Black Warrior

Allegiance completed the acquisition of the Black Warrior Mine (Mine) in August 2021. The Mine is an operating mine located 25km northwest of Birmingham Alabama that produces a steel making coal supplied to Alabama Power as a thermal coal for the last decade.

Allegiance is ramping production from an historical 200,000 tonnes per annum of saleable coal to 600,000 tonnes per annum and re-directing most of the coal for export to steel mills on the seaborne market.

The Mine comprises around 8Mt of hard coking coal including the highly regarded Mary Lee and Blue Creek coal seams. Coal is surface mined, washed, then transported to a barge loadout facility where it is loaded into barges on the Black Warrior river then transported to McDuffie Coal Terminal in the Port of Mobile, Gulf of Mexico. McDuffie Terminal is an active terminal for the export of coking coals.

Black Warrior Coal Resources

Prior to completing the acquisition of the Black Warrior Mine Allegiance commissioned a JORC compliant resource statement summarised in the table below.

Leased Measured Indicated Inferred Total Mt Total Mt
Newcastle 0.436 0.715 0.141 1.289 53.98
Mary Lee 0.991 1.449 745.8 3.186 64.41
Blue Creek 0.748 0.997 0.557.2 2.303 82.74
Total 2.175 3.161 1.441 6,779 72.21

Unleased Measured Indicated Inferred Total Mt Total Mt
Newcastle 0.002 0.212 0.119 1.333 53.98
Mary Lee 0.006 1.073 0.513 1.592 64.41
Blue Creek 0.004 0.635 0.235 0.874 82.74
Total 0.012 1.921 0.867 2.800 72.21

Black Warrior Coal Quality Parameters

The Mary Lee and Blue Coal seams are well recognised and highly regarded on the seaborne metallurgical coal market. The Mine will export these coals to steel mills while the Newcastle coal seam will be either supplied to the Alabama Power market or used as a blending coal with New Elk coals.

    Newcastle Mary Lee Blue Creek Total Mt
Proportion % 18 37 45 53.98
Ash % 10.42 11.50 9.96 64.41
VM % 32.30 30.65 30.97 82.74
Sulphur % 1.40 1.06 0.88 72.21
FSI   8.0 8.5 8.0  
Fluidity ddpm 30,000 27,000 27,000  
Phos % 0.02 0.01 0.12  
RoMax % 0.96 1.03 1.02  
CSR calc.   58 66 65