CALGARY — The Alberta Energy Regulator says it has approved Northback Holdings Corp.'s coal exploration project at the Grassy Mountain site on the eastern slopes of the Rocky Mountains.
The controversial project was rejected in 2021, when a panel ruled the mine's likely environmental effects on the fish and water quality outweighed potential economic benefits.
The project was revived two years later and last year it was exempted from Alberta's decision to ban open-pit coal mines because it was considered an advanced proposal.
A written decision published Thursday says Northback has been granted permits to drill and to divert water to the mine site, which was among concerns raised by farmers in drought-ridden parts of southern Alberta.
The regulator's decision says the company will only be able to draw water from a nearby end pit lake owned by Northback that's not directly connected to other water bodies or rivers.
It says the project won't have any effect on water quality or quantity downstream, and any potential harm to wildlife is "unlikely" as no new roads will be constructed as part of the project.
The decision says the regulator is satisfied that approving the project is in the public interest overall, as it will provide employment opportunities to nearby residents including First Nations communities while also 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. It adds that Northback plans to spend $5 million as part of its exploratory project, "of which roughly 50 per cent will be spent locally."
"While the magnitude of the economic impacts may appear modest, they are proportional to the program scale and duration."
The decision also notes the company has spent over $1 billion since 2015 trying to advance the project, but that it wasn't a consideration for the regulator.
Another factor in meeting the public interest threshold, the regulator's decision says, is that the project will give Albertans additional information on the scale of the coal deposit in Grassy Mountain.
"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."
The decision followed days of public hearings last December as well as a non-binding vote in the nearby community of Crowsnest Pass, which saw 72 per cent of voters say they were in favour of the project.
This report by The Canadian Press was first published May 15, 2025.
The Canadian Press
