Natural Resource Partners L.P., together with its subsidiaries, owns, manages, and leases a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources.
The company owns a non-controlling 49% interest in Sisecam Wyoming LLC ("Sisecam Wyoming"), a trona ore mining and soda ash production business. The company operates mainly through two segments: Mineral Rights and Soda Ash.
Mineral Rights—Consists of approximately 13 million acres o...
Natural Resource Partners L.P., together with its subsidiaries, owns, manages, and leases a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources.
The company owns a non-controlling 49% interest in Sisecam Wyoming LLC ("Sisecam Wyoming"), a trona ore mining and soda ash production business. The company operates mainly through two segments: Mineral Rights and Soda Ash.
Mineral Rights—Consists of approximately 13 million acres of mineral interests and other subsurface rights across the United States. If combined in a single tract, the company’s ownership would cover roughly 20,000 square miles. If combined in a single tract, the company's ownership would cover roughly 20,000 square miles. The company’s ownership provides critical inputs for the manufacturing of steel, electricity, and basic building materials, as well as opportunities for carbon sequestration and renewable energy. The company is working to strategically redefine its business as a key player in the transitional energy economy in the years to come.
Soda Ash—Consists of the company’s 49% non-controlling equity interest in Sisecam Wyoming, a trona ore mining and soda ash production business located in the Green River Basin of Wyoming. Sisecam Wyoming mines trona and processes it into soda ash that is sold both domestically and internationally into the glass and chemicals industries.
The company's operations are conducted through Opco, and its operating assets are owned by its subsidiaries. NRP (GP) LP, the company's general partner (referred to as the general partner or NRP GP), has sole responsibility for conducting its business and managing its operations. Because the general partner is a limited partnership, its general partner, GP Natural Resource Partners LLC (the managing general partner), conducts its business and operations, and the board of directors and officers of GP Natural Resource Partners LLC make decisions on the company's behalf.
Segment and Geographic Information
Mineral Rights segment
Mineral Rights
The company does not mine, drill, or produce minerals. Instead, it leases its acreage to companies engaged in the extraction of minerals in exchange for the payment of royalties and various other fees. The royalties received are generally a percentage of the gross revenue earned by the lessees. These royalties are typically supported by a floor price and minimum payment obligation that protect the company during significant price or demand declines.
The majority of the company's Mineral Rights segment revenues come from royalties related to the sale of coal from its properties. The coal is primarily located in the Appalachia Basin, the Illinois Basin, and the Northern Powder River Basin in the United States. The company leases its coal to experienced mine operators under long-term leases. Approximately two-thirds of its royalty-based leases have initial terms of five to 40 years, with substantially all lessees having the option to extend the lease for additional terms. These leases include the right to renegotiate royalties and minimum payments for the additional terms. The company also owns and manages coal-related transportation and processing assets in the Illinois Basin that generate additional revenues generally based on throughput or rents. Additionally, it owns oil and gas, industrial minerals, and aggregates that generate a portion of the Mineral Rights segment revenues. Further revenues in the Mineral Rights segment come from carbon-neutral initiatives, such as the sale of carbon offset credits from forestlands, potential sub-surface carbon dioxide sequestration in its pore space, and opportunities to generate geothermal energy from its ownership.
Under the company's standard royalty lease, it grants operators the right to mine and sell its minerals in exchange for royalty payments based on the greater of a percentage of the sales price or a fixed royalty per ton of minerals mined and sold. Lessees calculate royalty payments due to the company and are required to report the tons of minerals mined and sold, as well as the sales prices of the extracted minerals. Therefore, to a great extent, the amounts reported as royalty revenues are based upon the reports of the lessees. The company periodically audits this information by examining certain records and internal reports of its lessees and performs periodic mine inspections to verify that the information submitted is accurate. Its audit and inspection processes are designed to identify material variances from lease terms, as well as differences between the information reported and the actual results from each property.
In addition to summary information about the company's overall portfolio of mineral rights, this section provides detailed information about four properties in its Mineral Rights segment. These properties were determined to be material to the business based on historical revenue compared to the Mineral Rights segment considered as a whole. The four properties are: 1) Alpha-CAPP (VA), 2) Oak Grove, 3) Williamson, and 4) Hillsboro.
