[The Alberta Environmental Policy Series highlights the many environmental challenges and related government policies in Alberta. SAGE welcomes feedback on these topics.] 

In 2020, the 1976 Coal Policy was rescinded without public consultation. Significant areas of the Eastern Slopes land were opened to coal leases, initiating a widespread response from concerned landowners, environmentalists, and Indigenous communities. Due to public pressure, the 1976 Coal Policy was reinstated in early 2021 after cancelling eleven new coal leases. Four projects were
exempted from the Ministerial order, two of which being Benga’s Grassy Mountain and Montem’s Tent Mountain coal projects.

A Joint Review Panel (JRP) consisting of federal and provincial regulators held a hearing from October 2020 to January 2021 on the Grassy Mountain coal project. In August 2021, the Joint Review Panel report deemed the project “not in the public interest.” The report identified impacts to species-at-risk, risks of contamination of surface- and ground water, risks of air pollution, and that the project did not properly consider economic risks in its evaluation (which may be significant for the agri-food sector in our region), while overstating royalty payments. There was no cost evaluation for the long-term treatment of water (long after the coal mine would be closed) and dubious commitments for restoration after mine closure. Overall, this project was deemed: not good for people, not good for the environment, and not good for the citizen-taxpayer. Under the new ownership of Northback, the Grassy Mountain project was resurrected in 2023 as an ‘advanced’ project.

In 2023, Montem withdrew its application to mine coal at Tent Mountain with plans to convert the old coal mine to a pumped-hydro scheme.

The Government of Alberta introduced in late 2024 a Coal Industry Modernization Initiative (CIMI) in consultation with the coal industry. In January of 2025, the Government of Alberta lifted its moratorium on coal mining again opening up nearly 1900 square kilometers of land for coal exploration. In May of 2025, the Alberta Energy Regulator approved the exploration program application by Northback at Grassy Mountain.

Five coal companies initiated a $15 billion lawsuit against the Government of Alberta as a result of the uncertainty of the coal policy in Alberta. Atrum Coal settled for $142.5 million in July 2025. Evolve Power settled for $95 million in October 2025. Cabin Ridge Project and Black Eagle Holdings have yet to settle, and Northback launched a claim for damages in June 2024, to be heard separately from the other litigation processes.

Albertans continue to wait for the decisions: on the remaining litigation for the uncertainty created by the Government of Alberta due to the lack of consultation; on the new coal policy; and on the approval process for Northback’s Grassy Mountain project.

The Grassy Mountain project, given the assessment of the Joint Review Panel, remains ‘not in the public interest.’ The reasons are simple: coal mines produce waste from which pollutants leach into surface and groundwater. Though there are many heavy metals that coal mining can release to our fresh water, selenium has been noted as a particularly risky pollutant as it bioaccumulates in the environment reaching toxic levels for fish, animals living in riparian areas, and potentially in agricultural soils and plants grown in them. This is a risk not only to human health and the health of aquatic ecosystems, but also risks the reputation of our regional agricultural products.

As part of the ongoing Coal Industry Modernization Initiative (CIMI) process, a commitment to zero discharge of selenium standard has been suggested. This may correspond to the ongoing consultation with respect to the proposed Coal Mining Effluent Regulations under the federal Fisheries Act (RSC1985, c F-14) which states: “The Regulations would impose conditions related to this authorization that
would reduce the risks to the aquatic environment posed by deleterious substances in coal mining effluent.”

On November 5, 2025, Northback submitted its Terms of Reference for an Environmental Impact Assessment Report outlining the scope of environmental and socio-economic effects of the proposed project.

In December of 2025, the application by Corb Lund for a No New Coal Mining in Alberta’s Rockies petition was approved by Elections Alberta but this approval was reversed after the Government of Alberta passed amendments to its citizen-initiated petition legislation. The petition may proceed once the Ministry of Justice revises its procedures.

SAGE suggests:

• Maintaining the moratorium on new coal projects until the Coal Industry Modernization Initiative (CIMI) has been approved by the legislature and has had the benefit of robust public consultation and parliamentary debate.

• Abiding by the Coal Mining Effluent Regulations under the federal Fisheries Act, once legislated.

• Honouring the Recommendations of the Joint Review Panel derived after technical consultation and due democratic process. The Grassy Mountain coal project is not in the public interest.

• Protecting the Eastern Slopes from industrial pressure, and preserve and restore the region as a clean and reliable source of water for the region.

What can you do? Get involved with Corb Lund’s No New Coal Mining in Alberta’s Rockies petition.