Grassy Mountain coal project blocked by the Canadian government

Coal exploration is shown on Vicary Ridge just south of the Oldman River, taken in fall 2020. (Courtesy Alistair Des Moulins/Alberta Hiking Association)

CALGARY — A controversial open-pit coal mine project in the Canadian Rockies will not proceed because of its "significant adverse environmental effects", the government has decided.

The Minister of Environment and Climate Change Jonathan Wilkinson made the announcement Friday that the Grassy Mountain coal project would seriously impact water, wildlife, plant life and the heritage of Canada's First Nations.

"After careful deliberation and review of available and relevant information, which includes the joint review panel's report, the minister concluded the project is likely to cause significant adverse environmental effects under CEAA 2012," officials wrote in a statement.

"The Government of Canada has determined those effects are not justified in the circumstances and therefore, the project cannot proceed."

The panel, established with the Alberta Energy Regulator, highlighted the project's potential impact on surface water quality, the habitat of the westslope cutthroat trout – a threatened species of fish, the endangered whitebark pine, the little brown bat and the lands of the Kainai, Piikani and Siksika First Nations.

"The Government of Canada must make decisions based on the best available scientific evidence while balancing economic and environmental considerations," Wilkinson said in a statement. "It is in Canada's best interests to safeguard our water ways for healthy fish populations like the westslope cutthroat trout, respect Indigenous peoples' culture and way of life, and protect the environment for future generations."

Meanwhile, other bands have filed an appeal of the review board's decision to block development.

The Stoney Nakoda Nation says the panel did not assess the impact rejecting the project would have on their treaty rights and economic interests.

The Piikani First Nation filed its own appeal on similar grounds as well.

The appeals are expected to be heard in September.

POTENTIAL FOR HUNDREDS OF JOBS

The Grassy Mountain coal project, which was to be built and operated by Benga Mining Ltd., would have produced approximately 4.5 million tonnes of processed coal per year for 25 years.

The company says it would have also created 500 jobs during construction and 400 more during its operational years.

Last month, CTV News learned that the company, operating as Riversdale Resources, was granted licences to divert water for drilling and dust suppression for exploratory boreholes for the project, located about seven kilometres north of Blairmore, Alta.

Benga also appeal the panel's decision on the project.

The Alberta government has not released any comment other than what was released by Ministers Nixon and Savage following the release of the panel's decision.

(With files from Terry Vogt and the Canadian Press)