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National Observer
7 days ago
- Business
- National Observer
Why does Alberta yearn for the coal mines?
This is how corporate bullies get their way. Alberta's energy regulator last week approved coal exploration plans by Australian-based Northback Holdings on Grassy Mountain in the Crowsnest Pass region. The approval came after a consortium of powerful coal mining companies sued the Alberta government for more than $15 billion over losses they claim were incurred when the province imposed a mining moratorium in the area. Northback is not part of the joint lawsuit, but it too filed a claim against the Alberta government that will be heard separately. The lawsuits, with their astronomical price tags, have not yet been heard. But in one key way they have already served their intended purpose; they cowed Alberta Premier Danielle Smith into lifting the moratorium for the good of taxpayers . So here we are creeping toward yet another fossil fuel development in a province hellbent on exploiting its vast stores of legacy energy at a time when we should be looking for cleaner alternatives. Metallurgical coal, which burns hot and is used to produce steel, is one of the dirtiest energy sources on our planet. Iron and steel production alone is responsible for about 11 per cent of the world's carbon emissions. If that's not bad enough, open-pit coal mining is also a major source of water pollution. Coal mines in Alberta and BC have a nasty history of polluting Canadian waterways with selenium, a chemical highly toxic to fish and harmful to humans in high doses. It was the spectre of selenium fouling the area's pristine rivers that caused the feds in 2021 to kibosh initial plans to mine coal at the Grassy Mountain site. Nevertheless, the project reemerged once the moratorium was lifted and the energy regulator has now ruled the company's exploration drilling plans meet the public interest . The decision stresses the approval is for exploration only, which carries far less environmental risk and notes strict waste disposal demands will provide an extra precautionary measure. But here's the thing: If the exploration results are favourable, a fullblown mine is the only logical next step. And judging by the premier's recent remarks, Smith has already made that mental leap. Days after the energy regulator's decision, she urged Albertans to start looking at coal mining in ' a different way .' She said mining opponents ignore the fact that it's impossible to build the polysilicon solar panels or steel wind turbines without burning coal. Except neither statement is quite true. The Alberta Energy Regulator's approval of a coal mine exploration project has us creeping toward yet another fossil fuel development when we should be looking for less carbon polluting alternatives. @ writes Although most steel is still produced using metallurgical coal, new technology has made it possible to produce steel with electricity . Here in Canada, Algoma Steel in Sault Ste. Marie is very close to turning out steel with the use of two new electric arc furnaces. Similarly, REC Silicon , a company in Moses Lake, Wash., has found a way to use electricity to purify the silicon needed for solar panels. She sought to alleviate concerns about water pollution, which caused the enormous public outcry in the agriculture-dependent region and the resulting moratorium in 2022, by suggesting a return to underground coal mining at Grassy Mountain. 'When it comes to coal mining, people do not want to see mountaintop removal,' she said. 'People do not want to see strip mining.' If Northback Holdings can find a way to do that, the Alberta government will be open to it, she said. Underground mining is likely less environmentally risky because it shields the exposed coal seams from rainwater that washes selenium into waterways, Stephen Legault, Environmental Defence's senior manager of Alberta energy transition, told me when I called him for a fact check. But we must remember that underground coal mines are hugely dangerous for people who work in them, he added. That's why they have largely been phased out in Canada. Canada's last remaining underground coal mine , which reopened in 2022, was shuttered after a roof cave-in the following year. Nova Scotia's Donkin mine has been cleared to resume operation, but low coal prices make the economics challenging. Legault pointed out the cruel irony of advancing a project to mine one of the world's dirtiest fossil fuels in the springtime when Albertans are hoping against hope to be spared another devastating fire season caused by global warming. 'It seems to me that there would be more profitable, more equitable and safer ways of developing our economy in Southern Alberta than going back in time to when we were mining for coal underground.' Alberta is a province with huge expertise in the energy business, yet when it comes to economic development, it insists on looking backward. The International Energy Agency predicts the world will reach peak demand for oil and coal by the end of this decade. Surely now is the time to move on from mining coal and plan for the low carbon future we know is coming soon.
