The situation surrounding the Grassy Mountain coal project in the Crowsnest Pass region of Alberta has sparked significant controversy, with allegations that the Alberta government is being pressured by Australian billionaire Gina Rinehart and her company, Northback Holdings (formerly Riversdale Resources and Benga Mining), a subsidiary of Hancock Prospecting. Below is an overview of the key issues, events, and perspectives related to claims of undue influence over coal mining policy and approvals in this area.
Background on Grassy Mountain Coal Project
The Grassy Mountain coal project, located in the Crowsnest Pass region of southwestern Alberta, is a proposed open-pit metallurgical coal mine with the capacity to produce 4.5 million tonnes of steelmaking coal annually across 2,800 hectares[1][2]. Originally closed in 1983, the site has a long history of mining, but its revival has been contentious due to environmental concerns and past regulatory rejections. First proposed in 2019, the project was rejected in 2021 by both provincial and federal regulators as "not in the public interest" due to significant environmental risks, particularly selenium contamination in local waterways, which could impact water quality for downstream communities[1][3][4]. Despite this, Northback Holdings, backed by Rinehart, persisted, and in May 2025, the Alberta Energy Regulator (AER) approved exploratory permits, including a coal exploration program, deep drill permit, and temporary diversion license, deeming them in the public interest with conditions[1][5][3].
Allegations of Bullying and Undue Influence
Critics argue that the Alberta government, under Premier Danielle Smith, is being unduly influenced or "bullied" by Rinehart, whose estimated net worth is around $30 billion, in her pursuit of the Grassy Mountain project[6]. Several points fuel these allegations:
- Political Lobbying and Connections: Rinehart has reportedly hired two lobbying firms with ties to the United Conservative Party (UCP) government to promote the project, raising questions about political influence[6]. Critics suggest this reflects a broader agenda by the Smith government to support coal development despite public opposition[3][6].
- Referendum Controversy: In a move seen as undermining democratic processes, a referendum on the project was held in the Municipality of Crowsnest Pass, rather than in the Municipal District of Ranchland, where the mine is actually located. Northback Holdings allegedly offered to drive voters to the polls, promising jobs and prosperity, which some view as an attempt to manufacture social license in a neighboring, economically depressed community while ignoring opposition from directly affected areas and downstream populations[7][6].
- Legal and Policy Maneuvering: Despite the 2021 rejection, the AER's decision to classify Grassy Mountain as an "advanced project" allowed Northback to reapply for permits, a move challenged by the Alberta Court of Appeal in 2024 as potentially erroneous in law[8]. Additionally, the Alberta government lifted a moratorium on new coal exploration in January 2025, reverting to the outdated 1976 Coal Policy, which critics argue facilitates projects like Grassy Mountain against public will[3]. The government's announcement of a new coal policy banning mountaintop removal and open-pit mining on the Eastern Slopes (expected in late 2025) explicitly excludes advanced projects like Grassy Mountain, further fueling perceptions of favoritism[9].
- Threats of Legal Action: Northback Holdings, along with five other mining companies, has reportedly sued the Alberta government for $15 billion over previous policy flip-flops on coal mining in the Eastern Slopes, which some interpret as a pressure tactic to force approvals[4]. Environmental groups argue that the AER's recent approvals prioritize the interests of Rinehart and Smith over public health and water security[4].
Environmental and Community Concerns
Opposition to the project remains strong due to environmental risks, particularly selenium pollution, which persists from historic mining in the region and poses a threat to fish populations and water quality for over 200,000 Albertans downstream[7][10]. A recent study funded by the Alberta government warned that further coal development could push the Crowsnest fishery beyond sustainability, contradicting the government's pro-coal stance[10]. Local residents, Indigenous communities, environmental groups, and downstream municipalities like Lethbridge have voiced concerns about habitat fragmentation, water contamination, and climate vulnerability, with protests erupting in small towns near the site[5][6][2].
Government and Industry Perspective
Premier Danielle Smith has defended the project, emphasizing the need to extract coal responsibly using the best available technology and highlighting its importance for steel production, especially in light of global market demands following geopolitical shifts like the election of Donald Trump[11]. The AER maintains that the exploratory permits meet regulatory requirements and pose no immediate risk of selenium pollution since no excavation or mining operations are currently approved[4]. Supporters, including some local residents in Crowsnest Pass, cite potential economic benefits and job creation in a region scarred by the decline of traditional industries[5].
Conclusion
The Grassy Mountain coal project has become a flashpoint in Alberta, with accusations that the Alberta government is succumbing to pressure from Gina Rinehart and Northback Holdings through lobbying, legal threats, and questionable democratic processes like the Crowsnest Pass referendum. While the government and AER assert that approvals are in the public interest and aligned with regulatory standards, widespread opposition from environmentalists, local communities, and downstream municipalities highlights deep concerns over water security and ecological damage. The situation remains unresolved, with ongoing public resistance and legal challenges casting doubt on the project's future.
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- https://www.mining.com/alberta-energy-regulator-approves-gina-rinehart-backed-grassy-mountain-coal-project/
- https://reneweconomy.com.au/last-ditch-australias-richest-woman-takes-on-local-environment-laws-in-canada-coal-power-play/
- https://cpaws-southernalberta.org/aer-greenlights-coal-exploration-at-grassy-mountain/
- https://environmentaldefence.ca/2025/05/16/coal-mine-in-the-interest-of-billionaire-premier-not-the-alberta-public/
- https://www.westernstandard.news/alberta/breaking-northbacks-controversial-grassy-mountain-coal-project-approved-after-heated-public-hearings/64836
- https://thetyee.ca/Analysis/2025/01/09/Billionaire-Bored-Hole-Alberta-Laws/
- https://thetyee.ca/Analysis/2024/11/15/Gina-Rinehart-Grassy-Mountain-Coal-Crowsnest-Pass/
- https://thetyee.ca/Analysis/2024/08/29/Alberta-Highest-Court-Jams-Smith-Coal-Plans/
- https://edmontonjournal.com/news/politics/alberta-announces-new-coal-mining-policy-plan-industry-consults
- https://thetyee.ca/News/2025/06/02/Coal-Mines-Crowsnest-Pass-Killing-Fish/
- https://claresholmlocalpress.ca/2025/hundreds-kept-out-of-meeting-on-controversial-crowsnest-pass-coal-mine/
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