Northback Holdings Proposes New Coal Drilling Plan for Grassy Mountain

Northback Holdings Corporation, previously known as Benga Mining Limited, is attempting once again to gain approval for coal mining at Grassy Mountain, Alberta. The company recently submitted three new applications to the Alberta Energy Regulator (AER) after its project was declined two years ago.
These applications encompass a coal exploration program, a temporary water diversion permit, and a deep drilling permit. The primary objective is to mine steel-making coal from the Grassy Mountain deposit, located in the vicinity of Blairmore, Alta., in the renowned Crowsnest Pass.
Owned by an Australian parent enterprise, Northback is poised to drill 46 boreholes between depths of 150 to 550 metres. This drilling initiative, spanning both Crown and private land, aims to “illuminate the full depth of the Grassy Mountain deposit, secure raw coal samples, and model coal seam structures,” as per their application.
The application, which was tendered at the end of August, seeks permission from the AER to kickstart exploration by October 15th.
Efforts to reach Northback for a comment remained unanswered. However, the AER confirmed the registration of the application in early September, revealing that it’s currently under their review. The processing time varies; some applications clear in a mere three weeks, while others might extend to a year.
History is replete with Northback’s (previously Benga Mining) endeavors to extract coal from this part of the Rockies. Their prior proposal faced rejections on both federal and provincial levels. Concerns included potential detrimental effects on water quality, native trout species, and an endangered pine variety.
Recall that the company had then projected a 25-year operational span for the mine, forecasting a production of 4.5 million tonnes of coal and approximately $1.7 billion in tax revenues.
After this setback, Alberta’s top court further denied an appeal from Northback and two local First Nations.
Katie Morrison, Executive Director of the Canadian Parks and Wilderness Society’s southern Alberta division, commented on the company’s renewed efforts: “Given the heightened public awareness and concerns, it’s challenging to envision the company navigating through the barriers and securing approval.”
It’s essential to note the controversy surrounding coal development in this region. Alberta’s decision to revoke its long-standing coal policy in 2020 ignited a widespread outcry. The policy, which was reinstated a year later, delineates land categorizations and thus exploration and development rights. Notably, the land earmarked in Northback’s proposal falls under Category 4.
Reassuring residents, Alberta’s Energy Minister, Brian Jean, stated, “The Ministerial Order, coupled with the reinstated 1976 coal policy, ensures formidable restrictions on coal mining in the Eastern slopes.”
Northback’s new proposal also indicates drilling near a decommissioned coal mine, operational until the 1960s. As the situation develops, Chestermere locals and stakeholders will keenly observe the project’s trajectory.