The U.S. Department of the Interior has approved a significant expansion of the Bull Mountains coal mine in central Montana, authorizing Signal Peak Energy, LLC to extract an additional 22.8 million tons of federal coal and 34.5 million tons of adjacent non-federal coal. This decision extends the mine's operational life by up to nine years and aligns with President Donald J. Trump's energy emergency directives aimed at bolstering U.S. energy exports and strengthening alliances in the Indo-Pacific region.

"President Trump's leadership in declaring a national energy emergency is allowing us to act decisively, cut bureaucratic delays, and secure America's future through energy independence and strategic exports," said Interior Secretary Doug Burgum.

The Bull Mountains mine, located in Musselshell and Yellowstone counties, ... is a key supplier of coal to U.S. allies Japan and South Korea. The expansion is projected to generate over $1 billion in combined local, state, and county economic benefits, including wages, taxes, and business activity.

Acting Assistant Secretary for Land and Minerals Management Adam Suess emphasized the administration's commitment to balancing economic growth with environmental stewardship. "This decision reflects our commitment to balancing economic prosperity, national security, and environmental responsibility," Suess stated. "The Bull Mountains project is proof that we can meet urgent energy needs, work with local communities, and uphold strong environmental standards." doi.gov

The approval process included an environmental impact statement conducted under newly established alternative arrangements for compliance with the National Environmental Policy Act (NEPA), following the national energy emergency declared by President Trump in January 2025. The Department noted that the environmental review contained more analysis than is typically required under NEPA, referencing the U.S. Supreme Court’s recent ruling in Seven County Infrastructure Coalition v. Eagle County, Colorado.

Despite these assurances, environmental groups have expressed strong opposition to the expansion. They argue that the project poses significant risks to local water resources and contributes to climate change.

"This mine is responsible for releasing enormous amounts of carbon pollution, and it's aiming to be the largest underground coal mine in the country," said Derf Johnson, Deputy Director of the Montana Environmental Information Center. 

Shiloh Hernandez, an attorney with Earthjustice, criticized the state's approval process, stating, "Montana’s approval of Signal Peak Energy’s request to expand its coal mine in the Bull Mountains without properly examining the impacts to water, wildlife, and agriculture is in clear violation of state law." He added that the mine has already caused the dewatering of natural springs essential for local ranching operations. 

The Bull Mountains mine has faced legal challenges in the past. In 2023, a federal judge halted the mining of federal coal at the site pending a thorough analysis of the mine’s impacts on ranchers, vital water sources, and the environment. 

As the expansion moves forward, the debate continues over the balance between energy development and environmental protection. The Interior Department's decision underscores the administration's focus on energy exports and economic growth, while environmental advocates warn of the long-term consequences for local ecosystems and global climate change.