Alberta coal policy controversy

The Alberta coal policy controversy is a complex legal and environmental dispute concerning coal mining in Alberta, Canada, particularly in the Eastern Slopes of the Rocky Mountains. The controversy began when the United Conservative Party (UCP) government rescinded the 1976 Coal Policy in June 2020, which had protected sensitive areas from open-pit mining for over four decades. This decision sparked significant public outcry and legal challenges.
Key elements of the controversy include the rescinding of 40-year-old environmental protections that had blocked surface coal mines on 1.5 million hectares of land; the potential development of 190,000 hectares of previously restricted lands; ongoing legal challenges from coal companies seeking over $CDN 15 billion in damages from the Alberta government; and a lack of comprehensive environmental assessment protocols.
There has been significant public and environmental group opposition to coal mining in the region. The Grassy Mountain Coal Project (GMCP), proposed by Northback, a subsidiary of Hancock Prospecting, has been a focal point of the controversy.
The 1976 Coal Policy, introduced by the Progressive Conservative government of Peter Lougheed, classified land into four categories, with Category 1 being the most protected, where no exploration or development was allowed.
In 2015, Ram River Coal Corporation reported the following in a technical report (https://ramcoal.com/assets/docs/Ram-River-Coal-Corp-NI-43-101-Coal-Resource-Report-FINAL-22-November-2019-1.pdf) "The Ram River area is currently classified Category 2 under the Coal Development Policy for Alberta from 1976, in which underground mining may be considered, but development by surface mining is not normally considered. In 2016, RRCC received a letter from the Alberta Government which reportedly clarified the policy as it relates to RRCC. The letter reports, that as is the case elsewhere across Alberta, the permitting of surface mining activities is subject to regulatory review and approval, and subject to RRCC receiving the necessary approvals. Surface mining of the shallower portions of the Ram River property can be conducted."
This letter led to several other companies applying for and receiving coal leases and exploration permits in Category 2 Lands.
The UCP's decision in 2020 lifted restrictions on coal mining exploration and development on three of the four categories of land based on environmental sensitivity. This led to new exploration leases being granted. In response to widespread public opposition, a moratorium on coal exploration and development was implemented in early 2022. However, this moratorium was lifted in January 2025 by Energy and Minerals Minister Brian Jean without public consultation, reigniting debates about resource extraction, environmental protection, and government transparency.
The Grassy Mountain Coal Project, which was initially rejected by regulators in 2021 due to environmental concerns, has been re-submitted by Northback and is at the center of the controversy because the Alberta government and the Alberta Energy Regulator (AER) have classified it as an "advanced project" allowing it to proceed under existing regulations. This classification is being legally challenged.
Legal challenges are a key aspect of this dispute, with coal companies suing the Alberta government for financial losses and environmental groups and local communities launching legal actions against mining projects.
Environmental concerns are also significant, with open-pit coal mining threatening the water supply by leaching toxic elements, such as selenium, into water sources. These concerns are heightened because the Eastern Slopes of the Rocky Mountains are the headwaters for major rivers that supply water to millions across Alberta, Saskatchewan, and Manitoba.
The controversy highlights the tension between resource extraction, environmental conservation, and public policy in Alberta's energy sector. The situation remains dynamic, with ongoing legal challenges, public hearings, and evolving government policies.
In 1976, the Progressive Conservative government under then Premier Peter Lougheed introduced the 1976 Coal Development Policy for Alberta which governed coal exploration and development in the foothills and Rocky Mountains. It classifies land into four categories, ranging from Category 1, where no exploration or development is allowed, to Category 4, where all exploration and development, both surface and underground, may be approved if appropriate.
Benga Mining Ltd., another subsidiary of Hancock Prospecting and Northback’s predecessor, originally conducted exploration work on Grassy Mountain from 2013 to 2016. Benga Mining Limited—then a wholly-owned subsidiary of Riversdale Resources began seeking approval from both the federal and provincial governments for the GMCP. By 2016, Riversdale had submitted its detailed report on GMCP to the Impact Assessment Agency of Canada (IAAC).
