begin
 
in late May
 
and end
in early September and range in average temperature
 
from 49 to 84 degrees Fahrenheit (or 9.44 to
28.89 degrees
 
Celsius).
 
Winters
 
typically begin
 
in mid
 
to late
 
November and
 
run until
 
mid to
 
late
March
 
with
 
average
 
temperatures
 
ranging
 
from
 
26
 
to
 
56
 
degrees
 
Fahrenheit
 
(or
 
-3.33
 
to
 
13.33
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
 
Virginia.
 
However,
 
weather
 
events
 
could
potentially
 
negatively
 
impact
 
efficiency
 
of
 
surface
 
and
 
preparation
 
plant
 
operations
 
on
 
a
 
very
limited basis and lasting less than a few days.
4.5
 
Infrastructure
The
 
Buchanan No.
 
1 Mine
 
Complex
 
has
 
sources
 
of water,
 
power,
 
personnel,
 
and
 
supplies readily
available
 
for use.
 
Personnel
 
have historically
 
been sourced
 
from the
 
surrounding communities
 
in
Buchanan, Tazewell,
 
McDowell, and Pike
 
counties, and have
 
proven to
 
be adequate in
 
numbers to
operate the mine.
 
As mining
 
is common
 
in the
 
surrounding areas, the
 
workforce is generally familiar
with
 
mining practices,
 
and
 
many
 
are
 
experienced
 
miners.
 
Water
 
is sourced
 
locally from
 
streams
that
 
flow
 
over
 
Coronado-owned
 
property.
 
The
 
mine
 
also
 
utilizes
 
ground
 
water
 
from
 
an
 
old,
abandoned mine.
 
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
 
Buchanan
 
Preparation
 
Plant
 
services
 
the
 
mine
 
via
 
a
 
skip
 
hoist
 
and
conveyor
 
belt system
 
which transports
 
extracted coal
 
from an
 
underground bunker
 
to the surface
facility.
 
The NS rail line serves as the main means of transport from the mine.
 
 
 
ex962p2i0
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
16
5
 
History
5.1
 
Previous Operation
The
 
Property
 
was
 
formerly
 
controlled
 
by
Consolidation
 
Coal
 
Company
 
(
CONSOL
)
.
 
Mine
development
 
was
 
started
 
by CONSOL
 
in 1983
 
and longwall
 
production began
 
in 1987.
 
Coronado
acquired the Buchanan Mine from CONSOL in March 2016.
The most
 
productive mining of
 
any period
 
since 1987
 
has occurred since
 
the acquisition
 
of Buchanan
Mine by Coronado.
 
Production history
 
has been approximately
 
3.5 Mt in
 
2016 (in only
 
a 9-month
period), 4.9
 
Mt in
 
2017, 4.7
 
Mt in
 
2018, 4.5
 
Mt in
 
2019, 3.4
 
Mt in
 
2020, 4.4
 
Mt in
 
2021, 3.9
 
Mt in
2022,
 
and 3.6 Mt in 2023.
5.2
 
Previous Exploration
The Property has
 
been extensively
 
explored by subsurface
 
drilling efforts carried
 
out by numerous
entities,
 
many
 
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.
Drill records
 
indicate that
 
independent contract
 
drilling operators
 
have
 
typically been
 
engaged
 
to
carry out drilling on the Property.
 
Geophysical logging on those
 
properties acquired from
 
CONSOL
was
 
often
 
performed
 
by
 
both
 
CONSOL’s
 
in-house
 
logging
 
services
 
and
 
outside
 
logging
 
firms.
 
MM&A,
 
via
 
its
 
Geophysical
 
Logging
 
Systems
 
subsidiary,
 
has
 
subsequently
 
logged
 
a
 
significant
number of
 
the past
 
exploration holes and
 
degas 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
 
US are the oldest and
 
most extensively developed
 
coal deposits in
the country.
 
The coal deposits
 
on the Property
 
are Carboniferous in age,
 
being of the
 
Pennsylvanian
system.
 
Overall, these Carboniferous
 
coals contain two-fifths
 
of the US’s
 
bituminous coal deposits
and extend
 
over 1,448
 
kilometers from
 
northern Alabama to
 
Pennsylvania
 
and are
 
part of what
 
is
known broadly 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; the Property
is located within the Central Appalachian Basin.
As shown on
Figure 1-1
 
above, the southern edge of the Property
 
is structurally bounded by
 
major
faulting
 
associated
 
with
 
the
 
Boissevain
 
Thrust
 
Fault,
 
located
 
approximately
 
4.0
 
kilometers
 
from
mine projections
 
at the south
 
end of the
 
mine. (North of
 
the fault
 
is the coal-bearing
 
Appalachian
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
17
Plateau region; south of the fault is the Valley and Ridge imbricate thrust region.) Moreover, a well-
defined,
 
northwest-southeast
 
trending
 
strike-slip
 
feature,
 
Keen
 
Mountain
 
Fault,
 
is
 
located
approximately 1.0 kilometer from
 
mine projections at the southwestern edge of the mine.
 
Furthermore, the
 
southwest-northeast trending axis
 
of the
 
Dry Fork
 
Anticline skirts
 
mine projections
located
 
at the
 
south end
 
of the
 
mine.
 
Otherwise, regional
 
structure
 
is typically
 
characterized
 
by
gently dipping strata to the northwest
 
at less than one percent.
Seams of economic significance
 
typically range between
 
0.30 meters and 1.83 meters
 
in thickness,
with relatively
 
little structural
 
deformation.
 
Seams of
 
the Pocahontas
 
Formation have
 
historically
been
 
mined;
 
and
 
the
 
Pocahontas
 
No.
 
3
 
seam
 
currently
 
being
 
mined
 
at
 
Buchanan
 
Mine
 
is
 
the
principal
 
mineable
 
seam
 
within
 
the
 
formation.
 
Coal
 
from
 
the
 
region
 
has
 
historically
 
been
 
sold
primarily in metallurgical markets.
6.2
 
Mineralization
The generalized stratigraphic columnar section in
Figure 6-1
 
demonstrates the vertical relationships
of the principal coal seams and rock formations on the Property.
 
 
ex962p2i0 ex962p26i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
18
Figure 6-1:
 
Buchanan Stratigraphic Column
Note: not to scale
6.3
 
Deposits
The
 
coal
 
produced
 
at
 
Buchanan No.
 
1
 
is typically
 
Low
 
Volatile
 
(<23%
 
volatile
 
matter)
 
bituminous
coal.
 
Due
 
to
 
the
 
value
 
of
 
the
 
Pocahontas
 
No.
 
3
 
(
P3
)
 
as
 
a
 
low-volatile
 
coking
 
coal,
 
it
 
has
 
been
extensively
 
mined
 
in
 
the
 
region.
 
The
 
P3
 
seam
 
consists
 
of
 
multiple
 
benches
 
that
 
split
 
and
 
merge
across the Property,
 
including in descending stratigraphic order (refer
 
to
Figure 6-2
below):
 
>
P31, uppermost bench(es),
 
represented in purple; locally
 
splits into two
 
benches in the
 
northeast
areas of the property,
 
with the uppermost bench referred to as P30.5.
 
>
P32, represented in orange.
>
P33, represented in blue.
 
 
ex962p2i0 ex962p27i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
19
>
345, lowermost bench, represented
 
in green;
 
may split locally into
 
2 benches referred
 
to as P34
and P35.
The
 
P3
 
seam
 
is
 
situated
 
entirely
 
below
 
drainage
 
throughout
 
the
 
Property
 
and
 
is
 
accessible
 
by
existing mine shafts.
 
Floor and roof strata vary throughout the
 
mine area with floor
 
strata including
fireclay,
 
claystone, shale,
 
sandy shale, and
 
sandstone, but primarily
 
fireclay and
 
shale.
 
Roof strata
varies throughout as well but primarily is composed of sandstone, sandy shale, and shale.
As
 
illustrated
 
on
Figure
 
6-2
,
 
sandstone
 
paleochannels
 
are
 
common
 
within
 
the
 
Pocahontas
Formation,
 
occurring
 
above
 
and
 
below
 
the
 
P3,
 
as
 
well
 
as
 
within
 
non-coal
 
partings
 
(identified
 
as
Intervals
 
0,
 
I,
 
II,
 
and
 
III
 
between
 
the
 
main
 
benches)
 
that
 
separate
 
the
 
seam
 
into
 
its
 
component
benches.
 
In some areas adjacent to the Property,
 
the P3 has been entirely eroded and replaced by
multi-storied sandstone channels.
Figure 6-2: Schematic Cross-Section of the Pocahontas No. 3 Seam and Enclosing Strata
The
 
mineable
 
benches
 
within
 
the
 
P3
 
horizon
 
generally
 
consist
 
of
 
three
 
principal
 
mining
configurations
 
determined
 
by
 
variable
 
seam
 
splitting
 
characteristics
 
present
 
across
 
the
 
Property
(refer to
Figure 6-2
 
above):
 
1.
Full Seam
; typically,
 
four benches (P31,
 
P32, P33, and 345)
 
are included within
 
the mineable
section.
 
>
This
 
configuration
 
is present
 
within
 
the
 
remaining
 
North
 
/
 
Northwest
 
resource
 
areas,
 
as
well as the northern portion of the South resource area.
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
20
>
Due to the seam
 
splitting and the localized
 
presence of sandstone
 
paleochannel scouring,
the Full-seam bench (P3) thickness ranges from 0.00 to 3.44 meters with an average
 
of:
A.
1.45 meters in the North.
B.
1.51 meters in the West.
C.
2.16 meters in the South.
2.
P31, P32, and
 
P33 Benches
; occurs where
 
the underlying 345
 
bench extends
 
more than two
feet below the P33 bench and is no longer included within the mineable section.
 
>
This configuration
 
is present on
 
the South side of
 
the Property,
 
and south of the
 
two-foot
split line between the P33 and 345 benches.
 
>
Longwall mining within this geologic configuration is anticipated to commence for the first
time in Buchanan Mine’s history during early 2024.
>
Locally,
 
the P32 and
 
P33 benches likewise
 
splits, resulting
 
in higher than
 
average
 
in-seam
reject.
>
The P31, P32,
 
P33 bench thickness
 
ranges from 0.25 to 2.78
 
meters with an average of 1.53
meters.
3.
P32, P33, and
 
345 Benches
; the overlying
 
P31 bench extends
 
more than
 
two feet
 
above the
P32 (or
 
has been
 
scoured out
 
by sandstone
 
paleochannels) and
 
is no
 
longer included
 
within
the mineable section.
 
>
This configuration is present on the East
 
side of the Property.
 
>
Due
 
to
 
the
 
localized
 
presence
 
of
 
sandstone
 
scouring, the
 
P32,
 
P33,
 
345 bench
 
thickness
ranges from 0.00 to 2.71 meters with an
 
average of 1.50 meters.
 
7
 
Exploration
7.1
 
Nature and Extent of Exploration
Extensive exploration in the form of subsurface drill efforts has been carried out on the Property by
numerous entities,
 
much of which
 
was completed
 
prior to
 
the acquisition by
 
Coronado.
 
Diamond
core, rotary,
 
and CBM 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 15,725 core, rotary, channel samples, mine measurements, and CBM
 
wells that penetrate
the
 
Pocahontas
 
No.
 
3
 
seam
 
are
 
found
 
within
 
Coronado’s
 
property-wide
 
lithologic
 
database.
(Locations
 
of drill holes are shown on the map included in
Appendix B
.)
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
21
Of the 15,725 data points, approximately
 
11,720 are located within or immediately adjacent to
 
the
current
 
mine
 
/
 
resource
 
areas;
 
consisting
 
of
 
1,945
 
(17%)
 
drill
 
holes;
 
and
 
9,775
 
(83%)
 
in-mine
measurements.
 
The concentration of
 
exploration varies slightly
 
across the
 
Property, with the proposed
 
underground
mining
 
areas
 
having
 
the
 
highest
 
concentration
 
of
 
drill
 
holes.
 
Drilling
 
on the
 
Property
 
is
 
typically
sufficient
 
for
 
delineation
 
of
 
potential
 
underground
 
mineable
 
benches.
 
Core
 
logging
 
is
 
typically
conducted 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.
 
Unlike
 
recent
 
information
provided by experienced geologists, much of the earlier drill
 
hole data consists of simplified driller’s
logs, which
 
often lack
 
specific details
 
regarding geotechnical conditions and
 
specific geology, making
seam
 
correlations
 
and
 
floor
 
and
 
roof
 
conditions
 
difficult
 
to
 
determine.
 
Geophysical
 
logging
techniques,
 
by
 
contrast,
 
document
 
some
 
details
 
useful
 
for
 
geologic
 
interpretation
 
and
 
mining
conditions,
 
but do not provide detailed lithologic information.
 
Given
 
the
 
variability
 
of
 
geologic
 
conditions
 
and
 
data-gathering
 
methods,
 
definitive
 
mapping
 
of
future
 
mining
 
conditions
 
has
 
limitations,
 
but
 
projections
 
and
 
assumptions
 
can
 
be
 
made
 
with
 
a
reasonable degree
 
of certainty.
 
After the
 
integrity of
 
the database
 
was established,
 
stratigraphic
columnar sections were
 
generated
 
using cross-sectional analysis
 
to establish
 
or confirm coal
 
seam
correlations (refer to
Figures
 
6-1
and
 
6-2
above).
Due
 
to
 
the
 
extended
 
history
 
of
 
exploration
 
by
 
various
 
parties
 
on
 
the
 
Property,
 
a
 
wide
 
variety
 
of
survey techniques
 
exist for
 
documentation of
 
data point
 
locations.
 
Many of
 
the older exploration
drill holes appear to have been located by survey and more recently completed drill holes are often
located by
 
high-resolution Global
 
Positioning System
 
(
GPS
) units.
 
However,
 
some holes appear
 
to
have
 
been
 
approximately
 
located
 
using USGS
 
topography
 
maps
 
or
 
other methods
 
which
 
are
 
less
accurate.
 
Therefore, discretion
 
had to be used regarding
 
the accuracy for the
 
location and ground
surface
 
elevation
 
of
 
some
 
of
 
these
 
older
 
drill
 
holes.
 
In
 
instances
 
where
 
a
 
drill
 
hole
 
location
 
(or
associated coal
 
seam elevations)
 
appeared to
 
be inconsistent
 
with the
 
overall
 
structural trend
 
(or
surface
 
topography
 
for
 
surface-mineable
 
areas),
 
the
 
data
 
point
 
was
 
not
 
honored
 
for
 
geological
modeling.
 
Others with apparently minor variances were adjusted and then used by MM&A.
 
Surveying of the underground and surface mined areas has been performed by the mine operators
and/or
 
their
 
consulting
 
surveyors.
 
By
 
assignment,
 
MM&A
 
did
 
not
 
verify
 
the
 
accuracy
 
or
completeness of supplied
 
mine maps but
 
accepted this information as
 
being the
 
work of responsible
engineers and surveyors.
7.2
 
Non-Drilling Procedures and Parameters
To
 
supplement
 
the
 
core
 
hole
 
quality
 
database,
 
samples
 
have
 
been
 
collected
 
from
 
underground
channel samples, mine stockpiles, and/or truck / train shipments.
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
22
7.3
 
Drilling Procedures
Core
 
drilling
 
methods
 
typically
 
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
 
a 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 core holes,
 
rotary-drilled holes also exist on much
 
of the Property.
 
Data for the rotary
drilled holes
 
are mainly derived
 
from downhole
 
geophysical
 
logs, which are
 
used to
 
interpret coal
and rock
 
thickness and
 
depth since
 
logging of the
 
drill cuttings
 
is not
 
reliable.
 
