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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Montana rail spur to link coal mine

Associated Press

BILLINGS – Construction of a long-anticipated railroad that will carry coal from a mine in the Bull Mountains near Roundup to Eastern and Western markets has begun.

Yellowstone County Commissioner Jim Reno said the commission signed a memorandum of understanding Tuesday related to the management of rail crossings at public roads, and construction crews “are moving dirt as we speak.”

The 35-mile rail spur will tie the mine into the main line of BNSF Railway.

“We have a high degree of confidence the railroad will be constructed on time and hopefully within budget,” said John DeMichiei of Signal Peak Energy, the new company operating the former Bull Mountain coal mine. He estimated that construction would last a year at a cost of around $100 million.

The underground coal mine, which has struggled for years because of bad debts and mining permit violations, has the potential to tap into vast underground coal reserves in Musselshell and Yellowstone counties.

The railroad, being built by Ames Construction, will include a 5.7-mile loop at the mine to accommodate two 150-car unit trains, DeMichiei said. A loading facility planned at the mine will be able to handle 7,000 tons of coal per hour.

Right now, the mine is producing about 2,000 tons of coal a day with one 10-hour shift.