An underground coal mine, Signal Peak is one of Musselshell County’s largest employers, providing nearly 300 jobs. Yet today, it now faces unprecedented challenges that could cripple its operations. The mine has been mired in significant controversies. A massive corruption investigation and other regulatory breaches have cast serious doubt on its long-term viability. Unsurprisingly, the coal industry is heavily impacted by changing market forces and uncertainty from trade. As a result, Signal Peak’s expansion plans are now in a perilous state.
In recent months the mine came under scrutiny for its connection to a corruption investigation. This investigation resulted in the convictions of over 20 former employees and associates. Their crimes included embezzlement, tax evasion, bank fraud and drug trafficking. Such concerns have loomed over the mine, drawing fierce criticism from regulators and the public alike.
In 2021, Signal Peak admitted guilt for violating environmental and employee safety standards. As part of a deal with federal prosecutors, the mine paid $1 million in fines. This legal entanglement is emblematic of the many challenges Signal Peak faces. It underscores their difficulty in meeting the regulatory compliance costs while still growing their operations to scale.
All of these stumbles have not shaken the mine’s leadership’s confidence in its future. Last week, one coal executive sounded the alarm. If Signal Peak is unsuccessful in getting approval for its proposed expansion, it could begin phasing out operations by the end of 2025. This urgency highlights the fact that the mine must be able to respond to new – often less polluting and more resource-efficient – markets and emerging regulatory environments.
Historically, access to West Coast ports has severely restricted Signal Peak’s export ability. The mine has just about finished lining up a new rail route. Now, not only can it ship coal through a Canadian port in British Columbia! This new logistical improvement can greatly enhance the mine’s capacity to meet unprecedented and growing international demand. Asia, and specifically China, has been the primary growth engine for the mine.
Musselshell County’s economy is deeply reliant on Signal Peak. The mine provides more than one-third of the county’s revenue through property and other taxes and payments from the mine. This importing community has its economic foundation in coal mining. According to the 2024 presidential election results, 85% of Musselshell voters supported Donald Trump, which is indicative of their devotion to the fossil fuel industry.
Against this unprecedented backdrop, a major Republican tax cut bill is on the move in Congress. This bill contains a provision to help move Signal Peak’s expansion along. Montana Republican Rep. Troy Downing was the sponsor of this unfortunate provision. He noted the unknowns in tariffs that cause “discomfort” when discussing the future of the mine. He added, given the potential fallout from those tariffs, they might unintentionally derail Signal Peak’s plans to expand further down the line.
“It really comes down to, forgive me for saying this, the art of the deal,” – Troy Downing
Downing lauded President Trump’s moves showboating for new trade agreements that might help coal producers like Signal Peak. He stated, “Look at what President Trump has been doing in actually getting trading partners to the table.”
Yet significant issues persist regarding what these trade agreements mean in the larger sense. Pro-environment advocates say Signal Peak’s operations represent a worrisome trend. Perhaps more importantly, they shine a light on the rampant exploitation of our federal lands with virtually no oversight. One advocate remarked, “This is the kind of company that Republicans want to sell off our federal lands to without proper review, especially of the climate impacts.”
Another voice in the debate noted that while there may be immediate benefits to expanding coal operations, “there may be some fall-out, you know, unintended consequences of all these things.”
The continuing trade war and shifting tariffs create further uncertainty for Signal Peak’s production and export plans. Industry observers have warned that tariffs would increase administrative and transportation costs. That would greatly increase the cost of hauling coal hundreds of miles by rail before it crosses the Pacific Ocean.
State officials have taken notice of these trade-related challenges. Wyoming Governor Mark Gordon on a recent trade trip to Japan and Taiwan led the charge to promote coal from Signal Peak. He made clear just how important international markets will be for the mine’s long-term success.
“It’s pretty clear the administration is very coal-forward and will use energy as a negotiating tool in whatever trade agreements it’s trying to establish,” – Feaster
As everyone with a stake in this increasingly complicated quagmire moves forward down the uncertain path ahead, feelings about Signal Peak’s future seem torn. Local residents have cautiously supported the endeavor, hoping regulatory hurdles can be cleared and international demand will keep doors open. Still, many are worried that previous criminal convictions and present trade volatility will eventually result in a dimmed outlook.
“When I first got involved in trying to defend myself here, I had hopes we could actually stop the mine and close it,” – Thiele