From time
 
to time,
geological
 
staff
 
at
 
MM&A
 
have
 
been
 
engaged
 
by
 
Coronado
 
to
 
interpret
 
geophysical
 
logs
 
within
specific areas of interest, the results of which have been added to the Coronado geologic database.
Moreover,
 
MM&A field geologists have conducted gas content (desorption) testing of core samples
as part of an
 
ongoing effort to assess levels of coalbed
 
methane gas (
CBM
) present within the seam.
Additionally, there is an
 
ongoing active surface
 
drilling program for
 
degassing the mined
 
seam ahead
of mining.
 
The degas holes
 
are typically logged geophysically, and the resulting
 
interpreted data are
incorporated into
 
the geological model.
 
Exploratory drilling generally
 
requires drilling to depths of
over 305 meters to penetrate
 
the target coal seam at Buchanan.
A wide
 
variety of
 
core
 
logging techniques
 
exist
 
for the
 
Property.
 
For many
 
of the
 
core holes,
 
the
primary data source
 
is a
 
generalized lithology description
 
by the driller, which
 
may be supplemented
by
 
a
 
more
 
detailed
 
core
 
log
 
completed
 
by
 
a
 
geologist.
 
These 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
Buchanan is an
 
active mine with
 
no 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,
 
undermining of
 
aquifers,
 
and mining
 
through hydraulically
fractured (frac’d)
 
coalbed methane wells.
 
Based upon the successful history
 
of the operation
 
with
regards to
 
hydrogeological
 
conditions, 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)
and
Analysis
 
of
 
Longwall
 
Pillar
 
Stability
 
(ALPS)
 
programs
 
that
 
were
developed by the
National Institute for Occupational Safety and
 
Health (
NIOSH
)
.
 
MM&A reviewed
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
23
the results
 
from the ACPS
 
and ALPS analysis
 
and considered them
 
in the development
 
of the LOM
plan.
8
 
Sample Preparation, Analyses and Security
8.1
 
Prior to Sending to the Lab
Most
 
of the
 
coal
 
samples have
 
been obtained
 
from
 
the Property
 
by subsurface
 
exploration
 
using
core drilling
 
techniques.
 
The protocol
 
for preparing
 
and testing
 
the samples
 
has varied
 
over time
and is
 
not well
 
documented for the
 
older holes
 
drilled on
 
the Property.
 
Typical core-drilling sampling
methods for
 
coal in
 
the United
 
States
 
involves
 
drilling through
 
the seam,
 
removing the
 
core from
the
 
barrel,
 
describing the
 
lithology,
 
wrapping
 
the
 
sample in
 
a
 
sealed
 
plastic
 
sleeve
 
and
 
placing it
lengthwise into
 
a covered core
 
box, and carefully
 
marking hole ID and depth
 
intervals on each box
and
 
lid, allowing
 
the
 
core
 
to
 
be delivered
 
to
 
a
 
laboratory
 
in correct
 
stratigraphic
 
order,
 
and with
original
 
moisture
 
content.
 
This
 
process
 
has
 
been
 
the
 
norm
 
for
 
both
 
historical
 
and
 
ongoing
exploration activities at the Property.
This
 
work
 
is
 
typically
 
performed
 
by
 
the
 
supervising
 
driller,
 
geologist,
 
or
 
company
 
personnel.
 
Samples
 
are
 
most
 
often
 
delivered
 
to
 
the
 
company
 
by
 
the
 
driller
 
after
 
each
 
shift
 
or
 
acquired
 
by
company personnel
 
or representatives.
 
Most of the
 
coal core
 
samples were
 
obtained by previous
or current
 
operators
 
on the
 
Property.
 
MM&A did
 
not participate
 
in the
 
collection, sampling,
 
and
analysis of the core samples.
 
However,
 
it is reasonable to assume, given the consistency
 
of quality
from previous operators, that these samples
 
were generally collected and processed
 
under industry
best practices.
 
This assumption is based on MM&A’s
 
familiarity with the operating companies
 
and
the companies used to perform the analyses.
8.2
 
Lab Procedures
Coal-quality testing
 
has been
 
performed over
 
many years
 
by operating
 
companies using
 
different
laboratories and testing regimens.
 
Some of the
 
samples have raw analyses and
 
washabilities on the
full seam (with coal and rock parting layers co-mingled) and are mainly useful for characterizing the
coal quality for projected production from underground
 
mining.
 
Other samples have coal and rock
analyzed
 
separately,
 
the results
 
of which
 
can
 
be utilized
 
to
 
forecast
 
underground
 
mining quality.
 
Care
 
has
 
been
 
taken
 
to
 
use
 
only
 
those
 
analyses
 
that
 
are
 
representative
 
of
 
the
 
coal
 
quality
parameters for the appropriate
 
mining type for each sample.
 
Unlike many Appalachian properties,
Buchanan has interest
 
in a single deep-mineable seam,
 
the Pocahontas
 
No. 3 seam; therefore,
 
the
analyses have been conducted following a consistent
 
protocol.
Standard procedure upon receipt of core
 
samples by the testing laboratory is to: 1) log the depth
and thickness of the sample; then 2) perform testing as specified by a representative
 
of the
operating company.
 
Samples
 
are
 
analyzed
 
in
 
accordance
 
with
 
procedures
 
defined
 
under
ASTM
 
International
 
(
ASTM
)
standards including, but not limited to (not all analytical tests identified in the list below have been
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
24
run on
 
each sample):
 
washability (ASTM
 
D4371); ash (ASTM
 
D3174); sulfur (ASTM
 
D4239); Btu/lb.
(ASTM D5865); volatile matter (ASTM D3175); Free Swell Index
 
(
FSI
) (ASTM D720).
 
While not confirmed
 
by MM&A, it
 
is assumed
 
that best practices
 
and ASTM (or
 
equivalent standards
at the time
 
of testing) were utilized in
 
laboratory quality testing. Since
 
1958 (the earliest coal
 
quality
information available), the Property has been controlled by various mining
 
companies utilizing their
own
 
corporate
 
laboratories
 
including:
Island
 
Creek
 
Coal
 
Company
(Keen
 
Mountain,
 
Virginia),
Pocahontas Fuel Company
(Pocahontas, Virginia), and
Consol
(Library,
 
Pennsylvania).
 
Since
 
1977
 
to
 
the
 
present,
 
additional
 
laboratories
not
 
affiliated
 
with
 
coal
 
companies
 
who
 
have
provided analytical data for the Property include:
>
Dickinson Laboratories, Inc.
 
(El Paso, Texas)
 
– no longer in operation.
>
Geochemical
 
Testing
 
(Somerset,
 
Pennsylvania)
 
–
 
accredited
 
by
 
the
National
 
Environmental
Laboratory Accreditation Program
 
(
NELAP
).
>
SGS
 
North
 
America
 
(Sophia,
 
West
 
Virginia)
 
–
 
a
 
leading
 
accredited
 
body
 
and
 
a
Nationally
Recognized Test
 
Laboratory
 
(
NRTL
); currently analyzing samples for Coronado.
Additional accredited coal testing laboratories are utilized for other less frequent analyses on
 
an as-
needed basis.
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
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
25
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.
 
Longwall production has
been de-rated in thinner coal zones.
9.3
 
Opinion of Qualified Person
Sufficient data have 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 are
 
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.
 
The
latter two data types
 
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
 
were
 
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
 
Property
 
were
 
then
 
checked
against the original drill laboratory reports to verify accuracy
 
and correctness.
The amount and areal extent of coal sampling
 
for geological data is generally sufficient to represent
the quality characteristics of
 
the coal horizons
 
and allow for
 
proper market placement of
 
the subject
coal seams.
 
For some portions
 
of the
 
Property, considerable laboratory data are available from core
samples and channel 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 products.
 
Shipped analyses of
 
the coal from
Buchanan mine were reviewed
 
to verify that the coal quality
 
and characteristics were
 
as expected.
 
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
26
Table 10-1
 
below compares the similarity of quality from core samples and coal shipments for: Ash,
Sulfur,
 
BTU, and Volatile Matter.
Table 10-1:
 
Comparison of Core with Shipped Coal Quality
Ash %
Sulfur %
Btu
Volatile Matter %
Core Samples (1.60 Float)
5.18
0.65
14,967
16.76
Coal Shipments (4thQ 2021- 3rdQ 2023)
5.79
0.71
14,847
17.13
 
Note: All values are on a dry basis.
Buchanan
 
has
 
a
 
long
 
history
 
of
 
saleable
 
production
 
in
 
the
 
low-volatile
 
metallurgical
 
markets,
confirming
 
exploration
 
results.
 
Degradation
 
of
 
coking
 
coal
 
characteristics
 
over
 
time
 
is
 
not
anticipated to be an issue.
10.3
 
Lab Information
As
 
noted
 
previously,
 
samples
 
are
 
analyzed
 
at
 
area
 
Laboratories
 
that
 
operate
 
in
 
accordance
 
with
procedures defined under ASTM standards including, but not limited to the following (Note:
 
not all
analytical tests identified in this list have been run on each sample.):
>
ASTM D 4371
 
– Test
 
Method for Determining Washability Characteristics
 
of Coal
>
ASTM D 3174
 
– Method for Ash in the Analysis Sample of Coal and Coke
>
ASTM D
 
4239
 
– Test
 
Methods for
 
Sulphur in
 
the Analysis
 
Sample of
 
Coal and
 
Coke
 
Using High-
Temperature
 
Tube Furnace Combustion Methods
>
ASTM D 5865
 
– Test
 
Method for Gross Calorific Value
 
of Coal and Coke
>
ASTM D 3175
 
– Test
 
Method for Volatile Matter
 
in the Analysis Sample of Coal and Coke
>
ASTM D 3176
– Standard Practice for Ultimate Analysis of Coal and Coke
>
ASTM D 3178
- Test
 
Method for Carbon and Hydrogen in Coal and Coke
>
ASTM D 3179
- Test
 
Method for Nitrogen in Coal and Coke
>
ASTM D 720
 
– Test
 
Method for Free-Swelling Index (
FSI
) of Coal
>
ASTM
 
D
 
5515
-
 
Test
 
Method
 
for
 
Determination
 
of
 
the
 
Swelling
 
Properties
 
of
 
Bituminous
 
Coal
Using a Dilatometer (Arnu)
>
ASTM D 2639
 
– Test
 
Method for Plastic Properties of Coal (Gieseler)
>
ASTM D 3683
– Trace Elements
 
in Coal and Coke Ash by the Atomic Absorption Method
>
ASTM D 1857
– Standard Test
 
Method for Fusibility of Coal and Coke Ash
>
ASTM
 
D
 
2798
–
 
Microscopical
 
Determination
 
of
 
the
 
Reflectance
 
of
 
Vitrinite
 
in
 
a
 
Polished
Specimen of Coal
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
27
Ultimate analysis is a process typically used which gives the composition of coal in terms of carbon,
hydrogen,
 
nitrogen,
 
oxygen,
 
ash,
 
and
 
sulfur
 
without
 
regard
 
to
 
origin.
 
The
 
sum
 
of
 
the
 
carbon,
hydrogen, nitrogen, sulfur,
 
and ash are subtracted from 100 percent to
 
calculate oxygen percent.
Heating value or calorific value is a measure of the heat produced from a
 
unit weight of coal.
 
In the
United States, it is commonly
 
expressed in British thermal
 
units per pound
 
(
Btu/lb.
).
 
Other units are
kilocalories
 
per
 
kilogram
 
(
Kcal/kg
)
 
and
 
kilojoules
 
per
 
gram
 
(
KJ/g
).
 
Heating
 
value
 
is
 
generally
determined by burning a weighed coal sample, in oxygen, in a calorimeter.
As noted
 
previously,
 
since 1958
 
(the earliest
 
coal quality
 
information
 
available),
 
the Property
 
has
been controlled
 
by various
 
mining companies
 
utilizing their
 
own corporate
 
laboratories
 
including:
Island
 
Creek
 
Coal
 
Company
(Keen
 
Mountain,
 
Virginia),
Pocahontas
 
Fuel
 
Company
(Pocahontas,
Virginia), and
Consol
(Library, Pennsylvania).
 
Since
 
1977
 
to
 
the
 
present,
 
additional
 
laboratories
not
 
affiliated
 
with
 
coal
 
companies
 
who
 
have
provided analytical data for the Property include:
>
Dickinson Laboratories, Inc.
 
(El Paso, Texas)
 
– no longer in operation.
>
Geochemical Testing
 
(Somerset, Pennsylvania) – accredited
 
by the
NELAP
.
>
SGS North America
 
(Sophia, West Virginia) – a leading accredited body and a
NRTL
; currently
analyzing samples for Coronado.
Additional accredited coal testing laboratories
 
are utilized for other less frequent analyses on an
as-needed basis
10.4
 
Relevant Results
No critical factors have been found
 
that would adversely affect the recovery
 
of the Reserve.
 
11
 
Mineral Resource Estimates
MM&A independently created a geologic model to define the coal resources at Buchanan.
 
Coal
resources were estimated
 
as of December 31, 2023.
11.1
 
Assumptions, Parameters and Methodology
Geological
 
data
 
were
 
imported
 
into
 
Carlson
 
Mining
®
 
(formerly
 
SurvCADD
®
)
 
geological
 
modelling
software
 
in
 
the
 
form
 
of Microsoft
®
 
Excel
 
files
 
incorporating
 
drill
 
hole
 
collars,
 
seam
 
and
 
thickness
picks, bottom
 
seam elevations
 
and raw
 
and washed
 
coal quality.
 
These data
 
files were
 
validated
prior to importing into the software.
 
Once imported, a geologic model was created, reviewed,
 
and
verified with a key element being a gridded model of coal seam thickness.
 
Resource
 
tonnes
 
were
 
estimated
 
by
 
using
 
the
 
seam
 
thickness
 
grid
 
based
 
on
 
each
 
valid
 
point
 
of
observation and
 
by defining
 
resource confidence
 
arcs around
 
the points
 
of observation.
 
Points of
observation for
 
Measured and
 
Indicated confidence
 
arcs were
 
defined for
 
all valid
 
drill holes
 
that
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
28
intersected
 
the seam
 
using standards
 
deemed acceptable
 
by MM&A
 
based on
 
a detailed
 
geologic
evaluation and a statistical analysis
 
of all drill holes within the projected reserve areas as described
in
Section 11.1.1
.
 
The geological
 
evaluation incorporated
 
an analysis
 
of seam
 
thickness related
 
to
depositional environments, adjacent roof and floor lithologies, and structural influences.
After validating coal seam data and establishing correlations, the thickness and elevation for seams
of
 
economic
 
interest
 
were
 
used
 
to
 
generate
 
a
 
geologic
 
model.
 
Due
 
to
 
the
 
relative
 
structural
simplicity
 
of
 
the
 
deposits
 
and
 
the
 
reasonable
 
continuity
 
of
 
the
 
tabular
 
coal
 
beds,
 
the
 
principal
geological
 
interpretation
 
necessary
 
to
 
define
 
the
 
geometry
 
of
 
the
 
coal
 
deposits
 
is
 
the
 
proper
modeling
 
of
 
their
 
thickness
 
and
 
elevation.
 
Both
 
coal
 
thickness
 
and
 
quality
 
data
 
are
 
deemed
 
by
MM&A to be reasonably sufficient within the resource areas.
 
Therefore, there is a reasonable level
of confidence in the geologic
 
interpretations required for coal resource determination based on the
available data and the techniques applied to the data.
Table 11-1
 
below provides the geological mapping and
 
coal tonnage estimation criteria used for the
coal resource
 
and reserve
 
evaluation.
 
