POINT OF ROCKS — The Black Butte Mine got federal approval Tuesday to access 9.2 million tons of coal reserves that will allow the Sweetwater County operation to resume full-scale mining after more than a year of slowdowns that had miners doing reclamation work instead of digging coal.
The Department of the Interior announced approval of a mining plan change allowing Black Butte Coal Co. to develop Pits 10 and 15 with a Bureau of Land Management lease, extending operations through at least 2039 and potentially creating more than 50 new jobs at a facility that currently employs 56 full-time workers.
"So what it means for Black Butte is it opens up another pit, high quality, low strip ratio coal that we can blend with our existing reserves and start shipping coal to customers again," Steve Gili, general manager of Black Butte Coal Company, told Cowboy State Daily on Wednesday.
The approval represents a significant shift from the previous administration's approach to coal permitting, he said.
The mine has operated since 1977, primarily supplying the Jim Bridger Power Plant, but was forced to scale back operations as federal approvals stalled.
Future Expansion
Gili explained the economic reality behind the expansion's importance.
The mine's existing reserves have become prohibitively expensive to extract due to their high strip ratio — which is a measure of the amount of rock that must be moved to access each ton of coal.
"Strip ratio is just how many yards of overburden, how many yards of rock do you have to move to get to a ton of coal," Gili said. "So the higher the strip ratio means you got to move more rock to get to the coal, which largely means that the coal is deeper."
The extra cost of digging high strip coal drives up the price per ton.
The mine had been blending high and low strip ratio coal to maintain competitive pricing but was running out of the lower-cost reserves.
"What we have always tried to do is blend some high strip ratio coal with some low strip ratio coal. And therefore we can come in with a product that the average price is low enough to remain competitive," Gili said.
In 2024, when federal approval for the new lease stalled, the mine depleted all of its economical coal.
"We essentially ran out of low strip ratio coal and we ceased to be competitive from a cost standpoint with other coal mines," Gili said.
Since June 2024, Black Butte has been "on a strictly reclamation plan," with workers focused solely on restoring previously mined areas while awaiting federal approval.
Trump Support
Interior Secretary Doug Burgum emphasized the alignment between the Black Butte approval and the current administration’s energy policies.
"The Black Butte Mine expansion strengthens our nation's energy dominance by responsibly unlocking federal coal resources," Burgum said in Tuesday's announcement. "This decision also supports good-paying jobs in Wyoming and ensures the land is restored after mining, reflecting our commitment to both energy and environmental stewardship."
Specifically, the approval supports Trump administration priorities under Executive Orders 14154, "Unleashing American Energy," and 14241, "Reinvigorating America's Beautiful Clean Coal Industry."
Travis Deti, executive director of the Wyoming Mining Association, praised the administration's approach.
"It's really nice, from the industry perspective, to have your government at least not working against you anymore," Deti told Cowboy State Daily. "And that was the case for a long time."
Deti noted the broader context of federal support for coal operations.
"What the Trump administration I think is doing is they're looking at the generating facilities," he said. "We have to have a place to send our coal and prevent premature closure, early retirements of our coal facilities.
"That's a good thing, because we're going to need those coal facilities going forward to meet projected demand."
Expedited Process
The Office of Surface Mining and Reclamation Enforcement expedited the environmental review using authorities established under the national energy emergency declaration, completing the process with a 10-day public comment period and virtual public meeting.
This represents a dramatic acceleration from the typical multi-year environmental review process.
The Black Butte expansion had been under federal review since 2014, with the company securing initial lease approval in 2017 and state permits in 2021 before stalling under the previous administration.
While Gili said it's too early to provide specific employment numbers, he estimated the expansion could support "upwards of 25 employees" beyond current staffing levels, depending on contracts with future coal buyers.
"At this point we now need to get those coal contracts back," Gili said. The mine hopes to continue supplying Southwest Wyoming, particularly the Jim Bridger Power Plant, which has been its primary customer.
Bounce Back?
The federal approval comes after workforce reductions caused by regulatory delays. According to a November 2023 Cowboy State Daily report, Black Butte laid off 19 workers — roughly 15% of its workforce — reducing employment from 132 to 113 workers due to federal roadblocks preventing the expansion.
Deti noted the cost of previous delays.
"The damage is just being the delay and for them because they have had to lay off workers because of the inaction of the federal government under the Biden administration," he said. "And that was a shame. But you know, better late than never."
The Black Butte approval occurs amid stable conditions for Wyoming coal.
According to the University of Wyoming's September 2025 CREW Report, preliminary coal production data for the second quarter of 2025 shows a 14.5% increase year-over-year, with July 2025 production up 0.1% compared to the previous year.
Powder River Basin coal spot prices have remained stable at $14.30 per short ton, up 2.7% year-over-year as of July 2025. The CREW Report indicates Wyoming coal production is back on pace with the January 2025 forecast of 185 million short tons for 2025.
Deti characterized the current market environment as increasingly supportive.
"There's a lot of optimism on future markets because the demand is going to be there," he said. "And just having access to the coal, to provide into those markets is a really good thing."
The Black Butte Mine, owned and operated by Black Butte Coal Company, is a joint venture between KCP Inc. in Utah and Bitter Creek Coal Co. based in Colorado.
David Madison can be reached at david@cowboystatedaily.com.
