Signature Sponsor
Alabama Coal Mining Royalties to Benefit Communities

 

 

March 6, 2026 - A coal mine in Alabama is projected to become the nation’s top producing mine, and Alabama will soon reap the benefits.


Alabama Gov. Kay Ivey signed SB155, also called The Renewing Coal-Impacted Communities Act, into law Tuesday. The act outlines how coal mining royalties, which will come from the Blue Creek Mine, will be allocated.


On the forefront of this legislation was state Rep. Bryan Brinyark, R-Northport.


The first $1 million will go to the state’s General Fund. The next $500,000 will be distributed to the Alabama State Port Authority for the McDuffie Coal Terminal. The next $250,000 will be distributed to the Alabama Surface Mining Commission.


Remaining revenue will be deposited in the Renewing Coal-Impacted Communities Act fund, where it will be given out to four counties. The four counties — Tuscaloosa, Jefferson, Fayette, and Walker — are considered coal-impacted communities.


“The royalties will go to those counties for workforce development and economic development,” Brinyark said. “That’s going to be a big deal for a long time.”


“This is wonderful for the coal mining communities that are affected by the mining of this federal land,” ASMC Director Kathy Love said.


ASMC issues mining licenses, grants permits and regulates mining sites in the state.


“The communities surrounding these facilities and mines can now apply for grants, which can be used for education or other needs the county can benefit from,” Love said.


The company mining the coal is Warrior Met Coal, one of largest U.S. producers of coal. The coal being mined at Blue Creek is used for steel production and is how Alabama is getting royalties.


Warrior Met Coal anticipates around $4 million in royalties will be generated every year for the next several years. Royalties will be split 50-50 between the federal and state government.


“The passage of SB155 (The Renewing Coal-Impacted Communities Act) by the Alabama Legislature is a major win for West Alabama,” a spokesperson for Warrior Met Coal said in a statement.


Royalty costs can vary year to year because Blue Creek Mine is on federal and private land. The more federal coal that is mined, the more royalties. More private coal mined means fewer royalties.


The Renewing Coal-Impacted Communities Act also creates an advisory committee who will oversee royalty grants and applications.


The committee will have nine members:


Governor appointee from coal-impacted community


Lt. governor appointee from coal-impacted community


President pro tempore of the senate appointed from a coal-impacted community


Speaker of the House representative from a coal-impacted community


Fayette County legislative delegation appointee


Jefferson County legislative delegation appointee


Tuscaloosa County legislative delegation appointee


Walker County legislative delegation appointed


The president of the Alabama Mining Association


All nine positions are unpaid but may be reimbursed for expenses incurred when acting in their respective role on the committee. While the legislation will help coal-impacted communities, the mine itself will have other significant effects on the state.


“When they get into full production, Warrior Met Coal says it’s going to be the number one producing mine in America,” Brinyark said. “This is huge.”


In 2025, Alabama ranked No. 9 in the country for coal production, according to ASMC.