These cut-off
 
parameters
 
have
 
been developed
 
by MM&A
based
 
on
 
its
 
experience
 
with
 
the
 
Coronado
 
property
 
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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
29
Table
 
11-1:
 
General Reserve and Resource Criteria
Item
Parameters
Technical Notes & Exceptions*
•
 
General Criteria
 
 
Reserve
 
Classification
Reserve and Resource
Reliability Categories
Reserve (Proven and Probable)
Resource (Measured, Indicated,
 
and Inferred)
Distances between points of observation are standard
USGS (in meters), respectively, for measured and
indicated and inferred.
Effective Date of Resource Estimate
December 31, 2023
Coal resources were updated for depletion based on
information from Coronado.
 
Effective date for coal
resources is as of December 31, 2023.
Effective Date of Reserve Estimate
December 31, 2023
Coal reserves were updated for depletion based on
information from Coronado.
 
Effective date for coal
reserves is as of December 31, 2023.
Seam Density
Variable, dependent upon seam characteristics
(based on available drill hole quality).
 
In the
absence of laboratory data, estimated by (1)
assuming specific gravity of 1.30 for coal and 2.25
to 2.5 for rock parting, or (2) 1280 kg/m
3
 
to 1324
kg/m
3
 
for a "clean" seam
•
 
Underground-Mineable Criteria
Map Thickness
Total seam thickness
Minimum Seam Thickness
1.2 meters (locally <1.2 m for limited areas
integral to the mine plan)
Minimum Mining Thickness
1.83 meters
Minimum In-Seam Wash Recovery
40 percent
 
Wash Recovery Applied to Coal
Reserves
Based on average yield for drill holes within
reserve area, or in the absence of laboratory
washability data, based on estimated visual
recovery using specific gravities noted above and
95 percent yield on "clean" coal
Out-of-Seam Dilution Thickness for
Run-of-Mine Tonnes Applied to Coal
Reserves
0.05 meters
2243 kg/m³ density used for dilution tonnage estimate
Mine Barrier
61-meter distance from abandoned mines and
sealed or pillared areas.
Adjustments Applied to Coal Reserves
6 percent moisture increase; 5 percent
preparation plant inefficiency
Note: The 6-percent moisture adjustment is
conservative;
 
actual shipped quality from 4thQ of 2021
through 3rdQ of 2023 averaged 8.31 percent (ranging
from 7.95 to 8.62 percent on a quarterly basis).
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 for Classification
MM&A completed a
 
geostatistical analysis on drill
 
holes within
 
the reserve boundaries
 
to determine
the applicability of the common United States classification system for measured and indicated and
inferred coal resources.
 
Historically,
 
the United States has assumed that coal within 0.4 kilometers
of a point of observation represents a measured resource whereas coal between 0.4 kilometer
 
and
1.2
 
kilometers
 
from
 
a
 
point
 
of
 
observation
 
is
 
classified
 
as
 
indicated.
 
Inferred
 
resources
 
are
commonly
 
assumed
 
to
 
be
 
located
 
between
 
1.2
 
kilometers
 
and
 
4.8
 
kilometers
 
from
 
a
 
point
 
of
observation.
 
Per
 
SEC
 
and
 
JORC
 
regulations,
 
only
 
measured
 
and
 
indicated
 
resources
 
may
 
be
considered for reserve classification, respectively
 
as proven and probable reserves.
MM&A
 
performed
 
a
 
geostatistical
 
analysis
 
of
 
the
 
Buchanan 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
 
 
ex962p2i0 ex962p38i2 ex962p38i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
30
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,
 
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 Pocahontas No. 3 Seam
Present in the Buchanan Mine Complex
Figure 11-2:
 
Scatter plot of the Total
 
Seam
Thickness for the Pocahontas No. 3 Seam
Present in the Buchanan Mine 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.
 
 
ex962p2i0 ex962p39i2 ex962p39i1
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
31
Figure 11-3: Variogram of
 
the Total
 
Seam Thickness for the Pocahontas No. 3 Seam
 
Present in the Buchanan Mine 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
of 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 95th-percentile range.
Figure 11-4
shows the
 
results of
 
the DHSA
 
performed on
 
the Pocahontas
 
No. 3
 
seam data
 
for the
Buchanan Mine.
 
DHSA provides hole to hole
 
spacing values; these distances need to
 
be converted
to radius
 
from a
 
central point
 
in order
 
to compare
 
to the
 
historical
 
standards.
 
A summary
 
of the
radius
 
data
 
is shown
 
in
Table
 
11-2
.
 
DHSA
 
prescribes
 
that
 
measured,
 
indicated,
 
and inferred
 
drill
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ex962p40i2 ex962p40i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
32
hole spacing be
 
determined at
 
the 10-percent,
 
20-percent, and
 
50-percent levels
 
of relative
 
error,
respectively.
Figure 11-4: Result of DHSA for the Pocahontas No. 3 Seam Present in the Buchanan Mine
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:
0.71
1.10
2.76
Spherical:
0.71
1.08
2.67
Exponential:
0.67
1.08
3.08
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
 
model
 
recommends
 
using
 
a
 
radius
 
of
 
0.67
kilometers for measured resources compared to the
 
historical value of 0.4
 
kilometers.
 
With respect
to indicated resources,
 
the DHSA falls in
 
line closely with the historical
 
standards.
 
The Exponential
and
 
Spherical
 
models
 
recommend
 
using
 
a
 
radius
 
of
 
1.08
 
kilometers,
 
while
 
the
 
Gaussian
 
model
recommends a
 
radius of
 
1.10 kilometers.
 
These values line
 
up closely with
 
the historical
 
radius of
1.2
 
kilometers.
 
These
 
results
 
have
 
led
 
the
 
QPs
 
to
 
report
 
the
 
data
 
following
 
the
 
historical
classification standards, rather
 
than use the results of the DHSA.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
33
11.2
 
Qualified Person’s
 
Estimates
Mineral
 
resources,
 
representing
 
in-situ
 
coal
 
from
 
a
 
portion
 
of
 
which
 
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, 2023, for property controlled by Coronado.
Table 11-3:
 
Coal Resources Summary as of December 31, 2023
 
Coal Resource (Dry Tonnes, In Situ, Mt)
Resource Quality (Dry)
Area
Measured
Indicated
Inferred
Total
Ash%
Sulfur%
VM%
Inclusive of Reserves
158.9
9.2
0.0
168.1
16
0.8
18
Exclusive of Reserves
30.7
4.3
0.0
34.9
Total 12/31/2023
189.6
13.4
0.0
203.0
 
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 contains 34.9
 
Mt of dry, in-place measured and indicated coal resources exclusive of reserves as of December 31, 2023.
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 resources, formally identified as resources exclusive of reserves, are
located in the Pocahontas
 
No. 3 coal seam.
 
Reasons which may preclude elevation
 
of resources to
reserves include, but are not limited to:
1.
 
Insufficient density of drilling and/or coal quality data available
 
at the time of this evaluation.
2.
 
Unfavorable
 
economics at
 
the PFS
 
level, yet
 
economics could
 
become attractive
 
in the
 
future
under different market
 
conditions.
 
3.
 
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.
 
Multiple resource blocks in the active Buchanan Mine have not been considered as reserve due
to relatively small size and isolation.
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
Section 19
 
developed to
test
 
reserves,
 
the initial
 
economic
 
assessment
 
below is
 
presented
 
on a
 
real basis
 
in 2023
 
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
 
(given that
their irregular and isolated nature
may
 
preclude longwall mining).
 
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-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
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ex962p42i2 ex962p42i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
34
depletion) and cash
 
costs were compared to
 
an assumed sale
 
price of
 
$143 per
 
tonne (FOB loadout),
representing the long-term average
 
price forecast for Buchanan supplied by Coronado.
 
The results
of the analysis are shown
 
below and demonstrate potential profitability on a fully
 
loaded cost basis.
 
Detailed summaries are shown in
Appendix D
.
 
Table
 
11-4:
 
Results of Initial Economic Assessment
Seam
Direct Cash
Transportation,
Washing, Enviro,
G&A
Indirect
Non-Cash
Total Cost
Fully Loaded
P&L
P3
 
$61.76
 
 
$16.84
 
 
$9.39
 
 
$19.29
 
 
$107.28
 
 
$36.03
 
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,
 
the Pocahontas
No.
 
3
 
coal
 
seam
 
at
 
Buchanan
 
demonstrates
 
reasonable
 
thickness
 
consistency
 
according
 
to
 
the
classification system of
measured
 
(0 – 0.4 kilometer),
indicated
 
(0.4 to 1.2
 
kilometers), and
inferred
(1.2
 
to
 
4.8
 
kilometers).
 
MM&A
 
geologists
 
and
 
engineers
 
modeled
 
the
 
deposit
 
and
 
delineated
mineable
 
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 arcs slightly
beyond historically accepted practices due to consistent
 
geological settings.
 
These results have led
the
 
QPs
 
to
 
report
 
the
 
data
 
following
 
the
 
historical
 
classification
 
standards,
 
rather
 
than
 
use
 
the
results of the DHSA.
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
35
Based on the data
 
review,
 
the attendant work
 
done to verify the data
 
integrity and the creation
 
of
an
 
independent
 
geologic model,
 
the
 
QPs
 
believe
 
this
 
is a
 
fair
 
and
 
accurate
 
representation
 
of the
Buchanan coal resources.
 
Moreover,
 
the QPs opine that
 
additional exploration, mine
 
planning and
financial
 
analysis
 
could
 
result
 
in
 
conversion
 
of
 
additional
 
resources
 
to
 
reserves
 
in
 
the
 
future;
however,
 
there is no guarantee
 
that such will be the case
 
until such time as that additional
 
work is
completed.
12
 
Mineral Reserve Estimates
12.1
 
Assumptions, Parameters and Methodology
Coal Reserves are classified as
proven
 
or
probable
 
considering “modifying factors” including mining,
metallurgical, economic, marketing, legal,
 
environmental, social, and governmental
 
factors.
 
>
Proven Coal Reserves
 
are the economically mineable part
 
of a measured coal resource, adjusted
for
 
diluting
 
materials
 
and
 
allowances
 
for
 
losses
 
when
 
the
 
material
 
is
 
mined.
 
It
 
is
 
based
 
on
appropriate
 
assessment
 
and
 
studies
 
in
 
consideration
 
of
 
and
 
adjusted
 
for
 
reasonably
 
assumed
modifying factors.
 
These assessments demonstrate that extraction could be reasonably justified
at the time of reporting.
 
>
Probable Coal Reserves
 
are the economically mineable part
 
of an indicated coal resource, and in
some
 
circumstances
 
a measured
 
coal
 
resource,
 
adjusted
 
for
 
diluting
 
materials
 
and allowances
for
 
losses
 
when
 
the
 
material
 
is
 
mined.
 
It
 
is
 
based
 
on
 
appropriate
 
assessment
 
and
 
studies
 
in
consideration
 
of
 
and
 
adjusted
 
for
 
reasonably
 
assumed
 
modifying
 
factors.
 
These
 
assessments
demonstrate that extraction
 
could be reasonably justified at the time of reporting.
 
Upon completion of delineation
 
and calculation of coal
 
resources, MM&A generated a LOM plan
 
for
Buchanan.
 
The footprint
 
of the
 
reserve area
 
is shown
 
on the
 
map 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
 
Buchanan.
 
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.
At the Buchanan No. 1
 
Mine, a minimum mining
 
height of 1.83 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
 
out-of-seam
dilution (
OSD
).
 
Mine recovery
 
generally varies
 
between 40
 
and 60
 
percent for
 
continuous mining
panels,
 
and 100
 
percent
 
for
 
longwall.
 
Plant
 
recovery
 
is a
 
function
 
of in-seam
 
recovery,
 
OSD and
plant efficiency factor, which is set at 95 percent.
 
Typical entry width is 5.49 meters to 6.10 meters.
Raw,
 
ROM
 
production
 
data
 
outputs
 
from
 
LOM
 
plan
 
sequencing
 
were
 
processed
 
into
 
Microsoft
®
EXCEL spreadsheets
 
and summarized
 
on an
 
annual basis
 
for processing
 
into the
 
economic model.
 
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
36
Average seam densities were
 
estimated to determine raw
 
coal tonnes produced
 
from the LOM
 
plan.
 
Average mine recovery
 
and wash recovery factors were
 
applied to determine coal reserve tonnes.
 
Coal reserve
 
tonnes in
 
this evaluation
 
are reported
 
at a
 
6.0-percent moisture
 
basis and
 
represent
the saleable product from the Property.
Pricing
 
data
 
as
 
provided
 
by
 
Coronado
 
is
 
described
 
in
Section
 
16.2
.
 
The
 
pricing
 
data
 
assumes
 
a
weighted
 
average
 
domestic
 
and
 
international
 
FOB-mine
 
price
 
of
 
approximately
 
$172
 
per
 
metric
tonne for calendar
 
year 2024.
 
The weighted average price
 
decreases to approximately $138
 
to $145
per metric
 
tonne through
 
year 2028
 
and averages
 
approximately
 
$173 per
 
metric tonne
 
over the
LOM.
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, socioeconomic, 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,
 
degas holes,
 
and mine
 
measurements which
have been fully vetted
 
and processed into a
 
geologic model.
 
The geologic model is based on seam
depositional modeling, the
 
interrelationship of overlying and
 
underlying strata on seam mineability,
seam thickness trends,
 
the impact of seam
 
structure (i.e., faulting),
 
intra-seam characteristics,
 
etc.
 
Once
 
the
 
geologic
 
model
 
was
 
completed,
 
a
 
statistical
 
analysis,
 
described
 
in
Section
 
11.1.1
 
was
conducted
 
and
 
a
 
0.4-kilometer
 
radius
 
from
 
a
 
valid
 
point
 
of
 
observation
 
was
 
selected
 
to
 
define
Measured Resources.
 
Likewise,
 
the distance
 
between 0.4
 
and 1.2 of
 
a kilometer
 
radius was
 
selected to
 
define Indicated
Resources.
 
Indicated Resources may convert
 
to Probable Reserves.
 
There
 
are
 
no
 
Inferred
 
Resources
 
(greater
 
than
 
a
 
1.2-kilometer
 
radius
 
from
 
a
 
valid
 
point
 
of
observation) at Buchanan.
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.
 
Coal reserves are presented
on a
 
ROM basis
 
in
Table
 
12-1
.
 
Proven
 
and probable
 
coal reserves
 
were derived
 
from the
 
defined
coal
 
resource
 
considering
 
relevant
 
mining,
 
processing,
 
infrastructure,
 
economic
 
(including
estimates
 
of
 
capital,
 
revenue,
 
and
 
cost),
 
marketing,
 
legal,
 
environmental,
 
socioeconomic
 
and
regulatory factors.
 
The coal reserves,
 
as shown in
Table
 
12-2
, are based
 
on a technical
 
evaluation
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
37
of the geology and a preliminary feasibility study of the coal deposits.
 
The extent to which the coal
reserves
 
may
 
be
 
affected
 
by
 
any
 
known
 
environmental,
 
permitting,
 
legal,
 
title,
 
socioeconomic,
marketing, political, or other relevant
 
issues has been reviewed rigorously.
 
Similarly,
 
the extent to
which
 
the
 
estimates
 
of
 
coal
 
reserves
 
may
 
be
 
materially
 
affected
 
by
 
mining,
 
metallurgical,
infrastructure and other relevant
 
factors has also been considered.
 
