Controversy over Grassy Mountain project swirls as Alberta announces plan to develop 'modernized' coal policy

The future of coal mining in Alberta will be governed by a new, modern approach, the province announced on Friday.

Brian Jean and Rebecca Schulz released details of the Coal Industry Modernization Initiative, or CIMI, at Calgary's McDougall Centre on Friday morning.

The framework sets out rules to "guide responsible coal mining practices" while also increasing royalties to Albertans.

"We're going to modernize it and make it something Albertans can be proud of," said Alberta energy minister Brian Jean. "They're not right now, but they will be."

Some Albertans aren't convinced.

"The UCP has delivered Albertans a giant lump of coal just before Christmas," said NDP leader Naheed Nenshi.

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According to a document released to the media, the CIMI's main goal will be to protect Alberta's water.

"If coal mining is allowed, it will only be allowed to the highest standards," the document reads.

The CIMI bans mountaintop removal as a technique, prevents all open-pit coal mining in the Eastern Slopes of the Rockies and will not consider any coal mining proposals that have not explored the best water practices first.

However, projects labelled "advanced" are exempt, including one in Crowsnest Pass.

"Today the Alberta government confirmed Northback's Grassy Mountain project as an opportunity to reclaim a formely mined area and demonstrate modern, responsible mining," said Northback in a statement.

Others see economic benefits to the project.

"What more do you want for Christmas, except perhaps the lucky lotto ticket?" said Bonnie Castellarin, from Citizens Supportive of Crowsnest Coal.

Others said it's not worth damaging the land and watershed.

"I don't take a lot of stock in promising some future technology, so that we are actually keeping selenium levels below what is consdered appropriate in water," said Katie Morrison, the executive director of the Canadian Parks and Wildnerness Society (CPAWS).

Moratorium ends

In 2020, the province ended a moratorium opening the Eastern Slopes to potential development.

After public pushback, the policy was reversed, and work started on a new plan.

"We've heard loud and clear that Albertans are concerned about the environmental impact of coal development," said Jean at the time.

"We can do this better than before," said UCP cabinet minister Rebecca Schultz.

The province says there's global demand for coal used to make steel, even though other methods are becoming popular, rankling oppnents of the project, including Nenshi.

"They want to increase production of a product whose worldwide use is declining," the NDP leader said. "This announcement gives us no economic benefit and a lot of environmental risk."

The province agrees that the economic benefit is miniscule, but says it will greatly increase royalties that companies pay to mine coal, to change that bottom line.

The potential economic benefits for the province still don't add up for those concerned about the possibility of the project contaminating water, particularly musician Corb Lund, a longtime southern Alberta resident who grew up in Taber.

"Bottom line is the public doesn't want any new coal mines in the Rockies, full-stop," Lund said. "It's pretty simple -- and they're just making it complicated, so they can get away with it...(or) try to get away with it."

Controversy

Coal mining has been a controversial issue for many Albertans in recent years, especially for those who live in the Crowsnest Pass region.

Last month, residents in the area voted in a plebiscite to decide whether an application from Northback, an Australian mining company, to re-initiate coal mining operations in the eastern slopes of the Rockies should move forward.

The vote, which was not legally binding, was overwhelmingly in favour of Northback's proposal.

Opponents to the idea say coal mining will put critical water supplies at risk.

Grassy Mountain, peak to left, and the Grassy Mountain Coal Project are seen north of Blairmore, Alta., Thursday, June 6, 2024. THE CANADIAN PRESS/Jeff McIntosh

Next steps on Alberta's coal policy

With the CIMI in hand, the province says it will be working with the Alberta Energy Regulator to consult with coal industry stakeholders and collect their feedback -- but there will be no more public consultation.

The Alberta government aims to have a new coal policy ready before the end of 2025.

Alberta Energy Regulatoir wrapped up a public hearing Dec.4, with another scheduled to take place in Calgary on Jan. 14.

There is also legal debate whether the project should even be exempt, with some arguing that since it was a proposal, it should not be categorized as an "advanced" project.

Also scheduled for the new year: the province will be on trial for how it managed this situation. Alberta is being sued by some companies, who say they lost billions in investments when the province flip-flopped on its coal regulations.

Trials in four cases are scheduled to take place in April.