Coal production commenced with the first production unit in the Blue Seam at the New Elk mine on May 21. This is three weeks later than the target start date, as there were delays in obtaining approvals to the operational plans from the US Mine Safety and Health Administration (MSHA) due to the impact of the Covid-19 pandemic on MSHA staff. The second production unit will be brought forward commencing in August 2021, instead of the previously planned date of November 2021.

The company stated that the delay of the first production unit meant that the mine could commence production in the knowledge that its first coal sales had been agreed, which they were not three weeks previously.

Allegiance Coal has been in discussion with a local cement company for the supply of a low volume of coal for early June delivery to generate heat in the cement plant's kiln. The cement company has previously used Blue Seam coal, acquiring the remnant coal stockpiled at the mine following the mine's closure in July 2012. The company said this may lead to a small volume, fixed price, long term supply contract.

M Resources, New Elk's sole marketing and sales agent, has also negotiated and agreed commercial terms for four 70,000t cargoes of Blue Seam coal to Asian steel mill customers for delivery in August, October, November and December 2021 respectively. These will all be shipped from the Port of Guaymas in Mexico, which Allegiance Coal said will provide a relatively shorter sail time to Asian markets.

M Resources is also in discussion with a European steel mill for a trial cargo of 10,000 to 20,000t of Blue Seam for delivery late August 2021, and has secured multiple requests for drum samples from steel mills including ones in Europe, Asia and Latin America. Samples will be supplied to the steel mills over the coming months from mine production.