Table 12-1:
 
Coal ROM (Moist) Summary as of December 31, 2023
 
Demonstrated Coal Reserves (Mt, Moist ROM)
Quality (Dry)
 
By Reliability Category
By Mining Type
By Control Type
Area /
Mine
Proven
Probable
Total
Surface
UG
Owned
Leased
Subleased
Ash
Sulfur
Vol
Buchanan
145.9
8.5
154.4
0.0
154.4
20.2
125.8
8.4
43
0.7
12
Table 12-2:
 
Coal Reserves Summary (Marketable Sales Basis) as of December 31, 2023
 
Demonstrated Coal Reserves (Wet Ton
 
nes, Washed or Direct Shipped, Mt)
Quality (Dry Basis)
 
By Reliability Category
By Mining Type
By Control Type
Area / Mine
Proven
Probable
Total
Surface
UG
Owned
Leased
Subleased
Ash%
Sulfur%
VM%
Buchanan Mine Complex
87.1
5.0
92.1
0.0
92.1
13.6
73.8
4.8
6
0.7
20
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 6-percent.
 
Actual product moisture is dependent upon
 
multiple geological
factors, operational
 
factors, and
 
product contract
specifications and can
 
exceed 8-percent.
 
As such, the
 
modeled moisture values
 
provide a
level of conservatism for reserve reporting.
As shown below,
 
coal shipments during 2023 (primarily from the northern portion of the Property)
exhibit a year-to-date
 
average quality comparable
 
to quality projected
 
from core samples (refer
 
to
Table 12-2
 
above).
 
>
Moisture content: 8.5%
>
Ash content: 5.9% (db)
>
Sulfur content: 0.7% (db)
>
VM content: 17% (db)
The
 
results
 
of
 
this
 
TRS
 
define
 
an
 
estimated
 
92.1
 
Mt
 
of
 
proven
 
and
 
probable
 
marketable
 
coal
reserves.
 
Of that
 
total, 95
 
percent are
 
proven, and
 
5 percent
 
are probable.
 
There are
 
13.6 Mt
 
of
owned coal reserves and 73.8 Mt
 
of leased coal and 4.8
 
Mt of subleased reserves.
 
All the Buchanan
reserves are considered suitable for the metallurgical
 
coal market, and all are assigned.
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
 
Buchanan
 
was
 
prepared
 
to
 
the
 
level
 
of
 
preliminary
 
feasibility.
 
Mine
projections
 
were
 
prepared
 
with
 
a
 
timing
 
schedule
 
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
.
 
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
38
Based on the preliminary feasibility study and the attendant economic review,
 
the QPs believe this
is a fair and accurate calculation of the Buchanan coal reserves.
13
 
Mining Methods
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)
 
and
Analysis
 
of
Longwall
 
Pillar
 
Stability
(
ALPS
)
 
programs
 
that
 
were
 
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.
Hydrology has not been an issue
 
of concern at Buchanan.
 
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
The
 
Buchanan
 
mine
 
has
 
historically
 
included
 
six
 
continuous
 
mining
 
sections
 
and
 
one
 
longwall
section.
 
This
 
report
 
includes
 
the
 
expansion
 
program
 
that
 
is expected
 
to
 
increase
 
the
 
number of
continuous
 
miner sections
 
to eight
 
by calendar
 
year
 
2029 and
 
add a
 
second longwall
 
mining unit
during
 
the first
 
quarter
 
of
 
2025.
 
Operations
 
at
 
Buchanan
 
by
 
Coronado
 
and
 
its predecessor
 
have
been
 
ongoing
 
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.
Longwall production
 
is scheduled
 
for
 
approximately
 
295 to
 
312 days
 
each year,
 
which represents
production on Monday
 
through Saturday with
 
allowances for holidays
 
and longwall
 
moves.
 
On each
day,
 
the
 
continuous
 
mining
 
sections
 
and
 
longwall
 
produce
 
coal
 
on
 
three
 
shifts.
 
The
 
sections
 
are
configured
 
as
 
regular
 
sections
 
with
 
one
 
continuous
 
miner
 
available
 
for
 
production
 
on
 
each
section.
 
Productivity is
 
planned at
 
the rate
 
of 18.8
 
meters
 
to 20.7
 
meters
 
of advance
 
per shift
 
of
operation for
 
the continuous
 
miner sections, and
 
4.42 meters
 
to 7.32
 
meters per
 
shift of longwall
retreat.
 
A second longwall is scheduled to begin production in the first quarter of 2025.
Carlson Mining software was used
 
by MM&A to generate mine plans
 
for the underground mineable
coal seam.
 
Coronado recently revised the Buchanan
 
mine plan with an independent headgate and
tailgate
 
for
 
longwall
 
panels
 
in
 
the
 
South,
 
West,
 
Northeast
 
and
 
Northern-most
 
districts.
 
Such
 
a
change was made to allow
 
for an effective panel width of 982
 
feet, as opposed to an effective width
of 688 feet
 
used previously.
 
The active area
 
in the North
 
is still based on an
 
effective panel width
of
 
approximately
 
688
 
feet.
 
MM&A
 
incorporated
 
this
 
mine
 
plan
 
revision
 
into
 
the
 
layout
 
and
subsequent reserve estimates contained herein.
 
Mine plans were sequenced
 
based on productivity
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
39
schedules provided by Coronado, which were based on historically achieved productivity levels.
 
All
production
 
forecasting
 
ties
 
assumed
 
production
 
rates
 
to
 
geological
 
models
 
as
 
constructed
 
by
MM&A’s
 
team of geologists and mining engineers.
As shown in
Table
 
13-1
, the areas planned for underground
 
production continue until
 
2042.
 
Clean
coal production varies directly with coal thickness.
Table 13-1:
 
Summary of Production by Year (Tonnes
 
x 1,000)
Mine Name
2024
2025
2026
2027
2028
2029
2030
2031
Buchanan
3,738
4,186
4,249
4,980
5,210
5,728
5,545
5,781
 
Mine Name
2032
2033
2034
2035
2036
2037
2038
2039
Buchanan
5,882
5,935
5,268
5,590
5,378
4,984
5,236
5,589
 
Mine Name
2040
2041
2042
2043
2044
2045
2046
2047
Buchanan
4,183
3,390
1,285
0
0
0
0
0
13.3
 
Mining Related Requirements
Although the continuous miner
 
sections are significantly more
 
expensive to operate
 
on a cost-per-
tonne basis,
 
they are
 
necessary to open
 
up areas
 
of the mine
 
for the
 
longwall.
 
At the
 
time of this
study, Buchanan had 6 operating continuous miner stations that were used to develop main
 
entries
and gate
 
roads in
 
preparation
 
for the
 
longwall.
 
As the mine
 
develops, this
 
number will
 
be able to
be reduced.
An additional
 
requirement at
 
Buchanan is the
 
drilling of degas
 
holes prior to
 
mining.
 
This process
was initially developed
 
as a
 
safety measure to extract
 
methane from the
 
coal seam
 
prior to
 
exposure
to the workforce.
 
As such, it has been very effective.
More
 
recently,
 
the
 
methane
 
extracted
 
has
 
been
 
able
 
to
 
be
 
processed
 
and
 
sold.
 
However,
degasifying of the coal seam will continue as a safety measure regardless.
13.4
 
Required Equipment and Personnel
The Buchanan
 
Mine is
 
currently Coronado’s only longwall
 
operation.
 
The longwall
 
shearing machine
is used for extraction
 
of coal at the production face.
 
A chain conveyor is used
 
to remove coal from
the
 
longwall
 
face
 
for
 
discharge
 
onto
 
the
 
conveyor
 
belt
 
which
 
then
 
ultimately
 
delivers
 
it
 
to
 
an
underground storage
 
bunker.
 
Development for the longwall
 
is conducted by the extraction
 
of coal
from
 
the
 
production
 
faces
 
using
 
continuous
 
miners
 
and
 
haulage
 
using
 
shuttle
 
cars
 
to
 
a
 
feeder-
breaker located at the tail
 
of the section conveyor belt.
 
The feeder-breaker crushes large pieces of
coal and rock
 
and regulates
 
coal feed
 
onto the mine
 
conveyor.
 
Roof-bolting machines are
 
used to
support the
 
roof on
 
the developm
 
ent
 
sections of
 
the
 
longwall mines.
 
Roof-bolting
 
machines are
used to
 
install
 
roof bolts,
 
and battery
 
scoops are
 
available
 
to clean
 
the mine
 
entries and
 
assist in
delivery of mine supplies to
 
work areas.
 
Other supplemental equipment such as
 
personnel carriers,
supply vehicles, etc., are also used daily.
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
40
Mine
 
conveyors
 
typically
 
range
 
in
 
width
 
up to
 
1.83
 
meters.
 
Multiple
 
belt
 
flights
 
are
 
arranged
 
in
series to
 
deliver raw
 
coal to
 
the underground
 
storage.
 
Along the
 
main and
 
sub-main entries
 
and
panels, a
 
travel
 
way is
 
provided for
 
personnel and
 
materials by
 
rubber-tired equipment
 
or on rail.
 
The Buchanan No. 1 Mine
 
utilizes a skip hoist in order to transport ROM coal from the
 
underground
storage
 
bunker
 
to
 
the
 
surface
 
where
 
the
 
coal
 
may
 
be
 
sampled,
 
crushed
 
and
 
washed
 
in
 
the
preparation plant and stockpiled to
 
await shipment.
 
Surface
 
ventilation
 
fans
 
are
 
installed
 
as
 
needed
 
to
 
provide
 
a
 
sufficient
 
volume
 
of
 
air
 
to
 
ventilate
production sections, coal
 
haulage and transport
 
entries, battery charging stations, and
 
transformers
in accordance with approved plans.
 
High-voltage cables deliver power throughout the mine where
transformers reduce voltage for specific equipment
 
requirements.
 
The Mine
 
Improvement and New
Emergency Response Act of 2006
 
(
MINER Act
) requires that carbon monoxide detection systems be
installed
 
along
 
mine
 
conveyor
 
belts
 
and
 
that
 
electronic
 
two-way
 
tracking
 
and
 
communications
systems
 
be
 
installed
 
throughout
 
underground
 
mines.
 
Water
 
is
 
required
 
to
 
control
 
dust
 
at
production sections and along conveyor
 
belts, and to cool electric motors.
 
Water is available
 
from
nearby sources and is distributed within
 
the mine by pipelines
 
as required.
 
A total of 636 salary
 
and
hourly employees are assigned to the mine in 2024, and a total of 717 salary and hourly employees
are
 
assigned
 
to
 
the
 
mine
 
beginning
 
in
 
2029
 
when
 
2
 
longwall
 
sections
 
and
 
8
 
continuous
 
miner
sections
 
are
 
projected
 
to
 
be
 
in
 
operation.
 
The
 
aforementioned
 
staffing
 
levels
 
only
 
represent
employees
 
assigned
 
to
 
the
 
Buchanan
 
Mine.
 
Labor
 
associated
 
with
 
coal
 
processing,
 
water
treatment, as well as general & administrative activities are modeled on
 
a cost-per-ton basis for the
economic analysis in
Section 19
.
 
14
 
Processing and Recovery Methods
14.1
 
Description or Flowsheet
Coronado currently
 
operates a
 
coal preparation
 
plant at
 
Buchanan.
 
The Buchanan Plant
 
operates
at
 
a feed
 
rate
 
of approximately
 
1,270 raw
 
tonnes per
 
hour (
tph
).
 
Coarse
 
material
 
is washed
 
in a
heavy medium vessel, the intermediate-size material is washed in heavy medium cyclones and fine
material is
 
washed using
 
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
 
Central Appalachian
Basin.
 
14.2
 
Requirements for Energy,
 
Water,
 
Material and Personnel
Personnel have historically been sourced from
 
the surrounding communities
 
in Buchanan, Tazewell,
McDowell, and Pike Counties, and have proven to be adequate in numbers to operate the mine.
 
As
mining
 
is
 
common
 
in
 
the
 
surrounding
 
areas,
 
the
 
workforce
 
is
 
generally
 
familiar
 
with
 
mining
practices, and many are experienced miners.
The
 
Buchanan No.
 
1 Mine
 
Complex
 
has
 
sources
 
of water,
 
power,
 
personnel,
 
and
 
supplies readily
available for use.
 
Water is sourced locally from a nearby abandoned underground mine.
 
Electricity
 
 
ex962p2i0
 
 
ex962p49i2 ex962p49i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
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SSOCIATES
,
I
NC
.
41
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
 
Buchanan Preparation
 
Plant services the
 
mine via a
 
skip hoist
 
and conveyor
belt
 
system
 
which
 
transports
 
extracted
 
coal
 
from
 
an
 
underground
 
bunker
 
to
 
the
 
surface
 
facility.
 
The NS rail line serves as the main means of transport from the mine.
As an active operation, the necessary support
 
infrastructure for Buchanan is in place.
 
In addition to
the
 
plant
 
and
 
loadout,
 
there
 
are
 
also
 
portal
 
facilities,
 
including
 
personnel
 
access
 
to
 
the
 
mine,
ventilation fans and a coal hoisting skip shaft.
 
A map of the existing facilities in
Figure 15-1
.
Figure 15-1:
 
Buchanan 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
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
42
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 Buchanan products are as shown in
Table 16-1
.
Table 16-1:
 
Quality Specifications by Product
 
Buchanan
 
HCC
PCI
Moisture (%)
7.50
7.50
Ash (%)
5.50
6.00
Sulfur (%)
0.75
0.85
Volatile Matter (%)
18.00
18.00
Btu/lb.
N/A
14,926
Fluidity (ddpm)
130
N/A
MMR (%)
1.69
N/A
CSR
40
N/A
FSI
8.5
N/A
Note:
 
All Specs are dry basis except Moisture and Thermal
All the mine production
 
serves the metallurgical
 
markets.
 
Metallurgical coal
 
is marketed
 
as a low-
volatile (typically less than 23 percent volatile matter
 
content) product.
16.2
 
Price Forecasts
Coronado provided
 
MM&A with
 
price forecasts
 
for the
 
Buchanan operation
 
in terms
 
of real
 
2024
(January) real dollars.
1
 
MM&A applied a 2% annual inflation rate
 
to the Coronado price forecast
 
in
order
 
to
 
estimate
 
revenues
 
in
 
nominal
 
dollars.
 
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.
 
Concurrent
 
with
 
the
 
active
 
operation,
 
Buchanan’s
 
production
 
is
 
assumed
 
to
 
enter
 
domestic
 
and
international
 
low volatile
 
coking coal
 
markets.
 
Pricing provided
 
by Coronado
 
assumes applicable
quality adjustments.
 
Pricing was provided through calendar year 2042.
 
Coal price forecasts for the Buchanan 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 Buchanan, since all mining,
preparation and marketing is done in-house, the remaining
 
contracts required are:
>
Transportation
 
–
 
The
 
Mine
 
contracts
 
with
 
NS
 
to
 
transport
 
the
 
coal
 
to
 
either
 
the
 
domestic
customers or to the Pier 6 export terminal for
 
overseas shipment.
1
 
The Coronado pricing forecast
 
was provided to MM&A in real 2024 (January) dollars
 
based on Coronado’s
 
internal
budget sales pricing for the first
 
5 years of the forecast.
 
Beyond the first 5 years,
 
Coronado’s forecast
 
is based on
sales price information from AME Group
 
adjusted for transportation
 
costs to an FOB Mine basis.
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
43
>
Handling
 
–
 
Contracts
 
for
 
loading
 
vessels
 
for
 
export
 
sales
 
are
 
necessary.
 
These
 
are
 
typically
handled by annual negotiations based on projected shipments.
>
Sales
– Sales
 
contracts
 
are a
 
mix of
 
spot and
 
contract
 
sales.
 
With the
 
volatility
 
of the
 
market,
long-term contracts are not typically written.
17
 
Environmental Studies, Permitting
 
and Plans,
Negotiations or Agreements with Local Individuals
 
17.1
 
Results of Studies
MM&A completed
 
a Limited Phase
 
I Environmental
 
Site Assessment (
ESA
) on the
 
Property in April
2016 on behalf
 
of Coronado.
 
Coronado reports not having
 
conducted such a study
 
since the MM&A
study.
 
