Northback awaits AER decision as opposition to Grassy Mountain shifts

The waiting is the hardest part.

Australian mining giant Northback Resources is now in a 90-day waiting period as the Alberta Energy Regulator (AER) reviews its application for an exploratory drilling program at the Grassy Mountain Steelmaking Coal Project. 

That’s after it completed written arguments to the AER on Tuesday.

The decision, expected by early June, will determine whether the company can proceed with gathering critical data from an exploration drilling program ahead of an application for a potential future mine.

In a statement, the company said the project presents “a rare opportunity to reclaim previously mined land and produce metallurgical coal under strict regulatory frameworks.”

If approved, the company this summer will embark on drilling approximately three dozen test holes to delineate groundwater resources. Several hundred similar test holes have been punched on the site since the 1970s.

The region of the Crowsnest Pass has a nearly century-long legacy of environmental damage from continuous mining in the region. The Grassy Mountain site was discontinued in the 1980s but never formally abandoned.

Earlier this year, the company went through public hearings in southern Alberta and Calgary over  objections — as well as expressions of support from local residents and landowners. A non-binding plebiscite in the fall found three quarters of Crowsnest residents in favour of allowing th mine.

“We respect the regulatory process and value the decision-making by AER experts in the interest of all Albertans,” Northback said.

The application process has been met with shifting political and regulatory landscapes, as well as changing local opposition. 

The Municipal District (MD) of Ranchland, which had previously been a vocal opponent of Northback’s exploration plans, in January withdrew its legal appeal against the project following recent rule changes by the Alberta government.

Ranchlands Reeve Ron Davis confirmed that his municipality no longer sees a legal path to blocking Northback’s application after the Alberta government lifted a moratorium on new coal exploration.

“Given that the government has changed the rules, our case didn’t seem like it had as much impact as we would like,” Davis said at the time.

The district’s opposition had been based on a 2022 coal exploration moratorium, which was overturned by Energy Minister Brian Jean through a ministerial order. 

While Ranchland has long opposed coal development within its borders, support for Northback’s project has grown in neighbouring Crowsnest Pass, where residents recently voted in favor of the project in a non-binding referendum. The economic benefits of a potential mine, including job creation and regional investment, have driven much of the local support.

During closing arguments before the AER, Northback emphasized that its exploratory drilling program would have minimal environmental impact, comply with all regulations and contribute to reclamation efforts in previously mined areas. 

The company argues that steelmaking coal remains an essential resource for global infrastructure and that the project aligns with strict environmental oversight.

“This program will provide critical data for a potential future mine, which will support economic growth and improve local livelihoods,” it said.