The Alberta government has agreed to pay $95 million to an Australian coal company as part of a legal settlement regarding changes to the province’s coal policy. This settlement was recently disclosed to the company’s shareholders by Evolve Power. The province had previously agreed in principle to this settlement earlier in the year. Additionally, another company, Atrum Coal, received a $143 million settlement from the province this year as well.
Evolve and Atrum were part of a group of coal companies that took legal action against the province in 2023 due to shifts in Alberta’s coal policies. In 2020, the UCP government rescinded the long-standing coal policy established in 1976, which had originally imposed broad environmental protections across significant areas of the Rocky Mountains. Following public outcry in 2021, the government temporarily reinstated the old policy pending consultations. After these consultations in 2022, the government decided to maintain the 1976 coal policy but allowed four “advanced projects” to proceed through the regulatory process.
In 2023, Evolve and Atrum, among others, sued the government for $15 billion in damages, claiming that the policy changes in 2020 had led them to invest in land and leases for coal mining projects that were later affected by subsequent rule changes. Subsequently, Northback Holdings, the company behind the proposed Grassy Mountain coal project, initiated a separate damages claim related to regulatory processes in June 2024.
The provincial government announced plans to alter the coal policy once again in late 2024 and lifted a ban on coal exploration in the Eastern Slopes of the Rocky Mountains in early 2025. Premier Danielle Smith stated that these changes aimed partly to shield taxpayers from significant legal payouts tied to the lawsuits.
As part of the settlement agreement, Evolve Power surrendered coal leases for its Chinook and Greenfield projects to the province, retaining only the Tent Mountain Project. The company had previously intended to mine coal at Tent Mountain but shifted focus to a pumped-hydro energy storage facility in 2021 before selling the project to TransAlta in early 2025.
The Alberta NDP criticized the UCP government for its handling of coal exploration and permitting decisions, highlighting the financial implications of these actions. The Alberta Wilderness Association also expressed disappointment over public funds being used for significant payouts to coal companies and called for more transparency regarding the lawsuits.
The government’s spokesperson stated that the settlement terms are privileged information, limiting what can be shared publicly about the agreements beyond what the companies themselves disclose. The spokesperson emphasized that the government is working to resolve these matters fairly in the best interests of Albertans.