The
 
ESA
 
completed
 
by
 
MM&A
 
included
 
a
 
site
 
inspection,
 
review
 
of
 
historical
 
records,
 
a
database
 
search
 
of
 
state
 
and
 
federal
 
regulatory
 
records
 
and
 
interviews
 
to
 
identify
 
potential
recognized
 
environmental
 
conditions
 
(
RECs
) that
 
may
 
create
 
environmental
 
liability
 
for
 
the
 
sites.
 
MM&A concluded that no long-term liabilities existed at the time of the ESA.
Based on the former ESA completed by MM&A, it is the
 
QPs’ opinion that Buchanan generally has a
record
 
consistent
 
with
 
industry
 
standards
 
regarding
 
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
Based on
 
a study
 
commissioned by
 
Coronado in
 
June 2020,
 
the current
 
Buchanan refuse
 
disposal
site adjacent
 
to the
 
preparation
 
plant has
 
a capacity
 
of 29
 
million cubic
 
meters
 
(
CM
) as
 
currently
designed;
 
with
 
an
 
additional
 
lift
 
(No.
 
11),
 
the
 
capacity
 
is 37
 
million
 
CM.
 
Projected
 
requirements
within
 
the
 
MM&A
 
financial
 
model
 
are
 
28.0
 
million
 
CM.
 
Permitting
 
for
 
such
 
an
 
expansion
 
is
anticipated to be achievable.
17.3
 
Permit Requirements and Status
All
 
mining
 
operations
 
are
 
subject
 
to
 
federal
 
and
 
state
 
laws
 
and
 
must
 
obtain
 
permits
 
to
 
operate
mines, coal preparation and related facilities,
 
haul roads, and other incidental surface disturbances
necessary for
 
mining to
 
occur.
 
Permits
 
generally
 
require
 
that
 
the
 
permittee
 
post
 
a
 
performance
bond in
 
an amount
 
established by the
 
regulatory program to provide
 
assurance that any
 
disturbance
or liability
 
created during
 
mining operations
 
is properly
 
restored
 
to an
 
approved post-mining
 
land
use and
 
that all
 
regulations and
 
requirements
 
of the
 
permits are
 
fully satisfied
 
before
 
the bond
 
is
returned
 
to
 
the
 
permittee.
 
Significant
 
penalties
 
exist
 
for
 
any
 
permittee
 
who
 
fails
 
to
 
meet
 
the
obligations
 
of
 
the
 
permits
 
including
 
cessation
 
of
 
mining
 
operations,
 
which
 
can
 
lead
 
to
 
potential
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
44
forfeiture
 
of the
 
bond.
 
Any company,
 
and its
 
directors,
 
owners and
 
officers, which
 
are subject
 
to
bond forfeiture can be denied future permits under the program.
2
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
 
are also
 
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 Property,
 
but future permits
 
are required
 
to maintain
 
and expand production.
 
Portions of the
Property
 
are
 
located
 
near
 
local
 
communities.
 
Regulations
 
prohibit
 
mining
 
activities
 
within
 
91.44
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.
 
Buchanan, 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
)
and
United
 
States
 
Fish
 
and
 
Wildlife
 
(
USFW
)
involvement with state
 
programs.
The active Mining permit currently held by Buchanan is shown in
Table 17-1.
Table 17-1:
 
Buchanan Mining Permit
Type
Permit ID
Permit Name
$ Bond
Current
Status
Issued Date
Expiration
Date
1
Hectares
NPDES No.
Coal Underground
1402152
Buchanan No. 1
Mine
$2,478,000
Active
03/08/1983
03/08/2023
334.00
VA0082152
1.
 
Permit renewal is currently under agency review. The existing permit will continue after the current expiration date
 
until the renewal is
approved.
 
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.
 
Sediment control is required during the
establishment of vegetation, and
 
bond release generally requires
 
a minimum
 
five-year period of
 
site
2
 
Monitored under the Applicant Violator
 
System (AVS) by
 
the Federal Office of Surface Mining
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
45
maintenance, water sampling, and
 
sediment control following
 
mine completion.
 
This requirement
is
 
reduced
 
to
 
two
 
years
 
for
 
certain
 
operations
 
involving
 
re-mining.
 
Reclamation
 
of underground
mines includes
 
closure and
 
sealing of
 
mine openings
 
such as
 
portals and
 
shafts in
 
addition to
 
the
items listed above.
 
Estimated
 
costs
 
for
 
mine closure,
 
including water
 
quality monitoring
 
during site
 
reclamation,
 
are
included in the financial
 
model.
 
As with all
 
mining companies, an accretion
 
calculation is performed
annually
 
so the
 
necessary Asset
 
Retirement
 
Obligations
 
(
ARO
) can
 
be shown
 
as
 
a Liability
 
on the
balance sheet.
17.6
 
Qualified Person’s
 
Opinion
The Buchanan Mine is an operating facility; all necessary permits for
 
current production have been
obtained.
 
The QPs know
 
of no reason
 
that any
 
permits revisions
 
that may be
 
required cannot
 
be
obtained.
 
Estimated expenditures for site
 
closure and reclamation are included in the financial model for this
site.
18
 
Capital and Operating Costs
18.1
 
Capital Cost Estimate
The production sequence selected for
 
a property must consider the proximity
 
of each reserve area
to
 
coal
 
preparation
 
plants,
 
river
 
docks
 
and
 
railroad
 
loading
 
points,
 
along
 
with
 
suitability
 
of
production equipment to coal seam conditions.
 
The in-place infrastructure was evaluated, and any
future needs were planned to a level suitable for a Preliminary Feasibility Study and included in the
Capital Forecast.
Coronado
 
provided
 
MM&A
 
with
 
an
 
inventory
 
of
 
operating
 
equipment
 
available
 
at
 
Buchanan.
 
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.
 
 
ex962p2i0 ex962p54i2 ex962p13i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
46
A summary of the estimated capital for the Property is provided
 
in
Figure 18-2
 
below.
 
Figure 18-1:
 
CAPEX
18.2
 
Operating Cost Estimate
Coronado provided historical and a preliminary five-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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
47
Mandated Sales Related Costs such as Black Lung Excise are
 
summarized in
 
Table 18-1.
Table 18-1:
 
Estimated Coal Production Taxes
 
and Sales Costs
Description of Tax or Sales Cost
Basis of Assessment
Cost
Federal Black Lung Excise Tax - Underground
Per Tonne
$1.21
Federal Reclamation Fees – Underground
Per Tonne
$0.13
Virginia Reclamation Tax – Underground
Per Tonne
$0.05
Virginia Severance Tax
2%
Royalties – Underground
Percentage of Revenue
4.2%
Notes:
 
1.
 
Federal black lung excise tax is paid only on coal sold domestically.
 
MM&A assumed 18% 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:
 
Buchanan Mine 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
Remaining
 
Total
2024
2025
2026
2027
2028
2029
2030
2031
LOM Average
ROM Production Tonnes
162.0
7.5
8.6
9.2
10.9
10.9
9.4
8.8
9.2
6.2
Yield
56.88%
49.81%
48.47%
45.96%
45.83%
47.77%
61.00%
63.22%
62.62%
60.30%
Saleable Production Tonnes
92.1
3.7
4.2
4.2
5.0
5.2
5.7
5.5
5.8
3.8
 
Thermal Tonnes
9.2
0.4
0.4
0.4
0.5
0.5
0.6
0.6
0.6
0.4
Domestic & Non-Asia Export Met Tonnes
31.5
1.3
1.4
1.5
1.7
1.8
2.0
1.9
2.0
1.3
Export Met Tonnes
51.4
2.1
2.3
2.4
2.8
2.9
3.2
3.1
3.2
2.1
 
Total Saleable Tonnes
92.1
3.7
4.2
4.2
5.0
5.2
5.7
5.5
5.8
3.8
 
Cash Costs per Tonne:
Mining Costs
$68.92
$74.56
$73.04
$72.54
$64.35
$62.90
$60.61
$65.10
$64.31
$70.75
Processing and Transport
$9.92
$27.52
$15.54
$10.68
$9.75
$9.46
$7.60
$7.50
$7.70
$8.98
Sales Related Costs
$11.09
$10.77
$9.72
$8.27
$8.98
$9.37
$10.42
$10.62
$10.82
$11.99
G&A
$2.71
$3.96
$2.74
$2.75
$2.40
$2.35
$2.39
$2.44
$2.49
$2.77
 
Total Cash Costs
$92.65
$116.81
$101.04
$94.24
$85.47
$84.07
$81.02
$85.65
$85.33
$94.49
19
 
Economic Analysis
19.1
 
Assumptions, Parameters and Methods
A pre-feasibility LOM plan was prepared by MM&A for the Buchanan operations.
 
MM&A prepared
mine projections
 
and production
 
timing forecasts
 
based on
 
coal seam
 
characteristics.
 
Production
timing
 
was
 
carried
 
out
 
from
 
2024
 
to
 
depletion
 
(exhaustion)
 
of
 
the
 
coal
 
reserve
 
areas,
 
which
 
is
projected for the year 2042.
 
All costs and prices are based on
 
year-end 2023 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.
 
 
 
ex962p2i0
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
48
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 year-end 2023 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
 
Buchanan are
 
estimated
 
to be
 
4.2% of
 
the
sales revenue.
The
 
projection
 
model
 
also
 
includes
 
consolidated
 
income
 
tax
 
calculations
 
at
 
the
 
Coronado
 
level,
incorporating statutory
 
depletion calculations, as well
 
as state income
 
taxes, and a
 
federal tax rate
of
 
21%.
 
To
 
the
 
extent
 
the
 
mine
 
generates
 
net
 
operating
 
losses
 
for
 
tax
 
purposes,
 
the
 
losses
 
are
carried over to offset future taxable
 
income.
 
The terms “cash flows” and “project cash flows” used
in this report refer to after tax
 
cash flows.
Consolidated cash flows are driven
 
by annual sales
 
tonnage, which at steady-state level ranges from
a peak of 5.9 million
 
tonnes in 2033 to
 
a low of 1.2 million tonnes
 
in 2042.
 
Projected consolidated
revenue ranges from $585.2 million to $1.099 billion at a steady state.
 
Revenue totals $15.9 billion
for the project’s life.
 
 
ex962p2i0 ex962p57i2 ex962p57i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
49
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 $494.3 million in
 
2039 and totals $6.1 billion over
 
the project’s
life.
 
Capital expenditures total $576.6 million through 2028 and $1.4 billion over the project’s
 
life.
 
Coal price
 
forecasts
 
for
 
coal products
 
were prepared
 
by Coronado
 
for
 
its active
 
operations.
 
Such
prices
 
were
 
used
 
for
 
the
 
revenue
 
input
 
into
 
the
 
financial
 
model.
 
Sales
 
variable
 
costs
 
such
 
as
production royalties and severance
 
taxes were based upon the revenue
 
input.
19.2
 
Results
The
 
pre-feasibility
 
financial
 
model,
 
prepared
 
by
 
MM&A
 
for
 
this
 
TRS,
 
was
 
developed
 
to
 
test
 
the
economic viability of
 
each coal resource
 
area.
 
The results of
 
this financial model
 
are not intended
to represent
 
a bankable feasibility
 
study,
 
as may be
 
required for
 
financing of any
 
current or future
mining operations contemplated but are intended
 
to prove the economic viability of the estimated
coal reserves.
 
Optimization of the LOM plan was outside the scope of the engagement.
Figure 19-1
 
shows the annual variance of cash costs per ton.
 
Table 19-1
 
shows LOM tonnage, P&L,
and EBITDA for Buchanan.
Figure 19-1:
 
Cash Costs per Tonne
 
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
50
As shown above, the Buchanan Mine’s average
 
cash cost ranges between approximately
 
$81 and
$117 per tonne for most of the operating period.
Table 19-1:
 
Life-of-Mine Tonnage,
 
P&L before Tax,
 
and EBITDA
 
LOM
LOM
P&L
LOM
EBITDA
 
Tonnes
Pre-Tax P&L
Per Tonne
EBITDA
Per Tonne
Buchanan
92,135
$5,590,394
$60.68
$7,386,829
$80.17
As
 
shown
 
in
Table
 
19-1,
 
the
 
Buchanan
 
Mine
 
shows
 
positive
 
EBITDA
 
over
 
the
 
LOM.
 
Overall,
Coronado’s
 
consolidated
 
operations
 
show positive
 
LOM
 
P&L
 
and
 
EBITDA
 
of
 
$5.6
 
billion
 
and
 
$7.4
billion,
 
respectively.
 
A summary of
 
the key
 
financial performance metrics
 
projected through
 
2031
is provided below in
Table 19-2
.
Table 19-2:
 
Summary of Buchanan Key Financial Performance Metrics (2024-2031)
 
YE 12/31
YE 12/31
YE 12/31
YE 12/31
YE 12/31
YE 12/31
YE 12/31
YE 12/31
Remaining
 
Total
2024
2025
2026
2027
2028
2029
2030
2031
LOM Average
ROM Production Tonnes
 
162.0
 
 
7.5
 
 
8.6
 
 
9.2
 
 
10.9
 
 
10.9
 
 
9.4
 
 
8.8
 
 
9.2
 
 
6.2
 
Yield
56.88%
49.81%
48.47%
45.96%
45.83%
47.77%
61.00%
63.22%
62.62%
60.30%
Saleable Production Tonnes
 
92.1
 
 
3.7
 
 
4.2
 
 
4.2
 
 
5.0
 
 
5.2
 
 
5.7
 
 
5.5
 
 
5.8
 
 
3.8
 
 
Thermal Tonnes
 
9.2
 
 
0.4
 
 
0.4
 
 
0.4
 
 
0.5
 
 
0.5
 
 
0.6
 
 
0.6
 
 
0.6
 
 
0.4
 
Domestic & Non-Asia Export Met Tonnes
 
31.5
 
 
1.3
 
 
1.4
 
 
1.5
 
 
1.7
 
 
1.8
 
 
2.0
 
 
1.9
 
 
2.0
 
 
1.3
 
Export Met Tonnes
 
51.4
 
 
2.1
 
 
2.3
 
 
2.4
 
 
2.8
 
 
2.9
 
 
3.2
 
 
3.1
 
 
3.2
 
 
2.1
 
 
Total Saleable Tonnes
 
92.1
 
 
3.7
 
 
4.2
 
 
4.2
 
 
5.0
 
 
5.2
 
 
5.7
 
 
5.5
 
 
5.8
 
 
3.8
 
 
Cash Costs per Tonne:
Mining Costs
 
$68.92
 
 
$74.56
 
 
$73.04
 
 
$72.54
 
 
$64.35
 
 
$62.90
 
 
$60.61
 
 
$65.10
 
 
$64.31
 
 
$70.75
 
Processing and Transport
 
$9.92
 
 
$27.52
 
 
$15.54
 
 
$10.68
 
 
$9.75
 
 
$9.46
 
 
$7.60
 
 
$7.50
 
 
$7.70
 
 
$8.98
 
Sales Related Costs
 
$11.09
 
 
$10.77
 
 
$9.72
 
 
$8.27
 
 
$8.98
 
 
$9.37
 
 
$10.42
 
 
$10.62
 
 
$10.82
 
 
$11.99
 
G&A
 
$2.71
 
 
$3.96
 
 
$2.74
 
 
$2.75
 
 
$2.40
 
 
$2.35
 
 
$2.39
 
 
$2.44
 
 
$2.49
 
 
$2.77
 
 
Total Cash Costs
 
$92.65
 
 
$116.81
 
 
$101.04
 
 
$94.24
 
 
$85.47
 
 
$84.07
 
 
$81.02
 
 
$85.65
 
 
$85.33
 
 
$94.49
 
 
EBITDA per Tonne
 
$80.17
 
 
$55.41
 
 
$39.15
 
 
$43.47
 
 
$55.72
 
 
$60.60
 
 
$80.31
 
 
$78.90
 
 
$82.51
 
 
$92.25
 
 
Expansion CapEx ($M)
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
 
$-
 
Maintenance CapEx ($M)
 
$1,361.0
 
 
$135.4
 
 
$149.9
 
 
$113.9
 
 
$94.1
 
 
$83.2
 
 
$70.2
 
 
$49.2
 
 
$72.8
 
 
$42.3
 
 
Total CapEx
 
$1,361.0
 
 
$135.4
 
 
$149.9
 
 
$113.9
 
 
$94.1
 
 
$83.2
 
 
$70.2
 
 
$49.2
 
 
$72.8
 
 
$42.3
 
After Tax
 
Cash Flows
 
were
 
developed in
 
order to
 
calculate
 
the NPV
 
for
 
this Property.
 
