September 24, 2026 - Clinch Resources Ltd. (TSX: CLCH) has moved rapidly from mine development to commercial metallurgical coal production in West Virginia, bringing its first operation online ahead of schedule and laying the groundwork for a much larger production ramp in 2027.

The Tennessee-based company began mining at its Lanes Branch surface operation in Wyoming County, West Virginia, in April. By May, Clinch announced that commercial-grade coal production had begun, marking the company's transition from development into an operating metallurgical coal producer.

Lanes Branch forms part of Clinch's approximately 54,000-acre ARI project in southern West Virginia. The broader project contains about 111 million tons of measured and indicated coal resources, including approximately 22 million tons of proven and probable reserves.

From Mine Startup to First Coal Sales

Clinch initially expected Lanes Branch to begin shipments in May, but the development and production schedule moved quickly.

The company announced its first commercial production on May 20, saying the milestone had been reached ahead of schedule. CEO Jon Nix said at the time that the early startup validated the company's operating strategy and shifted its focus toward increasing production volumes.

That transition soon produced its first commercial sale.

In July, Clinch announced that its first 11,000-ton train of commercial-grade metallurgical coal had been sold. The company also began preparing for its first 65,000-ton seaborne shipment, opening the door to international as well as domestic steelmaking markets.

Clinch's metallurgical coal is intended primarily for steel production rather than electric power generation. Metallurgical coal is processed into coke used in traditional blast-furnace steelmaking and generally must meet tighter quality specifications than thermal coal.

Lanes Branch Production Ramping Up

Clinch is now expanding Lanes Branch rather than simply maintaining its initial production rate.

A Caterpillar HW 300 highwall miner was purchased and mobilized to the operation during the summer. The company said the highwall miner, combined with its surface mining equipment, would help increase production to more than 40,000 clean tons per month.

Clinch subsequently acquired a second surface equipment spread for Lanes Branch, which was scheduled to enter production in September.

With the additional equipment and highwall mining capacity, management has said it is targeting approximately 80,000 tons per month from Lanes Branch as the operation reaches its planned production level.

The rapid expansion is possible in part because Clinch is developing brownfield properties rather than constructing an entirely new mining complex. Existing infrastructure associated with the ARI project includes a preparation plant and rail-loading facilities at Gilbert, West Virginia.

The preparation plant has capacity of approximately 600 tons per hour, while the Norfolk Southern rail connection provides access to domestic customers and coal export infrastructure.

Underground Mines Next in Expansion Plan

Lanes Branch represents only the first stage of Clinch's production strategy.

The company is simultaneously preparing underground mines within the ARI complex for production.

Mine 8 is expected to be the first underground operation brought online. Clinch management has indicated that the continuous-miner operation could add approximately 40,000 to 50,000 tons of monthly production.

Mine 3 is also being rehabilitated and is expected to follow, potentially adding another 40,000 to 50,000 tons per month.

Mine 6 is another underground operation included in the company's longer-term production plan, with rehabilitation work planned as Clinch continues expanding the complex.

The combination of Lanes Branch and the underground mines is designed to move Clinch toward a monthly production rate of roughly 170,000 to 190,000 tons.

At that level, the company believes it can produce more than 2 million tons of metallurgical and specialty coal in 2027.

Existing Infrastructure Helps Speed Development

One factor behind Clinch's relatively fast transition into production is the amount of existing mining infrastructure associated with its properties.

Rather than waiting years to permit and construct an entirely new mine, preparation plant and transportation network, Clinch has been able to concentrate capital on mining equipment, rehabilitation and restarting previously developed operations.

Management recently said the company has deployed more than C$30 million worth of equipment as it prepares for the larger 2027 production ramp.

Clinch also says its current projects are permitted, reducing one of the major obstacles that can delay new coal production.

The company believes its brownfield strategy, existing infrastructure and lack of some of the legacy liabilities carried by older mining operations could help it maintain competitive production costs as volumes increase.

Targeting Domestic and Export Steel Markets

Clinch is also building a marketing strategy around the expected increase in production.

Through its Astor Resources marketing operation, the company plans to market coal directly to steelmakers and other customers rather than relying entirely on third-party traders.

Management has indicated that approximately 80% of expected production could be directed toward conventional blast-furnace metallurgical coal customers, with roughly 20% potentially sold into specialty carbon markets.

Clinch is also targeting a mix of contracted and spot sales. The company has said its objective is to place approximately 70% of its 2027 production under contract while leaving about 30% available for spot and other market opportunities.

Discussions with domestic and international steel producers are underway as the company prepares for the substantially larger volumes expected next year.

2027 Production Target Tops 2 Million Tons

The pace of development at Lanes Branch is significant because Clinch was still primarily a development-stage company at the beginning of 2026.

The company began trading on the Toronto Stock Exchange in March, commenced mining at Lanes Branch in April, reached commercial-grade production in May and sold its first train of coal in July.

Now the focus is shifting toward execution of the underground mine restarts and completion of the Lanes Branch ramp.

Management is targeting more than 2 million tons of production in 2027. At recent metallurgical coal prices, company executives have said that level of production could potentially generate more than $200 million in annual EBITDA, although actual results will depend on coal prices, operating costs, production performance and successful execution of the mine restart plan.

For the remainder of 2026, several milestones will determine how quickly Clinch reaches that scale: increasing Lanes Branch production, bringing Mine 8 into operation, advancing Mine 3 and Mine 6, and securing customers for the additional coal.

What began with an ahead-of-schedule startup at a West Virginia surface mine is now developing into a broader effort to establish Clinch Resources as a significant Central Appalachian metallurgical coal producer.