Gina Rinehart Advances in Quest to Revive Canadian Coal Mining
Grassy Mountain coal mine inches closer to revival amid controversy and community division.
Editorial Team (ET)May 22, 2025
Australian mining mogul Gina Rinehart has made a significant stride toward reopening the Grassy Mountain coal mine in Canada’s Rocky Mountains. A recent plebiscite in the municipality of Crowsnest Pass, Alberta, revealed strong community support for the project, with nearly 72% of voters backing it. However, the initiative remains deeply divisive, igniting a heated debate about the balance between economic development and environmental conservation.
The Grassy Mountain project revives a historic mine site that closed in 1983. Spanning 2,800 hectares, the proposed operation aims to produce 4.5 million tonnes of steelmaking coal annually, potentially transforming the region into a hub for metallurgical coal production. Northback Holdings, formerly known as Riversdale Resources and Benga Mining, is spearheading the project under the ownership of Rinehart’s Hancock Prospecting. Despite the plebiscite’s results, the project has faced regulatory setbacks, environmental scrutiny, and accusations of corporate influence.
The plebiscite, while non-binding, reflects significant public interest, with 54% of Crowsnest Pass residents casting votes. Supporters argue that the mine would provide much-needed economic rejuvenation for the area, offering jobs and stimulating local business. However, critics like journalist Andrew Nikiforuk have labeled the plebiscite “bogus,” claiming the question misrepresented the mine’s location. While the Crowsnest Pass community voted in favor, the mine is physically situated in the neighboring municipal district of Ranchland, which opposes the project. This geographic and political nuance has added fuel to an already contentious debate.
Grassy Mountain’s journey has been anything but smooth. Initially proposed in 2019, the project gained momentum when Alberta’s government rolled back open-pit coal mining restrictions in 2020. This policy shift aimed to offset economic struggles caused by the COVID-19 pandemic and declining oil prices. However, in 2021, provincial regulators deemed the project “not in the public interest” due to concerns over environmental risks, particularly selenium contamination in local waterways. Multiple court rulings upheld this decision, stalling the project for years.
Despite these challenges, Northback Holdings has continued to champion the project, pledging to address environmental concerns with robust management and mitigation strategies. The company plans to monitor and control selenium discharge, a toxic byproduct of coal mining that poses significant risks to aquatic ecosystems. Critics, however, remain skeptical of these promises, warning that the mine could cause irreparable harm to local wildlife and water resources.
Environmental concerns have dominated the discourse surrounding the Grassy Mountain project. Selenium contamination, in particular, has emerged as a focal point for opponents. This element, released during coal extraction, can devastate aquatic life and compromise water quality. Conservation groups have also voiced alarm over the potential impact on wildlife habitats in the ecologically sensitive Rocky Mountain region. Opponents argue that the economic benefits touted by the project’s supporters cannot justify the environmental trade-offs.
On the other side of the debate, proponents emphasize the mine’s economic potential. With global demand for steelmaking coal remaining strong, the Grassy Mountain mine could position Canada as a key player in the metallurgical coal market. Locally, the project promises to create jobs, boost tax revenue, and breathe new life into a community that has struggled economically since the mine’s closure decades ago. Supporters view the mine as a catalyst for economic growth, bringing prosperity to a region that desperately needs it.
Political developments have also shaped the project’s trajectory. In 2022, Alberta’s then-Energy Minister Sonya Savage issued a directive halting new coal exploration, effectively freezing projects like Grassy Mountain. However, in 2023, her successor Brian Jean designated Grassy Mountain as an advanced coal project, allowing it to move forward. This designation marked a turning point, enabling the project to bypass certain regulatory hurdles and proceed toward final approval. The Alberta Energy Regulator has scheduled public hearings on drilling permits for December 2024 and January 2025, signaling a critical phase in the project’s approval process.
The divide between Crowsnest Pass and Ranchland underscores the broader regional tensions sparked by the project. While many residents in Crowsnest Pass support the mine as a source of economic revival, their neighbors in Ranchland view it as a threat to the region’s environmental integrity. This split highlights the complex interplay between local interests and broader environmental concerns, reflecting the challenges of resource development in sensitive areas.
The project has also faced allegations of undue corporate influence. Critics claim that fossil fuel interests covertly funded pro-mine advocacy groups, skewing public opinion in favor of the project. These allegations have raised questions about the transparency and fairness of the decision-making process, further polarizing an already divided community.
As the Grassy Mountain project moves closer to potential approval, its future remains uncertain. The Alberta Energy Regulator’s upcoming hearings will play a pivotal role in determining whether the mine can proceed. For Gina Rinehart and Northback Holdings, the challenge lies in addressing environmental concerns and rebuilding public trust while navigating a complex regulatory landscape. The outcome will not only shape the future of the Grassy Mountain mine but also set a precedent for balancing economic growth with environmental stewardship in Alberta.
Conclusion
The Grassy Mountain coal mine embodies the clash between economic ambition and environmental responsibility. Gina Rinehart’s vision of revitalizing the Canadian coal industry has sparked a fierce debate, with strong arguments on both sides. As the project enters a decisive phase, its fate will depend on careful navigation of regulatory, environmental, and community challenges. The outcome will not only impact the local economy but also serve as a litmus test for Canada’s approach to resource development in an era of increasing environmental awareness.
