Northback’s controversial Grassy Mountain coal project approved after heated public hearings

The Alberta Energy Regulator (AER) has approved a set of controversial applications from Northback Holdings Corporation, clearing the way for exploratory work at the historic Grassy Mountain coal site in the Crowsnest Pass.

The decision, released late Thursday, grants conditional approval for Northback’s coal exploration program, deep drill permit, and temporary diversion licence at the Grassy Mountain site — a region that has seen over a century of mining and has become a flashpoint in Alberta’s ongoing debate over coal development on the Eastern Slopes.

The AER panel concluded that the company’s applications met all regulatory requirements and are “in the public interest.” However, the project remains polarizing in a region where environmental concerns, economic hopes, and historical scars intersect.

The approval comes after months of public hearings, which began in Pincher Creek in early December 2024 and continued in Calgary in January 2025. Final arguments were presented in March.

Local residents, indigenous communities, environmental groups,and industry advocates all took part in the process, reflecting widespread and often conflicting opinions about the project’s implications.

Opponents voiced fears about long-term water contamination, threats to endangered species and the region’s increasing vulnerability to climate change. Supporters cited potential economic benefits and a need to sustain jobs in communities hit hard by the decline of traditional industries and the ability to reclaim and remediate more than a century of environmental damage.

“The AER’s approval, while conditional, sends a strong message that coal still has a future in Alberta,” said a spokesperson for the Canadian Energy Alliance. “But for many, it’s a tough pill to swallow.”

Grassy Mountain has a long and complex history with coal. Mining began in the late 19th century, leaving behind environmental damage that residents say has yet to be fully addressed.

Northback, which took over the project after its predecessor’s proposal was rejected by a federal-provincial review panel in 2021, says this new phase is far more limited in scope. The company has pledged to undertake full site reclamation once exploration activities are complete.

In a statement, Northback said it is “committed to environmental stewardship and community collaboration” and emphasized that any future expansion would require additional regulatory approvals and public engagement.

A non-binding plebiscite in November of last year found more than three quarters of Crowsnest Pass residents support the project.