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Released November 03, 2025 | SUGAR LAND
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Written by Eric Funderburk for Industrial Info Resources (Sugar Land Texas)
Out of 46.8 million short tons of U.S. coal sent abroad in the first half of the year, thermal coal exports (used for power generation) amounted to 22.5 million short tons, representing a 10% decline from last year, while metallurgical coal (used in steelmaking) accounted for 24.2 million short tons, a 13% decline from last year.
The reduction was primarily due to lower exports to China, thanks largely to its implementation of tariffs on coal in response to U.S. tariffs on Chinese goods. The EIA pointed to China as accounting for 73% of the total decline in coal exports, resulting in 68% of the decline in thermal coal exports and 76% of the decline in metallurgical coal. The agency noted that Chinese imports of U.S. coal began declining after the country imposed a 15% additional tariff on imported U.S. coal in February, which then became a 34% reciprocal tariff covering most other U.S. goods in April.
Despite, and perhaps prompted by, the shrinking of the Chinese market, the White House has taken multiple steps to shore up the U.S.' "beautiful clean coal industry," including opening up federal lands for mining, placing specific coal-mining projects on fast-track permitting lists and allocating hundreds of millions of dollars to help strengthen the coal-burning power sector.
An executive order from U.S. President Donald Trump in April began unlocking the doors of the sector, opening the way to lifting the barriers to leasing and mining on federal lands. The order also classified coal as a "mineral," which could lead to faster permitting on federal lands, and this designation was given added heft in May, when the administration designated metallurgical coal (met coal) as a "critical mineral," although most of it is exported, proving a legal basis to help speed projects to produce met coal toward construction.
Not long after Trump's executive order, the Department of the Interior (DoI) released a list of mining projects that would be added to the FAST-41 list for fast-tracked permitting, a program established in 2015 under the Fixing America's Surface Transportation Act to expediate federal permitting for large-scale infrastructure projects. In addition to phosphate, lithium and copper mines, the DoI included Warrior Met Coal's (Brookwood, Alabama) coal-mining projects in Alabama to be fast-tracked.
In addition, the One Big Beautiful Bill Act lowered the federal coal royalty rate from 12.8% to 7%, meaning more savings for mining companies.
Warrior Met Coal has several active mining projects in Alabama, the most significant of which is the Blue Creek No. 1 met coal project, which is presently under construction. Work on the underground mine kicked off last year, and the project also entails construction of a coal preparation plant. The 6 million-ton-per-year mine and prep plant are expected to begin operating in 2026. Subscribers to Industrial Info's Metals & Minerals Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
But much more is in store for Warrior in its home state, aided in no small part by the Trump administration. With the reopening of federal lands for coal mining, Warrior Met Coal was the successful bidder for the mining lease of more than 14,000 acres of federal mineral estate in Tuscaloosa County, Alabama. The lease covers area near existing Warrior facilities and will enable the expansion of the company's Blue Creek mines nos. 1 and 4. The expansion of Mine No. 1 adds 33.5 million tons of recoverable met coal, prompting the addition of a second longwall and raising the mine's output from 6 million to 6.6 million tons per year. Although still underway with initial construction, the expansion of the No. 1 mine could kick off in 2028, putting it on track to begin increasing production from 2030 onward. Subscribers can learn more by viewing the project report.
The lease also makes available an additional 24 million tons of recoverable coal for the Blue Creek No. 4 mine, which could kick off as soon as 2027, depending on how the market is faring. (See project report.)
While Warrior Met Coal represents the type of coal miner the administration would like to see thrive with its more open coal policies, other steps taken by the White House have been less successful. After announcing the opening of 13.1 million acres for coal leasing, an October auction for coal-mining rights for approximately 167 million tons of the mineral from Montana's Powder River Basin wasn't a resounding triumph. The lease's sole bidder, Navajo Transitional Energy Company (Farmington, New Mexico), offered only $186,000 for the mining rights, which are located near one of the company's existing mines. Representing less than one cent per ton, the administration rejected the bid and promptly cancelled another auction planned soon afterward for mining leases in Wyoming.
The White House is trying to set the coal sector on fire again, with Energy Secretary Chris Wright declaring in a press release that "Coal built the greatest industrial engine the world has ever known, and with President Trump's leadership, it will help do so again." But the current market appears to be somewhat tepid, stifling the White House's plans for a U.S. coal renaissance.
