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HELENA - Gov. Brian Schweitzer announced today that there will be a new mining operation opening at Bull Mountain near Roundup, adding that it will be Montana's only underground mine on of the most significant contiguous coal reserves in the United States.

Schweitzer said the new mine is poised to be the most productive single long-wall mining operation in the nation.

Listen to Gov. Schweitzer's comments about Bull Mountain.

Boich Companies has entered in to a joint venture with a FirstEnergy subsidiary to acquire a majority stake at Bull Mountain located near Roundup.

As part of the transaction, FirstEnergy has entered into a 15-year agreement to purchase up to 10 million tons of coal per year from the mine, part of total mine production that is anticipated to be 15 million tons per year.

According to the companies, the estimated cost to fully develop the mine is $450 million, including a new coal preparation plant and the costs associated with constructing a 35-mile rail spur to the Burlington Northern Santa Fe railway line near Broadview.

Under an acquisition and development agreement between the Boich Companies and FirstEnergy, the joint venture will acquire 80 percent of Bull Mountain and 100 percent of the rail operations. Boich Companies will own a 55 percent interest and a FirstEnergy subsidiary will own a 45 percent interest.

After 18 months, the joint venture between the two companies will have the option to acquire the remaining 20 percent.

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