Benga's proposal for an open-pit metallurgical coal mine located on "legacy mining lands", Grassy Mountain Coal Project (GMCP), was submitted in 2015, Benga Mining Limited—a wholly-owned subsidiary of Riversdale Resources. By 2016, Riversdale Resources, had submitted a 263-page description of the proposed Grassy Mountain Coal Project to the Impact Assessment Agency of Canada (IAAC). GMCP is located 7 kilometres (4.3 mi) north of the town of Blairmore in the Alberta side of the Rocky Mountains's Crowsnest Pass, a region with a century-long history of coal mining that ended in 1983. The proposed area to be covered is 2,800 hectares (28 km). The company claimed that the GMCP's production of coal would reach 93 million tonnes over twenty-three years.
On August 16, 2018, the Minister of Environment and Climate Change and the Chief Executive Officer of the Alberta Energy Regulator (AER) announced the establishment of the GMCP Joint Review Panel (JRP) with three members—Alex Bolton, Hans Matthews, and Dean O’Gorman. The JRP's task was to fulfill the responsibilities of both the provincial and federal acts and requirements defined by the Alberta Energy Regulator (AER) and the Canadian Environmental Assessment Act, 2012 (CEAA 2012) in regard to the GMCP. The Panel received significant evidence against GMCP from a variety of organizations and groups, including The Livingstone Landowners Group, The Canadian Parks and Wilderness Society (CPAWS), The Municipal District of Ranchland No. 66, the Timberwolf Wilderness Society, the Alberta Chapter of the Wildlife Society, the Crowsnest Conservation Society, the Oldman Watershed Council. In addition to these groups, several Indigenous groups, including the Káínai First Nation, Piikani Nation, Siksika Nation, Stoney Nakoda Nations, Tsuut’ina Nation, Métis Nation of Alberta – Region 3, Ktunaxa Nation, Shuswap Indian Band, and Samson Cree Nation provided information. The panel also received input from individuals, such as landowners adjacent to the project, and from government bodies. The Government of Canada provided expert information through the review process. The Alberta Geological Survey provided information about the potential effects of the project on Turtle Mountain, Alberta.
In June 2021, the GMCP Joint Review Panel announced that the GMCP proposal was rejected because of significant environmental concerns, saying that it was not in the public interest.
Two years later, Rinehart’s Northback Holdings Corp. submitted an application to "conduct a large coal exploration program on Grassy Mountain'. According to a 2023 article in The Tyee, in September, Northback contacted the AER to request new coal exploration drilling permits.
Northback Holdings Corporation submitted their proposals for a coal exploration program and new drilling permits to the Alberta Energy Regulator (AER) on August 31 and September 5, 2023. These applications included requests for a Coal Exploration Program, a Deep Drill Permit, and a Temporary Diversion License, all aimed at collecting site-specific technical data related to the Grassy Mountain Project.
Northback — a subsidary of Hancock Prospecting—an Australian company owned by Gina Rinehart, one of Australia's wealthiest individuals, acquired Riversdale Resources' for $CDN 700 million in 2019 which included the GMCP while the project was under review by the JPR. It is Northback's Grassy Mountain Coal Project (GMCP) that has garnered the most attention. GMCP is a proposed open-pit metallurgical coal mine located on "legacy mining lands" 7 kilometres (4.3 mi) north of the town of Blairmore in the Alberta side of the Rocky Mountains's Crowsnest Pass, a region with a century-long history of coal mining that ended in 1983. The proposed area to be covered is 2,800 hectares (28 km). The company claimed that the GMCP's production of coal would reach 93 million tonnes over twenty-three years.
Northback filed its first lawsuit against the federal and Alberta governments in June 2024.
