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Coal

Wednesday
03 Sep 2025

Trump Administration Plans Coal Lease Sales in Alabama, Montana and Utah

03 Sep 2025  by Reuters   
On September 2, 2025, the U.S. Department of the Interior revealed plans for competitive coal lease sales in Alabama, Montana, and Utah, aiming to enhance domestic coal production. These sales are intended to support economic growth and job creation in local communities.


Fumes rise from the coal-fired Huntington Power Plant in Huntington, Utah, U.S., October 28, 2024.

In Tuscaloosa County, Alabama, the Bureau of Land Management (BLM) will offer two leases covering 14,050 acres, estimated to contain 53 million tons of metallurgical coal used in steel production. The sale is scheduled for September 30, 2025, at the BLM Eastern States Office in Falls Church, Virginia. Interior Secretary Doug Burgum stated: "Coal has long been the backbone of America's energy and industrial strength. By moving forward with these lease sales, we are creating good-paying jobs, supporting local communities, and securing the resources that keep America strong."

In Utah, the BLM will auction the Little Eccles Tract, a 120-acre area in Emery County with an estimated 1.29 million tons of recoverable coal. The sale, prompted by an application from Canyon Fuel Company, is set for October 1, 2025, at the BLM Utah State Office in Salt Lake City. This initiative reflects the ongoing demand for coal resources in the region.

In Big Horn County, Montana, a sale planned for October 6, 2025, will cover 1,262 acres containing approximately 167.5 million tons of coal. The lease, applied for by Navajo Transitional Energy Company, operator of the Spring Creek Mine, could extend the mine’s operations until 2051. The auction will take place at the BLM Montana State Office in Billings, with bids due by October 3, 2025.

These lease sales align with efforts to strengthen the U.S. coal industry, including the designation of metallurgical coal as a critical mineral. Coal currently accounts for less than 20% of U.S. electricity generation, and while some advocate for deregulation to support the sector, others highlight challenges related to its economic viability and environmental considerations. The sales are expected to provide resources for industrial use and sustain employment in coal-dependent areas.

The initiative follows a broader strategy to manage federal lands for resource development, as outlined in regulatory frameworks like the Mineral Leasing Act. The planned sales demonstrate a commitment to meeting industrial and energy demands while addressing regional economic needs.

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