17.
Workers’ Compensation and Pneumoconiosis (“Black
Lung”) Obligations
In the United States, coal mine operations may lead to traumatic workers’ compensation claims, as well as black
lung disease claims. Injured workers generally
file claims for traumatic injury under
the governing state workers’
compensation
legislation.
Workers
may
file
claims
due
to
black
lung
under
the
governing
state
workers’
compensation legislation or under a series
of federal laws that include the
Federal Coal Mine Health and
Safety
Act of 1969, as amended, the Black Lung Benefits Act of
1973, and the Black Lung Benefits Reform Act of 1977.
The Company provides
for both
traumatic workers compensation
claims and occupational
disease claims
through
an insurance policy.
The
Company
has
secured
workers’
compensation
insurance
for
work
related
injuries,
including
black
lung,
through a
third-party commercial insurance
company. The insurance policy covers
claims that
exceed $
0.5
per occurrence for all years,
or aggregate claims in excess
of $
29.1
million for the policy year
ended May 2024.
As of
December 31,
2025, the
Company had
provided cash
collateral security
of $
73.2
2017 through 2026 (ending May 31, 2026).
For the
years ended
December 31, 2025,
2024 and
2023, the
audited Consolidated
Statements of
Operations
and
Comprehensive
Income
included
Company
incurred
claims,
premium
expenses
and
administrative
fees
related
to
workers’
compensation
benefits
of
$
8.9
8.9
16.3
million,
respectively.
As
of
December 31, 2025 and 2024, the estimated workers’ compensation
liability was $
43.1
39.1
respectively, representing claims incurred but not paid based on
the estimate of the
outstanding claims under the
coverage
limits
and
the
actuarially
determined
retained
liability
under
the
aggregate
claim
amount.
As
of
December
31,
2025
and
2024,
$
38.5
34.4
million,
respectively,
are
recorded
within
“Other
non-
current liabilities” in the Consolidated Balance Sheets.
The current portion of the Company’s estimated
workers’
compensation liabilities are
recorded within “Accrued
expenses and other
current liabilities” in the
Consolidated
Balance Sheets.