The NPV
 
is
estimated
 
to be
 
$1.804 billion
 
at a
 
discount rate
 
of 10.0%.
 
A summary
 
of the
 
Buchanan after-tax
cash flow is shown in
Table 19-3
.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
51
Table
 
19-3:
 
Project Cash Flow Summary (000)
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
Total
2024
2025
2026
2027
2028
Production & Sales tonnes
92,136
3,738
4,186
4,249
4,980
5,210
Total Revenue
$15,924,429
$643,698
$586,802
$585,176
$703,140
$753,693
EBITDA
$7,386,829
$207,113
$163,862
$184,715
$277,497
$315,709
Net Income
$4,381,299
$113,324
$64,939
$71,959
$135,601
$156,242
Net Cash Provided by Operating Activities
$6,095,981
$136,440
$157,841
$166,973
$228,295
$268,684
Purchases of Property,
 
Plant, and Equipment
$(1,360,951)
$(135,370)
$(149,944)
$(113,912)
$(94,118)
$(83,209)
Net Cash Flow
$4,735,031
$1,070
$7,897
$53,061
$134,177
$185,475
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2029
2030
2031
2032
2033
2034
Production & Sales tonnes
5,728
5,545
5,782
5,882
5,936
5,268
Total Revenue
$924,020
$912,413
$970,382
$1,007,050
$1,036,474
$938,266
EBITDA
$459,985
$437,470
$477,050
$500,805
$518,098
$430,129
Net Income
$263,089
$241,288
$280,342
$310,395
$330,940
$268,398
Net Cash Provided by Operating Activities
$360,606
$373,729
$392,820
$411,198
$422,794
$372,147
Purchases of Property,
 
Plant, and Equipment
$(70,177)
$(49,244)
$(72,844)
$(58,404)
$(48,601)
$(65,801)
Net Cash Flow
$290,429
$324,486
$319,977
$352,794
$374,193
$306,346
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2035
2036
2037
2038
2039
2040
Production & Sales tonnes
5,590
5,378
4,984
5,236
5,589
4,183
Total Revenue
$1,015,529
$996,590
$942,014
$1,009,435
$1,099,026
$839,126
EBITDA
$493,255
$471,648
$463,185
$557,984
$630,017
$392,781
Net Income
$319,755
$303,536
$295,288
$366,694
$422,733
$244,806
Net Cash Provided by Operating Activities
$393,113
$391,050
$382,466
$436,349
$494,321
$365,966
Purchases of Property,
 
Plant, and Equipment
$(54,932)
$(67,914)
$(63,646)
$(75,866)
$(42,226)
$(35,019)
Net Cash Flow
$338,181
$323,135
$318,820
$360,483
$452,095
$330,947
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2041
2042
2043
2044
2045
2046
Production & Sales tonnes
3,390
1,285
-
-
-
-
Total Revenue
$693,501
$268,094
$-
$-
$-
$-
EBITDA
$336,112
$69,413
$-
$-
$-
$-
Net Income
$203,036
$(341)
$(6,037)
$(2,443)
$(1,255)
$(649)
Net Cash Provided by Operating Activities
$290,379
$132,563
$(48,316)
$(16,427)
$(8,378)
$(4,273)
Purchases of Property,
 
Plant, and Equipment
$(49,148)
$(30,577)
$-
$-
$-
$-
Net Cash Flow
$241,231
$101,986
$(48,316)
$(16,427)
$(8,378)
$(4,273)
 
 
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
YE12/31
 
2047
2048
2049
2050
2051
2052
Production & Sales tonnes
-
-
-
-
-
-
Total Revenue
$-
$-
$-
$-
$-
$-
EBITDA
$-
$-
$-
$-
$-
$-
Net Income
$(341)
$(0)
$(0)
$(0)
$(0)
$(0)
Net Cash Provided by Operating Activities
$(4,358)
$-
$-
$-
$-
$-
Purchases of Property,
 
Plant, and Equipment
$-
$-
$-
$-
$-
$-
Net Cash Flow
$(4,358)
$-
$-
$-
$-
$-
 
 
 
ex962p2i0
 
 
ex962p60i2 ex962p17i1
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
52
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 changes in sales price and operating cost estimates, and slightly
sensitive to changes in capital cost estimates.
20
 
Adjacent Properties
20.1
 
Information Used
No proprietary information associated with neighboring properties was
 
used as part of this study.
21
 
Other Relevant Data
 
and Information
MM&A performed
 
a previous
 
audit of
 
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
 
2016
 
on
 
behalf
 
of
 
Coronado.
 
MM&A
 
has
 
subsequently
conducted Joint Ore Reserve Committee (
JORC
) compliant resource and reserve assessments of the
Buchanan assets as of: (1) December 31, 2017, (2) December 31, 2020, (3)
 
December 31, 2021, and
(4) December 31, 2022.
 
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 Buchanan’s
 
JORC-compliant
 
coal
 
reserves.
 
MM&A utilized
 
these former
 
preliminary
 
 
ex962p2i0
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
53
feasibility
 
studies
 
as the
 
basis of
 
an updated
 
study
 
which meets
 
those standards
 
set forth
 
by the
JORC Code and SEC in Regulation S-K 1300.
22
 
Interpretation and
 
Conclusions
22.1
 
Conclusion
Sufficient data have 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 are
 
of sufficient
 
quantity and reliability
 
to reasonably
support the coal resource and coal reserve estimates in this TRS.
The
 
geological
 
data
 
and
 
preliminary
 
feasibility
 
study,
 
which
 
consider
 
mining
 
plans,
 
revenue,
 
and
operating
 
and
 
capital
 
cost
 
estimates
 
are
 
sufficient
 
to
 
support
 
the
 
classification
 
of
 
coal
 
reserves
provided herein.
This geologic evaluation conducted in conjunction with the preliminary feasibility study is sufficient
to conclude
 
that the
 
92.1 Mt
 
of marketable
 
underground coal
 
reserves identified
 
on the
 
Property
are
 
economically
 
mineable under
 
reasonable
 
expectations
 
of market
 
prices for
 
metallurgical
 
coal
products, estimated operation costs,
 
and capital expenditures.
22.2
 
Risk Factors
Risks have
 
been identified
 
for
 
operational,
 
technical and
 
administrative
 
subjects addressed
 
in the
Pre-Feasibility
 
Study.
 
A risk
 
matrix has
 
been constructed
 
to present
 
the risk
 
levels for
 
all the
 
risk
factors identified and quantified in
 
the risk assessment process.
 
The risk matrix and
 
risk assessment
process are modelled
 
according to 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
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
54
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 I (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
 
12.
 
No residual
 
risks are
 
rated
Very High.
 
One (1) residual risk is rated High.
 
Seven (7) 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.
 
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 this report.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
55
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 Ievel (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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
56
22.2.4
 
Development of the Risk Matrix
Risks have
 
been identified for
 
the technical,
 
operational, and
 
administrative
 
subjects addressed
 
in
the TRS.
 
The risk matrix and risk assessment process
 
are modelled according to 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 circumsta
 
nces.
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 ten
 
percent.
 
Increasing values
 
are assigned
 
to each
 
higher
probability
 
of occurrence,
 
culminating
 
with the
 
value
 
of 5
 
assigned to
 
incidents considered
 
to
 
be
almost certain to occur.
22.2.4.2
 
Consequence Level Table
Table 22-2
 
lists the consequence levels.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
57
Table 22-2:
 
Consequence Level Table
Correlation of Events in Key Elements of the Project Program
 
to Event Severity Category
Category
Severity of
the Event
Financial Impact
of the Event
Unplanned
Loss of
Production
(Impact on
Commercial
Operations)
Events Impacting
on the
Environment
Events Affecting the Program's
Social and Community
Relations
Resultant Regulatory /
Sovereign Risk
Events Affecting Occupational Health &
Safety
1
Insignificant
< USD $0.5
million
≤ 12 hours
Insignificant loss of
habitat; no
irreversible effects
on water,
 
soil and
the environment.
Occasional nuisance impact on
travel.
-
 
Event recurrence avoided by corrective
action through established procedures
(Engineering, guarding, training).
2
Minor
USD $0.5 million
to $2.0 million
≤ 1 day
No significant
change to species
populations; short-
term reversible
perturbation to
ecosystem
function.
Persistent nuisance impact on
travel.
 
Transient adverse
media coverage.
-
 
First aid – lost time.
 
Event recurrence
avoided by corrective action through
established procedures.
3
Moderate
USD $2.0 million
to $10.0 million
≤ 1 week
Appreciable change
to species
population;
medium-term (≤10
years) detriment to
ecosystem
function.
Measurable impact on travel
and water/air quality.
 
Significant adverse media
coverage / transient public
outrage.
Uncertainty securing or
retaining essential
approval / license.
Medical Treatment –
permanent
incapacitation.
 
Avoiding event
recurrence requires modification to
established corrective action
procedures
.
Change to regulations
(tax; bonds; standards).
4
Major
USD $10.0
million to $50.0
million
1 to 2 weeks
Change to species
population
threatening
viability; long-term
(>10 years)
detriment to
ecosystem
function.
Long-term, serious impact on
travel and use of water
resources; degradation of air
quality; sustained and effective
public opposition.
Suspension / long-delay
in securing essential
approval / license.
Fatality.
 
Avoiding event recurrence
requires modification to established
corrective action procedures and staff
retraining.
Change to laws (tax;
bonds; standards).
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
58
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
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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
59
The
 
lowest
 
rated
 
consequence
 
is
 
assigned
 
the
 
value
 
of
 
1
 
and
 
is
 
described
 
as
 
an
 
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
 
12 hours 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 Buchanan Mine Complex is located in Buchanan and
 
Tazewell
 
Counties, Virginia and operates a
longwall section with supporting continuous mining
 
sections.
 
Operations are projected to continue
in the present mode until reserves are depleted in 2042.
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
 
7.1,
 
which
 
is
 
defined
 
as
Moderate.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
60
Table 22-4:
 
Risk Assessment Matrix
 
 
 
 
 
 
 
 
 
Consequence
Critical
>$50 MM
8,9
 
 
 
 
 
Major
$10-50MM
 
2
 
6
 
 
Moderate
$2-10 MM
11
1,4
3
 
 
 
Minor
$0.5-$2 MM
 
 
12
5
7
 
Low
<$0.5 MM
 
 
10
 
 
 
 
<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.
Offsetting
 
the
 
geological
 
and
 
coal
 
resource
 
risks
 
are
 
the
 
massive
 
size
 
of
 
the
 
controlled
 
property
which allows large
 
areas to be
 
mined in
 
the preferred mine areas
 
sufficiently away from areas
 
where
coal
 
quality
 
and
 
mineability
 
may
 
be
 
less
 
favorable.
 
This
 
flexibility,
 
combined
 
with
 
the
 
extensive
work done to define the reserve, reduces the
 
risk at Buchanan below that of
 
other mine properties.
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.
3
4
12
Optimize mine plan to
increase resource
recovery; develop
mine plan to provide
readily available
alternate mining
locations to sustain
expected production
level.
2
3
6
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.
2
5
10
Develop mine plan to
provide readily
available alternate
mining locations to
sustain expected
production level;
modify coal sales
agreements to reflect
coal quality.
2
4
8
 
 
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Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
ARSHALL
M
ILLER
&
A
SSOCIATES
,
I
NC
.
61
22.2.8.2
 
Environmental
MM&A completed
 
a Limited Phase
 
I Environmental
 
Site Assessment
 
(
ESA
) on the
 
Property in April
2016 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.
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 mining areas.
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.
 
Prepare and submit
permits well in advance of
needs.
 
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
 
 
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Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
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&
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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.
 
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 mines are developed and
 
extended, observation of geological, hydrogeological and
geotechnical
 
conditions
 
leads
 
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
 
 
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Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
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monitoring,
 
vigilance,
 
and
 
routine
 
mine
 
ventilation.
 
Very
 
high
 
methane
 
concentrations
 
may
 
be
present at greater depths, as
 
experienced in the
 
Pocahontas No. 3 seam
 
at Buchanan Mine
 
Complex
in Virginia.
 
High methane
 
concentrations
 
may require
 
degasification
 
of the
 
coal seam
 
via surface
and/or underground
 
methods to
 
assure safe
 
mining.
 
The Buchanan
 
Mine has
 
operated
 
safely for
many years in one of the most intense methane environments
 
in the United States through careful
management of coal seam degasification, gob degasification
 
and mine-ventilation procedures.
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 occur at Buchanan.
 
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
 
Availability of Supplies and Equipment
The industry
 
has periodically
 
experienced
 
difficulty receiving
 
timely delivery
 
of mine
 
supplies and
equipment.
 
Availability
 
issues
 
often
 
accompanied
 
boom
 
periods
 
for
 
coal
 
demand.
 
Any
 
future
delivery
 
of
 
supplies
 
and
 
equipment
 
delays
 
are
 
expected
 
to
 
be
 
temporary
 
with
 
limited
 
impact
 
on
production.
 
 
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Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
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Table 22-12:
 
Availability of Supplies and Equipment (Risk 10)
Aspect
Impact
Control Measures
Initial Risk Level
Mitigation
Measures
Residual Risk Level
P
C
R
P
C
R
Disruption of availability
for supplies and
equipment.
Temporary interruption of
production.
Force majeure provision
in coal sales agreements
to limit liability for delayed
or lost sales.
3
2
6
Work closely with
customers to
assure delayed
coal delivery rather
than cancelled
sales; monitor
external conditions
and increase
inventory of critical
supplies;
accelerate delivery
of equipment when
possible.
3
1
3
22.2.8.5.4
 
Labor
Work stoppage due
 
to labor
 
protests are considered
 
unlikely and are
 
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 mentorship of new employees.
Table
 
22-13:
 
Labor – Work Stoppage (Risk 11)
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.
1
3
3
Develop plan for
employee
communications
and legal support to
minimize impact of
secondary boycott
activities.
1
3
3
Table 22-14:
 
Labor – Retirement (Risk 12)
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
 
further define
 
their
resource base and to optimize the LOM plan.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
Coronado Global Resources Inc.
 
Statement of Coal Resources and Reserves for the
 
Buchanan Mine Complex in Accordance with
 
the JORC Code and United States SEC Regulation S-K 1300 as of December 31, 2023
 
Central Appalachian Coal Basin
Virginia, USA
M
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&
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24
 
References
Publicly available information from various
 
state and federal agencies
 
was used where relevant.
25
 
Reliance on Information Provided by the Registrant
A summary of
 
the information provided by Coronado relied upon
 
by MM&A for the purposes
 
of this
TRS is provided in
Table 25-1
.
Table 25-1:
 
Information from Registrant
 
Relied Upon by MM&A
 
Category
Information Provided by Coronado
Report Section
Marketing
Long-term price forecast used
 
in financial projections
16.2
 
Legal
Mineral control and surface
 
control rights as shown on maps
3.2, 3.3
Environmental
Permit and bonding information
17.3
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Appendix
A
MM&A QUALIFICATIONS
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Appendix
B
MAP
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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
ACPS
Analysis of Coal Pillar Stability
ASTM
ASTM International
AVS
Applicant Violator System
Btu/lb.
British Thermal Unit per pound
Carlson
Carlson Mining – formerly SurvCADD
®
 
– a prevalent software package used for
modeling in the Appalachian region
CBM
Coalbed Methane
CFR
Code of Federal Regulations
Coronado
Coronado Global Resources Inc.
CSR
Coke strength after
 
reaction
CSX
CSX Corporation, a rail-based freight transportation
 
company
Demonstrated
reserves
Demonstrated reserves are the sum of proven
 
and probable reserves.
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
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.”
 