In July 2022, Cabin Ridge filed a $CDN 3.441-billion lawsuit saying that the company's reliance on the province's rescission of the 1976 coal policy implied that "that there were no unique restrictions to developing a metallurgical coal project. In September 2022, Elan also filed its multi-billion-dollar lawsuit at Calgary's Court of King's Bench. In 2012 or 2013, Elan acquired coal lease applications southwestern Alberta “for the purpose of developing a coal project".
The last open-pit coal mine in Alberta's Livingstone Range, a sub-range of the Canadian Rockies which forms the eastern boundary of the Rockies in the south of Alberta, Grassy Mountain, closed in 1983. Newer mines that were "cheaper and safer" on the British Columbia side of the Crowsnest Pass began operating. For coal miners on the Alberta side of the Pass, who had worked in one of the five mines on the Alberta side—Blairmore, Frank, Bellevue, Coleman, and Hillcrest—this marked the end of a century when the region was the biggest coal centre in Alberta. The Municipality of Crowsnest Pass, an amalgamation of these towns as of 1978, was further re-organied with some carve outs to the Municipal District (MD) of Ranchland No. 66. Grassy Mountain mine, which is 7 miles north of Blairmore, straddles both municipalities.
On November 2024, a non-binding vote was held by the Municipality of Crowsnest Pass where only 3,052 of the 5,695 residents voted and of these 1,957 people voted in favour of the GMCP, representing 72%.
The legal status of Northback's proposal for the Grassy Mountain Coal Project is currently under scrutiny due to conflicting interpretations of its "advanced project" designation. Northback Holdings Corporation, previously known as Benga Mining Ltd., has resubmitted a proposal for the Grassy Mountain project after it was initially rejected by both federal and provincial regulators in 2021 on the grounds that it was not in the public interest. The Alberta Energy Regulator (AER) has now accepted Northback's application, citing that the project qualifies as an "advanced coal project" because a project summary and environmental impact assessment were submitted prior to a ministerial order that paused new coal developments in 2022.
Energy Minister Brian Jean has asserted that once a project is classified as advanced, it retains that status regardless of previous rejections, stating, "Once a project is considered an advanced project it remains as one". This position is supported by the AER, which indicates that a letter from the minister carries significant weight in guiding their decisions.
However, legal experts, including Nigel Bankes from the University of Calgary, argue that the original project is effectively "legally dead" due to its previous denials and should not be considered for new applications.
The situation has escalated with public hearings taking place to assess Northback's proposal amidst considerable opposition from environmental groups and local residents concerned about potential impacts on land and water resources. Additionally, the Alberta Court of Appeal is set to hear arguments regarding whether Northback's application should be allowed to proceed under the current legal framework.
The legality of Northback's proposal hinges on interpretations of regulatory definitions and past decisions. While the Alberta government and AER maintain that it qualifies as an advanced project, significant opposition and legal challenges suggest that this classification may be contested in court. The outcome will depend on judicial interpretations of regulatory authority and the implications of previous denials.
The controversy began on June 1, 2020 when the United Conservative government of Premier Jason Kenney rescinded the 1976 Coal Policy which had for over four decades blocked surface coal mines on 1.5×10 hectares (1.5×10 km) wide swath of the foothills of the Rocky Mountains, and the headwaters of Alberta's major watersheds. With no land-use management plan in place, starting in July 2000, new exploration leases—including Montem Resources and Benga Mining Ltd.'s in December 2020—were granted and applications were approved.
On 1 June 2020, Premier Jason Kenney rescinded the 1976 Coal Policy and lifted the restrictions on coal mining exploration and development on 3 of the 4 categories of land based on environmental sensitivity. The UCP's new policy would only protect Category 1 land from coal mining exploration and development. Included in Category 2 which are lands that are "moderately to highly environmentally sensitive" is Livingstone Range.
According to Alberta Views, global investors—mainly from Australia—are interested in the region and are following the review process closely.
