Northback’s Grassy Mountain Coal Exploration Program Approved by Alberta Energy Regulator

The Alberta Energy Regulator (AER) has granted conditional approval to Northback Holdings for its coal exploration program at the Grassy Mountain site near Crowsnest Pass in southern Alberta. This decision permits the company to conduct exploratory drilling and water diversion activities aimed at assessing the site’s metallurgical coal potential.

The approved applications include a Coal Exploration Program (CEP), a Deep Drill Permit (DDP), and a Temporary Diversion Licence (TDL). The CEP allows for exploration on public lands to better understand the extent of the Grassy Mountain coal deposit. The DDP authorizes drilling to depths between 150 and 550 meters, and the TDL permits the withdrawal of up to 1,500 cubic meters of water from a nearby lake to support drilling activities.

Local support for the project has been significant. In a 2024 non-binding plebiscite, approximately 72% of Crowsnest Pass residents voted in favor of developing the coal mine, highlighting the community’s interest in potential economic benefits, including job creation and investment.

However, the project has faced opposition from environmental groups, neighboring municipalities, and some residents concerned about potential impacts on water quality, wildlife, and the broader ecosystem. Critics argue that the exploration activities could lead to environmental degradation, particularly in the sensitive Eastern Slopes region of the Rocky Mountains.

Northback Holdings, formerly known as Benga Mining Limited and a subsidiary of Australian company Hancock Prospecting Pty Ltd., has emphasized that the current exploration activities are preliminary and aimed at gathering technical data to inform future project decisions. The company has stated that any future mining operations would be subject to separate regulatory approvals and environmental assessments.

The AER’s approval marks a significant step in the ongoing evaluation of the Grassy Mountain site’s viability for coal mining. As the project progresses, it will continue to be a focal point of discussion balancing economic development with environmental stewardship in Alberta.