Despite the threat of new environmental rules, demand for coal has remained healthy enough that Alliance Resource Partners recently announced plans to open a new coal mine in Gibson County, Indiana.

The new mine will be located near Princeton, just east of the Gibson Generating Station, which is partly owned by Wabash Valley Power. The underground mine will be developed by an Alliance subsidiary, and is expected to provide access to 48.4 million tons of medium-sulfur coal. Production is scheduled to begin in third-quarter 2014. The mine will employ more than 300 miners and produce up to 3.3 million tons of coal each year.

Alliance noted that the mine’s particular grade of coal carries a $15 per ton premium over the price of typical coal from the Illinois Basin, with even higher premiums paid by overseas buyers.