November 2, 2026 - Below is a Q&A with Brett Young, Chief Financial Officer of Clinch Resources, focused on an often-overlooked segment of the coal industry: the critical role specialty coal plays in American manufacturing beyond traditional steelmaking.

1. When most people think of metallurgical coal, they think of steelmaking. What are some of the lesser-known industrial applications for specialty coal?

Beyond steelmaking, there is a less visible segment of the coal market that plays a critical role in American manufacturing. Specialty coal is used in producing silicon metal, ferroalloys, and activated carbon, which support industries ranging from electronics and solar technology to specialized manufacturing and water filtration. These applications require carbon materials with very specific characteristics, and the quality of those materials can have a direct impact on the manufacturing process. The number of sophisticated industrial operations that depend on coal meeting precise specifications is often underappreciated, and it represents a distinct, specification-driven market.

2. What makes specialty coal different from conventional metallurgical coal, and why can't manufacturers simply use any available coal?

The distinction is fundamentally chemical, and specifications are critical. Depending on the application, customers are looking for very specific levels of ash, sulfur, phosphorus, and other characteristics that determine how the carbon performs in their operations. A producer may control a substantial coal reserve, but if the material does not meet those requirements, it cannot serve that customer. As a result, specialty coal is a demanding market with meaningful barriers to entry, and producers must maintain rigorous quality control and product consistency.

3. Why is securing a reliable supply of specialty coal becoming increasingly important for U.S. manufacturers?

For a manufacturer whose operations depend on a particular carbon specification, supply reliability is paramount. Only a limited number of coal resources can meet certain specialty requirements, and customers need assurance that they will receive consistent material with every shipment. A supply disruption or a change in chemistry can lead to production downtime, quality issues, and added cost. Dependable domestic suppliers allow American manufacturers to strengthen supply chain resilience and reduce their exposure to sourcing risk.

4. What are you seeing in terms of international demand, particularly from European buyers?

We are seeing encouraging interest from European buyers, which reflects the increased scrutiny industrial customers are placing on their supply chains. These customers have very specific technical requirements and are evaluating producers based on product quality, consistency, and the ability to deliver reliably. U.S. specialty coal producers have a meaningful opportunity to compete in those markets, particularly when producers can demonstrate that their material meets the required specifications.

5. How do rising operating costs, particularly diesel and transportation expenses, affect the economics of specialty coal production?

Diesel is one of the most significant input costs in mining, given the heavy equipment involved and the volume of material moved. Transportation is another major cost driver, particularly when supplying customers across the country or shipping into international markets. When those costs rise, they can compress margins quickly, so disciplined management of productivity, equipment utilization, and logistics is essential. In specialty coal, producers must also maintain very specific quality standards, so cost control and operational efficiency cannot come at the expense of product consistency.

6. What does it actually take for a U.S. coal producer to enter the specialty market and compete with established suppliers?

It starts with the resource itself. Without coal of the right quality in the ground, there is no viable path into the specialty market. From there, producers need the equipment, processing capabilities, and technical expertise to consistently produce material that meets demanding customer specifications. There is also a significant commercial component, as industrial buyers must evaluate the product, understand how it performs in their operations, and build confidence in the supplier. Entering these markets requires patient capital and a lengthy customer qualification process, and the producers that succeed are those that consistently deliver on their commitments.

7. How does your previous experience at Globe Metallurgical influence the way you approach specialty coal markets today?

Having worked on the purchasing side of the specialty metals industry, I've seen firsthand what matters to industrial customers. Buyers scrutinize product chemistry, consistency, and a supplier's ability to deliver on its commitments, on schedule. A raw-material quality issue can become far more costly once it reaches the manufacturing floor, so sourcing decisions carry significant weight. That perspective shapes how we approach these markets today: meeting the standards customers expect and building durable, long-term commercial relationships.

8. Looking ahead, where do you see the biggest opportunities for specialty coal producers in the United States?

We see a significant opportunity for American producers that can supply high-quality carbon to these specialized industrial markets. Applications like silicon metal, ferroalloys, and activated carbon require dependable raw materials, and manufacturers are paying close attention to the reliability of their supply chains. We have substantial coal resources in this country, particularly in the Appalachian region, along with generations of mining experience and infrastructure that can support these markets. The producers best positioned to capture that opportunity will be those that understand their customers, maintain consistent quality, and operate with cost and capital discipline.

Brett Young is formerly a Co-Founder and Managing Partner of J&R Falcon and has over 20 years of investing experience in renewable investing and commodity based industries, including serving as a Principal and Board Member. Brett was formerly Managing Director of Business Development for Globe Specialty Metals located in New York (currently Ferroglobe PLC) leading the Company’s efforts to acquire and develop global resource projects and ventures including mining projects, alternative energy and renewable power projects. Brett was a Senior Vice President at Plainfield Asset Management located in Greenwich, CT from 2005-2009 focusing primarily on Energy, Power and Renewable Investments. Brett served as a director for Smart Papers, LLC, Greenwood Fuels LLC and Wolverine Tube Inc. and was a member of Wolverines’s audit committee. Brett was Senior Vice President at Royal Bank of Canada Capital Markets in Greenwich, CT from 2001-2004. Brett received a Bachelor of Science in Business Administration from the University of Kansas.