The Siberian coal is shipped to the UK, then moved in containers to Hull, after which it is transported by road to Merthyr Tydfil.
Jayne Hills, the tourist railway's owner, told the Telegraph the regulations were particularly annoying as the local coal would be ideal for use in the newly converted steam locomotive.
"It seems ludicrous that we could get coal from three miles away but instead are being forced to import it from 3000 miles away. Being from Merthyr, where everyone has a relative who was a coal miner, or knew somebody who was a miner, this seems just crazy."
According to the Telegraph, planning permission for the mine had stipulated coal could only be transported by rail after residents voiced concerns about noise and dust coming from the mine.
Up to 20,000 tonnes of coal is dug every week at the mine, with most of it going to the Abethaw power station in the Vale of Glamorgan.
According to the Telegraph, the mine's operator are now applying to change the planning conditions so that five percent of its coal can be taken out by lorries.
Stephen Tillman, managing director of Miller Argent, told the newspaper the situation was "ludicrous".
"The alternative source is Russia for dry steam coal and, obviously it's travelling huge distances and it's up to 60 times the carbon footprint in terms of travel," he said.
"We assumed all our coal would be going to Aberthaw power station. Obviously the market's changed."
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