Aus billionaire Gina Rinehart closer to opening contentious coal mine in Alberta

Australian mining magnate Gina Rinehart has moved closer to reviving a metallurgical coal mine in Canada’s Rocky Mountains after a local plebiscite showed strong support for the project. 

Nearly 72% of voters in the municipality of Crowsnest Pass, Alta., endorsed restarting the Grassy Mountain mine, a proposal that has divided the community and sparked regional debate.

The non-binding vote, held on Monday, saw participation from nearly half of the municipality’s 6,000 residents. The project is being led by Northback Holdings, formerly known as Riversdale Resources and Benga Mining, with Rinehart’s Hancock Prospecting being the parent company. 

The mine, originally closed in 1983, has the capacity to produce 4.5 million tonnes of steelmaking coal annually and spans 28 sq. km.

First proposed in 2019, the project faced its first challenge after Alberta’s government rolled back 1970s-era restrictions on open-pit coal mining in 2020, as part of the province’s efforts to boost an economy hit hard by the coronavirus pandemic and plunging oil prices. 

In 2021, provincial regulators ruled that the project was “not in the public interest,” citing environmental risks, particularly concerns over selenium contamination in local waterways. That decision was upheld by three separate court rulings.

Despite these setbacks, Northback Holdings has continued to push for the mine’s approval, pledging to implement management and mitigation measures to address environmental risks, including selenium discharge, during all phases of the project. The company’s campaign to restart operations has been met with allegations of undue influence. Critics claim that fossil fuel interests covertly supported local advocacy groups ahead of the plebiscite.

“Bogus” plebiscite

The referendum itself has drawn scrutiny. Andrew Nikiforuk, a contributing editor for Vancouver-based The Tyee, described the vote as “bogus” in an opinion piece published Wednesday. He argued that the question posed—“Do you support the development and operations of the metallurgical coal mine at Grassy Mountain?”— obscured the fact that the mine is located not in Crowsnest Pass but in the neighbouring municipal district of Ranchland, which opposes the project.

“Nevertheless, a community bombarded by corporate propaganda provided a resounding answer to a question impacting a different municipal district,” Nikiforuk wrote.

Political developments have also shaped the project’s trajectory. In March 2022, Alberta’s former energy minister Sonya Savage issued a directive halting new coal exploration applications, with exceptions for advanced projects. Earlier this year, the new energy minister, Brian Jean, designated Grassy Mountain as an advanced coal project, allowing it to move forward.

The Alberta Energy Regulator is scheduled to hold public hearings on drilling permits for the project on Dec. 3 and Jan. 14. Meanwhile, opponents warn  the mine could harm local wildlife and water resources, further escalating tensions in the debate over economic development and environmental conservation in the region.