Three permits related to coal exploration on the Grassy Mountain mine have been approved. (Photo: Wikipedia Commons)

By David Opinko

not a full coal mine approval

Alberta Energy Regulator approves coal exploration at Grassy Mountain

May 15, 2025 | 3:35 PM

A coal mining company will be able to get a better understanding of coal deposits on a mountain in Crowsnest Pass.

The Alberta Energy Regulator (AER) has approved three permits for Northback Holdings as it looks to potentially develop a coal mine on the Grassy Mountain.

They say they are satisfied that the Australia-based company has met all regulatory requirements.

“This proceeding concerns three applications related to a coal exploration program (the Exploration Program) at Grassy Mountain. These three applications are not for a coal mine. Therefore, this decision focuses on the Exploration Program and not any issues related to the development, operation, or impacts of a future coal mine at Grassy Mountain,” reads a section of the AER decision.

One of the permits is for a coal exploration program at the existing unreclaimed Grassy Mountain mine site, about seven kilometres north of Blairmore.

Nighttime construction on Hwy 3 in Lethbridge starts April 17

Apr 17, 2025

SASHA launches #BuyABed fundraiser to support vulnerable Lethbridge residents

Apr 04, 2025

$20K grants available: TELUS STORYHIVE Pan-Asian Edition opens applications April 1

Mar 18, 2025

“The Exploration Program is designed to improve Northback’s understanding of the extent of the Grassy Mountain coal deposit, obtain raw coal samples, and structurally model the coal seam complexities.”

The AER also approved a deep drilling application that will allow Northback to drill 150-550 metres into the mountainside.

The final permit is for a temporary diversion license. The company will be able to withdraw 1,500 cubic metres of water from a nearby lake for the coal exploration program.

The project has divided many in the region, who argue over the economic benefits and the potential for environmental harm.

The M.D. of Ranchland contested whether there was a need for coal exploration, saying that the coal in Grassy Mountain is already appraised. They stated that any economic benefits gained through the exploration program are minimal and do not outweigh the environmental impacts.

The City of Lethbridge recently reaffirmed its opposition to all coal developments along the Oldman Watershed, saying the potential leakage of selenuim would negatively impact the health of residents and harm the region’s agriculture-based economy.

Northback, however, argued that technical data is necessary to refine their knowledge related to development costs, potential products and markets, and reclamation requirements.

The Piikani Nation expressed its support to the coal exploration, saying it will provide employment opportunities to Piikani members, who currently face high unemployment rates and a lack of available jobs on the reserve.

The full statement on the permit approvals can be found on AER.ca

READ MORE: City of Lethbridge remains opposed to new coal mines, wants to protect watershed

For local news delivered daily to your email inbox, subscribe for free to the Lethbridge News Now newsletter here. You can also download the Lethbridge News Now mobile app in the Google Play and the Apple App Stores.