More Coal to liquidsNative Americans strike coal deal
 Coal-derived diesel from the plant could eventually reach 120,000 barrels a day |
An American Indian tribe has struck a50-year deal with an Australian company to build a $7bn (£3.6bn) plantthat would convert coal into liquid fuel.
The development between the Crow tribe of Montana andAustralian-American Energy, will initially see up to 50,000 barrels offuel produced.
One of the first projects of its kind in the US, output at the Many Stars plant could hit 125,000 barrels daily.
Various other coal-to-fuel projects are planned for US states, including Ohio.
Mining-free zone
Construction will begin in several years and will use coal from a mine that is yet to be developed on the Indians' reservation.
The tribe has 12,000 members and the Crow will pocket up to 50%of the profits from the plant after investors make up their costs.
It is estimated the tribe could receive up to $1bn a year - a major economic boost given its annual budget is currently $26m.
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 It means we will become self-sufficient as a tribe 
Carl Venne
Crow Tribe chairman
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The Crow's reservation is located above some of the US's largestcoal reserves and some estimate there may be as much as 9bn tonnesunderneath.
To date, the area has remained largely free of mining.
Self-sufficiency
Both the tribe and Australian-American Energy have anticipatedopposition from environmental groups, and have said the Many Starsplant will be able to capture 95% of the carbon dioxide it emits.
But Crow chairman Carl Venne said this was a chance for the community to escape poverty.
"People have to realise this is one of the poorest counties in the whole nation," said Venne.
"It means we will become self-sufficient as a tribe," he added.
The US is expected to see a number of similar coal-to-liquidplants in the coming years and many have been proposed or are stillbeing considered.
West Virginia and Wyoming, Ohio, are among the locations which could accommodate similar projects.
Australia-American Energy is a subsidiary of Australian Energy.
Australian Energy chief executive, Allan Blood, has alreadyembarked on two similar projects in Australia including a $2bn plant toconvert coal to liquid fertilizer, and another which was recentlysnapped up by Shell and Anglo American.