$9,000 fine for coal mine leak into Alberta river a 'slap on the wrist,' critics say

A $9,000 fine levied against a coal company for releasing mine-contaminated wastewater into a northwestern Alberta river is a weak reprimand for the toxic leak, critics say.

CST Canada Coal Limited was sanctioned this week by the Alberta Energy Regulator for an incident in the spring of 2023 when 1.1 million litres of tailings escaped into the Smoky River, a major tributary of the Peace River.

Wastewater from CST metallurgical coal mine near Grande Cache, about 430 kilometres northwest of Edmonton, spilled from the site, sending harmful plumes of fine tailings into the river.

The company was sanctioned under the Environmental Protection and Enhancement Act for allowing the release to occur and for failing to immediately report the spill to the provincial regulator.

'Half measures'

NDP MLA Marlin Schmidt, who previously served as the party's environment critic, said the regulator needs to issue more substantial fines, especially for repeat offenders such as CST.

Operators who fail to meet environmental obligations should face increased scrutiny and escalating fines, Schmidt said.

"I can't see that this is going to be an effective enforcement tool," he said. "It's not an effective deterrent for the companies and it's an extremely expensive process for the Alberta Energy Regulator.

"There's no benefit here to engaging in these piddling half measures."

Last year, the AER fined the operator $22,000 for spilling untreated mine wastewater into the Smoky River in December 2022. 

The company has not commented on the latest penalty.

In a brief statement to CBC, the AER said penalties are calculated within a legislative framework that "aims for consistency, transparency, and deterrence."

Tara Russell, program director with the Canadian Parks and Wilderness Society's northern Alberta chapter, said CST's track record raises serious concerns about its ability to manage mine waste.

She described the $9,000 fine as a "slap on the wrist." 

Russell said the penalty will undermine public trust in the industry and the provincial regulator, and will do little to incentivize the company to better protect the environment.

"It's quite a small penalty for something that was deemed to have moderate potential for adverse effects downstream," Russell said.

With the Alberta government's recent move to lift the ban on coal exploration in the eastern slopes of the Rocky Mountains, the case sets a troubling precedent for the industry, Russell said.

"This is an indication that companies are going to get a slap on the wrist if they put mine wastewater into the aquatic environment.

"This is one mine operator in this watershed and river system … and we're facing that threat of new coal mine development all down the eastern slopes."

The latest leak

The release occurred March 4, 2023, from the open pit and underground mine. A valve in the site's wastewater system froze, causing a tailings pond to overflow, leaving a sheen across the river's surface.

The AER investigation found that the company lacked reporting protocols, failed to have adequately trained staff on site, and did not have ice removal equipment on standby to complete repairs.

The mine wastewater spilled into the Smoky River for at least 17 hours. 

By the time it was contained, an estimated 9,000 kilograms of suspended solids had been released into the river, posing a risk to aquatic life downstream.

Coal wastewater frequently contains selenium, a substance toxic to fish, and the regulator found that species near the release site could be harmed by the fine sediments. 

The plumes could damage their gills and trigger behavioural changes — with Arctic grayling and bull trout most at risk from exposure, the regulator found.

Staff on the ground did not immediately notify senior staff, and workers qualified to manage the spill were not on site.

AER was not notified until more than seven hours after the release was detected.

A troubled mine

The mine has a history of operational issues and financial hardships. 

CST Group, based in Hong Kong and incorporated in the Cayman Islands, bought the mine in 2017 after the previous owner, Grande Cache Coal, went bankrupt, forcing hundreds in the hamlet out of work. 

It has since faced a series of regulatory investigations. 

Months before the March 2023 release, more than 100,000 litres of coal wash escaped from the site into the Smoky River on Dec. 29, 2022.

That leak, which the company failed to immediately report, was blamed on operational failures including frozen pipes and broken sensors.

The following June, heavy rains and regional flooding led to the release of an unknown amount of wastewater from the mine. Inspectors were called to the mine repeatedly in 2023 for "rock-wall instabilities" — one of which partially buried a piece of heavy equipment and the operator inside it.

Schmidt said the case demonstrates that the AER continues to adopt a "light touch" with industry.

He said he's concerned that political pressure to "roll out the red carpet" to coal development in Alberta has undermined environmental oversights in the industry. 

"Other operators are looking this fine and saying the AER is not credible when it says that they're going to bring the hammer down on bad actors."