Grassy Mountain Decision Reignites Debate on Coal

A new chapter in Canada’s coal story has begun with the Alberta Energy Regulator’s (AER) recent approval of Northback Holdings’ exploration program at Grassy Mountain. For many in the resource sector, the decision is a welcome sign that metallurgical coal — critical for steelmaking — continues to be recognized for its strategic economic value.

The approval permits deep drilling and temporary water diversion at the historic Grassy Mountain site near Crowsnest Pass. Northback Holdings, an Australia-based company, has stated its commitment to responsible practices and reclamation, while emphasizing the long-term opportunity to contribute to Alberta’s economy.

Support from the local community has been strong. A 2023 referendum saw 72% of Crowsnest Pass residents vote in favour of developing the mine, reflecting a clear desire for good jobs, industrial renewal, and sustainable growth. Mayor Blair Painter called the decision long overdue, and many regional leaders see it as a positive step forward.

While the Elk Valley’s coal operations are not directly affected by the Grassy Mountain project, the approval introduces a new competitor in the metallurgical coal space—both for markets and for skilled labour. As coal-producing regions like the Elk Valley continue to deliver the high-quality product the global steel industry relies on, developments across the border may lead to competition for equipment, personnel, and investment.

There is also a larger message in this approval: that Canada’s coal industry is still viable, and where communities and regulators align, progress is possible. However, it’s essential that such developments are held to the same high environmental and safety standards long practiced in B.C.’s mining regions. Fair competition should mean equal expectations and clear regulatory oversight.

As global demand for responsibly sourced steelmaking coal continues — even amid the broader energy transition — the Elk Valley remains a leader in quality, safety, and innovation. But as new players emerge, continued investment in worker retention, training, and regulatory leadership will be key to maintaining our competitive advantage.

In the end, Grassy Mountain’s resurgence is a sign that the future of coal in Canada is still being written. For supporters of the industry, this is a moment to stand strong, stay vigilant, and continue building the kind of coal sector that communities, customers, and countries can count on.