The Alberta government has agreed to pay $95 million to an Australian coal company as part of a legal settlement related to changes in the province’s coal policy. This settlement was recently disclosed to the company’s shareholders by Evolve Power. The province had previously reached a $143 million settlement with another company, Atrum Coal, earlier in the year.
Evolve and Atrum were part of a group of coal companies that took legal action against the provincial government in 2023 over alterations made to Alberta’s coal policies. The changes included the rescinding of the longstanding coal policy in 2020, which had been established in 1976 under then-premier Peter Lougheed. Following public outcry, the government temporarily reinstated the old policy in 2021 for further consultations. In 2022, after the consultations, the government decided to maintain the 1976 coal policy but permitted four “advanced projects” to proceed through regulation.
In 2023, Evolve and Atrum, among others, sued the government for $15 billion in damages, arguing that the policy changes in 2020 had misled them into investing in coal mining projects that were later impacted by subsequent rule changes. Additionally, Northback Holdings, the company behind the proposed Grassy Mountain coal project, initiated a separate claim for damages in June 2024.
The provincial government announced intentions to modify the coal policy in late 2024 and lifted a ban on coal exploration in the Eastern Slopes of the Rocky Mountains in early 2025 to avoid significant legal payouts. As part of the settlement, Evolve agreed to surrender coal leases for two projects, Chinook and Greenfield, retaining only the Tent Mountain Project. The company had initially planned coal mining on Tent Mountain but later shifted focus to developing a pumped-hydro energy storage facility, which was eventually sold to TransAlta.
The Alberta NDP criticized the UCP government for causing confusion with their coal exploration decisions, resulting in significant costs for Albertans. The NDP expressed concern over public funds being used for payouts to coal companies instead of essential services. The Alberta Wilderness Association called for more transparency regarding the coal lawsuits, emphasizing the need for public awareness.
While the terms of the settlements remain confidential, the government stated it is legally limited in disclosing further details beyond what the companies reveal. The spokesperson for Energy Minister Brian Jean’s office assured that the settlements would align with Albertans’ interests. The coal companies’ lawsuits referenced correspondence from 2016 between the NDP government and the Alberta Energy Regulator regarding surface mining applications in areas not typically considered under the 1976 coal policy.