Written by Shannon Frank, OWC Executive Director

The Oldman Watershed Council (OWC) has received many requests for information about coal mining. In this FAQ blog, we answer the most common questions and provide links for readers seeking additional details and information.

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Are there active coal mines in the Oldman watershed?

There are currently no active coal mines in southwest Alberta. However, an application has been submitted to resume coal exploration at Grassy Mountain, a historic mine site in the Crowsnest watershed that operated intermittently from 1910 to 1968.

The only active coal mines in Alberta are located near Hinton in the MacLeod River watershed, which flows into the Athabasca River.

*Photo by Jon Martin/Oldman Watershed Council*.

How many coal mines are being proposed?

Approximately five sites were originally undergoing coal exploration in 2020. A March 2022 Ministerial Order restricted coal exploration and development along the eastern slopes of the Rocky Mountains, with an exception for advanced projects. Further details and an exploration of the nuances of this measure can be found in our March 2022 blog.

In 2022 two historic coal mines in the Crowsnest watershed were considered advanced projects—one at Grassy Mountain and one at Tent Mountain—that were in the process of applying for open-pit mines. In June 2021, federal and provincial governments did not approve the mining application at Grassy Mountain and it is now listed as a canceled project. After the March 2022 restrictions were announced, the owners of Tent Mountain withdrew their application. Tent Mountain is now 50% owned by TransAlta, which is exploring the development of a hydroelectric power facility.

In 2020, exploration was also underway at Cabin Ridge Coal Project Ltd. and Atrum’s Elan and Isolation Mines, north of Crowsnest Pass along the Livingstone Range up to Highway 40. With the coal ban rescinded in January 2025, exploration is expected to resume at some sites.

Our July 2020 blog introduces coal mining in the Oldman watershed and outlines where exploration was taking place.

Why isn’t the OWC taking a position for or against coal mining?

The Oldman Watershed Council serves as a neutral forum for all voices. Our Board of Directors comprises 19 seats representing various sectors, including agriculture, irrigation, industry, and all levels of government (Indigenous, municipal, provincial, and federal). Our Neutrality Policy and Consensus Decision Making Policy guide our work. Regardless of the topic, our role is to provide factual, science-based information that empowers residents and elected decision-makers to make informed choices. We recognize that our communities have diverse needs—including economic opportunities, a healthy environment with clean water, and a strong social fabric—and that water and land management decisions require careful consideration of all factors.

Recognizing the complexity of these issues, the 11 Watershed Planning and Advisory Councils (WPACs) were established as forums where diverse perspectives on watershed management are discussed and practical solutions are developed collaboratively. While discussions sometimes involve contrasting viewpoints, they are conducted with respect and foster greater mutual understanding. Ultimately, we all share Alberta’s best interests and find common ground.

What has changed with Government of Alberta Policy regarding coal?

Several policy changes have occurred since May 2020; below is an overview of the current situation.

The 1976 Coal Policy remains in effect, as explained in our July 2020 blog, which includes a map.

In December 2024, the Government of Alberta announced the Coal Industry Modernization Initiative (CIMI). According to the announcement: “Alberta’s government is developing rules that will prohibit mountaintop removal mining and ban new open-pit mines in the foothills, while substantially increasing coal royalties to benefit Albertans. The CIMI will guide responsible coal mining practices with a goal of ensuring that Alberta’s waters are protected from mining contaminants such as selenium.

Alberta Energy and Minerals will begin targeted engagement in early 2025 to inform industry of Alberta’s plans for higher standards for coal mining, to set the new coal royalty amounts, and to develop strategies that align with Alberta’s commitment to balance regulatory improvement and environmental protection, with an emphasis on water protection. From this engagement, new coal regulations and legislation will be drafted for government approval later in 2025.”

The new rules will not apply to advanced projects which previously included the Grassy Mountain and Tent Mountain projects. Court hearings are underway to determine if Grassy Mountain should be considered an advanced project and therefore exempt, or a canceled project that would be subject to the new rules.

In January 2025, the Ministerial Order that had restricted coal exploration (except for advanced projects) was rescinded, and exploration is expected to resume at some sites. Applications for exploration must be submitted to the Alberta Energy Regulator (AER).

What are the water quality challenges with coal mines?

The concern most expressed to us is the potential for water contamination downstream of coal mines.

Alberta’s eastern slopes of the Rocky Mountains are known for their cool, clean water that flows across Alberta, Saskatchewan, and Manitoba before reaching Hudson’s Bay. These headwaters support millions of people and numerous industries in cities such as Lethbridge, Edmonton, and Calgary. In Southern Alberta, thousands of irrigation farmers rely on this water for agriculture, while cities like Lethbridge depend on it for food processing. These source waters also sustain natural ecosystems, from mountain forests and cold-water trout habitats to cottonwood river valleys and prairie grasslands.

Our January 2021 blog discusses the impacts of coal exploration and development.

Water quality challenges downstream of coal mines are well documented and generally include elevated levels of calcite, nitrate, sulfate, ions, metals (including selenium), and polycyclic aromatic compounds in surface and groundwater. Selenium is particularly challenging to remove from water and has become a key issue in discussions regarding the resumption of coal mining on the eastern slopes.

A March 2024 study led by Government of Alberta scientists identified a long-term legacy of water contamination in the Crowsnest River watershed dating back to around 1910, with effects that continue today.