In late September, the Department of Energy allocated $625 million toward the coal-fired power sector. "These funds will help keep our nation's coal plants operating and will be vital to keeping electricity prices low and the lights on without interruption," said Wright. The funds not only open the door for projects such as wastewater treatment and the recommissioning of coal-fired plants, but also allocates funds toward dual-firing retrofits and cofiring systems using natural gas.
While Trump's promise to revitalize the U.S. coal sector was greeted with enthusiasm in coal country during the election, some miners are becoming concerned about the discrepancies seen in favorable treatment for the coal-mining companies versus what the administration is achieving for the workers. One of the largest issues of contention comes from the administration's delay in unpausing the implementation of the Mine Safety and Health Administration's (MSHA) rules regarding the control of silica dust, a known cause of black lung disease. The delay was prompted by a lawsuit filed by the National Stone, Sand and Gravel Association, which would have been affected by the rule from 2027. The administration has subsequently cited supply-chain issues for necessary equipment as well as other compliance challenges for dragging its feet in enforcing the rule.
The administration's lack of movement on the Silica Rule has prompted criticism from certain industry groups, including the United Mine Workers of America, whose international president, Cecil E. Roberts said, "This delay is simply a death sentence for more miners. The fact that an industry association with no stake in coal mining can hold up lifesaving protections for coal miners is outrageous. The Department of Labor and MSHA should be fighting to implement this rule immediately, not kicking enforcement down the road yet again. Every day they delay, more miners get sick, and more miners die. That's the truth."
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Summary:
The EIA notes that coal exports from the U.S. declined 11% year over year in the first half of 2025, primarily due to tariffs placed on U.S. coal by China. As this occurs, the Trump administration is doing what it can to revitalize the U.S. coal sector.U.S. Coal Exports Plunge
In a recent press release, the U.S. Energy Information Administration (EIA) noted that coal exports from the U.S. declined 11% in the first half of 2025, compared with the same period in 2024.Out of 46.8 million short tons of U.S. coal sent abroad in the first half of the year, thermal coal exports (used for power generation) amounted to 22.5 million short tons, representing a 10% decline from last year, while metallurgical coal (used in steelmaking) accounted for 24.2 million short tons, a 13% decline from last year.
The reduction was primarily due to lower exports to China, thanks largely to its implementation of tariffs on coal in response to U.S. tariffs on Chinese goods. The EIA pointed to China as accounting for 73% of the total decline in coal exports, resulting in 68% of the decline in thermal coal exports and 76% of the decline in metallurgical coal. The agency noted that Chinese imports of U.S. coal began declining after the country imposed a 15% additional tariff on imported U.S. coal in February, which then became a 34% reciprocal tariff covering most other U.S. goods in April.
Despite, and perhaps prompted by, the shrinking of the Chinese market, the White House has taken multiple steps to shore up the U.S.' "beautiful clean coal industry," including opening up federal lands for mining, placing specific coal-mining projects on fast-track permitting lists and allocating hundreds of millions of dollars to help strengthen the coal-burning power sector.
An executive order from U.S. President Donald Trump in April began unlocking the doors of the sector, opening the way to lifting the barriers to leasing and mining on federal lands. The order also classified coal as a "mineral," which could lead to faster permitting on federal lands, and this designation was given added heft in May, when the administration designated metallurgical coal (met coal) as a "critical mineral," although most of it is exported, proving a legal basis to help speed projects to produce met coal toward construction.
Not long after Trump's executive order, the Department of the Interior (DoI) released a list of mining projects that would be added to the FAST-41 list for fast-tracked permitting, a program established in 2015 under the Fixing America's Surface Transportation Act to expediate federal permitting for large-scale infrastructure projects. In addition to phosphate, lithium and copper mines, the DoI included Warrior Met Coal's (Brookwood, Alabama) coal-mining projects in Alabama to be fast-tracked.
In addition, the One Big Beautiful Bill Act lowered the federal coal royalty rate from 12.8% to 7%, meaning more savings for mining companies.
