Federal government rejects Grassy Mountain coal project in Alberta

The proposed Grassy Mountain coal project in southwestern Alberta has been rejected by the federal government nearly two months after a review panel denied a provincial application for the project.

On Friday, federal Environment MinisterJonathan Wilkinson said he had rejected the project in light of the review panel's reportand after a review of additional available information.

"The Government of Canada must make decisions based on the best available scientific evidence while balancing economic and environmental considerations,"Wilkinson said in a release.

"It is in Canada's best interests to safeguard our water ways for healthy fish populations like the westslope cutthroat trout, respect Indigenous peoples' culture and way of life, and protect the environment for future generations."

Review panel decision

In June, a review panel for the Alberta Energy Regulator denied the provincial application for the coal project, ruling it was "not in the public interest" and advising the federal government to reject the project

Following that decision, the Australia-based Riversdale Resources said it was "reviewing its options," estimating the project could produce up to 4.5 million tonnes of steel-making coal annually over a 23-year mine life. It said the operation would generate $1.7 billion in taxes and employ 400 people.

In a release, the federal government said the project was likely to cause significant adverse environmental effects to:

• Surface water quality, including from selenium effluent discharge.
• The threatened westslope cutthroat troutand its habitat.
• The endangeredwhitebarkpine.
• The physical and cultural heritage of the Kainai, Piikani and Siksika First Nations.

In a statement issued in June, Riversdale said it would engage with the relevant authorities to "better understand the reasons for the decision to obtain assurance that the process has been fair and transparent, has accorded sufficient weight to recognized experts and established industry practices, and that the decision is not effectively an anti-development decision."

It added at the time that it had alsoengaged with First Nations and Mtis communities in the region at the earliest stages of the project.

Grassy Mountain was the first of a number of projects proposed for the area.

Two other companies with coal leases in the areaMontem Resources andAtrum said in the wake of thereview panel's decision in June that they would press on with their mining plans.

Last year, the provincial government revoked a 1976 policy that protected the eastern slopes of the Rockiesfrom open-pit coal mining.

In April, the province said it would suspendcoal exploration activityin lands classified as "Category 2" under the policyuntil an ongoing public consultation concluded.

In response to a request for comment, aspokesperson forEnergy MinisterSonya Savage referenced a statement made in June and attributed to Savage andAlberta Environment MinisterJason Nixon.

"As outlined in the statement, Alberta's government respects the recommendation of the joint review panel," Margeaux Maron said in an email.