Alberta coal mining moratorium lifted to protect taxpayers from lawsuits, premier says

Calgary Herald

January 21, 2025| Calgary Herald|3 Minutes

EDMONTON — Alberta Premier Danielle Smith says the province had taxpayers in mind when it decided to lift a ban on new coal exploration and development on the eastern slopes of the Rocky Mountains last week.

Speaking to reporters Tuesday, Smith cited pending lawsuits against the province filed by five coal companies arguing they are owed more than $15 billion combined in lost revenues and sunk costs.

“We have to take that seriously, and we have to make sure that the taxpayers are protected,” Smith said.

Alberta repealed its decades-old coal policy and issued new leases in 2020, only to put nearly all new projects on ice less than two years later after a storm of public pushback.

The sudden freeze on coal exploration and development meant companies that took heed of the government’s policy direction and purchased new leases for potential mining found themselves stuck with land they couldn’t use.

Last week, Energy Minister Brian Jean sent a letter to the Alberta Energy Regulator directing the moratorium on new coal development be lifted, allowing previously frozen projects to proceed through the regulatory process.

Jean’s office said Monday in a statement that lifting the moratorium doesn’t mean the government has declared open season for coal mining, as critics and conservationists suggest.

His office said the energy regulator will need to keep in mind the goals of the government’s new coal policy, which Jean announced in December, as it reviews new projects.

The policy direction includes a ban on certain types of coal mining techniques, such as open-pit mining, as well as a requirement that companies show how they can prevent toxic selenium from leaching into watersheds.

“We’re bringing through a better, more robust policy, and so that’s part of the reason why we put that forward,” said Smith, adding the policy addresses concerns Albertans shared after the previous policy was rescinded.

NDP Leader Naheed Nenshi said the United Conservative Party government put the province in the position of choosing between exposing itself to environmental or legal risks.

“That ridiculous mistake of lifting (the existing coal policy) and then reversing it is what led to these lawsuits,” Nenshi said. “So now the premier has reversed it again because of the lawsuits caused by the UCP’s own incompetence.”

Meanwhile, Smith said accessing Alberta’s stock of metallurgical coal would be a good thing.

“You just cannot make wind turbines and solar panels without metallurgical coal,” she said.

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