Warrior Met Coal has several active mining projects in Alabama, the most significant of which is the Blue Creek No. 1 met coal project, which is presently under construction. Work on the underground mine kicked off last year, and the project also entails construction of a coal preparation plant. The 6 million-ton-per-year mine and prep plant are expected to begin operating in 2026. Subscribers to Industrial Info's Metals & Minerals Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
But much more is in store for Warrior in its home state, aided in no small part by the Trump administration. With the reopening of federal lands for coal mining, Warrior Met Coal was the successful bidder for the mining lease of more than 14,000 acres of federal mineral estate in Tuscaloosa County, Alabama. The lease covers area near existing Warrior facilities and will enable the expansion of the company's Blue Creek mines nos. 1 and 4. The expansion of Mine No. 1 adds 33.5 million tons of recoverable met coal, prompting the addition of a second longwall and raising the mine's output from 6 million to 6.6 million tons per year. Although still underway with initial construction, the expansion of the No. 1 mine could kick off in 2028, putting it on track to begin increasing production from 2030 onward. Subscribers can learn more by viewing the project report.
The lease also makes available an additional 24 million tons of recoverable coal for the Blue Creek No. 4 mine, which could kick off as soon as 2027, depending on how the market is faring. (See project report.)
While Warrior Met Coal represents the type of coal miner the administration would like to see thrive with its more open coal policies, other steps taken by the White House have been less successful. After announcing the opening of 13.1 million acres for coal leasing, an October auction for coal-mining rights for approximately 167 million tons of the mineral from Montana's Powder River Basin wasn't a resounding triumph. The lease's sole bidder, Navajo Transitional Energy Company (Farmington, New Mexico), offered only $186,000 for the mining rights, which are located near one of the company's existing mines. Representing less than one cent per ton, the administration rejected the bid and promptly cancelled another auction planned soon afterward for mining leases in Wyoming.
The White House is trying to set the coal sector on fire again, with Energy Secretary Chris Wright declaring in a press release that "Coal built the greatest industrial engine the world has ever known, and with President Trump's leadership, it will help do so again." But the current market appears to be somewhat tepid, stifling the White House's plans for a U.S. coal renaissance.
In late September, the Department of Energy allocated $625 million toward the coal-fired power sector. "These funds will help keep our nation's coal plants operating and will be vital to keeping electricity prices low and the lights on without interruption," said Wright. The funds not only open the door for projects such as wastewater treatment and the recommissioning of coal-fired plants, but also allocates funds toward dual-firing retrofits and cofiring systems using natural gas.
While Trump's promise to revitalize the U.S. coal sector was greeted with enthusiasm in coal country during the election, some miners are becoming concerned about the discrepancies seen in favorable treatment for the coal-mining companies versus what the administration is achieving for the workers. One of the largest issues of contention comes from the administration's delay in unpausing the implementation of the Mine Safety and Health Administration's (MSHA) rules regarding the control of silica dust, a known cause of black lung disease. The delay was prompted by a lawsuit filed by the National Stone, Sand and Gravel Association, which would have been affected by the rule from 2027. The administration has subsequently cited supply-chain issues for necessary equipment as well as other compliance challenges for dragging its feet in enforcing the rule.
The administration's lack of movement on the Silica Rule has prompted criticism from certain industry groups, including the United Mine Workers of America, whose international president, Cecil E. Roberts said, "This delay is simply a death sentence for more miners. The fact that an industry association with no stake in coal mining can hold up lifesaving protections for coal miners is outrageous. The Department of Labor and MSHA should be fighting to implement this rule immediately, not kicking enforcement down the road yet again. Every day they delay, more miners get sick, and more miners die. That's the truth."
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
By the numbers:
- 46.8 million short tons of U.S. coal were sent abroad in the first half of the year, representing an 11% year-over-year decline in exports.
- Lower China imports accounted for 73% of this decline.
- The Trump administration has designated 13.1 million acres of federal land to be available for coal leases.
- The One Big Beautiful Bill Act lowered the federal coal royalty rate from 12.8% to 7%.
- The administration designated $625 million to support the U.S' coal-fired power sector/
Key Takeaways:
- U.S. coal exports declined significantly in the first half of 2025, prompted primarily by the tariff war between the U.S. and China.
- The Trump administration is going all-out to revitalize the U.S. coal sector, opening up federal lands for mining, fast tracking coal-mining projects and allocating funds for the coal-fired power sector.
- Despite its efforts, coal developers haven't been biting as much as hoped, leading to poor results in an October auction to mine in Montana's Powder River Basin.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