Coal
Metallurgical Coal
Metallurgical (Met) coal is used to fuel blast furnaces that forge steel and is the primary driver of the company’s long-term cash flows. Met coal is a high-quality, cleaner coal that generates exceptionally high temperatures when burned and is an essential element in the steel manufacturing process. Metallurgical coal is a finite and declining resource, particularly in industrialized nations. The company’s metallurgical coal is located in the Northern, Central and Southern Appalachian regions of the United States.
Thermal Coal
Thermal coal, sometimes referred to as steam coal, is used in the production of electricity. The amount of thermal coal produced in the United States has been steadily falling over the last decade as energy providers shift from coal-fired plants to natural gas-fired facilities, and to a lesser extent, alternative energy sources, such as geothermal, wind and solar. That fact, combined with the long-term strength of the company’s metallurgical business and the carbon neutral initiatives the company discuss below, will result in thermal coal becoming a diminishing contributor to NRP in years to come. The vast majority of the company’s thermal coal sales are located in Illinois and its operations are some of the most cost-efficient mines east of the Mississippi River. The remainder of its thermal coal is located in Montana, the Gulf Coast and Appalachia.
Appalachia Basin—Central Appalachia
Alpha-CAPP (VA): The Alpha-CAPP (VA) property is located in Wise, Dickenson, Russell and Buchanan counties, Virginia. Substantially all of the tons sold from this property in 2024 were metallurgical coal. The company leases this property to subsidiaries of Alpha Metallurgical Resources Inc. (Alpha) and previously leased it to subsidiaries of Contura Energy, Inc. The current lease with Alpha expires at the end of 2028 and will automatically renew unless otherwise notified. The company receives payments based on the greater of a percentage of the sale price or fixed royalty per ton of coal mined and sold. In addition to the royalty obligations, this lease is subject to minimum payments, which reflect amounts the company is entitled to receive even if no mining activity occurs during the period. Production comes from underground room and pillar and surface mines and is trucked to one of two preparation plants. Coal is shipped via the CSX and Norfolk Southern railroads to domestic and export metallurgical customers.
Kepler: The Kepler property is located in Wyoming County, West Virginia. Substantially all of the coal sold from this property in 2024 was metallurgical coal. The company leases this property to a subsidiary of Alpha. Metallurgical coal is produced from underground mines and transported by belt or truck to the preparation plant on the property. Coal is shipped via the Norfolk Southern railroad to export metallurgical customers.
Marfork: The Marfork property is located in Boone and Raleigh counties, West Virginia. Substantially all of the coal sold from this property in 2024 was metallurgical coal. The company leases this property to a subsidiary of Alpha. Metallurgical coal is produced from underground mines and transported by belt or truck to the preparation plant on the property. Coal is shipped via the CSX railroad to both domestic and export metallurgical customers.
Kingston: The Kingston property is located in Fayette and Raleigh counties, West Virginia. Substantially all of the coal sold from this property in 2024 was metallurgical coal. The company leases this property to a subsidiary of Alpha. Metallurgical coal is produced from surface and underground mines and transported by belt or truck to nearby preparation plants, including the Marfork complex. Coal is shipped via the CSX and Norfolk Southern railroads to both domestic and export metallurgical customers.
Elk Creek: The Elk Creek property is located in Logan and Wyoming counties, West Virginia. Substantially all of the coal sold from this property in 2024 was metallurgical coal. The company leases this property to Ramaco Resources, Inc. Metallurgical coal is produced from surface and underground mines and is transported by belt and truck to a preparation plant on the property. Coal is shipped via the CSX railroad to both domestic and export metallurgical customers.
Appalachia Basin—Southern Appalachia
Oak Grove: The Oak Grove property is located in Jefferson County, Alabama. The company leases this property to a subsidiary of Alabama Kanu Holdings, LLC (Alabama Kanu). Previous operators of this property include Hatfield Metallurgical Coal Holdings, LLC, Murray Metallurgical Coal Holdings LLC, Mission Coal, LLC, and Seneca Resources, LLC. The current lease with Alabama Kanu expires in 2029 and will automatically renew unless otherwise notified. The company receives payments based on the greater of a percentage of the sale price or a fixed royalty per ton of coal mined and sold. Metallurgical coal production comes from a longwall mine and is transported by beltline to a preparation plant. Metallurgical products are then shipped via railroad and barge to primarily export customers but can be shipped to domestic customers as well.
