Roundup, Mon (AP) – Former ranch hand Thierre has spent years battling a seemingly unwinnable fight against a massive coal mine that is gradually extending underground towards his property in central Montana.
The mine owner’s peak energy signal is located on a billion-tonne coal reserve on Mount Bull, close to Thierre’s home. The mine appeared set to thrive for a significant time, especially following President Donald Trump’s commitment to revitalize the coal industry. The president asserts he has invigorated his second term by issuing new orders to deregulate mining. The Republican tax cut bill features special provisions that facilitate mine expansions via Congress.
However, Thierre and his neighbors perceive a glimmer of hope in another of Trump’s initiatives: his “America First” strategy regarding global trade. The Signal Peak Mine exports 98% of its mined minerals to Japan and Korea. They believe that if tariffs incite a trade war, it could inadvertently halt the mine’s expansion plans, as their legal battles have managed to delay any progress thus far.
Indeed, the intensification of a trade war could compromise Trump’s aim to safeguard coal.
“As long as there’s a buyer, they’ll keep mining,” Thierre noted. “But reactions from Japan and South Korea may indicate that if they face tariffs on their shipbuilding and goods, they might refuse to purchase our coal.”
Insights from Western Coal Country
At 77, Thierre reflects on the situation while standing atop a hillside scorched by wildfires. The former Army Ranger, who served two combat tours in Vietnam, takes in the landscape below, where his small herd of cows grazes peacefully.
He stands as a political outlier in Musselshell County, Montana, where mining has sustained the economy for over a century. Many believe Trump’s initiatives could lead to greater financial returns than elsewhere.
Approximately 85% of Musselshell voters backed Trump in the 2024 presidential election, viewing his victory as relief from former President Joe Biden’s anti-coal policies, according to Musselshell County Commission President Robert Pankratz.
Yet, there are concerns that could hinder coal’s resurgence and they feel caught in the sights of Trump’s adversaries.
“I’m thrilled he’s advocating for coal,” Pankratz commented.
“Nevertheless, there could be unintended consequences from these initiatives.”
Many are apprehensive about the ramifications of trade wars on local economies, and experts assert these fears are legitimate.
Coal analyst Seth Feaster noted that the impact on Signal Peak and other U.S. miners could manifest in two ways. Countries that withstand tariff negotiations might retaliate against U.S. exports, reducing coal demand. Conversely, nations like South Korea and Japan may leverage their energy resources to negotiate agreements, solidifying their standing as a market for western coal.
“It’s evident that the administration is extremely coal-friendly, using energy as a bargaining chip in trade negotiations to establish energy agreements,” Feaster stated.
The Dynamics of Trade
Most coal mined in the U.S. for power plants comes from a handful of expansive mines in the Powder River Basin in northeastern Wyoming and southeastern Montana. Republican Wyoming Governor Mark Gordon has promoted the state’s coal on his recent trade missions to Japan and Taiwan.
“It might be a long shot, but if we don’t attempt it, we’ll miss our chance altogether. We need to acknowledge that both countries are not entirely renewable yet,” Gordon remarked.
Signal Peak employs around 300 workers, making it the region’s largest employer. Taxes and other contributions from the mine represent roughly one-third of Musselshell County’s income.
A few years back, the mine was the focal point of a corruption investigation that led to convictions of former mining employees for embezzlement, tax evasion, bank fraud, money laundering, drug trafficking, and firearm offenses. In 2021, the company pleaded guilty to environmental and employee safety regulation violations after an agreement with federal prosecutors, which included a $1 million fine.
During a recent council hearing, Signal Peak CEO Parker Phipps was questioned by Rep. Yassamin Ansari about the mine’s criminal background.
“This is a company that Republicans want to manage our federal lands properly, especially without considering climate impacts,” said the Arizona Democrat. “Honestly, I find that disgraceful.”
Phipps emphasized that the investigation predates his tenure and assured that the company had cooperated with authorities. He warned that the company might “initiate a liquidation operation” by the end of 2025 unless the expansion is sanctioned.
Montana Republican Rep. Troy Downing, who backed the House provisions for the mine’s expansion, acknowledged during an interview that the uncertainty surrounding tariffs generates “unease.”
“This really illustrates the art of the deal,” Downing stated, referencing Trump’s book that highlights his business acumen. “Just observe what President Trump does when negotiating with his trading partners.”
Last year, global coal production soared to an all-time high, nearing around 10 billion tonnes, dampening international efforts to reduce emissions linked to fossil fuel burning—key contributors to global warming. A significant portion of this growth stemmed from Asia, which continues to broaden its coal reliance as new plants emerge.
Meanwhile, the U.S. coal industry has been in decline for nearly two years, as many domestic utilities transition towards cleaner energy sources. Consequently, exports have increased their revenue share, surpassing 100 million tonnes last year after peaking under former President Barack Obama.
Even if tariffs do not harm U.S. miners, domestic coal companies’ attempts to capitalize on international demand are often hindered by limited access to West Coast ports. Transporting coal hundreds of miles by rail to the Pacific Ocean significantly inflates export costs.
“Most of this issue is purely geographical. There aren’t any issues with coal quality or sales, but we’re talking about a 1,000-mile railroad trip to reach the nearest port,” he explained.
Signal Peak addressed this challenge by establishing a rail line that transports coal through the Port of Canada in British Columbia. Nonetheless, Trump’s complicated relationship with Canada could further complicate this aspect.
A Realistic Outlook
Frustrated with the prolonged battle to protect his land, Thierre has come to terms with reality. This isn’t the first time he’s held reservations about the mine’s potential closure.
The 2008 financial crisis drastically diminished coal demand, and the COVID pandemic subsequently unsettled both the economy and industries globally. The shifts between Republican and Democrat administrations in Washington have also added unpredictability.
“Initially, we hoped to actually halt the mine’s operations,” he reflected.
Now, however, he faces the possibility that a trade conflict might achieve what years of legal disputes could not—his hard-earned skepticism remains.
“It’s a slim hope,” he lamented.
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Gruver reported from Cheyenne, Wyoming.
Source: apnews.com