Calgary Herald
25-05-2025
- Business
- Calgary Herald
Opinion: Alberta regulator set bar too low in coal exploration approval
The Alberta Energy Regulator (AER) has rendered its decision allowing Northback Holdings to proceed with more coal exploration on Grassy Mountain — the zombie-like coal mine proposal that will not die and is kept on life support by the Alberta government. Article content Article content This is the first time the AER has convened a hearing over a coal-exploration application. However, to call this progress would be like calling the 1940 British army retreat at Dunkirk a victory. Yes, there was a process, which some got to participate in, but given the criteria the AER used for a decision, an approval was not a surprise. Article content Article content That the decision was a foregone conclusion requires only a review of the legislation the AER administers and the act (Responsible Energy Development Act) that provides the mandate for the agency. Article content Article content My friend, the late Francis Gardner, told an apocryphal story about a cowboy coming out of a bar and finding his friend on his hands and knees under a street light. When asked what he was doing, the reply was, 'I'm looking for my truck keys.' 'But,' the friend said, 'your truck is way over there, why are you searching for your keys here?' The answer was, ''Cause the light's better.' The metaphor is apt for the AER decision since solutions are seen in the light of our own understanding (and mandate). Article content When your mandate is to 'provide for the efficient, safe, orderly and environmentally responsible development of energy resources in Alberta,' that is the light and the lens through which you see answers to applications like the coal-exploration one. The word 'development' is prominent and clouds all other choices. Article content Article content The rest is just window dressing, not actually considering the effects of an activity on the environment. The AER's political direction, and hence inclination, is weighted to development, not protection. Article content According to the 'rules,' an activity like coal exploration requires only a 'predisturbance site assessment.' This is characterized as a bare-bones minimum for understanding the effects on fish, wildlife, rare plants, riparian areas, wetlands, unstable slopes, water quality, hydrologic changes and a host of other environmental elements, like cumulative effects. Do not think of this as an impact assessment — it's more like a brief windshield tour. Article content Consultants did a 'desktop' review, searching government databases for information, but did not talk to anyone who was a content expert. These databases are a starting point for planning, but fail as a comprehensive source because they are often incomplete, not up to date, and are missing information on overlooked or under-reported species, many of which are species at risk.
Edmonton Journal
23-05-2025
- Business
- Edmonton Journal
Opinion: Alberta regulator set bar too low in coal exploration approval
Article content The Alberta Energy Regulator (AER) has rendered its decision allowing Northback Holdings to proceed with more coal exploration on Grassy Mountain — the zombie-like coal mine proposal that will not die and is kept on life support by the Alberta government. This is the first time the AER has convened a hearing over a coal-exploration application. However, to call this progress would be like calling the 1940 British army retreat at Dunkirk a victory. Yes, there was a process, which some got to participate in, but given the criteria the AER used for a decision, an approval was not a surprise.
CBC
17-05-2025
- Business
- CBC
Landowners, mayors divided over coal project exploration approval in Rockies
The Alberta Energy Regulator (AER)'s recent approval of coal exploration on the eastern slopes of the Rocky Mountains is drawing quick reaction from landowners, mayors and community groups across southern Alberta. The debate over revival of coal development in the region has long been contentious, with supporters arguing it could bring economic development to communities that need it. On the other hand, those opposed to the project raise concerns around long-term risks to land and water. On Thursday, the AER approved Northback Holdings' applications with conditions to conduct a coal exploration program at the Grassy Mountain site, which is located in the Municipal District of Ranchland. In a written decision, the regulator said the applications met all regulatory requirements and that the exploration program was in the public interest. It added that the applications weren't for a coal mine, but for an exploration program at the existing unreclaimed Grassy Mountain mine site. "The exploration program is designed to improve Northback's understanding of the extent of the Grassy Mountain coal deposit, obtain raw coal samples, and structurally model the coal seam complexities," the decision reads. It adds that if Northback decides to proceed with mine applications at Grassy Mountain in the future, it must follow a "rigorous regulatory process that all resource development applications must follow," and that accepting the exploration applications "does not constitute approval of a coal mine." Crowsnest Pass Mayor Blair Painter welcomed the regulator's decision and referenced Northback's promise that the mine would employ roughly 300 people at the job site should it move ahead. He added he recognized the environmental debate also at play. "We all want clean water. I want clean water. All the residents of Crowsnest Pass want clean water," he said in an interview. "This gives an opportunity for Northback. If they are successful with moving ahead with the mining application, then we can feel confident that they will do this within the regulations of the province and the federal government when it comes to clean water." Concerns over selenium Last year, residents of Crowsnest Pass voted decisively in favour of the project in a non-binding vote, with more than 70 per cent of voters voicing their support. However, the mine is not actually located in the Crowsnest Pass, but in the nearby Municipal District of Ranchland, which has long stood in opposition of the project. "The decision, of course, is very disappointing, although not unexpected," said Ron Davis, reeve of the M.D. of Ranchland, in an interview. Grassy Mountain was previously rejected in 2021 by the federal government, which said the project would likely cause significant adverse environmental effects, including "on surface water quality, including from selenium effluent discharge." In its opposition, Ranchland had noted environmental concerns tied to selenium, but the regulator stated in its recent decision that those concerns didn't apply to the exploration work. The AER said that based on its conclusions, "impacts from the exploration program on the quality and quantity of water and on downstream users of the Oldman River are unlikely." The 'elephant in the room' Still, some landowners and environmental advocates say the development sets the stage for coal mining in a critical watershed that provides drinking water to more than 200,000 people. "The elephant in the room is that this is not about an exploration permit … It's about the next step or ticking the box to do the next steps toward going for a mine," said Norma Dougal, who is on the board of directors for the Livingstone Landowners Group. "What we are totally expecting is to have to go back and waste our time at a full-blown hearing. When it's already been shown that a mine at Grassy is not in Alberta's best interest, economically or environmentally." Davis, the reeve of Ranchland, said he expected that Northback wouldn't be conducting exploration if they didn't have interest in opening a coal mine. He added the M.D. continues to hold environmental concerns. "Southern Alberta is a very water-poor area. And the loss of any water sources or watersheds are detrimental to southern Alberta particularly," he said. "And of course, that goes along with the other problems of contamination of the water resources that we have, which are meager at best." Others in the region were waiting to see how the next steps would play out. Fort Macleod Mayor Brent Feyter said his council hasn't yet formally discussed the approval. However, he believes drilling is a necessary part of understanding what a potential mine could look like. "Overall, drilling is necessary. That's our personal view, just if there is going to be something, they need to know what's there and how best to manage it," Feyter said. "We're not trying to skirt around the concerns. On the other hand, we also recognize that coal is a requirement for a lot of products used nationally, internationally." Northback's permits will be valid for five years, the regulator's decision states. The last three years are to be used for reclamation work.
