Trump administration weighs new coal leases at North Dakota mine

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(Reuters) – The Trump administration on Tuesday took a key step toward leasing new areas to a North Dakota coal mine that is proposing to operate through 2045.

WHY IT MATTERS

The publication of a draft environmental analysis of new lease areas for North Dakota’s Freedom Mine is aligned with President Donald Trump’s goal to increase U.S. fossil fuel production and revive the use of coal to produce electricity.

But the country’s electricity supply from coal, which was once the primary source of U.S. electricity, has dropped to about 16%, giving way to the rise of cheaper natural gas operations and renewable energy.

BY THE NUMBERS

Freedom Mine, owned by a division of NACCO Industries, produces between 11.5 million and 13.5 million tons of lignite coal annually in Mercer County, North Dakota.

The company requested to lease tracts that cover 1,350 acres and contain about 24 million tons of mineable coal.

The mine’s owner was not immediately available for comment.

KEY CONTEXT

Freedom Mine supplies coal to power plants owned by the Basin Electric Power Cooperative and first applied to lease the new areas in 2019.

The company filed an emergency application, which would require that a portion of the coal in the new lease areas be mined within three years.

The leases are made up of private surface lands and a mixture of federal and privately owned subsurface coal.

WHAT’S NEXT

The Bureau of Land Management will seek public input on the leasing proposal through May 2. The agency, a division of the Interior Department, is considering a range of options, including leasing less acreage.

The company’s mining plan modification must be approved by Interior’s assistant secretary for land and minerals.

(Reporting by Nichola Groom; Editing by Cynthia Osterman)