LINCOLN - A proposed $20 million expansion of the Viper Mine near Elkhart is good for Logan County and the region, says the heads of the Lincoln and Logan County Development Partnership.

"I view this as a regional project and this will help the region with jobs and help the county's economy," partnership director Joel Smiley said. "I see the proposed changes as a positive."

The coal mine, owned by International Coal Group, has asked to be included in the Lincoln/Logan County Enterprise Zone. The company could save nearly $1 million in the form of savings on property taxes and sales taxes for construction materials.

On Tuesday, the Logan County Board formally approved the proposed expansion. The Lincoln City Council is expected to consider the proposal in the coming weeks.

Both bodies must approve expanding the zone, which previously was extended to Illiopolis and Farmer City.

"I believe this is a good use of the enterprise zone," Smiley added.

The mine's plan to add a third shaft would let the company retain 260 jobs and create 18 new ones, officials say.

Officials plan to start the expansion in January and have it completed by September 2011.

The company would save $600,000 on sales tax on construction materials. The rest would come from property tax abatements until the zone expires in 2017.

For inclusion in the enterprise zone, the company would pay $10,000 a year to the county until 2017.

The mouth of the new coal mine would be in Sangamon County, which would receive the sales tax paid by people buying the coal. That should not stop Logan County officials from helping the Viper Mine, Smiley said.

"When you consider economic development, you have to look at the big picture and you have to look at it on a regional basis," Smiley said. "What's good for our neighboring counties is also good for us because money is still being spent in Logan County and people from Logan County are being hired."

Logan County officials hope that expansion of the mine also will lead to an upgrade for the Mount Pulaski blacktop.