Alberta says 'modernized' coal policy coming by late 2025

The Alberta government says it is developing rules that will shape the future of coal mining in the province, but certain notable projects remain exempt from the new plan.

In 2020, the province moved to scrap a 1976 policy that limited coal development in the Eastern Slopes region. That decision opened previously off-limits areas to potential development and led to sustained public opposition.

In response to the pushback, the government reinstated that policy in 2021 and launched Alberta's Coal Policy Committee. That committee released its final report in December 2021, and Alberta Energy Minister Brian Jean said the plan was intended to address its recommendations.

"If coal mining is allowed, it will only be allowed to the highest possible standards," Jean told reporters on Friday. "Alberta's new standards for coal mining will be among the best in the world, and the best in Canada."

As part of the announcement, the Alberta government said it would raise coal royalty rates significantly on new coal mines.

Under what the government is calling the Alberta Coal Industry Modernization Initiative, the province said it would allow coal mining to take place if it met certain standards:

• No mountaintop removal mining would be allowed as a coal mining technique.
• No new open-pit coal mining would be allowed in the Eastern Slopes, relating to all 4 categories of the 1976 Coal Development Policy, "subject to any further regulations flowing from land use planning work which is underway."
• New coal mining proposals would be required to use techniques that use "best water practices and prevent adding selenium into waterways." New proposals will either need to be underground mines or use mining technologies such as highwall automated underground mining.
• Rules under the 1976 Coal Development Policy for national parks, provincial parks, wildland parks, wilderness areas, ecological reserves and provincial recreation areas continue.

However, the new rules do not apply to what's referred to as "advanced" coal projects. That includes the long-controversial Grassy Mountain project in southern Alberta.

The Alberta energy ministry has said Grassy Mountain project qualifies as an "advanced coal project" because a project summary and environmental impact assessment were filed with regulators several years ago. 

Some legal experts, however, have questioned that designation, as the original Grassy Mountain project was rejected and no longer exists.

The Municipal District of Ranchland, where the mine is located, has argued against the project moving ahead, and the Alberta Court of Appeal released a ruling in August stating it would hear arguments on the matter.

Speaking to reporters on Friday, NDP Leader Naheed Nenshi called the announcement "a giant lump of coal just before Christmas."

"They released a plan to increase coal mining in Alberta, and to do so in a way that has very little economic benefit and very significant environmental risk," Nenshi said. 

"For farmers, for ranchers, for outdoors enthusiasts, for the agriculture sector, for people who live downstream, this could not be a worse announcement."

The government will engage with the coal industry to develop the regulations but won't consult the general public again, citing engagement done under the Coal Policy Committee. A new coal policy will be developed by late 2025.

Katie Morrison, executive director of the southern Alberta chapter of the Canadian Parks and Wilderness Society (CPAWS), said she was hopeful the announcement would prevent new open-pit coal mines in the Alberta foothills in key watersheds.

"But I think some of the wording is definitely problematic in the announcement," Morrison said. 

"Even the definition of an open-pit coal mine, we have played this game before, where the government plays with definitions to create loopholes for industry."

Northback Holdings, the company spearheading the Grassy Mountain project, wrote in a statement that it looked forward to working with the province as it moves forward on the policy updates.

"Today the Government of Alberta confirmed Northback's Grassy Mountain Project as an opportunity to reclaim a formerly mined area and demonstrate modern, responsible mining practices for critical raw materials," wrote Northback spokesperson Rina Blacklaws.

CBC News has requested comment from the Coal Association of Canada.