Comes just weeks after a federal policy statement on thermal coal all but sent Coalspur's Vista expansion up in smoke
Author of the article: Kelsey Rolfe
Publishing date: Jul 23, 2021 •
Environment and Climate Change Minister Jonathan Wilkinson said in June the federal government could not prevent thermal coal miners from bringing projects forward, but “the bar (for approval) would be exceedingly high.” PHOTO BY SHANNON STAPLETON/REUTERS FILES
Coalspur Mines Ltd.’s controversial Vista mine expansion project is no longer subject to the federal impact assessment process, a federal judge ruled this week.
The Federal Court ruling quashed a June 2020 designation order from Environment and Climate Change Minister Jonathan Wilkinson that subjected both Vista’s proposed open-pit expansion and underground test mine to review by the federal impact assessment agency.
It found the minister had failed to consult the Ermineskin Cree Nation, which has an impact benefit agreement with Coalspur, and instead only consulted Indigenous communities who sought the designation order before issuing his decision.
“Not only was there no consultation at all, but I find Ermineskin was inexplicably frozen out of this very one-sided process,” wrote Judge Henry Brown in his decision.
The decision comes just weeks after Wilkinson issued a federal policy statement on thermal coal, saying any new or expanded projects would cause “unacceptable environmental impacts,” at the time all but sending Vista’s expansion up in smoke.t
Wilkinson told the Financial Post in June the federal government could not prevent thermal coal miners from bringing projects forward, but “the bar (for approval) would be exceedingly high.”
In an emailed statement to the Financial Post, Wilkinson said his office was reviewing the decision to “determine its implications and identify next steps.”
“The continued mining and use of thermal coal for energy production in Canada and around the world runs counter to what is needed to effectively combat climate change.”
He said he would “continue to consider” the thermal coal policy in deciding whether to designate future thermal coal projects under the federal impact assessment act.
Wilkinson had initially declined to designate the Vista expansion under the impact assessment act in December 2019, saying the Alberta Energy Regulator could cover the areas of federal concern in its environmental assessment, but reversed course after mounting pressure from Indigenous people and environmental groups.
Coalspur Mines Ltd.’s controversial Vista mine expansion project is no longer subject to the federal impact assessment process, a federal judge ruled this week.
The Federal Court ruling quashed a June 2020 designation order from Environment and Climate Change Minister Jonathan Wilkinson that subjected both Vista’s proposed open-pit expansion and underground test mine to review by the federal impact assessment agency.
It found the minister had failed to consult the Ermineskin Cree Nation, which has an impact benefit agreement with Coalspur, and instead only consulted Indigenous communities who sought the designation order before issuing his decision.
“Not only was there no consultation at all, but I find Ermineskin was inexplicably frozen out of this very one-sided process,” wrote Judge Henry Brown in his decision.
The decision comes just weeks after Wilkinson issued a federal policy statement on thermal coal, saying any new or expanded projects would cause “unacceptable environmental impacts,” at the time all but sending Vista’s expansion up in smoke.t
Wilkinson told the Financial Post in June the federal government could not prevent thermal coal miners from bringing projects forward, but “the bar (for approval) would be exceedingly high.”
In an emailed statement to the Financial Post, Wilkinson said his office was reviewing the decision to “determine its implications and identify next steps.”
“The continued mining and use of thermal coal for energy production in Canada and around the world runs counter to what is needed to effectively combat climate change.”
He said he would “continue to consider” the thermal coal policy in deciding whether to designate future thermal coal projects under the federal impact assessment act.
Wilkinson had initially declined to designate the Vista expansion under the impact assessment act in December 2019, saying the Alberta Energy Regulator could cover the areas of federal concern in its environmental assessment, but reversed course after mounting pressure from Indigenous people and environmental groups.
Environment and Climate Change Minister Jonathan Wilkinson.
PHOTO BY JIM WELLS/POSTMEDIA
His decision last June said Vista “may result in adverse effects of greater magnitude to those previously considered.”
The proposed two-part expansion would nearly double Vista’s production capacity, from roughly 6.5 million tonnes per year of thermal coal to between 10 and 15 million tonnes.
Coalspur has been plagued by challenges this year, filing for Companies’ Creditors Arrangement Act protection in late April, roughly four months after a permitting issue with the AER forced it to put Vista on care and maintenance and lay off roughly 300 workers. The temporary mine shutdown coincided with a multi-million dollar hedge obligation to a Singaporean commodity trading firm.
Operations resumed at Vista during the first week of May, after the company secured a US$26-million interim lending facility to recall about 250 employees and restart the mine while it works through restructuring.
Both Coalspur and the Ermineskin Cree Nation sought judicial review of the minister’s order in two separate court filings. The Ermineskin argued Wilkinson had failed to consult the Nation before putting Vista through the impact assessment process. The decision would impact its Aboriginal and treaty rights, the Ermineskin argued, by lessening, delaying or eliminating its economic interest in the expansion.
His decision last June said Vista “may result in adverse effects of greater magnitude to those previously considered.”
The proposed two-part expansion would nearly double Vista’s production capacity, from roughly 6.5 million tonnes per year of thermal coal to between 10 and 15 million tonnes.
Coalspur has been plagued by challenges this year, filing for Companies’ Creditors Arrangement Act protection in late April, roughly four months after a permitting issue with the AER forced it to put Vista on care and maintenance and lay off roughly 300 workers. The temporary mine shutdown coincided with a multi-million dollar hedge obligation to a Singaporean commodity trading firm.
Operations resumed at Vista during the first week of May, after the company secured a US$26-million interim lending facility to recall about 250 employees and restart the mine while it works through restructuring.
Both Coalspur and the Ermineskin Cree Nation sought judicial review of the minister’s order in two separate court filings. The Ermineskin argued Wilkinson had failed to consult the Nation before putting Vista through the impact assessment process. The decision would impact its Aboriginal and treaty rights, the Ermineskin argued, by lessening, delaying or eliminating its economic interest in the expansion.
Wilkinson argued he had no duty to consult the Nation, and disputed that the loss of any economic, social and community benefits laid out in the impact benefit agreement were an infringement on Aboriginal and treaty rights.
Brown disagreed, writing that the Crown’s duty to consult clearly extends to Indigenous communities’ economic rights and benefits.
Wilkinson said in an email the government’s commitment to working with Indigenous peoples to advance reconciliation and respect Indigenous rights, culture and knowledge was “why we delivered on our promise to put in place better rules for major projects that support reconciliation, while restoring public trust, protecting the environment and ensuring good projects get built.””
Financial Post
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