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HomeEnvironmentResponse to Alberta Payout to Atrum Coal: A “Phenomenal Waste” 

Response to Alberta Payout to Atrum Coal: A “Phenomenal Waste” 

Statement by Stephen Legault, Senior Manager for Alberta Energy Transition in response to the announcement that Atrum Coal Ltd. will drop its lawsuit against the Alberta government, and return its coal leases to the province in exchange for a financial settlement of $142.8 million 

Canmore | Traditional territories of the Treaty 7 Nations – What a phenomenal waste of taxpayers’ money. Thanks to Energy Minister Brian Jean and Alberta Premier Danielle Smith, the citizens of Alberta are being forced to pay nearly $150 million to buy back leases which should never have been released in the first place. If the UCP government hadn’t first rescinded the 1976 Coal Policy and then flip-flopped on a moratorium on new mining projects in response to demands by Albertans, we wouldn’t be extorted to protect our headwaters from coal mining.

Alberta needs to get its priorities straight. The International Energy Agency (IEA) forecasts that global metallurgical coal demand will experience a slowdown in growth and potentially plateau in the coming years, with a slight overall decline by 2027, according to their “Coal 2024” report. This is influenced by a combination of factors, including a slowdown in global steel production growth, increased recycling of scrap steel, and the potential for alternative steelmaking technologies, such as electric arc furnaces (EAF) powered by renewable energy.

By investing tax dollars in sunsetting industries, the government is putting Alberta’s climate at risk and losing out on an opportunity to invest in renewable energy. Every decision Minister Jean and Premier Smith make to bow to the interests of wealthy foreign coal mining companies means Alberta slips further and further behind the rest of the world in the energy transition. The consequence is that Alberta will be left behind, both in powering its future and profiting from the fastest-growing industries in the world.

Background

Timeline of Events Leading to Alberta’s $142.8 Million Settlement with Atrum Coal:

1976 – Alberta establishes its Coal Development Policy, creating four land categories that restrict coal mining in environmentally sensitive areas of the Rocky Mountains and foothills

June 1, 2020 – The UCP government under Premier Jason Kenney quietly rescinds the 1976 Coal Policy, lifting restrictions on coal mining exploration and development on three of the four categories of environmentally sensitive land. 

July-September 2020 – New coal exploration leases are granted with no land-use management plan in place. 

December 2020 – 11 new coal leases are purchased by companies, including Montem Resources and Benga Mining Ltd.

January 18, 2021 – Following intense public backlash, the Alberta government halts coal lease sales in former Category 2 lands and revokes the 11 leases issued in December 2020.

February 8, 2021 – The government fully reinstates the 1976 Coal Policy due to extensive public pressure.

April 2021 – Coal exploration activities are halted on Category 2 lands through Ministerial Order 093/202.1

June 2021 – Federal and provincial regulators reject the Grassy Mountain Coal Project proposal due to significant environmental concerns. 

2022 – Alberta puts new coal exploration and development projects “on ice” across much of the province with an indefinite moratorium.

September 2022 – Atrum Coal Ltd. and its subsidiary, Elan Coal Ltd., file their first lawsuit seeking $3.53 billion plus $300 million for shareholder losses.

2023 – The first joint lawsuit is filed involving four separate submissions by Evolve, Atrum and its subsidiary Elan Coal Ltd., Cabin Ridge Project Ltd., and Black Eagle Mining Corp., seeking a combined total of over $10 billion. 

January 2025 – The Alberta government scraps the series of ministerial orders that banned coal development in the foothills, returning to the older 1976 policy.

June 2024 – Northback Holdings Corp. files a second lawsuit over the Grassy Mountain mine review process

January 2025 – Atrum Coal Ltd. reaches a $142.8 million settlement with Alberta, agreeing to drop its lawsuit and surrender its coal leases back to the government in exchange for the cash payment.

ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

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For more information or to request an interview, please contact:

Alex Ross, Environmental Defence, media@environmentaldefence.ca

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