The removal of these protections sparked widespread public outcry and legal challenges, leading to a reinstatement of the 1976 policy and subsequent moratorium on coal exploration and development in early 2022.
The March 2, 2022 moratorium on coal exploration and development in Alberta implemented through a provincial ministerial order, was a significant policy decision that temporarily halted new coal projects pending the completion of land-use planning in the Eastern Slopes of Alberta's Rocky Mountains. It was implemented in response to widespread public opposition to coal mining in the region.
The ministerial order remained in effect until January 15, 2025, when it was rescinded by Energy Minister Brian Jean.
In January 2025, the Alberta government lifted its moratorium on new coal exploration and development in the Eastern Slopes of the Rocky Mountains. This decision, made by Energy and Minerals Minister Brian Jean, effectively reinstated the 1976 Coal Policy, allowing coal companies to resume exploration and development on previously restricted lands, except for Category 1 lands, which include parks, wilderness areas, and wildlife sanctuaries. The government stated that this move was intended to "reduce regulatory confusion" around coal mining. However, the decision has reignited public debate, with environmental groups, First Nations, and some members of the public expressing strong opposition due to concerns about water contamination from selenium, habitat destruction, and threats to wildlife.
Prior to lifting the moratorium, in December 2024, Premier Danielle Smith's government announced plans to develop new coal mining regulations, expected by the end of 2025. These plans included banning new mountaintop removal and open-pit mining on the Eastern Slopes, holding projects to higher environmental standards, and substantially increasing royalty rates. However, the government clarified that these new rules would not apply to "advanced proposals," such as the Grassy Mountain Coal Project, effectively allowing it to proceed under existing regulations.
One of the most controversial projects moving forward is the Grassy Mountain coal project, led by Northback Holdings Corporation (formerly Benga Mining Ltd.). The company has submitted applications for a Coal Exploration Program, a Deep Drill Permit, and a Temporary Diversion License to collect site-specific technical data. The Alberta Energy Regulator (AER) considers Grassy Mountain an "advanced project," exempting it from new bans on mountaintop removal and open-pit mining. The project had previously been rejected due to environmental concerns but is now proceeding under existing regulations.
The lifting of the moratorium has led to renewed concerns about the potential long-term ecological impacts of coal development in Alberta's sensitive landscapes. Critics argue that the government lifted the moratorium before fully implementing a comprehensive coal policy, raising concerns about transparency and prioritization of industry interests over environmental protection. Approximately 190,000 ha (470,000 acres) of previously restricted and environmentally sensitive areas are now potentially open to coal development.
To address concerns over environmental impacts, Minister Jean introduced the Coal Industry Modernization Initiative (CIMI), which includes a policy aimed at preventing selenium contamination in Alberta’s watersheds. This initiative was influenced by pollution issues linked to Teck Resources in the Elk Valley, which have played a significant role in shaping public opinion and government policy regarding coal mining in the region.
The Alberta Court of Appeal has granted the Municipal District of Ranchland leave to appeal the AER’s decision, indicating that there are serious, arguable issues with the regulator’s interpretation of coal development regulations. Meanwhile, the government has initiated consultations with industry players on implementing the new coal regulations. The ongoing controversy highlights broader tensions between economic development, environmental protection, and government transparency in Alberta’s resource sector.
There are a number of legal challenges related to coal mining in Alberta—both for and against policies and projects. The Grassy Mountain Coal Project, proposed by Australian mining magnate Gina Rinehart's company, has been a contentious issue in Alberta since 2015. In 2021, both provincial and federal regulators rejected the proposal for an open-pit mine, citing significant environmental concerns, particularly regarding the Oldman River watershed. Despite this setback, Rinehart has persistently sought to overturn the decision.
