U.S. Signs Off on Alabama Coal-Mining Projects

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land Texas)

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Summary

Last week, various branches of the federal government paved the way for Warrior Met Coal's planned mine-expansion projects in Alabama, opening the door to extracting an additional 53 million tons of metallurgical coal.

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Multiple Green Lights for Projects

Both the U.S. Bureau of Land Management (BLM) and the Department of the Interior (DOI) have signed off on various portions of two projects from Alabama-focused metallurgical coal (met coal) miner Warrior Met Coal (Brookwood, Alabama).

The projects include the expansions of the Blue Creek No. 1 and No. 4 mines in Tuscaloosa County, collectively opening the door to mining an additional 53 million tons of met coal.

The BLM made the initial move last week when it awarded mining leases for the expansion. The Blue Creek No. 1 lease covered around 8,300 acres and contains an estimated 36.3 million short tons of recoverable coal reserves. The Blue Creek No. 4 lease included about 5,700 acres and contains 16.9 million short tons of recoverable reserves.

The granting of leases was quickly followed by the DOI's Office of Surface Mining Reclamation and Enforcement (OSM) announcing the record of decision for the final environmental impact statements for the projects. The OSM determined the environmental impact statement prepared by the BLM adequately addressed potential environmental effects and that the plans were satisfactory under the National Environmental Policy Act.

The No. 1 mine project will extend the mine's life by 14 years, to 2067, with Warrior estimating employment of about 500, while the No. 4 expansion will extend that mine's life by seven years to 2046, providing about 425 jobs.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the reports on the Blue Creek No. 1 and No. 4 projects.

Favorable Conditions for Met Coal

The second Trump administration has made significant moves in encouraging met coal production in the U.S., despite it being a commodity that is primarily exported. An April 8, 2025, executive order from President Donald Trump focused on coal, lifting the barriers to coal mining on federal lands and directing the Secretary of the Interior to consider designating metallurgical coal a "critical mineral," among other provisions.

Critical minerals are those considered essential to economic and national security. Many of these designated elements are used in energy-transition technologies such as electric vehicles and wind turbines, as well as power transmission infrastructure. Critical minerals often are given priority in project approvals and security considerations. The DOI granted critical mineral status to met coal in November, so it joins elements like lithium, cobalt and copper in a favored position in regard to policies.

Less than two weeks after issuing the executive order, the U.S. added five mining projects to the FAST-41 permitting process, including Warrior Met Coal's mine expansions. The FAST-41 process was signed into law in late 2015, in the Fixing America's Surface Transportation Act during the Obama administration, to streamline the permitting process for large infrastructure projects. In his second term, President Trump has significantly ramped up the use of the program, which was originally intended for projects such as highways and transit programs.

In addition, the administration's One Big, Beautiful Bill Act, passed in July 2025, made met coal eligible for production tax credits, allowing producers like Warrior to recoup 2.5% of their production costs for met coal produced from 2026 through 2029.

Facts & Figures

A Frequently Asked Questions piece addressing met coal was produced last month for the U.S. Congress and states that in 2024, met coal accounted for about 53% of U.S. coal exports, with the balance made up by thermal coal used in power generation. The U.S. is the second-biggest met coal exporter, behind only Australia, and in 2023, the U.S. exported about 51 million short tons of met coal, representing about three-quarters of U.S. production.

Key Takeaways

The BLM and DOI have signed off on various aspects of Warrior Met Coal's expansion of its Blue Creek No. 1 and No. 4 mines in Alabama.
• The moves open the way for an additional 53.2 million short tons of U.S. met coal production.
• Met coal has been designated a "critical mineral" by the federal government and is eligible for a 2.5% production tax credit.
• The U.S. exported about three-quarters of its produced met coal in 2023.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

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 250,000 current and future projects worth $30.2 Trillion (USD).