Annual report pursuant to Section 13 and 15(d)

AMAK Commitments and Contingencies

AMAK Commitments and Contingencies
12 Months Ended
Dec. 31, 2020
Loss Contingencies [Line Items]  
The Company is periodically named in legal actions arising from normal business activities. We evaluate the merits of these actions and, if we determine that an unfavorable outcome is probable and can be reasonably estimated, we will establish the necessary reserves. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future.
Supplier Agreements
In accordance with our supplier agreements, on a recurring monthly basis, the Company commits to purchasing a determined volume of feedstock in anticipation of upcoming requirements. Feedstock purchases are invoiced and recorded when they are delivered. As of December 31, 2020 and 2019, the value of the remaining undelivered feedstock approximated $9.2 million and $12.4 million, respectively.
From time to time, we may incur shortfall fees due to feedstock purchases being below the minimum amounts as prescribed by our agreements with our suppliers. The shortfall fee expenses were $1.1 million, $0.6 million and $0.5 million for the years ended December 31, 2020, 2019, and 2018.
Environmental Remediation
Amounts charged to expense for various activities related to environmental monitoring, compliance, and improvements were approximately $0.9 million in 2020, $0.9 million in 2019 and $0.7 million in 2018.
Loss Contingencies [Line Items]  
AMAK Commitments and Contingencies Commitments and Contingencies
Operating lease obligations
Our lease commitment for our surface mining lease was initially granted for a period of 30 years through 2024. The lease allows for renewal for an additional 20 years. We also have leases for our corporate offices and three residential villas in Najran through 2025. There is also a mining lease that covers the Guyan area for a period of 20 years through 2034.
A summary of these commitments are as follows:
Years Ending
December 31,
2020 247,500 
2021 990,000 
2022 990,000 
2023 550,000 
2024 550,000 
2025 110,000 
Thereafter 990,000 
Capital lease obligations
We lease certain equipment vehicles under capital lease obligations that are set to expire at various dates through 2022. The future minimum lease payments under the capital lease obligations as of September 30, 2020:
2020 723,727 
2021 2,791,921 
2022 1,482,543 
Total minimum lease payments 4,998,191 
Less deferred financial charges (496,193)
Total capital lease obligations 4,501,998 
Less: current portion of capital lease obligations 2,479,480 
Total long term portion, net current portion 2,022,518