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INVENTORIES
12 Months Ended
Dec. 31, 2021
INVENTORIES  
INVENTORIES

6.

INVENTORIES

Inventories consist of the following:

December 31, 

2021

    

2020

 

(in thousands)

Coal

$

24,845

$

19,756

Supplies (net of reserve for obsolescence of $5,554 and $5,547, respectively)

 

35,457

 

36,651

Total inventories, net

$

60,302

$

56,407

For the year ended December 31, 2020, we recorded lower of cost or net realizable value adjustments of $3.2 million to our coal inventories as a result of lower coal sale prices and higher cost per ton due to the impact of lower production on our fixed costs per ton in addition to the impact of challenging market conditions on our production levels.  The lower of cost or net realizable value adjustments reflect the impacts of the challenging market conditions and were primarily attributable to the Mettiki and Hamilton mining complexes.

See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for inventories.