CTV News
16-05-2025
- Business
- CTV News
Alberta regulator approves Northback coal exploration project in Rocky Mountains
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 The Alberta Energy Regulator approved on Thursday a controversial coal exploration project on the eastern slopes of the Rocky Mountains. Northback Holdings Corp.'s project at Grassy Mountain was rejected in 2021, when a panel ruled likely environmental effects on fish and water quality outweighed potential economic benefits. The project, located on an inactive legacy coal mine site in the Municipal District of Ranchland, was revived two years later. Last year, it was exempted from the Alberta government's decision to ban open-pit coal mines, because Northback's application was considered an 'advanced' proposal. A written decision from the regulator says it determined approving the project is in the public interest and the project won't have negative effects on water quality or wildlife, which many at public hearings argued will happen. The decision grants Northback permits to drill and to divert water to the site, which was also a concern raised by farmers in drought-ridden parts of southern Alberta. The approved deep drilling permit will allow Northback to drill more than 150 metres underground on both public and private land in its search for coal deposits. The company will only be able to draw water from a nearby end pit lake that it owns and that's not directly connected to other water bodies or rivers, the decision says. The decision notes that it's possible there will be some runoff from the lake, but it had been determined the project won't have any effect on water quality or quantity downstream. It also says the potential for the project to generate toxic selenium is unlikely, 'because there will be no excavation, no coal-mining operations and no new waste rock piles created.' 'If the existing waste rock piles are not elevating downstream selenium levels, it is reasonable to conclude that these exploration activities are unlikely to elevate selenium levels,' the decision says. The regulator also determined that potential harm to wildlife is unlikely, as no new roads are to be constructed as part of the project. The regulator was satisfied overall with the project's public interest, saying as it would provide employment opportunities to nearby residents, including First Nations communities, while allowing the company to continue investing in the area. 'We assessed the social and economic effects of the exploration program and found it to be positive,' the decision says, adding that Northback plans to spend at least $2.5 million locally as part of the exploration. 'While the magnitude of the economic impacts may appear modest, they are proportional to the program scale and duration.' The decision says the company has spent over $1 billion since 2015 trying to advance the project but that it wasn't a consideration for the regulator. The project will also give Albertans additional information on the scale of the coal deposit at Grassy Mountain, says the decision. 'The exploration program will contribute to the ongoing evaluation of this coal resource and, based on our assessment, will do so in an orderly, efficient and environmentally responsible manner,' it says. Rita Blacklaws, a spokesperson for Northback, said in an email the company thanked the regulator for the decision. 'With this outcome, Northback continues our commitment to bring benefits to Albertans while adhering to the highest environmental standards,' Blacklaws said. Opposition NDP environment critic Sarah Elmeligi said the decision is wrong. 'Albertans have been clear they do not want coal mining on the eastern slopes,' she said. 'What a horrible day for Alberta.' Energy Minister Brian Jean said the government respects the regulator's 'carefully considered decision on this application,' noting it isn't an application to mine. He said Northback will be responsible for reclamation related to the exploration work. 'We reiterate our commitment to protect Alberta's waters and ensure that any development in the eastern slopes is done to the highest environmental standards,' Jean said in a statement Thursday. The decision followed days of public hearings in December and January, as well as a non-binding vote last year in the nearby community of Crowsnest Pass. About 72 per cent of voters said they were in favour of the project. The regulator notes that concerns were raised in the hearings that granting exploratory permits would lead to a full-blown coal mine. It says that possibility couldn't be factored into the decision-making process. 'Exploration is only one step taken by a resource company in the long and complex series of activities that may or may not lead to the development of a mine,' the decision says. 'Accepting the need for this exploration program does not constitute approval of a coal mine. 'If, in the future, Northback decides to proceed with mine applications at Grassy Mountain, it must follow a rigorous regulatory process that all resource development applications must follow.' Conditions attached to the exploratory permits require the company to dispose of drilling waste to the regulator's satisfaction, follow erosion control and weed management plans, and adhere to recommended environmental mitigation measures. The company's permits are valid for five years, with the last three years to be set aside for reclamation work. By Jack Farrell With files from Lisa Johnson in Edmonton and Bill Graveland in Calgary This report by The Canadian Press was first published May 15, 2025.
