Alberta Energy Regulator approves Gina Rinehart-backed Grassy Mountain coal project

Controversial Grassy Mountain coal exploration project approved

Despite intense pushback, Alberta's energy regulator has approved a controversial coal exploration project at Grassy Mountain, near Crowsnest Pass.

By Brendan Ellis
 May 15, 2025 
CTV

Despite intense pushback, Alberta's energy regulator has approved a controversial coal exploration project at Grassy Mountain, near Crowsnest Pass.

Alberta’s energy regulator has approved a polarizing coal exploration project in the eastern slopes of the Rocky Mountains, with a few conditions.

In the decision announced Thursday, an Alberta Energy Regulator (AER) panel ruled on three applications from Northback that will allow exploratory drilling at Grassy Mountain in the Crowsnest Pass.

“We are satisfied that throughout the proceeding and in our decision, we have considered the purposes and factors identified in the relevant enactments, and we find that the applications meet all the regulatory requirements,” the decision reads.

The proposed project has been met with protest from residents in the area, with many raising concerns about its potential effects on the environment.

Grassy Mountain, peak to left, and the Grassy Mountain Coal Project are seen north of Blairmore, Alta., Thursday, June 6, 2024. 

 (Jeff McIntosh/The Canadian Press)

The project’s approval is contingent upon Northback meeting several conditions, which include:

Managing drilling waste, including drill fluids and cuttings, and their subsequent disposal to the satisfaction of the AER;

Sharing a project-specific erosion and sediment control plan with the AER before exploration operations begin;

Making the program consistent with Northback’s integrated weed management plan;
Environmental mitigation measures being consistent with the recommendations in the company’s pre-disturbance site assessment; and

Meeting the conditions required by Alberta Forestry and Parks for Crown land reservations in the area.

“An applicant must comply with conditions or it is in breach of its approval and subject to enforcement action by the AER. Enforcement of an approval includes enforcement of the conditions attached to that licence,” the decision notes.

Northback also made several commitments to the Piikani Nation, including:Making data collected by Northback as part of the exploration program available to the nation for their review and analysis;

Regaining Piikani members as “cultural and environmental monitors” for the duration of the program; and

Providing to the nation, upon their request, the information obtained from Northback’s trail cameras located in the area near the project sites.

In a brief statement Thursday, Northback thanked the AER for its decision.

“With this outcome, Northback continues our commitment to bring benefits to Albertans while adhering to the highest environmental standards,” the company said.

 Gina Rinehart's Australian company says it is creating plans for a future commercial mining operation – one that would also need AER approval.

The controversial mining project proposal was revived after it was rejected in 2021 over environmental concerns.

Despite strong opposition from area producers and residents, Northback will be permitted to divert water to the mine site that it says is not directly connected to other waterways.

“This is a diversionary tactic by Northback to move forward with a drilling application rather than the whole mine. The AER is clear that the application is related to the drilling application and two other applications, not to the whole mining project itself,” Chris Spearman, a spokesperson for Water for Life and a Pincher Creek resident, told CTV News.

The AER held a public oral hearing in Pincher Creek, Alta., about the issue in December 2024. The hearing continued in Calgary in January, with closing arguments provided on March 4.

About 150 protesters took to the steps of the AER’s Calgary office on the final day, voicing concerns around the three proposals.

The full decision can be found on the AER’s website.

With files from CTV News Calgary’s Camilla Di Giuseppe and Tyson Fedor