HCC
Hard coking coal
In situ
Its natural position; said specific of a rock, soil, or fossil when in the situation
in which was originally formed or deposited
Indicated
Resources
Indicated resources are those lying between 0.4-kilometer
 
and 1.2-kilometer
radius from such an observation point and reported herein as in-situ mineral
resources.
Inferred Resources
Inferred resources lie more than a
 
1.2-kilometer radius from a valid point of
measurement but less than 4.8 kilometers from one and reported
 
herein as
in-situ mineral resources.
JORC Code
Australasian Code for Reporting of Exploration
 
Results, Mineral Resources and
Ore Reserves
lb. SO
2
 
/ mm Btu
Pounds per sulfur dioxide per million British thermal units
LOM
Life-of-mine
M&R
Maintenance and repair
 
 
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Appendix C
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Abbreviation
Definition
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
Mt
Million metric tonnes
NELAP
National Environmental Laboratory
 
Accreditation Program
NIOSH
National Institute for Occupational Safety
 
and Health
NRTL
Nationally Recognized Test
 
Laboratory
NS
Norfolk Southern Corporation, a rail-based freight transportation
 
company
O&M
Operating and maintenance
 
OSD
Out-of-seam dilution
P&L
Profit and loss before tax
 
PCI
Pulverized coal injection
P.E.
Professional Engineer
Preliminary
Feasibility Study
“…as a comprehensive study of a range of options for the technical and
economic viability of a mineral project that has advanced to a stage
 
where a
qualified person has determined (in the case of underground mining) a
preferred mining method, or in the case of surface mining) a pit configuration,
and in all cases has determined an effective method of mineral processing
 
and
an effective plan to sell the product. The study’s
 
financial analysis must have
the level of detail necessary to demonstrate, at the time of reporting, that
extraction is economically viable. In addition, as noted in the proposed
 
 
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Appendix C
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3
Abbreviation
Definition
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 Buchanan and Tazewell
 
Counties, 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.”
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
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.
tph
tonnes per hour
 
TRS
Technical
 
Report Summary
USA
United States of America
USFW
United States Fish and Wildlife
USGS
United States Geologic Survey
 
VALMIN Code
Australasian Code for Public Reporting of Technical
 
Assessments and
Valuations of Mineral
 
Assets
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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, 2023
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.
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.
 
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
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). The entire coal interval drilled is generally analyzed.
>
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
ASTM
International (
ASTM
)
 
standards including, but not limited to; washability (ASTM D4371); ash
(ASTM D3174); sulfur (ASTM D4239); Btu/lb. (ASTM D5865); volatile matter (ASTM D3175); Free
Swell Index (
FSI
) (ASTM D720).
>
Geophysical tools are calibrated by the logging company and where possible, validated using a
calibration hole.
Verification of
sampling and assaying
>
The verification of significant intersections by either independent or alternative company
personnel.
>
The use of twinned holes.
>
Documentation of primary data, data entry procedures, data verification, data storage
(physical and electronic) protocols.
>
Discuss any adjustment to assay data.
>
All coal intersection data used to generate the geologic model has been cross referenced with the
lithological and geophysical logs by MM&A.
>
Laboratory quality was adjusted from dry basis to reflect the anticipated marketable product
moisture.
>
Coal quality results were verified by spot-check with laboratory analysis sheets by MM&A before
inclusion into the geologic model and use in the resource estimate.
Location of data points
>
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys),
trenches, mine workings and other locations used in Mineral Resource estimation.
>
Specification of the grid system used.
>
Quality and adequacy of topographic control.
>
Due to the long history of exploration by various parties on the Properties, a wide variety of survey
techniques exist for documentation of data point locations.
 
Many of the older exploration drill
holes appear to have been located by ground survey; more recently completed drill holes are
often located by high-resolution Global Positioning System (
GPS
) units.
>
Grid systems used are typically the State Plane Coordinate System pertinent to each property.
 
>
Topography is based on either the USGS topographic 7.5-minute quadrangle maps or on recent
aerial photogrammetry as necessary (subject to availability).
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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3
Criteria
JORC Code explanation
Commentary
Data spacing and
distribution
>
Data spacing for reporting of Exploration Results.
>
Whether the data spacing and distribution is sufficient to establish the degree of geological
and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation
procedure(s) and classifications applied.
>
Whether sample compositing has been applied.
>
Spacing and distribution of data point information may vary from seam to seam within each
mining area.
 
The areas estimated for coal resource and coal reserve tonnes have been limited so
that the data spacing and distribution is sufficient to establish the degree of geological continuity
appropriate for the estimation and classification of the coal tonnes.
>
MM&A performed a geostatistical analysis 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.
 
>
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, generally 1-2 degrees, 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 ensure 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.
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 license to operate in the area.
>
The Coronado coal resources are located within the United States
 
of America in the states of
Virginia; West Virginia; and Pennsylvania.
 
Control of these Properties is governed by multiple
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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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&
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SSOCIATES
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NC
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4
Criteria
JORC Code explanation
Commentary
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 with. sedimentary,
stratigraphic deposition.
>
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.
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 show drill hole locations; however, a tabulation of the 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.
>
If a coal seam has been bench sampled he individual analyses for the coal plies would be weight-
averaged to represent the total of recoverable coal to be included in the quality model.
>
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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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ILLER
&
A
SSOCIATES
I
NC
.
5
Criteria
JORC Code explanation
Commentary
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.
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.
 
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 and evaluations of
the Property and adjoining properties throughout the years.
>
A site visit to Mon Valley was conducted as recently as December 2023, although there are no
facilities or surface expression of the coal reserves on the Property.
 
Planned surface areas for mine
facilities were viewed.
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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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&
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NC
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6
Criteria
JORC Code explanation
Commentary
Dimensions
>
The extent and variability of the Mineral Resource expressed as length (along strike or
otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral
Resource.
>
The subject coal resource areas mostly exist in discreet, individual deposits of highly variable
dimensions, shapes and depth below the ground surface.
>
Such factors are best depicted in the maps contained in the TRS.
>
Details of the parameters are cited within the TRS and included in the table of Cut-off Parameters
listed in Section 11.1 of the TRS.
 
Estimation
and
modelling techniques
>
The nature and appropriateness
 
of the estimation technique(s) applied and key assumptions,
including treatment of extreme grade values, domaining, interpolation parameters and
maximum distance of extrapolation from data points. If
 
a computer assisted estimation
method was chosen include a description of computer software and parameters used.
>
The availability of check estimates, previous estimates and/or mine production records
 
and
whether the Mineral Resource estimate
 
takes
 
appropriate account
 
of such
 
data.
>
The assumptions made regarding
 
recovery of by-products.
>
Estimation of deleterious elements or other non-grade variables of economic
 
significance (e.g.
sulphur for acid mine drainage characterisation).
>
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.
>
Geological data was imported into Carlson Mining
®
 
(formerly SurvCADD
®
) geological modelling
software in the form of Microsoft
®
 
Excel files incorporating, drill hole collars, seam and thickness
picks, bottom seam elevations and raw and washed coal quality. These data files were validated prior
to importing into the software.
>
Once imported, a geologic model was created.
>
The geological model was verified and reviewed.
 
>
Resources were estimated by defining seam thickness at each point of observation and by defining
resource confidence arcs around the points of observation.
>
Points of observation for Measured and Indicated confidence arcs were defined for all drill holes that
intersected the seam.
 
>
As prescribed by the common United States classification system the following distances from points
of observation were used to define the corresponding Resource category arcs:
-
Inferred Resources – greater than 3,960 feet (1.2 kilometers) but less than 15,840 feet (4.8
kilometers)
-
Indicated Resources – 3,960 feet (1.2 kilometers)
-
Measured Resources – 1,320 feet (0.4 kilometers)
>
The use of the standards commonly used in the United States are appropriate and customary for this
resource jurisdiction and deposition type.
>
MM&A performed a geostatistical analysis test of the Coronado data sets using the Drill Hole Spacing
Analysis (
DHSA
) method to justify coal resource confidence levels.
>
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 from the region.
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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
M
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&
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SSOCIATES
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NC
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7
Criteria
JORC Code explanation
Commentary
>
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 and Northern Appalachian coal basin.
 
This
experience includes technical and economic evaluations of numerous properties in the region for the
purposes of determining the economic viability of the subject coal reserves.
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.
>
A study completed on behalf of Coronado for Mon Valley has identified a Preferred Site for refuse
disposal at Pangburn with capacity of 22.6 million cubic meters.
 
Estimated requirements for
Pangburn and Shaner combined is 29.7 million tonnes or approximately 13.2 million cubic meters.
 
Permitting for such a facility is anticipated to be achievable.
>
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.
 
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
.
8
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, this data was 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,
December 31, 2020, December 31, 2021,
 
and December 31, 2022.
>
MM&A performed a previous audit of the Properties in year 2017 for Coronado based on U.S.
Securities and Exchange Commission (SEC) Industry Guide 7 and USGS Circular 891 standards.
 
>
Earlier audits were performed by various independent consultants for predecessors-in-title to
Coronado and at various levels of detail depending on the clients concerns and the allotted time for
completion.
 
Previous audits and reviews defined the primary coal resource areas and estimated the
recoverable tonnes for each seam based on the expected mining methods.
 
>
Additionally, MM&A has performed proprietary evaluations for predecessors-in-title to Coronado,
which encompass portions of the Properties included in this TRS.
Discussion of relative
accuracy/ confidence
>
Where appropriate a statement of the relative accuracy and confidence level in the Mineral
Resource estimate using an approach or procedure deemed appropriate by the Competent
Person. For example, the application of statistical or geostatistical procedures to quantify the
relative accuracy of the resource within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors that could affect the relative
accuracy and confidence of the estimate.
>
The statement should specify whether it relates to global or local estimates, and, if local, state
the relevant tonnages, which should be relevant to technical and economic evaluation.
Documentation should include assumptions made and the procedures used.
>
The relative accuracy of and confidence in the coal tonnage and quality estimates provided herein are
judged to be in conformance with current industry best-practices.
 
>
The representation of average coal quality characteristics should be understood to represent a
reasonably representative sampling that is generally indicative of coal quality and does not represent
a statistically rigorous approach to coal quality modeling.
>
Resource estimation has been completed using standard coal estimation methods which are deemed
appropriate for this deposit.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
>
These statements of relative accuracy and confidence of the estimate should be compared with
production data, where available.
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, 2023 – Northern and Central Appalachian Coal Basins – Virginia,
West Virginia and Pennsylvania, USA – February 2024 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 and reserve
evaluations throughout the years.
>
A site visit
 
was conducted to Mon Valley as recently as December 2023 to assess proposed
surface mine facilities areas.
 
Currently there are no mine facilities or surface expression of the
coal reserve on the Property.
Study status
 
>
The type and level of study undertaken to enable Mineral Resources to be converted to Ore
Reserves.
>
A preliminary feasibility LOM plan was prepared by MM&A for active and proposed mines.
 
>
The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to
convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will
have determined a mine plan that is technically achievable and economically viable, and
that material Modifying Factors have been considered.
>
This geologic evaluation conducted in accordance with JORC and SEC standards and in
conjunction with the preliminary feasibility study is sufficient to conclude that the surface,
highwall miner and underground coal reserves identified on the Properties are economically
mineable under reasonable expectations of market prices for thermal and metallurgical coal
products, estimated operation costs, and capital expenditures.
>
The pre-feasibility financial models, prepared by MM&A for this TRS, was developed to test the
economic viability of each coal resource area.
>
Proved and probable coal reserve were derived from the defined in-situ coal resource considering
relevant processing, economic (including independent estimates of capital, revenue and cost,
marketing, legal, environmental, socioeconomic, and regulatory factors).
Cut-off parameters
>
The basis of the adopted cut-off grade(s) or quality parameters applied.
>
The cut-off parameters were tailored for each of the Coronado properties to be in accordance
with mining/ processing capabilities and market conditions prevalent at each operation.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
>
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 and Northern
Appalachian coal basin.
 
This experience includes technical and economic evaluations of
numerous properties in the region for the purposes of determining the economic viability of the
subject coal reserves.
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 2024 to depletion (exhaustion) of the coal reserve areas.
>
The choice, nature and appropriateness of the selected mining method(s) and other mining
parameters including associated design issues such as pre-strip, access, etc.
>
The room-and-pillar mining method was selected to model the underground mining resources,
utilizing continuous miners for coal extraction, shuttle cars for production section haulage and
roof bolters for roof control, with the exception that the Buchanan Mine also uses longwall
shearers, armored face conveyors, and hydraulic self-advancing roof support.
 
The resource areas
located above drainage are relatively small and often have irregular boundaries.
The Buchanan
Mine in Buchanan County, Virginia is the only active longwall mine currently being operated by
Coronado.
>
The Coronado underground mining resource areas which are located above-drainage require an
access road and mine access development along the outcrop, whereas below-drainage mines are
accessed via shaft or slope based on other proposed surface infrastructure locations and/or
surface property control.
 
>
The surface mining method selected utilizes highly productive hydraulic shovels, front-end
loaders, large tractors and rock trucks for overburden removal.
 
The mobile equipment spreads
adapt readily to winding coal outcrops for contour surface mining and are effective for point-
removal and area mining applications.
>
Application of highwall and auger mining units is an effective method to recover coal resources
not suitable for underground mining and under excessive cover for surface mining.
>
The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope sizes, etc.),
grade control and pre-production drilling.
>
Mining plans for potential underground mines were developed by MM&A.
 
Pillar stability was
tested by MM&A using the
Analysis of Coal Pillar Stability (ACPS
) program that was developed by
the
National Institute for Occupational Safety and Health (
NIOSH
)
.
 
>
Coronado must obtain approved mining plans from
United States Department of Labor Mine
Safety and Health Administration (
MSHA
)
that define safety parameters for the highwalls
developed during contour and area mining.
 
MM&A’s planning model does not require input of
specific highwall design parameters, but provides for timing of mining within mine plan polygons
that is representative of the operation performance attained at Central Appalachia surface mines.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
>
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 (principal) seam and 0.15 meters in thickness when
less than 0.8 meters from a principal seam.
 
The maximum cumulative area mining strip ratio is
generally 20:1 for thermal coal and 30:1 for metallurgical coal.
 
Some areas were assessed for
their economic viability at higher ratios, and were included as reserves if deemed economic.
 
For
contour surface mining, a minimum of 38-meter bench is provided to support HWM.
>
HWM and Auger Mining Resources: HWM cut depth (penetration) is established at a maximum of
244 meters.
 
The minimum mineable coal thickness is limited at 0.6 meters. For coal seams less
than 0.8 meters thick, roof and/or floor characteristics must allow OSD cutting to maintain a 0.8-
meter minimum cutting height.
Auger mining cut depth is established at an average of 91 meters.
 
The minimum mineable coal thickness is limited at 0.5 meters.
>
The mining dilution factors used.
>
Underground Mining Reserves:
 
The planning model assigns minimum mining heights of 1.4 to 1.8
meters for mains and panel development.
 
