Alberta to introduce ‘modern’ coal policy, including ban on new open-pit projects

Alberta has announced plans to draft new rules that will see mountaintop removal mining and open-pit coal developments prohibited on the eastern slopes of the Rocky Mountains.

In a statement on Friday afternoon, Energy and Minerals Minister Brian Jean said “the time has come” to address issues in Alberta’s current coal policy and implement a modern approach that balances “responsible resource development with strong environmental protections.”

“Our job now is to develop a policy that respects the natural spaces in the foothills and protects water while allowing for responsible coal development that can attract investment and create jobs,” he added.

The aim of the new Alberta Coal Industry Modernization Initiative (CIMI), to be drafted for government approval later in 2025, is to protect Alberta’s waters from mining contaminants such as selenium, while setting the standards for future coal mining in the world.

The CIMI will be based on the intent of the 1976 Coal Development Policy, picking up on the work done by the 2021 Coal Policy Committee, including addressing the committee’s recommendations.

The CIMI will “build a long-term legislative and regulatory framework focused on environmental protections while allowing coal development under some of the most stringent protections in the world,” Alberta’s energy ministry stated.

It stressed that the new regulations will “do away with temporary fixes and half measures and provide a foundation for responsible coal mining for the 21st Century.

Rebecca Schulz, Minister of Environment and Protected Areas, said: “Alberta has one of the best environmental management systems in the world. We have strong and effective monitoring and regulatory protections in place to protect our air, water and lands and these safeguards will only get stronger through this initiative.”

To ensure fair compensation for the development of the the province’s abundant coal resource, the Alberta government said it will also raise the royalty rates on new coal mines significantly under the new initiative.

Alberta’s energy regulator is expected to begin the engagement process with the coal industry in early 2025 of the province’s plans for higher mining standards as well as the new royalty amounts.

NDP Leader Naheed Nenshi, however, criticized the CIMI, calling 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 told reporters on Friday.

The new policy will not affect those qualified as “advanced coal projects” such as the controversial Grassy Mountain mine near the Crowsnest Pass, which has been challenged by environmental and community groups.

A spokesperson for Northback Holdings, the company spearheading the Grassy Mountain project, wrote to the CBC that it looks forward to working with the province as it moves forward on the policy updates.