Firm pushes for $700M coal mine in Crowsnest Pass
Conservationists warn open-pit project will destroy critical habitat for fish
The Australian company proposing a $700-million new open-pit coal mine for southern Alberta says swift regulatory approval of its project would bring muchneeded foreign investment to the Canadian economy.
However, conservationists warn the project — which is now the subject of a federal-provincial review — would destroy critical habitat for a threatened fish species and should not be allowed to go ahead.
The Grassy Mountain Coal Project, a proposed metallurgical coal mine that would cover 2,800 hectares near the town of Blairmore in the Crowsnest Pass, is currently under review by a three-member joint review panel. The panel — which has been tasked with examining the potential environmental effects of the project — must hold a public comment period as part of its review process, but has not yet indicated whether a formal public hearing will take place.
Steve Mallyon, managing director of Riversdale Resources — the company behind the proposed coal mine — said he is hoping for swift approval of the project so that the mine can be operational by 2021.
“We’ve made a lot of commitments to customers in Asia particularly, as well as Europe,” Mallyon said. “We’re also paying a port reservation fee at WestShore Terminals (in Vancouver), so it’s a very, very expensive process if there are any delays.”
385 FULL-TIME JOBS
The Grassy Mountain coal project would produce up to 4.5 million tonnes of metallurgical coal (also known as coking coal) per year, and employ 385 full-time workers when operational. The coal would be entirely destined for export, to be used for making steel in countries such as China and India.
The project would mean a revival of coal mining on the Alberta side of the Crowsnest Pass, an area whose history is synonymous with the industry, even though it has been decades since a mine has been operational there. Conservationists fear bringing coal mining back to the area would have serious repercussions for wildlife, particularly the westslope cutthroat trout, which is listed as a threatened species by the federal and provincial governments.
Joanna Skrajny — conservation specialist with the Alberta Wilderness Association — said Gold Creek and its tributaries, as well as an unnamed tributary to Blairmore Creek, are located close to the mine site and are both listed as critical habitat for the westslope cutthroat trout.
“Every single one of these streams is incredibly important to protect,” Skrajny said. “We are opposed to the Grassy Mountain project and do not believe it should go ahead.”
Skrajny added that Teck Resources — which operates just on the other side of the provincial boundary, on the B.C. side of the Crowsnest Pass — was fined $1.4 million by the federal government in 2017 for fish deaths caused by selenium discharges from its coalmining operations.
Mallyon said Riversdale has already taken a number of initiatives to mitigate its project’s impact on trout, including launching a stewardship program with Lethbridge University that is identifying opportunities to expand areas for fish spawning.
Mallyon acknowledged some environmental impacts are unavoidable with a project of this size. However, he said he believes the project is an important one — not just for the economy of southern Alberta, but for Canada as a whole.
“When you look at Canada, I think one of the real challenges at the moment is attracting foreign investment,” he said. “Well, we can help with the inward flow of foreign investment, because I expect a lot of the capital for this particular project will come from banks and investors in Australia, Asia and Europe.”
Another Australian company,
Atrum Coal Ltd. — which owns 22,000 hectares of coal leases adjacent to the Grassy Mountain site in the Crowsnest Pass — started an exploratory drilling program last month. Atrum CEO Max Wang said while the site is promising, the company knows the regulatory approval process in Alberta and Canada is a “significant effort.”
“I would say the industry is looking to the success of Riversdale’s project, because it’s the first in the Crowsnest Pass area,” Wang said. “There are quite a number of global investors, mostly from Australia, interested in that region ... but they are very much looking to the success of Grassy Mountain.”