The Alberta government has agreed to a $95 million settlement with an Australian coal company, as revealed in a recent announcement to the company’s shareholders by Evolve Power. This settlement follows the government’s agreement earlier this year to a $143 million settlement with another coal company, Atrum Coal.
Evolve and Atrum were part of a group of coal companies that had taken legal action against the province in 2023 over changes made to Alberta’s coal policies. These changes included the repeal of the province’s long-standing coal policy in 2020, which had been in place since 1976. Amid public outcry in 2021, the government temporarily reinstated the old policy for public consultations, ultimately deciding to maintain the 1976 policy in 2022 but allowing four “advanced projects” to proceed.
In response to the policy changes, Evolve and Atrum, along with other coal companies, filed a lawsuit in 2023 seeking $15 billion in damages. Northback Holdings, the company behind the proposed Grassy Mountain coal project, also initiated a separate claim for damages related to regulatory processes in June 2024.
The provincial government announced plans to revise the coal policy further in late 2024, lifting a ban on coal exploration in the Eastern Slopes of the Rocky Mountains in early 2025. Premier Danielle Smith emphasized that the changes were intended to safeguard taxpayers from significant legal payouts linked to the lawsuits.
As part of the settlement, Evolve Power agreed to relinquish coal leases for its Chinook and Greenfield projects, retaining only the Tent Mountain Project. The company had previously considered mining coal at Tent Mountain before pivoting to a pumped-hydro energy storage facility in 2021. In early 2025, the pumped-hydro project was sold to TransAlta.
The Alberta NDP criticized the UCP government for the financial implications of its coal policy decisions, stating that the uncertainty has cost Albertans over $200 million. With ongoing legal actions from other coal companies, the total financial impact remains uncertain.
Kennedy Halvorson from the Alberta Wilderness Association expressed disappointment over public funds being used for substantial payouts to coal companies, calling for more transparency on the issue. The government spokesperson mentioned that the terms of the settlements are confidential, limiting the information that can be shared publicly.
The spokesperson also referenced correspondence from 2016 between the NDP government and the Alberta Energy Regulator, which discussed exceptions to the 1976 coal policy for surface-mine applications in certain areas.