Although Canada is currently one the most important metallurgical coal suppliers in the global market, in 1976 the province of Alberta established a policy for the development of its coal resources based on the principle that the people of Alberta own this resource.
This policy included a land use classification system, and it divided
the province into four categories which determined where, and how, exploration
and development projects should be in order to maintain strict
environmental protections in the region.
In June 2020, in an attempt to align coal management, including an
update of the leasing processes, the government decided to rescind the policy.
However, this change let a gap of clarity in terms of protection of the land.
As a result, population from Alberta raised its concerns about the potential
coal development projects on sensitive lands. In response of the raised
concerns made by Albertans, the government decided to reinstate the coal
development policy for Alberta in February 2021.
As a part of the reinstatement, restrictions were reinforced by
providing direction to Alberta Energy Regulator. Those restrictions include the
prohibition to remove any mountain - top and future coal exploration approvals
for parts of the Southern Rocky Mountains and Foothills will be prohibited and
will be subject to consultation on a new coal policy.
Therefore, all coal exploration and development projects from now on
will be subject to a review process made by Alberta Energy Regulator, and it
will be based on economic, social, and environmental impact of each project.
Impact of Alberta Mining Ban
Alberta energy minister announced the reception of the final report from
the committee in charged to make recommendations about the managing of coal
projects for Alberta.
Through these recommendations, the province of Alberta would do an
advance in the process to directions given to Alberta Energy Regulator in terms
of approval of exploration programs made during the period in which the coal
development policy was rescinded.

Grassy Mountain Project Rejection
Benga
Mining, company subsidiary of Riverdale Resources, submitted an application for
a mine permit which includes an open-cut mine, three rock disposal areas and
approval for the construction and operation of a coal handling preparation
plant as part of the Grassy Mountain Coal Project.
The
Federal Minister of Environment and Climate and the Alberta Energy Regulator
review panel rejected Benga Mining application under the Coal Conservation Act.
The review panel decided the project was not in the public interest due to
significant environmental effects on surface water quality and adverse impact
on physical and cultural heritage on First Nations.
However,
Benga Mining along with two First Nations groups, applied for a permission to
appeal the provision component of the Joint Review Panel (JPR) decision. As a
result, the Federal Government of Canada along with the JPR denied the approval
the project due to the likely negative impact on the immediate environment. Benga
Mining expressed its discontent with the decision taken and did appeal to the
Alberta Court. As it was expected, Alberta Court rejected the miner’s turning
Grassy Mountain project unlikely to be developed.
The
proposed project was located in the eastern slope of the Rocky Mountains in the
province of Alberta, Canada. The project was proposed to be an open-cut
metallurgical coal mine with a production capacity of 4.8Mt over a 25 year mine
life. High quality metallurgical coal from Grassy Mountains would have been shipped
to customers in the Asian market. The project was intended to start
construction in 2021 and commence coal production in 2023.
Hope for Elan Coking Coal Project
Atrum
Coal, 100% owner of Elan hard coking coal project, had to pause its
prefeasibility study due to the reinstitution of the coal development policy of
Alberta. However, taking account the
Benga Mining case, which ended with the non-approval permits to develop Grassy
Mountain Coal project, Atrum will work on the lessons learned from this case
and it is committed to work with the Indigenous and local community
stakeholders to improve the environment and socio-economic conditions for Elan
project.
Elan
hard coking coal project is located in the Crowsnest Pass area of southern
Alberta, Canada. The project is expected to produce 6Mt of medium volatile hard
coking coal for export to the Asian market.
Canada Benefited from China’s Ban on Australian Coal
Market
Canadian
metallurgical coal exports have resulted benefited from the ongoing
restrictions over the Australian coal exports imposed by China in 2020. With
Chinese government still standing on its position of not showing any sign to
lift restrictions over the Australian metallurgical coal supply market,
Canadian hard coking coal export volumes to China have increased from 4.7Mt in
2020 to 9.3Mt in 2021. This represents and increase up by 97.9% in the last
year.
Canada’s
coking coal supply is likely to drop from an estimated 32.2Mt in 2022 to 29.9Mt
by 2024 due to current mining coal policy and mine approvals in the main
producing provinces. Considering Canada has new projects upside potential in
the middle term, AME forecasts Canadian metallurgical coal export to reach
33.5Mt by 2030, followed by a drop to 28.8Mt, down by 14% in 2040.

Australian
miner Allegiance Coal Limited which focuses its operations on metallurgical
coal projects has pointed a development project in the province of British
Columbia, Canada. Telkwa metallurgical coal mine is an open- cut project which
is aimed to produce 1.4Mt annually for over a 25 year mine life. The project is constituted by three main
deposits - Tenas, Goathom and Telkwa North.
Telkwa
Coal, subsidiary of Allegiance Coal Limited announced in late February 2022,
the application for Environmental Assessment Certificate for this coking coal
project in Canada. The application was filed to the British Columbia
Environmental Assessment Office (BC-EAO) who will now conduct the review
process. According to this, Allegiance Coal Limited estimates to commence
operations at Telkwa coal mine in 2023. The metallurgical coal produced from
the said mine is expected to be shipped for export most likely to the Asian region.