🕒 Last updated on August 12, 2025
A major coal mine in Wyoming has received approval to open up a huge new section of federal land for mining. This newly accessible area contains around 14.5 million tons of coal. That is a little more than half the amount of coal the mine produces in a typical year.
Coal growth in one of the biggest mines in the country
The Antelope mine is located in the Powder River Basin, a region known for its large coal deposits. It is currently the third-largest coal mine in the United States when ranked by production volume. The mine produces between 20 and 25 million tons of coal each year and employs about 400 workers. The mine is operated by the Navajo Transitional Energy Company.
Recently, the Office of Surface Mining Reclamation and Enforcement granted approval. The modification is known as the West Antelope II South Tract Mining Plan. This decision allows the mine to continue expanding westward, moving closer to Highway 59 in Converse County.
Officials say the decision reflects a broader goal to strengthen the country’s energy supply and keep domestic coal available. Supporters also say the move is part of an effort to clear backlogs in mining approvals and give coal companies more certainty for their operations.
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Policy changes and royalty rate reduction
The expansion comes alongside a change in how much coal companies pay in royalties to the federal government. The federal mineral royalty rate for some coal production has been reduced from 12.5% to 7%. This royalty is the fee mining companies pay to extract resources from federal land.
This change is expected to reduce Wyoming’s revenue from coal mining by about $50 million each year. Normally, the money collected from royalties is split equally between the federal government and the state where the mining takes place. State officials have asked for a larger share of the royalties to make up for the loss caused by the lower rate.
The Antelope mine expansion could have moved forward under earlier restrictions on new coal leasing in the Powder River Basin. This is due to a federal coal lease that the mine had for the region prior to a 2024 leasing moratorium. The proposal to mine the tract, however, was put on hold for a while. Recent changes have directed federal officials to speed up the approval process for such pending mining plans.
Industry representatives say this lease had been waiting for action for years. They believe the approval sends a signal that coal mining in the Powder River Basin could see more activity in the near future.
More coal mining projects under review
Wyoming leaders have welcomed the approval and are also watching another mining proposal in a different part of the state. 9.2 million tons of federal coal are awaiting access at Sweetwater County’s Black Butte Mine.
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The federal government has opened a 10-day public comment period for this proposal. People can share their opinions through a virtual public meeting or by sending written comments. The meeting will take place online from 5:30 p.m. to 7:30 p.m. on August 18. More information is available on the federal website where the Black Butte project is listed.
In addition to these specific projects, the Bureau of Land Management is reviewing its resource management plans for parts of Wyoming and Montana. These changes would remove the leasing restrictions put in place in 2024 and could identify new areas in the Powder River Basin that are suitable for coal mining in the future.
The Powder River Basin includes portions of southern Montana and northeast Wyoming. It has long been a center of U.S. coal production. Even though coal production in Wyoming has declined in recent years, the state still leads the nation in output.
Wyoming’s coal output has marginally increased so far this year in comparison to the previous year. Production for the first time in decades dropped below 200 million tons in 2024. The recent approvals and policy changes are expected to help maintain production levels and keep mining jobs in the region.