US coal auctions will test industry appetite for Trump mining revival

Core Insights - The Trump administration is set to auction coal leases on federal lands in Alabama, Montana, Utah, and Wyoming, marking a significant test of the mining industry's interest in revitalizing a declining sector [1][2] - U.S. coal production has decreased by 40% from 2013 to 2023, largely due to environmental regulations and competition from natural gas, while federal acreage under lease for coal mining has fallen by 11% during the same period [2] - The National Mining Association anticipates significant interest in the upcoming lease sales, which will feature a reduced royalty rate of 7% for companies, down from previous rates of 12.5% or 8% [3][4] Auction Details - The competitive sales will begin with two leases in Tuscaloosa County, Alabama, covering 14,050 acres and estimated to contain 53 million tons of metallurgical coal [5] - Following the Alabama sale, a lease in Utah will be auctioned, covering 120 acres with an estimated 1.29 million tons of recoverable coal [6] - On October 6, 1,262 acres in Montana will be offered, with an expected 167.5 million tons of recoverable coal, and on October 8, 3,508 acres in Wyoming will be auctioned, estimated to contain 365 million tons of recoverable coal [7]