The Alberta government has agreed to a $95 million payment to an Australian coal company as part of a legal settlement concerning changes to the province’s coal policy. Evolve Power, in a recent communication to its shareholders, disclosed the financial specifics of the settlement, which the province had preliminarily agreed to earlier in the year. This settlement follows a previous $143-million agreement with another company, Atrum Coal, also related to policy changes in the coal sector.
These settlements stem from legal actions taken by several coal companies, including Evolve and Atrum, against the provincial government in 2023 due to alterations in Alberta’s coal policies. The government had revoked the longstanding 1976 coal policy in 2020, only to reinstate it temporarily in 2021 amidst public opposition. Following consultations in 2022, the government opted to maintain the 1976 policy but permitted four advanced projects to proceed through regulatory processes.
The lawsuits filed by the coal companies sought $15 billion in damages, alleging that the policy changes led them to invest in coal mining projects that were subsequently affected by rule modifications. Northback Holdings, the company behind the proposed Grassy Mountain coal project, launched a separate damages claim in June 2024.
In response to these legal challenges, the government announced plans to amend the coal policy 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 emphasized that these changes aimed to protect taxpayers from significant legal payouts linked to the lawsuits.
As part of the settlement, Evolve Power agreed to relinquish coal leases for two projects, Chinook and Greenfield, while retaining the Tent Mountain Project. The company had previously planned coal mining at Tent Mountain but later shifted focus to a pumped-hydro energy storage facility, which was eventually sold to TransAlta in 2025.
The Alberta NDP criticized the UCP government for the costly legal disputes arising from what they described as inconsistent decisions on coal exploration and permitting. With additional legal actions pending 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 lawsuits. The government’s spokesperson highlighted legal constraints on discussing settlement details beyond what the companies disclose, with a commitment to resolving the matters in alignment with the best interests of Albertans.