The Alberta Energy Regulator (AER) has conditionally approved Northback Holdings’ coal exploration program (CEP), along with its applications for a deep drill permit (DDP) and a temporary diversion licence (TDL), at the Grassy Mountain site in southern Alberta. The decision was made following a public hearing and a thorough review of the project’s alignment with regulatory standards and public interest considerations.

As reported by several news agencies, the decision marks a significant development for Northback’s efforts to evaluate the coal potential of the region. The exploration program is part of the company’s initiative to better understand the extent and complexity of the Grassy Mountain coal deposit.

According to the AER, the CEP will involve coal exploration activities on public lands at the unreclaimed and previously disturbed Grassy Mountain mine site. The targeted area includes coal seams located within the Mist Mountain Formation. The program will be used to obtain raw coal samples and generate a more comprehensive structural model of the coal seams.

The DDP allows Northback to drill to depths ranging from 150 to 550 meters. The TDL permits the withdrawal of 1,500 cubic meters of water from an end-pit lake to support the drilling operations. In total, the CEP includes plans for 23 drill pads and 33 boreholes. Of those, 11 drill pads and 14 boreholes will be located on public land.

The AER concluded that the program would not result in any new surface disturbances, as it will utilize existing roads and land that was already affected by previous mining activity. After the exploration work is complete, the disturbed sites must be reclaimed to their previous condition, consistent with regulatory reclamation standards.

Northback conducted consultations with First Nations communities as part of the CEP application process. The AER has communicated the decision to all hearing participants, including Northback and relevant stakeholders. The approval specifically relates to activities planned for public lands and does not include any authorization for coal production.

The project has a complex regulatory history. As reported by several news agencies, a joint federal-provincial panel rejected the proposal in 2021, citing potential environmental impacts on water quality and fish habitat that outweighed any economic benefits. However, the project was reintroduced in 2023. Last year, it received an exemption from Alberta’s ban on open-pit coal mining, after it was categorized as an advanced proposal.

With this latest approval, Northback is now positioned to resume exploration activities at Grassy Mountain. The company aims to collect vital geological data that could inform future development decisions. The project continues to be closely watched due to its environmental significance and previous rejection.