Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Recorded the second best year in terms of reportable injuries in VantaCore’s history.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Extremely challenging year for the energy industry
• Tough extended energy markets
• Depressed coal prices
• Ongoing disputes with Foresight Energy
• Idling of Deer Run mine due to elevated carbon monoxide levels
• Incorrect recoupment of previously paid minimum royalties by Foresight Energy's Macoupin subsidiary

Mitigation Strategies

• Successful execution of long-term deleveraging strategy
• Consummated asset sales generating gross proceeds of $181 million
• Reduced debt by $248 million
• Continued focus on reducing costs
• Recapitalization transactions to strengthen balance sheet and enhance liquidity
• Filed lawsuits against Foresight Energy to recover owed amounts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Abundance of low-cost natural gas affecting demand for thermal coal.
• Ongoing disputes with Foresight Energy.
• Potential lessee bankruptcies.
• Volatile coal prices.
• Operating risks in mining operations (permits, geologic conditions, equipment failures, weather, labor, accidents).
• Risks related to Construction Aggregates segment (prices, demand, operating expenses, weather, permitting, accidents, geologic conditions).
• Changes in fuel consumption patterns decreasing coal use.
• Climate change legislation and regulations restricting emissions.
• Volatile soda ash prices.
• Contingent consideration payment dispute with Anadarko.
• Highly competitive and fragmented construction aggregates industry.
• Lessees' operational management affecting production and royalty revenues.
• Limited control over non-operated properties (Ciner Wyoming).
• Fluctuations in transportation costs and reliability.
• Inaccuracies in lessee-reported royalty revenues.
• Uncertainty regarding the ability of coal lessees to obtain necessary permits.

Mitigation Strategies

• Strategic plan to reduce debt and strengthen balance sheet (reduced debt by over 40%, lowered debt-to-EBITDA ratio, extended debt maturities, brought in equity partners, reduced costs, maintained distribution coverage ratio).
• Focus on strengthening balance sheet and maximizing asset value.
• Vigorously pursuing recovery in disputes with Foresight Energy.
• Maintaining focus on strengthening balance sheet and maximizing intrinsic value of assets.
• Lessees are contractually and permit-wise liable for reclamation and mine closure costs.
• Diversified portfolio of assets.
• Recapitalization transactions to improve liquidity and strengthen balance sheet (issuance of $250 million of Class A Preferred Units and Warrants, extension of debt maturities).

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes affecting coal demand
• Market shifts away from coal

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Continued challenges in the coal business, leading to several lessee bankruptcy filings.
• Rising costs related to regulatory compliance, permitting and bonding, transportation, and labor for lessees.
• Concerns about the environmental impacts of coal combustion, including perceived impacts on global climate issues, resulting in unfavorable lending and investment policies by institutions.
• Potential future lessee bankruptcy filings could create additional uncertainty as to the future of operations on our properties and could have a material adverse effect on our business and results of operations.
• Fluctuations in transportation costs and the availability or reliability of transportation could reduce the production of coal, soda ash and other minerals from our properties.
• A significant portion of Ciner Wyoming’s historical international sales of soda ash have been to ANSAC, and the termination of the ANSAC membership could adversely affect Ciner Wyoming’s ability to compete in certain international markets and Ciner Wyoming’s ability to make cash distributions to us.

Mitigation Strategies

• Sale of VantaCore for $205 million, representing our exit from the construction aggregates business.
• Reduced debt by $141 million as of December 31, 2018 and $190 million as of January 15, 2019.
• Lowered leverage (debt to EBITDA) from 2015 levels of 5.3x to 3.0x.
• In April 2019, we extended the maturity date of our $100 million revolving credit facility to 2023, and issued $300 million of 9.125% Senior Notes due 2025. We used the proceeds from this offering, together with cash on hand, to redeem all of our outstanding $346 million 10.500% Senior Notes due 2022, thus reducing further our total debt by $46 million.
• We remain steadfast in our focus on de-levering and de-risking the partnership as we view this as the best way to create long-term value for our stakeholders.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Adoption of climate change legislation and regulations restricting emissions of greenhouse gases and other hazardous air pollutants have resulted in changes in fuel consumption patterns by electric power generators and a corresponding decrease in coal production by our lessees and reduced coal-related revenues.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Volatility in the coal space and financial markets.
• Depressed thermal coal markets and weakened metallurgical export markets.
• Reduction in distributions from the soda ash business.
• Relatively closed financial markets and multiple lessee bankruptcies.
• Evolving impact of COVID-19 that has locked down the global economy and significantly lowered energy demand.
• Bankruptcy of the largest lessee, Foresight Energy.