At the Buchanan Mine, a minimum mining height of
1.8 meters was used due to the longwall mining method being employed.
 
For coal seams thinner
than the assigned mining height, the difference between the coal seam height and assigned
mining height consists of OSD.
 
In all cases a minimum of 0.05 meters of OSD was assumed, with
the exception of the Mon Valley mines, where a minimum 0.15 meters of OSD was assumed due
to weaker floor strata.
>
Surface Mining Reserves:
 
Area mining is generally limited to a cumulative overburden ratio of
30:1 and a 15:1 ratio for contour mining.
 
Exceptions were considered for mining of metallurgical
grade coal where deemed economical.
 
It is assumed that careful cleaning of exposed coal pits will
result in minimal OSD.
>
HWM and Auger Mining Reserves:
 
The mining plan assumes that the HWM cutting height is a
minimum of 76 to 99 centimeters for clearance purposes.
 
When the coal seam is less than 76 to
99 centimeters thick, OSD is 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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
>
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 0.000001% of the total LOM production for
Logan.
 
None of this coal was included in the estimate of reserves.
>
The infrastructure requirements of the selected mining methods.
>
Underground Mining Resources:
 
The continuous mining method provides for the extraction of
coal from the production faces using continuous miners (and longwall shearing machine at
Buchanan) and haulage using shuttle cars or battery haulers to a feeder-breaker located at the tail
of the section conveyor belt.
 
The feeder-breaker crushes large pieces of coal and rock and
regulates coal feed onto the mine conveyor.
 
A chain conveyor is used to remove coal from the
longwall face at the Buchanan Mine for placement onto the conveyor belt which is ultimately
delivered to an underground storage bunker.
 
Roof-bolting machines are used to install roof bolts,
and battery scoops are available to clean the mine entries and assist in delivery of mine supplies
to work areas.
 
Surface ventilation fans are installed as needed to provide a sufficient volume of
air to ventilate production sections, coal haulage and transport entries, battery charging stations,
and transformers in accordance with approved plans.
>
Coronado currently operates three coal preparation plants, one each at the Buchanan, Logan
County and Greenbrier Divisions.
 
The Buchanan Plant operates at a feed rate of approximately
907 raw tonnes per hour (
tph
), whereas the Saunders Plant (Logan County Division) has a nominal
feed rate of 816 tph, and the Mountaineer Plant (Greenbrier Division) operates at 544 tph.
MM&A has included capital estimates for construction of additional coal preparation plants at the
Russell County and Mon Valley Complex for
 
the purposes of this TRS.
 
>
Surface Mining Resources: The surface mining mobile equipment spreads advance the contour
and area mining pits while systematically reclaiming the trailing side of pits where coal has been
removed.
 
The coal haul roads are extended and maintained as the pits advance.
 
Support
facilities are maintained nearby but away from the active mining, and include storage areas for
blasting agents, fuel and lubricants, and mine supplies along with maintenance facilities and
offices.
 
Most of 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
 
 
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Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
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 was utilized to develop average coal quality characteristics
mining site.
 
These average coal quality characteristics were then utilized as the basis for
determining the various markets into which the saleable coal will likely be placed.
>
Any assumptions or allowances made for deleterious elements.
>
No significant effects on product quality are anticipated from dilution material; float product
quality was used to model final product quality.
>
The existence of any bulk sample or pilot scale test work and the degree to which such
samples are considered representative of the orebody as a whole
>
No bulk sample or pilot scale work has been completed.
>
For minerals that are defined by a specification, has the ore reserve estimation been based
on the appropriate mineralogy to meet specifications?
>
Notwithstanding the complexity of the coal quality data set, the seams of the central and
northern Appalachian coalfields have a long history of providing both high-Btu thermal coals and
high-, mid- and low-volatile coking coals with favorable metallurgical
 
properties.
Environmental
 
>
The status of studies of potential environmental impacts of the mining and processing
operation. Details of waste rock characterisation and the consideration of potential sites,
status of design options considered and, where applicable, the status of approvals for
process residue storage and waste dumps should be reported.
>
A study completed on behalf of Coronado has identified a Preferred Site for refuse disposal at
Pangburn with capacity of 22.6 million cubic meters.
 
Estimated requirements for Pangburn and
Shaner combined is 29.7 million tonnes or approximately 13.2 million cubic meters.
 
Permitting
for such a facility is anticipated to be achievable
.
>
MM&A completed a Limited Phase I Environmental Site Assessment (
ESA
) on the Buchanan
property in April 2016, and on the Logan County and Greenbrier Properties in May 2017 on behalf
of Coronado.
>
MM&A identified one REC at Greenbrier associated with stained soil and gravel near a fueling and
maintenance area.
 
Coronado reported to MM&A that satisfactory clean-up efforts were
completed at Greenbrier.
>
Based on these former ESAs completed by MM&A, it is MM&A’s opinion that Coronado has a
generally typical coal industry record of compliance with applicable mining, water quality, and
environmental laws.
 
Estimated costs for mine closure, including water quality monitoring during
site reclamation, are included in the TRS financial models.
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; Winifrede, 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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
>
All ROM production is currently planned for either truck transportation from the mines to the
processing or shipping facilities, or in some cases there is either a current or planned mine mouth
preparation plant and barge/rail loading facility.
 
>
There is a network of public highways that provide serviceable coal haul routes and private,
internal roads on the Properties would be developed as may be needed.
 
Rail service to the
Properties is most readily provided by NS and CSX
with connections to both domestic consumers
and international trans-shipment points.
 
NS track is located across the Monongahela River from
the proposed Pangburn Hollow load-out facility.
 
Coal would be shipped to customers via barge
and rail and sold as both metallurgical and thermal products.
 
Costs
 
>
The derivation of, or assumptions made, regarding projected capital costs in the study.
>
The methodology used to estimate operating costs.
>
Coronado provided historical and 5-year budget operating costs for its active mines for MM&A’s
review.
 
MM&A used the historical and/or budget cost information as a reference and developed
personnel schedules for each mine.
 
Hourly labor rates and salaries were based upon information
contained in Coronado’s financial summaries.
 
Fringe benefit costs were developed for vacation
and holidays, federal and state unemployment insurance, retirement, workers’ compensation and
pneumoconiosis, casualty and life insurance, healthcare and bonuses.
 
A cost factor for mine
supplies was developed that relates expenditures to mine advance rates for roof control costs and
other mine supply costs at underground mines.
 
Other factors were developed for maintenance
and repair costs, rentals, mine power, outside services and other direct mining costs.
>
Surface mine direct operating costs were developed as a function of overburden ratio for repair
and maintenance supplies, diesel fuel, explosives and blasting, and miscellaneous supplies and
services.
 
Operating costs for highwall mines are based on costs per ROM tonne estimates.
 
Other
cost factors were developed for coal preparation plant processing, refuse handling, coal loading,
trucking, property taxes, and insurance and bonding.
 
Appropriate royalty rates were assigned for
production from leased coal lands and sales taxes were calculated for state severance taxes, the
federal black lung excise tax, and federal and state reclamation fees.
>
Capital schedules were developed by MM&A for mine development, infrastructure, and on-going
capital requirements for the life of each projected mine.
>
Staffing levels were prepared and operating costs estimated by MM&A for each projected mine.
 
MM&A utilized historical cost data provided by Coronado and its own knowledge and experience
to estimate direct and indirect operating costs.
 
>
Allowances made for the content of deleterious elements.
>
No allowances have been made for deleterious elements; no impact to quality from deleterious
elements is anticipated.
>
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 real dollars per metric tonne.
 
MM&A applied a 2% inflation
factor in order to estimate the prices in nominal dollars.
>
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
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
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 real dollars per metric tonne.
 
MM&A applied a 2% inflation
factor in order to estimate the prices in nominal dollars.
>
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 real dollars per metric tonne.
 
MM&A applied a 2% inflation factor in order
to estimate the prices in nominal dollars.
>
The Greenbrier property is not considered material to Coronado’s business or financial conditions,
and thus no update was completed for Greenbrier in 2024.
 
Resources exclusive of reserves, as
well as reserves, are based on assumed long-term average price as of December 31, 2022 provided
by Coronado, representing Coronado’s long-term average price forecast for
 
Greenbrier at that
time.
>
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 real dollars per metric tonne.
 
MM&A applied a 2% inflation
factor in order to estimate the prices in nominal dollars.
>
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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
>
Raw ROM production that requires washing is currently processed through Coronado owned and
operated coal preparation plants.
 
>
ROM coal that does not require further processing is delivered directly to the loading points for
sizing and delivery to customers.
 
Coronado has access to two rail-loading points serviced by the
Norfolk Southern Corporation (
NS
)
 
and two rail-loading points serviced by
CSX Corporation
(
CSX
)
.
>
Price and volume forecasts and the basis for these forecasts.
>
Carlson Mining
®
 
was used by MM&A to generate mine plans for underground-
 
and surface-
mineable coal seams.
 
Underground mine plans were sequenced based on productivity schedules
provided by Coronado, which were based on historically achieved productivity levels.
 
Surface
mine plans were generated under productivity assumptions (bank cubic yard per shift) as
provided by Coronado and reviewed by MM&A, again based heavily on productivity levels
achieved by Coronado.
 
All production forecasting ties assumed production rates to geological
models as constructed independently by MM&A’s team of geologists and mining engineers.
>
Coronado provided MM&A with price forecasts for all Properties.
 
Customer coal pricing is
derived from market observed forward estimates based on global economic supply and demand
analysis which is applied to mine plan sales volumes and product mix and is supplemented with
Coronado’s in-house knowledge of applicable rail transportation charges, ocean freight charges
and port charges.
 
Coal price forecasts for the various products were provided by Coronado for
various coal markets in terms of US real dollars per metric tonne.
 
MM&A applied a 2% inflation
factor in order to estimate the prices in nominal dollars.
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 real dollars per metric tonne.
 
MM&A applied a 2% inflation
factor in order to estimate the prices in nominal dollars.
>
All costs and prices are based on year-end 2023 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.
 
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Production timing was carried out from 2024 to depletion (exhaustion) of the coal reserve areas,
which is projected for the year 2101.
>
The all-mines average cash cost ranges between approximately $73 and $338 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
$1.804 billion, $155.1 million, $563.4 million, $616.8 million and
 
$62.7 million, respectively. The
Grenbrier NPV is based on December 31, 2022 coal sales price information provided by Coronado
as described previously.
 
>
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 19 underground mines, 15
surface mines, and 16 processing, loadout or related facilities.
 
MM&A is unaware of any obvious
or current Coronado permitting issues that are expected to prevent the issuance of future
permits.
 
Coronado, along with all Central and Northern Appalachian basin coal producers, is
subject to a level of uncertainty regarding future clean water permits due to
United States
Environmental Protection Agency
(
EPA
)
 
involvement with state programs.
Classification
 
>
The basis for the classification of the Ore Reserves into varying confidence categories.
Whether the result appropriately reflects the Competent Person’s view of the deposit. The
>
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.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Commentary
proportion of Probable Ore Reserves that have been derived from Measured Mineral
Resources (if any).
>
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 548 million tonnes for Coronado as follows:
a)
 
Buchanan =
 
154 Mt
b)
 
Logan
 
=
 
135 Mt
c)
 
Greenbrier=
 
12 Mt
d)
 
Russell =
 
50 Mt
e)
 
Mon Valley =
 
197 Mt
 
>
Coronado controls a total of 333 Mt (moist basis) of marketable coal reserves for Coronado as of
December 31, 2023 (total may not add due to rounding).
 
Of that total, 74 percent are proved,
and 26 percent are probable.
 
Total reserves by complex are as follows:
a)
 
Buchanan =
 
92 Mt
b)
 
Logan
 
=
 
71 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,
December 31, 2020, December 31, 2021,
 
and December 31, 2022.
>
MM&A performed a previous audit of the Properties in year 2017 for Coronado based on
U.S.
Securities and Exchange Commission (
SEC
)
 
Industry Guide 7 standards.
 
Earlier audits were
performed by various independent consultants for predecessors-in-title to Coronado and at
various levels of detail depending on the clients concerns and the allotted time for completion.
 
Previous audits and reviews defined the primary coal resource areas and estimated the
recoverable tonnes for each seam based on the expected mining methods.
>
Additionally, MM&A has performed proprietary evaluations for predecessors-in-title to Coronado,
which encompass portions of the Properties included in this TRS.
Discussion of relative
accuracy/ confidence
 
>
Where appropriate a statement of the relative accuracy and confidence level in the Ore
Reserve estimate using an approach or procedure deemed appropriate by the Competent
Person. For example, the application of statistical or geostatistical procedures to quantify
the relative accuracy of the reserve within stated confidence limits, or, if such an approach
is not deemed appropriate, a qualitative discussion of the factors which could affect the
relative accuracy and confidence of the estimate.
>
Operations on the Properties by Coronado and its predecessors have been on-going for many
years.
 
>
MM&A is confident that the mine plans and financial models are reasonably representative to
provide an accurate estimation of coal reserves.
>
Mine development and operation have not been optimized within the TRS.
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
Northern and Central Appalachian Coal Basins –
 
Virginia, West Virginia and Pennsylvania, USA
 
Appendix E:
 
JORC Table 1
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Commentary
>
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 washouts.
 
The risk is considered to be probable.
 
The impact is expected to be
temporary with little material impact on mine sustainability.
>
Environmental Risk.
 
Numerous federal and state permits are required to operate coal mines and
mine surface facilities. Permitting rules are complex and may change over time, making
compliance difficult or impossible.
>
Water Quality.
 
Permit requirements to fulfill Clean Water Act obligations are subject to
modification.
 
The probability of water quality changes having a material impact on mine
operations is possible.
 
As a contemporary example, the selenium discharge issue that affects
western Canadian and Central Appalachian Basin operators has only recently emerged as a
concern and its ultimate impact has not been determined.
>
New Permits.
 
Permit protests by environmental groups and individuals can contribute to permit
delays or denial and increase the cost of permitting and delay development.
 
Surface mining
activities, coal refuse disposal and construction of access roads in mountainous terrain often
require storage of material in valley fills.
 
Authority to dispose of fill material into waters of the
United States must be granted by the
United States Army Corps of Engineers (
COE
)
.
 
COE permits
are increasingly difficult to obtain.
>
Regulatory Requirements.
 
Adverse impact from regulatory changes is considered to be probable.
 
The impact will likely affect the broader industry and is not expected to result in mine closure.
>
Market Risk.
 
Metallurgical and thermal coal markets ultimately depend upon the global steel and
thermal coal demand and are considered to be volatile.
 
Currently, the US coal market has seen a
decline in demand for thermal coal due to thermal plant closures, as a result of new air and water
pollution regulations, and competition from other commodities used for power generation such
as natural gas.
 
This has resulted in an overall decline in CAPP coal production.
 
Continued
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
 
 
ex962p2i0
 
 
 
 
 
 
 
 
 
 
 
Statement of Coal Resources and Reserves
in Accordance with SEC and the JORC Code as of December 31, 2023
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
and skilled employees due to retirement as the workforce ages.
 
The problem is industry-wide
and the impact is expected to be temporary and have no sustained impact on coal production.
>
Availability of Equipment and Supplies.
 
Risk of equipment and supply availability is likely to be
temporary and should not have a sustained adverse impact on the production of coal.
>
Transportation Delay.
 
Interruption of coal transport services by river or rail is considered to be
probable but unlikely to have a sustained impact on coal production.
>
It is recognised that this may not be possible or appropriate in all circumstances. These
statements of relative accuracy and confidence of the estimate should be compared with
production data, where available.
>
Mine plans, productivity expectations and cost estimates generally reflect historical performance
and efforts have been made to adjust plans and costs to reflect future conditions.