New federal policy restricts thermal coal mine projects, citing ‘unacceptable’ environmental impacts

New federal policy restricts thermal coal mine projects, citing ‘unacceptable’ environmental impacts

New and expanded thermal coal mines are highly unlikely to get the green light under a policy change announced by the federal government Friday, throwing into jeopardy one company’s plan to vastly expand its mine in the foothills of the Rocky Mountains.

Environment Minister Jonathan Wilkinson ordered a federal environmental assessment for the Vista coal mine expansion application in Alberta last year, saying it was necessary given how much the project would increase the site’s size and production. He wrote to the company Friday to let them know its planned expansion is unlikely now to ever be approved.

But that doesn’t mean the federal government is outright banning new or expanded thermal coal mines.

“Proponents can still bring a project forward for assessment, but we’ve told them at the front end that it will cause unacceptable – and that’s a pretty strong word – environmental impacts,” Mr. Wilkinson told The Globe and Mail Friday.

“When you say that a project like this will have unacceptable environmental impacts, it is a pretty strong statement in terms of the Government of Canada’s view. And I think it would cause investors and proponents to reflect on whether they think it’s worthwhile spending time and energy to bring forward.”

Last month Canada, alongside other G7 countries, stressed the need to immediately end international investments in thermal coal power generation projects that emit carbon pollution. Ottawa’s policy shift comes as world leaders gather in the U.K. to address various challenges, including climate change.

Canada has been something of a cheerleader in the international push to phase out thermal coal, which is burned to produce power. Coal-fired electricity generation accounted for 30 per cent of global carbon dioxide emissions in 2018, according to the International Energy Agency, the majority of which came from Asia.

Mr. Wilkinson said Friday’s change “makes a statement” about Canada’s commitment to fighting climate change.

“It is very clear from the science that there is no rule for thermal coal in the future, and that it needs to be phased out very quickly,” he said.

Coal has become a flashpoint in Alberta, where the government has come under fire for quietly scrapping a decades-old coal mine land protection policy. The backlash was so fierce the province ended up reinstating the policy, and has launched public consultations to develop new rules.

The major concern in the province is a series of new metallurgical coal mines planned for the eastern foothills of the Rocky Mountains – something the new policy from Ottawa won’t affect. (Unlike thermal coal, which is burned for power, metallurgical or coking coal is used in steel production.)

But Mr. Wilkinson said his government will release new coal mine effluent regulations “within the next couple of months” to address concerns about water contamination caused by coal mines.

The Vista mine in Alberta, owned by the U.S. coal giant Cline Group, is operated by Coalspur Mines Ltd. It began shipping coal for export in May, 2019, and wanted to more than double its output. It currently produces about six million tonnes a year of coal each year.

It’s the only thermal mine with an application before federal regulators, but Mr. Wilkinson said the change announced Friday wasn’t about targeting a single company.

“It’s about making a statement to anybody that’s considering bringing forward a new thermal coal project. I think it’s better for us to be clear about that before folks consider bringing those things forward,” he said.

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Published at Fri, 11 Jun 2021 16:08:28 +0000