This week, a federal coal lease auction in Montana’s Powder River Basin ran into trouble. The 1,262-acre lease, estimated to contain 167.5 million tons of coal, received only one bid - from the Navajo Transitional Energy Company - of just $186,000. The Bureau of Land Management rejected the offer for failing to meet fair market value. This contrasts sharply with past sales, such as a 2012 auction that brought in $793 million for 721 million tons.
Following the Montana setback, a large coal lease sale in Wyoming was postponed. The low bid reflects declining coal demand as utilities shift toward natural gas and renewables. Despite political efforts to roll back restrictions and boost coal production, the industry faces ongoing challenges from low domestic demand, competition from alternative energy, and limited export opportunities.
Mining #Shorts
This week, a federal coal lease auction in Montana’s Powder River Basin ran into trouble. The 1,262-acre lease, estimated to contain 167.5 million tons of coal, received only one bid - from the Navajo Transitional Energy Company - of just $186,000. The Bureau of Land Management rejected the offer for failing to meet fair market value. This contrasts sharply with past sales, such as a 2012 auction that brought in $793 million for 721 million tons.
Following the Montana setback, a large coal lease sale in Wyoming was postponed. The low bid reflects declining coal demand as utilities shift toward natural gas and renewables. Despite political efforts to roll back restrictions and boost coal production, the industry faces ongoing challenges from low domestic demand, competition from alternative energy, and limited export opportunities.
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