The company did not release any public comment but spokesman Dennis Hall told the Tuscaloosa News that some site work for the $US1 billion-plus underground operation had started in Tuscaloosa County.

Ventilation shaft development is set to begin this northern summer.

Forthcoming work includes coal processing facilities, an eight-mile railroad spur line to connect with the Norfolk Southern line in the area and 14 miles of conveyor belt infrastructure to stretch from the mine to its barge loadout on the Black Warrior River in nearby Walker County.

Walter got a financial helping hand from local authorities as well, the paper said.

The company was granted $25 million in tax abatements on July 19 by the county’s Industrial Development Authority and reportedly might be eligible for the same in its other counties of operation thanks to a state tax law.

Company officials and state governor Robert Bentley first announced the development of the Blue Creek metallurgical complex in May.

Its underground reserves encompass about 20,400 acres and it will be developed in four Alabama counties.

At full production, the mine is expected to produce 3-4 million tons annually with a mine life of about 40 years.

Hall said Blue Creek would employ about 450 workers when it opened in late 2018 or early 2019.

He told the News that in the meantime, about 3000 construction jobs would be created for the complex’s development over the next several years.

Walter already has two long-time, high-production underground operations in the area, the No. 4 and No. 7 operations near Brookwood.

It also operates the North River mine in Fayette County.

The producer, which purchased Western Coal last year, also has mines in West Virginia, western Canada and Wales.