AER Approves Grassy Mountain Coal Project Exploration Program

The Alberta Energy Regulator (AER) announced on Friday that it has approved an exploration program, deep drill permit, and temporary diversion licence for the Grassy Mountain coal project in Crowsnest Pass, Alberta.

These approvals come with conditions after the regulatory panel found that the applications met all requirements and serve the public interest.

The decision followed a public oral hearing held in Pincher Creek in December 2024, with a continuation at AER’s Govier Hall in Calgary on January 14, 2025, and closing arguments presented on March 4.

The mine, which has been inactive since 1983, is capable of producing 4.5 million tonnes of steelmaking coal annually and covers 2,800 hectares.

Northback Holdings, previously known as Riversdale Resources and Benga Mining, leads the project. The parent company is Hancock Prospecting, owned by Australian billionaire Gina Rinehart.

This project was initially proposed in 2019 and encountered challenges after the Alberta government lifted 1970s-era restrictions on open-pit coal mining in 2020 to stimulate the post-pandemic economy.

In 2021, regulators determined that the project was “not in the public interest” due to environmental risks, especially concerning selenium contamination in local waterways. This decision was upheld by three separate court rulings.

Despite these hurdles, Northback Holdings has persisted in seeking approval, committing to management and mitigation measures to address environmental risks throughout all project phases.

The full written decision and hearing transcripts are available online.