Illinois Basin
Williamson: The Williamson property is located in Franklin and Williamson counties, Illinois. This property is under leases to Williamson Energy, a subsidiary of Foresight Energy Resources LLC (Foresight). The current leases expire in 2026 and 2033 and will automatically renew unless otherwise notified. The company receives payments based on the greater of a percentage of the sale price or a fixed royalty per ton of coal mined and sold. Thermal coal production comes from a longwall mine. Coal is shipped primarily via the Canadian National railroad to export customers.
Hillsboro: The Hillsboro property is located in Montgomery and Bond counties, Illinois. This property is under lease to Hillsboro Energy, a subsidiary of Foresight. The current lease expires in 2033 and will automatically renew unless otherwise notified. The company receives payments based on the greater of a percentage of the sale price or a fixed royalty per ton of coal mined and sold. Thermal coal production comes from a longwall mine. Coal is shipped by rail via either the Union Pacific, Norfolk Southern or Canadian National railroads, or by barges to domestic utility customers.
In addition to these properties, the company owns loadout and other transportation assets at the Williamson mine and at the Macoupin and Sugar Camp mines, which are also operated by Foresight.
Northern Powder River Basin
Western Energy: The Western Energy property is located in Rosebud and Treasure counties, Montana. The company leases this property to a subsidiary of Rosebud Mining, LLC. Thermal coal is produced by surface dragline mining methods. Coal is transported by either truck or beltline to the Colstrip generation station located at the mine mouth.
Coal Transportation and Processing Assets
The company owns transportation and processing infrastructure related to certain of its coal properties, including loadout and other transportation assets at Foresight's Williamson mine in the Illinois Basin, for which it collects throughput fees or rents. The company leases its Williamson transportation and processing infrastructure to a subsidiary of Foresight and is responsible for operating and maintaining the transportation and processing assets at the Williamson mine, which it subcontracts to a subsidiary of Foresight. In addition, the company owns rail loadout and associated infrastructure at the Sugar Camp mine, an Illinois Basin mine also operated by a subsidiary of Foresight. While the company owns coal at the Williamson mine, it does not own coal at the Sugar Camp mine.
The company also owns transportation and processing infrastructure, including loadout and other transportation assets at Foresight's Macoupin mine.
Carbon Neutral Initiatives
The company continues to explore and identify carbon neutral revenue sources across its large portfolio of surface, mineral, and timber assets. This includes the sequestration of carbon dioxide (CO2) in its underground pore space and standing forests, lithium production, and the generation of electricity using geothermal, solar, and wind energy.
Carbon Sequestration: The company owns approximately 3.5 million acres of specifically reserved subsurface rights in the southern United States with the potential for permanent sequestration of greenhouse gases. The carbon capture utilization and storage industry (CCUS) is in its infancy, and the future is highly uncertain; however, a few facts are clear. A sequestration project requires acreage possessing unique geologic characteristics, close proximity to sources of industrial-scale greenhouse gas emissions or direct air capture capability, and the appropriate form of legal title that grants the acreage owner the right to sequester emissions in the subsurface. The demand for CCUS may be impacted by changes in the regulatory climate, including changes in environmental regulations. While carbon sequestration rights and ownership continue to evolve, the company owns one of the largest inventory of acreage with potential for carbon sequestration activities in the United States.
In the first quarter of 2022 the company executed the company’s first subsurface CO2 sequestration lease on 75,000 acres of underground pore space the company own in southwest Alabama with the potential to store over 300 million metric tons of CO2; however, the company were notified that this agreement would not be renewed for another lease term and has been terminated as per the lessee's rights in the agreement. In October of 2022, the company announced the company’s second subsurface CO2 transaction with the execution of a lease for approximately 65,000 acres of pore space the company control near southeast Texas with estimated storage capacity of at least 500 million metric tons of CO2.
