NACCO Industries, Inc.

Climate Impact & Sustainability Data (2023)

Continued contemporaneous reclamation activities at each mine.
Named a designated provider of abandoned mine land restoration by the State of Texas.
Entered into a power purchase agreement with the Tennessee Valley Authority for the energy generated from a proposed 67.5 MW solar farm to be built on reclaimed land at MLMC.

Maintained good relations with employees.
Offered a market-based competitive total rewards package that includes a combination of salaries and wages and a benefits package that promotes employee well-being.
Consistently below the national average for comparable mines in safety incident rate.

Unexpected issues tempered financial results, including early retirement of the power plant served by Sabine Mine, elevated costs at MLMC due to a transition to a new mine area, price concessions at Falkirk Mine, reduced demand at Coteau and Falkirk due to temporary mechanical issues at customers’ plants, and a force majeure notice at Red Hills Power Plant.
MLMC experienced temporary operational inefficiencies and adverse mining conditions due to greater than normal rainfall.
Force majeure event at Red Hills Power Plant in December 2023 is expected to significantly reduce customer demand in 2024.
Reduction in the use of coal for power generation.

Solidified and expanded customer relationships.
Maintained a strong balance sheet and financial flexibility.
Successfully negotiated and closed on a major acquisition in the Midland section of the Permian Basin.
Won a bid for a six-year contract extension with its largest customer and secured a new 15-year contract to mine phosphate.
Evaluating carbon capture and storage opportunities at MLMC and supporting customers’ efforts in developing similar capabilities.
Focusing on gaining new customers, extending and expanding current contracts, and increasing investment in oil and gas assets.

Climate Change Data