Federal Coal Lease Sale Set to Extend Montana Mine Life by 16 Years

BIG HORN COUNTY, MT — The Spring Creek Mine could extend operations through 2051 under a federal coal lease sale announced Tuesday, delivering a major victory for Montana’s congressional delegation after fighting the coal leasing restrictions from the previous Biden administration.

The Department of Interior will offer 1,262 acres containing an estimated 167.5 million tons of recoverable coal in Big Horn County on October 6, responding to an application by Navajo Transitional Energy Company, which operates the Spring Creek Mine near Decker.

“Coal has long been the backbone of America’s energy and industrial strength,” said Interior Secretary Doug Burgum. “By moving forward with these lease sales, we are creating good-paying jobs, supporting local communities, and securing the resources that keep America strong.”

The lease sale represents the culmination of Montana’s delegation’s fight against federal restrictions that would have forced the mine to close in 2035 — 27 years earlier than projected with additional federal leases.

Congressional Victory

In July, Senators Steve Daines and Tim Sheehy alongside Representatives Troy Downing and Ryan Zinke introduced a Congressional Review Act resolution to overturn the Bureau of Land Management’s coal leasing ban affecting 1.7 million acres in eastern Montana.

“Energy security is national security, and Montana’s mining industry plays a vital role in ensuring America remains energy dominant,” Daines said at the time. “The Miles City RMPA halts all future coal leasing in the region and will cause hardworking Montanans to lose their jobs.”

The Trump administration’s lease announcement effectively delivers what the delegation sought through legislative action.

“Montana’s Second Congressional District keeps the lights on in the Treasure State,” Downing said when introducing the resolution. “I’m proud to lead this CRA in the House to reverse this disastrous management plan amendment that threatens access to affordable, reliable energy and investment in the communities I represent.”

Economic Impact

Spring Creek Mine produces approximately 14 million tons of coal annually, supporting hundreds of jobs in Big Horn County. The mine had two pending federal lease applications totaling approximately 1,400 acres with an estimated 168 million tons of recoverable coal — closely matching the tract now being offered for sale.

Without additional federal leases, the mine faced closure in 2035 as existing reserves were depleted. The new lease could extend operations through 2051, according to the Interior Department.

About 30-40% of the mine’s production is exported to Asia through Vancouver, British Columbia, while domestic customers include power plants that have announced planned closures or conversions by 2035.

Three-State Sale

The Montana sale is part of a broader Trump administration initiative including coal lease sales in Alabama and Utah this fall. The Alabama tract contains 53 million tons of metallurgical coal used in steelmaking, while Utah’s sale covers 120 acres with 1.29 million tons of recoverable coal.

“President Trump’s leadership is putting American workers first and ensuring our nation’s energy future is built on reliable, homegrown resources,” Burgum said.

The sales advance the Trump administration’s priorities under Executive Order 14241 on increasing American mineral production and Executive Order 14261 on reinvigorating the coal industry.

Sale Details

Sealed bids for the Montana tract must be submitted to the BLM Montana State Office in Billings by 4:30 p.m. on October 3. The lease sale will be held at 10 a.m. on October 6 at the state office.

The BLM held public hearings on the lease application in August in Sheridan, Wyoming, and September in Hardin, Montana. Comments on fair market value and maximum economic recovery were accepted through September 15.

Winning bidders must meet fair market value requirements and secure all necessary state and federal permits, including an approved mining plan from the Interior Secretary, before mining can begin.

The Federal Register notice for the sale will provide detailed bidding instructions and terms in the coming weeks.