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Alberta Regulator Approves Conditional Permits for Grassy Mountain Coal Exploration

The Alberta Energy Regulator has approved Northback Holdings’ permits for drilling and water diversion under strict conditions, reigniting debates over environmental risks and local economic benefits.

Grassy Mountain, peak to left, and the Grassy Mountain Coal Project are seen north of Blairmore, Alta., Thursday, June 6, 2024.
 About 150 people outside the Alberta Energy Regulator’s office in downtown Calgary office on January 14, 2025, protested against the proposed Grassy Mountain coal mine.
Northback Holdings Corporation's coal exploration project at Grassy Mountain has been approved by the Alberta Energy Regulator.

Overview

  • The Alberta Energy Regulator granted conditional permits for Northback Holdings’ Grassy Mountain coal exploration, limiting water withdrawals to an isolated end-pit lake to prevent downstream impacts.
  • The project, located on a legacy coal mine site in the Municipal District of Ranchland, was previously rejected in 2021 over environmental concerns but was later exempted from Alberta’s coal-mining ban as an 'advanced' proposal.
  • Crowsnest Pass Mayor Blair Painter welcomed the decision, citing potential for over 300 jobs and benefits to local schools, hospitals, and businesses.
  • Environmental Defence and other advocacy groups criticized the approval, warning of irreversible water pollution and risks to ecosystems, agriculture, and downstream communities like Lethbridge.
  • The decision follows months of public hearings and policy revisions, with 72% of Crowsnest Pass residents supporting coal development in a 2024 referendum.