Rinehart through her company's subsidiary, Northback has initiated multiple lawsuits against Alberta and federal governments, challenging regulatory processes. Rinehart's company actively participated in a controversial referendum in a local referendum in Crowsnest Pass, which voted in favor of the project. This move has been criticized for potentially disenfranchising downstream water users and the broader Alberta population. As of January 2025, ongoing litigation includes two lawsuits claim billions in damages from the Alberta government due to the coal moratorium in the Rocky Mountains.
These policy changes have resulted in legal action from five Australian coal companies—Evolve Power Ltd. (formerly Montem Resources Ltd.), Cabin Ridge Holdings Ltd. and Cabin Ridge Project Ltd., Atrum Coal Ltd. and its subsidiary, Elan Coal Ltd., Black Eagle Mining Corp., and Northback Holdings, seeking damages from the Alberta government. The $CDN 15-billion combined lawsuits as of December 2023, alleged that changes in coal mining regulations by the Alberta government had resulted in significant financial losses and a "de facto expropriation" of their coal assets, and negatively impacted their investments and property rights.
In July 2022, Cabin Ridge filed a $CDN 3.441-billion lawsuit saying that the company's reliance on the province's rescission of the 1976 coal policy implied that "that there were no unique restrictions to developing a metallurgical coal project. In September 2022, Elan also filed its multi-billion-dollar lawsuit at Calgary's Court of King's Bench. In 2012 or 2013, Elan acquired coal lease applications in southwestern Alberta “for the purpose of developing a coal project".
Northback filed its first lawsuit against the federal and Alberta governments in June 2024.
At a press conference in January 2025, Premier Smith justified the lifting of the coal exploration ban by citing the need to protect taxpayers from potential legal liabilities. Smith referenced the lawsuits filed by five coal companies seeking over $15 billion in combined damages for lost revenues and sunk costs due to previous policy changes. However, the government's strategy may not fully address the legal challenges. At least one coal company has indicated that their lawsuit against the province remains active despite the lifting of the moratorium. This suggests that the province's exposure to potential damages may not be entirely mitigated by the policy reversal. The ongoing legal disputes and the government's response highlight the complex interplay between resource development, environmental protection, and fiscal responsibility in Alberta's energy policy landscape.5.
Nigel Bankes, professor emeritus of law at the University of Calgary, said that the Alberta government had created an "open season for coal development" which would possible "knock[...] the foundation out" from these lawsuits.
The Stoney Nakoda—consisting of three First Nations—and Piikani, signatories to Treaty 7, on whose land the GMCP is located, challenged the federal government's 2021 denials of the project. If the project proceeds the Stoney Nakoda and Piikani Nations would receive "project-specific economic and social benefits" from Benga through confidential impact benefit agreements they entered into with Benga.
There are a number of legal challenges related to Grassy Mountain. The Municipal District of Ranchland's appeal against the Alberta Energy Regulator's decision to accept Northback Holdings' applications for exploration permits. Benga Mining Limited (now Northback Holdings) and two First Nations' judicial review applications of the federal decisions rejecting the project. There was an appeal before the Alberta Court of Appeal regarding the definition of an "advanced coal project" and the Energy Minister's influence on the AER's decision.
Ongoing litigation by Benga/Northback, Piikani Nation, and Stoney Nakoda Nations seek to overturn the provincial decisions that denied approval for the project.
The Federal Court case involving three applications for judicial review of the federal government's refusal to issue environmental assessment approvals.
Coal mining in the Eastern Slopes of the Rocky Mountains poses significant threats to the water supply, impacting both water quality and quantity. Open-pit coal mining leaches toxic elements, particularly selenium, into water sources. As of 2025, there is no proven effective method exists to prevent this contamination.
Concerns about water pollution include the fact that open-pit coal mining leaches toxic elements, particularly selenium, into water sources. Selenium contamination causes deformities, nerve damage, and reproductive failure in fish, mammals, and migratory birds.
Coal mining operations require large amounts of water, potentially diverting it from other uses.[5]. This could lead to water shortages for farmers, ranchers, and communities, especially during drought years.
