Federal Government Approves Mine Expansion for Montana's Largest Power Plant

Expansion of Rosebud Coal Mine Approved by Federal Authorities

The federal government has given the green light to a significant expansion of the Rosebud coal mine, which serves as a primary source of fuel for Montana’s largest power plant. This approval involves an increase in the mine's size by nearly 1,900 acres. The Office of Surface Mining Reclamation and Enforcement (OSMRE) announced this decision on Tuesday, stating that it will provide access to 34 million tons of federal coal.

This development is part of the Interior Department’s broader strategy focusing on energy independence, rural prosperity, and ensuring permitting certainty. The agencies involved emphasized that this decision will allow Westmoreland Mining, a company that employs approximately 300 people, to keep the mine operational through 2039. Historically, the Rosebud Mine has produced around 7,300 tons of coal annually.

Although the expansion is smaller than the original request from Westmoreland, which aimed to access up to 70 million tons of coal, the company expressed satisfaction with the outcome. They described the approval as a long-awaited milestone.

In 2022, a federal district court judge in Billings ordered OSMRE to conduct additional analysis after environmental groups challenged the expansion. These groups argued that the project's impact on climate change and local water supplies was not adequately considered. According to Jon Heroux, Westmoreland’s attorney, the agency followed the court's instructions thoroughly.

“This decision allows us to better fulfill our contracts going forward and ensure that we’re able to provide our customer with a better product,” Heroux stated. He also noted that while the Interior Department or OSMRE could still face legal challenges for other actions, this Record of Decision marks the end of the road for the specific expansion into Area F of the Rosebud Mine, which spans nearly 10 miles in southeastern Montana.

Heroux added that the rise of artificial intelligence and the construction of data centers, which require substantial amounts of electricity, will likely drive an increase in electricity generation from various sources, including coal. “We’re really going to have to think about that (energy) mix,” he said. “It is ultimately going to be an ‘all-of-the-above’ solution.”

On the other side, the Montana Environmental Information Center (MEIC), one of the plaintiffs who sued OSMRE in 2019 over the expansion, criticized the federal government’s decision. MEIC Executive Director Anne Hedges stated that the Rosebud Mine has been causing damage to water resources in the region for decades. She pointed out that the state of Montana has ignored the pollution from the mine, which affects agriculture and wildlife. “The federal government is supporting a mine that supplies the dirtiest, most toxic power plant in the nation and driving up the cost of electricity with expensive coal in the name of a fabricated energy emergency,” she said.

Westmoreland’s main customer is the Colstrip coal-fired power plant, which is nearly 40 years old and operated by Talen Energy. NorthWestern Energy, Montana’s largest regulated utility, stated that they will continue to deliver reliable energy while planning for the future. Jo Dee Black, a spokesperson for NorthWestern Energy, explained that existing energy resources must continue to operate until new infrastructure can meet demand.

The Record of Decision for the project reflects changes made during the Trump administration, particularly regarding environmental laws. OSMRE noted that the Interior Department has issued new National Environmental Policy Act guidance, which states that a bureau does not need to prepare an Environmental Impact Statement based solely on climate change or greenhouse gas effects. The guidance explains that greenhouse gas emissions are “fundamentally cumulative phenomena” that cannot be tracked in a localized manner.