About Warrior Met Coal

Warrior Met Coal, Inc., together with its subsidiaries, operates as a U.S.-based, environmentally and socially minded supplier to the global steel industry. The company is dedicated entirely to mining non-thermal steelmaking coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia. The company is a large-scale, low-cost producer and exporter of premium quality met or steelmaking coal, also known as hard coking coal (‘HCC’), operating highly efficient longwall operations in the company’s underground mines based in Alabama, Mine No. 4 and Mine No. 7. The company’s steelmaking coal production totaled 6.9 million metric tons in 2023. The company’s natural gas operations remove and sell natural gas from its owned and leased coal seams by reducing natural gas levels in its mines. The company’s underground mining operations are headquartered in Brookwood, Alabama. The company’s two operating mines and Blue Creek are located approximately 300 miles from the company’s export terminal at the Port of Mobile in Alabama, which to be the shortest mine-to-port distance of any U.S.-based steelmaking coal producer. The company sells its coal to a diversified customer base of blast furnace steel producers, primarily located in Europe, South America and Asia. The company has a shipping time and distance advantage serving its customers throughout the Atlantic Basin relative to competitors located in Australia and Western Canada. The company’s HCC, mined from the Southern Appalachian region of the United States, is characterized by low-to-high volatile matter (‘VM’) and high coke strength after reaction (‘CSR’). These qualities make the company’s coal ideally suited as a coking coal for the manufacture of steel. The company’s Mine No. 4 steelmaking coal transitioned in the second half of the year from a Mid Vol to a High Vol A quality coal that typically trades at a larger discount to the price of Mine No. 7 coal. The company primarily targets the East Coast High Vol A indices price for the company’s Mine No. 4 coal. The steelmaking coal from the company’s Mines No. 4 and No. 7 is sold as high-quality Low Vol and High Vol A steelmaking coal. Mines No. 4 and No. 7 are located near Brookwood, Alabama, and are serviced by CSX railroad. A coal producer is typically responsible for transporting the coal from the mine to an export coal-loading facility. Exported coal is usually sold at the loading port, with the buyer responsible for further transportation from the port to their location. Both mines also have access to the company’s barge load-out facility on the Black Warrior River. Service via both rail and barge culminates in delivery to the port of Mobile in Alabama, where shipments are exported to the company’s international customers via ocean vessels. Substantially all of the company’s steelmaking coal sales consist of sales to international customers. The company is in the process of testing alternative outbound logistics routes to increase transportation and vessel shipping optionality. The company’s two operating mines have demonstrated an ability to produce an average run rate of 7.0 million metric tons of HCC and 7.5 million metric tons of HCC when operating at full capacity. Coal Preparation and Blending The company’s steelmaking coal mines have preparation and blending facilities convenient to each mine. The steelmaking coal preparation and blending facilities receive, blend, process and ship steelmaking coal that is produced from the mines. Using these facilities, the company is able to ensure a consistent quality and efficiently blend its steelmaking coal to meet the company’s customers’ specifications. Marketing, Sales and Customers The company’s operations’ high-quality steelmaking coal is considered among the highest quality steelmaking coals in the world and is preferred as a base steelmaking coal in the company’s customers’ blends. The company typically sells its steelmaking coal under fixed supply contracts primarily with indexed pricing terms and volume terms of one to three years. Business Strategies The company’s key strategies are to maximize profitable production; maximize organic growth and profitability; broaden the company’s marketing reach; and capitalize on opportunities for technological innovation to continue to reduce the company’s impact on the environment. Environmental, Social and Governance The company collaborated with Innovative Wireless Technologies (‘IWT’) to install wireless sensors which allows the company to enhance its real-time monitoring of environmental and water data using a mesh node communication system, which provides constant readings of water levels and certain water quality parameters at sensitive locations. The company has a strong environmental compliance record (99.93%) with the EPA's NPDES program, which addresses water pollution by regulating point sources that discharge pollutants into U.S. waters. The company’s Alabama Department of Environmental Management-authorized NPDES discharge permits include quarterly toxicity tests that detect potential water quality issues that could impact local aquatic life. Environmental and Regulatory Matters Certain of the company’s subsidiaries are responsible for medical and disability benefits for black lung disease under the Federal Coal Mine Health and Safety Act of 1969, the Mine Act and the Black Lung Benefits Revenue Act of 1977 and the Black Lung Benefits Reform Act of 1977, each as amended (together, the ‘Black Lung Benefits Act’), and are insured under a guaranteed cost insurance policy beginning on April 1, 2016 through May 31, 2018 for black lung claims of any of the company’s employees. The Clean Air Act indirectly affects the company’s mining operations by extensively regulating the air emissions of sulfur dioxide, nitrogen oxides, mercury, ozone and other compounds emitted by steel manufacturers, coke ovens and coal-fired utilities. The federal CWA and corresponding state and local laws and regulations affect the company’s operations by restricting the discharge of pollutants, including dredged and fill materials, into waters of the United States. The company’s mining operations maintain water discharge permits as required under the NPDES program of the CWA. The Resource Conservation and Recovery Act (‘RCRA’) and corresponding state laws establish standards for the management of solid and hazardous wastes generated at the company’s various facilities. In addition, RCRA requires certain of the company’s facilities to evaluate and respond to any past release, or threatened release, of hazardous waste that may pose a risk to human health or the environment. The Comprehensive Environmental Response, Compensation and Liability Act (‘CERCLA’) and similar state laws affect the company’s steelmaking coal mining operations by, among other things, imposing investigation and cleanup requirements for threatened or actual releases of hazardous substances. History Warrior Met Coal, Inc. was founded in 2015. The company was incorporated in 2015.