The controversy began when the United Conservative Party (UCP) government rescinded the 1976 Coal Policy in June 2020, which had protected sensitive areas from open-pit mining for over four decades.
Key elements of the controversy include the rescinding of 40-year-old environmental protections that had blocked surface coal mines on 1.5×106 hectares (1.5×104 km2) of land; the potential development of 190,000 hectares of previously restricted lands; ongoing legal challenges from coal companies seeking over $CDN 15 billion in damages from the Alberta government; and a lack of comprehensive environmental assessment protocols.
However, this moratorium was lifted in January 2025 by Energy and Minerals Minister Brian Jean without public consultation, reigniting debates about resource extraction, environmental protection, and government transparency.
These concerns are heightened because the Eastern Slopes of the Rocky Mountains are the headwaters for major rivers that supply water to millions across Alberta, Saskatchewan, and Manitoba.
[5] GMCP is located 7 kilometres (4.3 mi) north of the town of Blairmore in the Alberta side of the Rocky Mountains's Crowsnest Pass, a region with a century-long history of coal mining that ended in 1983.
[7] On August 16, 2018, the Minister of Environment and Climate Change and the Chief Executive Officer of the Alberta Energy Regulator (AER) announced the establishment of the GMCP Joint Review Panel (JRP) with three members—Alex Bolton, Hans Matthews, and Dean O’Gorman.
[18] Northback Holdings Corporation submitted their proposals for a coal exploration program and new drilling permits to the Alberta Energy Regulator (AER) on August 31 and September 5, 2023.
These applications included requests for a Coal Exploration Program, a Deep Drill Permit, and a Temporary Diversion License, all aimed at collecting site-specific technical data related to the Grassy Mountain Project.
[19][20][21] Northback — a subsidary of Hancock Prospecting—an Australian company owned by Gina Rinehart, one of Australia's wealthiest individuals, acquired Riversdale Resources' for $CDN 700 million in 2019 which included the GMCP while the project was under review by the JPR.
Northback Holdings Corporation, previously known as Benga Mining Ltd., has resubmitted a proposal for the Grassy Mountain project after it was initially rejected by both federal and provincial regulators in 2021 on the grounds that it was not in the public interest.
[31][28] The situation has escalated with public hearings taking place to assess Northback's proposal amidst considerable opposition from environmental groups and local residents concerned about potential impacts on land and water resources.
[32] Additionally, the Alberta Court of Appeal is set to hear arguments regarding whether Northback's application should be allowed to proceed under the current legal framework.
[14] While the Alberta government and AER maintain that it qualifies as an advanced project, significant opposition and legal challenges suggest that this classification may be contested in court.
[38][39][36][4][40] With no land-use management plan in place, starting in July 2000, new exploration leases—including Montem Resources and Benga Mining Ltd.'s in December 2020—were granted and applications were approved.
[41] The removal of these protections sparked widespread public outcry and legal challenges, leading to a reinstatement of the 1976 policy and subsequent moratorium on coal exploration and development in early 2022.
[49] Prior to lifting the moratorium, in December 2024, Premier Danielle Smith's government announced plans to develop new coal mining regulations, expected by the end of 2025.
[50][51] These plans included banning new mountaintop removal and open-pit mining on the Eastern Slopes,[50][51] holding projects to higher environmental standards,[51] and substantially increasing royalty rates.
[51] However, the government clarified that these new rules would not apply to "advanced proposals," such as the Grassy Mountain Coal Project, effectively allowing it to proceed under existing regulations.
The company has submitted applications for a Coal Exploration Program, a Deep Drill Permit, and a Temporary Diversion License to collect site-specific technical data.
The Alberta Energy Regulator (AER) considers Grassy Mountain an "advanced project," exempting it from new bans on mountaintop removal and open-pit mining.
[36] The lifting of the moratorium has led to renewed concerns about the potential long-term ecological impacts of coal development in Alberta's sensitive landscapes.
Critics argue that the government lifted the moratorium before fully implementing a comprehensive coal policy, raising concerns about transparency and prioritization of industry interests over environmental protection.
[46] To address concerns over environmental impacts, Minister Jean introduced the Coal Industry Modernization Initiative (CIMI), which includes a policy aimed at preventing selenium contamination in Alberta’s watersheds.
[36] This initiative was influenced by pollution issues linked to Teck Resources in the Elk Valley, which have played a significant role in shaping public opinion and government policy regarding coal mining in the region.
[52] In 2021, both provincial and federal regulators rejected the proposal for an open-pit mine, citing significant environmental concerns, particularly regarding the Oldman River watershed.
As of January 2025, ongoing litigation includes two lawsuits claim billions in damages from the Alberta government due to the coal moratorium in the Rocky Mountains.
At a press conference in January 2025, Premier Smith justified the lifting of the coal exploration ban by citing the need to protect taxpayers from potential legal liabilities.
Smith referenced the lawsuits filed by five coal companies seeking over $15 billion in combined damages for lost revenues and sunk costs due to previous policy changes.
[58][59][60] Nigel Bankes, professor emeritus of law at the University of Calgary, said that the Alberta government had created an "open season for coal development" which would possible "knock[...] the foundation out" from these lawsuits.
As with orphan well where the province is struggling with billions of dollars in environmental liabilities, and the Grassy Mountain project could add to these financial burdens, which would be passed on to future generations.