The new operation is owned by Bull Mountain Coal Properties, bankrolled by fund manager Airlie Group, based in Greenwich, Connecticut.

BMCP owns 25,000 acres and mineral rights to over 350Mt of high Btu compliance coal, located 35 miles north of Billings, Montana.

The company is also building a rail line between its mine mouth and the BNSF Railway in Grandview, to be built via a joint venture with Genesee and Wyoming Inc. The new line will bypass the congestion presently experienced for coal shipments from the Powder River Basin.

Preliminary financing has been secured for the construction, which is planned to kick off in the next three months.

In addition, BMCP has a power plant permit but hopes to convert this to provide for construction of a coal-to-liquids (CTL) facility planned near the mine mouth.

“We have removed all significant roadblocks for development of this attractive reserve,” said company chief and coal industry veteran John DeMichiei.

“Although there is much work left to be done, we are all confident that we will meet our schedule to deliver to our customers large quantities of quality coal by rail by the end of next year."

DeMichiei, formerly with Foundation Coal, replaced George Parthemos as CEO in November.