Mitigation Strategies

• Reduced outstanding debt by $163 million.
• Refinanced and extended $300 million of long-term debt to 2025.
• Extended the maturity of the $100 million revolving credit facility to 2023.
• Generated $139 million in Free Cash Flow.
• Resolved the only outstanding major litigation.
• Prioritizing the health and safety of employees by transitioning to working remotely.
• Maintaining regular contact with lessees to stay informed and minimize risks.
• Remaining laser-focused on cash and liquidity.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts

Environmental Metrics

Social Achievements

• Zero safety incidents

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic negatively affected demand for steel, electricity, and glass, leading to lower demand for coal and soda ash.
• Weakened market for metallurgical coal due to decline in global steel demand.
• Weaker domestic and export thermal coal markets due to lower utility demand, low natural gas prices, and shift to renewable energy.
• Ciner Wyoming negatively impacted by lower demand for glass, reducing soda ash demand.

Mitigation Strategies

• Maintained liquidity of $199.8 million ($99.8 million cash and $100 million borrowing capacity).
• Generated $88.7 million of free cash flow.
• Employed remote work protocols.
• Entered into lease amendments with Foresight for fixed cash payments in 2020 and 2021.
• Ciner Wyoming suspended distributions to increase financial flexibility.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Climate change legislation and regulations restricting emissions.
• Unfavorable lending and investment policies by institutions and insurance companies.

Opportunities

• Carbon sequestration underground and in standing timber.
• Generation of electricity using geothermal, wind, and solar energy.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Carbon Sequestration
• Renewable Energy

Environmental Achievements

• Executed first two subsurface carbon dioxide (CO2) sequestration leases with the potential to store up to 800 million metric tons of CO2
• Executed first geothermal lease with the potential to generate up to 15 MW of clean, green energy

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased attention to climate change, environmental, social and governance (ESG) matters and conservation measures may adversely impact our business.
• The adoption of climate change legislation and regulations restricting emissions of greenhouse gases and other hazardous air pollutants have resulted in changes in fuel consumption patterns by electric power generators and a corresponding decrease in coal production by our lessees and reduced coal-related revenues.
• Concerns about the environmental impacts of coal combustion, including perceived impacts on global climate issues, are also resulting in unfavorable lending and investment policies by institutions and insurance companies which could significantly affect our ability to raise capital or maintain current insurance levels.

Mitigation Strategies

• We continue to explore and identify carbon neutral revenue sources across our large portfolio of land and mineral assets. The types of opportunities include the sequestration of carbon dioxide underground and in standing forests, and the generation of green electricity using geothermal, solar, and wind energy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• regulatory changes, market shifts

Opportunities

• development of energy-efficient products
• carbon sequestration
• renewable energy

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Environmental Achievements

• Executed our first carbon neutral project in the fourth quarter of 2021 through the sale of 1.1 million carbon offset credits for $13.8 million.
• Sold carbon offset credits related to 2022 growth for $0.6 million.

Social Achievements

• Not disclosed

Governance Achievements

• Repurchased all of Blackstone's preferred units, which were subsequently retired, and all rights of Blackstone related thereto ceased. Blackstone's board designee resigned from the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Historically high prices for metallurgical coal and soda ash are unlikely to persist.
• Soda ash prices are under pressure from a significant increase in global supply from new projects in China, Turkey, and the United States.
• Sisecam Wyoming’s deca stockpiles will be substantially depleted by 2024, and its production rates will decline if Sisecam Wyoming does not make further investments.
• Increased attention to climate change, environmental, social and governance (“ESG”) matters and conservation measures.
• Concerns about the environmental impacts of coal combustion, including perceived impacts on global climate issues, are resulting in unfavorable lending and investment policies by institutions and insurance companies.
• Challenges in the coal mining industry have led to significant consolidation activity.
• Potential future lessee bankruptcy filings.
• Rising costs related to regulatory compliance, insurance coverage, permitting and reclamation bonding, transportation, and labor.
• Decreased availability and reliability of rail services and port congestion.

Mitigation Strategies

• De-leveraging and de-risking strategy since 2015, including aggressively cutting costs, eliminating capital expenditures, and selling off underperforming assets.
• Exploring and identifying alternative carbon neutral revenue sources, including carbon dioxide sequestration and renewable energy.
• Sisecam Wyoming is evaluating whether and when to pursue initiatives to offset the decline in deca stockpiles.
• Continued exploration of carbon neutral initiatives.
• Continued efforts to reduce debt.

Supply Chain Management

Supplier Audits: Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Regulatory changes, market shifts
• Increased attention to climate change, ESG matters and conservation measures
• Unfavorable lending and investment policies by institutions and insurance companies

Opportunities

• Carbon sequestration
• Renewable energy development