Renewable Energy: The company's geothermal opportunities are predominantly located in the South, Midwest, and Northwest parts of the United States. In the third quarter of 2022, the company executed its first geothermal lease with the potential to generate up to 15 megawatts of electricity. Regarding wind and solar energy opportunities, the company is actively engaged in discussions for the potential use of its acreage for these types of renewable energy developments, predominantly in Kentucky and West Virginia.
Soda Ash segment
The company owns a 49% non-controlling equity interest in Sisecam Wyoming. Sisecam Chemicals Wyoming LLC (SCW LLC) is the direct owner of 51% of Sisecam Wyoming. SCW LLC, the company's operating partner, controls and operates Sisecam Wyoming. SCW LLC is 100% owned by Sisecam Chemicals Resources LLC (Sisecam Chemicals), which is 100% owned by Sisecam USA Inc. (Sisecam USA). Sisecam USA is a direct wholly owned subsidiary of Türkiye Sise ve Cam Fabrikalari A.S, a Turkish Corporation (Sisecam Parent), which is approximately 51%-owned by Turkiye Is Bankasi (Isbank). Sisecam Parent is a global company operating in the soda ash, chromium chemicals, flat glass, auto glass, glassware, glass packaging, and glass fiber sectors.
Sisecam Wyoming is one of the largest and lowest cost producers of soda ash in the world, serving a global market from its facility located in the Green River Basin of Wyoming. The Green River Basin geological formation holds the largest, and one of the highest purity, known deposits of trona ore in the world. Trona, a naturally occurring soft mineral, is also known as sodium sesquicarbonate and consists primarily of sodium carbonate, or soda ash, sodium bicarbonate and water. Sisecam Wyoming processes trona ore into soda ash, which is an essential raw material in flat glass, container glass, detergents, chemicals, paper and other consumer and industrial products. The vast majority of the world’s accessible trona is located in the Green River Basin.
The company's partner, SCW LLC, manages the mining and plant operations.
Trona Resources and Trona Reserves
HPG has conducted an independent technical review of the lands held by Sisecam Chemicals referred to as the Big Island Mine, which is located in the area commonly referred to as the Known Sodium Lease Area (KSLA) near the town of Green River, Sweetwater County. The KSLA is characterized by trona thickness exceeding 1 meter, extending for over 300 km², and having a grade greater than 80%. The U.S. Geological Survey recognizes 25 trona beds of economic importance (at least 1 meter in thickness and 300 km² in areal extent) within the Green River Basin. Identified in ascending order, the trona beds are numbered 1 through 25 from the oldest (stratigraphically lowest) to the youngest (stratigraphically highest). Sisecam Wyoming has approximately 23,999 acres of trona under lease, made up of approximately 8,094 Federal acres, 2,986 State acres, and 12,919 private acres. Sisecam Chemicals has mineral resources and mineable reserves in the shallowest mechanically mineable trona beds 24 and 25, at depths of 850 and 800 feet below the surface, respectively, at the company's mine shaft locations.
Title to Property
The company owned substantially all of its coal and aggregates mineral rights in fee as of December 31, 2024. It leases the remainder from unaffiliated third parties. Sisecam Wyoming leases or licenses its trona.
Regulation and Environmental Matters
The Clean Air Act directly impacts the company's lessees' coal mining and processing operations by imposing permitting requirements, and in some cases, requirements to install certain emissions control equipment on sources that emit various hazardous and non-hazardous air pollutants.
The operations of the company’s coal lessees and Sisecam Wyoming are subject to stringent health and safety standards that have been imposed by federal legislation since the adoption of the Mine Health and Safety Act of 1969.
The Mine Safety and Health Administration (MSHA) has also published, and may continue to publish, requests for information on various mining topics that may result in additional rules applicable to the company's operations and the operations of its lessees.
The company's coal lessees are contractually obligated under the terms of its leases to comply with all federal, state, and local laws, including the Surface Mining Control and Reclamation Act of 1977 (SMCRA).
History
Natural Resource Partners L.P. was founded in 2002. The company was incorporated in 2002.
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