The mine will be operated by Peabody subsidiary Lee Ranch Coal Company, with the proposed mine to be located adjacent to the Lee Ranch mine in McKinley County, New Mexico.
Lee Ranch shipped more than five million tons of coal last year, recovering coal from 26 seams that lace a 170Mt reserve in the San Juan Basin.
The proposed El Segundo is expected to recover 102Mt over 30 years.
The new permit, the first issued in New Mexico for a new coal operation in more than five years, covers 15,000 acres of state and private surface and mineral ownership, Associated Press reported.
