Coal company pushing for compensation from Alberta as court date approaches
Evolve Power Ltd., formerly known as Montem Resources Ltd., is one of five coal companies taking legal action against the Alberta government over recent coal policy changes. The company is seeking billions in damages, claiming that the government’s decision to alter coal mining rules has resulted in financial losses and amounts to a de facto expropriation of their coal assets.
The legal battle between the coal companies and the Alberta government is set to come to court in April. The companies involved in the lawsuit, including Cabin Ridge Holdings Ltd., Atrum Coal Ltd., Black Eagle Mining Corp., and Montem, argue that the 2022 policy changes have disrupted their operations and prevented them from realizing profits from their coal mines.
The Alberta government’s decision to change coal mining rules in 2022 came after public outcry over plans to open up mountains to more mining activities. The government’s announcement to develop new rules for coal mining in the province by late 2025 has further fueled the legal dispute with the coal companies.
In a statement made by Energy Minister Brian Jean, he emphasized the importance of compensating owners of freehold coal rights if the government were to expropriate those property rights. This statement has been cited by Peter Doyle, the CEO of Montem Resources’ Alberta operations, and Evolve’s legal team as supporting their claim for compensation.
However, the Alberta government has filed a statement of defense denying the allegations made by the coal companies. While the legal battle is ongoing, the companies are seeking over $15 billion in damages to cover the financial losses incurred as a result of the policy changes.
Nigel Bankes, an expert in natural resources and energy law, highlighted the challenges faced by the coal companies in proving their claims for compensation. The companies must demonstrate that the government’s actions have left them with no reasonable use for their property and have resulted in financial losses.
As the legal battle continues, the future of coal mining in Alberta remains uncertain. The government is expected to release more details on its new coal policy, which is set to include a ban on new open-pit coal mining in the Eastern Slopes but not on “advanced” projects. One such project is Northback’s Grassy Mountain project, which has faced controversy and public scrutiny in southern Alberta.
Overall, the legal dispute between the coal companies and the Alberta government underscores the complexities of natural resource management and the challenges faced by both industry players and government regulators in navigating policy changes and compensation claims.