The Eastern Slopes are the headwaters for major rivers that supply water to millions across Alberta, Saskatchewan, and Manitoba. Contamination could affect drinking water, food production, recreation, and ecosystems throughout the Prairies.
Toxic tailings from mining pose substantial risks to long-term consequences for downstream environments. Once selenium is released into water, it is extremely difficult to mitigate its effects on water quality and aquatic ecosystem health.
Tailing dam failures, though rare, can have extreme impacts on downstream water quality. Air-borne contaminants from mining activities can affect residents and communities far from mine sites.
Benefits of the Grassy Mountain Coal Project in Alberta...
According to a 2021 University of Calgary Public Policy paper submitted to the Alberta Coal Policy Committee, which studied the implications of coal mining in the province, with a focus on the Eastern Slopes of the Rocky Mountains, in 2020/2021 coal mining royalty revenue in Alberta accounted for 0.4% of natural resource revenue. From 1997 and 2017, coal mining accounted for 0.2% of the province's GDP in current dollars. The report says that the financial gains of allowing a hypothetical coal mine in the Rockies eastern foothills of, including $440 million in undiscounted additional tax revenues and $35 million in undiscounted employment earnings, would be outweighed by the drawbacks, such as the disruption to ranching and tourism, along with adverse environmental impacts on water, vegetation, air, and wildlife.
Five coal companies are suing the Alberta government for compensation, including Evolve Power Ltd. (formerly Montem Resources Ltd.), Cabin Ridge Holdings Ltd. and Cabin Ridge Project Ltd., Atrum Coal Ltd. and its subsidiary, Elan Coal Ltd., Black Eagle Mining Corp., and Northback Holdings. They are collectively seeking over $15 billion in damages related to Alberta's coal policy changes Four of these companies (Evolve Power, Cabin Ridge, Atrum Coal, and Black Eagle Mining) have filed separate statements of claim that will be heard together in April 2025. Northback Holdings launched its damages claim in June 2024 and will be heard separately.
The companies allege that Alberta's 2022 decision to change coal mining rules resulted in financial losses and a "de facto expropriation" of their coal assets. They argue that the government's policy changes have negatively impacted their investments and property rights.
Both the 2021 Joint Review Panel and the University of Calgary Public Policy paper submitted to the Alberta Coal Policy Committee suggest that the risk of stranded assets arises from the potential for declining coal prices, the practice of extracting the best ore first, and the possibility that companies may become insolvent or unable to meet reclamation obligations. This can lead to financial liabilities being transferred to the public, particularly in the form of reclamation costs. As with orphan well where the province is struggling with billions of dollars in environmental liabilities, and the Grassy Mountain project could add to these financial burdens, which would be passed on to future generations. The JRP cited concerns of the Livingstone Landowners Group cautioned that under basic corporate law, a parent and subsidiary are different companies, and that the parent is not liable for the subsidiary’s debts and obligations. In the Grassy Mountain Coal Project, for exmple there is risk that Northback Holdings would not take financial responsibility for stranded assets.
The Alberta government, under Premier Smith, has shown renewed interest in GMCP and supports the project. In late 2024, it announced plans to ban new mountaintop removal and open-pit coal developments on the eastern slopes of the Rocky Mountains, but exempted the Grassy Mountain project from these new rules.
This ongoing controversy has sparked public demonstrations, with hundreds protesting to protect water security in the region. The situation highlights the complex interplay between resource development, environmental concerns, and political influence in Alberta's coal policy.
Blair Painter, who is mayor the municipality of Crowsnest Pass, supports the GMCP.
Landowners and ranchers in the area affected are against the project. This includes the Livingstone Landowners Group. The Canadian Parks and Wilderness Society have submitted a brief to the JPR and are considered legal action.
The Council of Canadians raised concerns that the GMCP poses significant risks to Canada's environment, Indigenous communities, and human health.
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