Guidelines for safe selenium concentrations in water are generally set at 2 μg/L for fish, 10 μg/L for irrigating crops, 30 μg/L for livestock consumption, and between 10–50 μg/L for human consumption, although acceptable limits vary by province.

The study reported that water sampling in 2021–22 found selenium concentrations downstream of Tent Mountain reached 185 μg/L in a lake below the mine spoil pile and up to 23 μg/L in Crowsnest Creek, which drains the lake and the mine property. Further downstream, in Crowsnest Lake and the Crowsnest River, the average selenium concentration was 1.6 μg/L.

Downstream of the historic Grassy Mountain coal mine, selenium concentrations were consistently below 1 μg/L in both Blairmore and Gold creeks, indicating lower levels of contamination compared to Tent Mountain.

The research also noted that selenium concentrations are naturally higher in the Rocky Mountains. For example, Ptolemy Creek, used as a reference site in the study, had selenium concentrations between 0.7 and 1.4 μg/L, similar to other creeks not exposed to coal mining operations. This suggests that the creeks are already near the maximum safe levels for fish, leaving limited capacity for additional selenium from human activities.

The research article concludes that “Tent Mountain Mine continues to serve as a source of solutes, nitrate, and selenium 40 years after mining operations ceased.”

Another Government of Alberta study found similar results downstream of coal mines in the MacLeod River watershed, upstream of Edson, Alberta. In Gregg River and Luscar Creek, selenium concentrations have been decreasing since 2005 but still exceeded guidelines at around 5 μg/L and 10 μg/L respectively in 2016, even with ongoing reclamation efforts.

Is it possible to treat contaminated water?

Treating contaminated water presents challenges. Only water that is captured and impounded can be treated, and capturing all runoff at a large mine site—ensuring it does not seep into the ground or flow into nearby water bodies—proves difficult. Impoundment structures may not always perform as expected, as observed at other sites. OWC did not find data on the typical percentage of water captured at a mine site.

For the water that is captured and treated, techniques exist that can reduce selenium levels by about 90%, according to a 2018 study by Teck. Even so, the remaining 10% may still represent a significant amount. Ultimately, the most critical factor is the concentration of contaminants in the surface and groundwater that people rely on.

Glencore, which now owns the mining operation in the Elk Valley formerly owned by Teck, has invested $1.4 billion in water quality monitoring and treatment. They currently operate four treatment facilities, with plans for six additional ones. Glencore’s monitoring indicates that while selenium levels in treated water are reduced by up to 99% in some cases, concentrations in nearby water bodies range from 4 to 19 μg/L—levels that exceed safe limits for fish or agricultural use. The most recent quarterly report (January to March 2024) indicated selenium levels ranging from 11 to 64 μg/L in nearby creeks and about 1 μg/L in the Koocanusa Reservoir, well downstream.

Currently, technology to remove selenium at water treatment plants in towns and cities is not feasible; treatment must occur at the source where mining is taking place. For example, both Sparwood and Fernie had to shut down one of their water wells due to selenium contamination. Once contaminants enter surface or groundwater, addressing the issue becomes more challenging, particularly because selenium, like many elements, bioaccumulates (builds in living creatures over time) in the ecosystem, becoming more concentrated in plants and animals.

How much water would coal mines use and where would the water come from?

Coal companies have the option to apply for unallocated water (150 acre-feet) upstream of the Oldman Reservoir, as outlined in the Oldman River Basin Allocation Order, and they may also purchase water licenses from existing holders. Water quantity is discussed extensively in our March 2021 blog.

What are the risks to agriculture?

Southern Alberta’s economy is dominated by agriculture—particularly livestock and irrigated crop production. A primary concern is that water contamination could affect the region’s capacity to grow and export food.

There is a risk that selenium and other contaminants could spread downstream (as they have in the Elk Valley), potentially raising concentrations beyond safe guidelines for irrigation (10 μg/L) and for livestock watering (30 μg/L). Currently, the selenium concentration in the Oldman River at Fort MacLeod is 0.6 μg/L.

Computer modeling is necessary to understand the potential risks based on various factors, including the degree of water treatment, different runoff events, and varying river flows. To our knowledge, such modeling is not currently being conducted.

In January 2024, Dr. Ross MacKenzie, a respected agriculture expert, published an extensive article describing how selenium lies on the fine line between health and hazard for humans, livestock, and crops.

What about coal dust?
Two recent studies, led by Government of Alberta scientists, highlight the potential health risks associated with coal dust, indicating that additional monitoring is needed to fully understand its impacts.

A June 2024 research paper found that snowpack downwind of Elk Valley coal mines, including areas in Alberta, contains high levels of polycyclic aromatic compounds (PACs), which have been linked to lung cancer, cardiovascular disease, and birth defects in coal towns in the USA and elsewhere.

An October 2022 study found that coal dust and its associated contaminants from Elk Valley mines in British Columbia travel to Alberta and accumulate in sediment cores from Window Mountain Lake. The study observed that, although air quality monitoring is not currently required at the Elk Valley coal mines, “Permitting of existing mines and approval of new mines should consider, and have mitigation plans, for broader, atmospheric impacts.”

What are the potential economic benefits?
If approved, the proposed coal mines could benefit the local economy around Crowsnest Pass for approximately 14 to 25 years during their operational phase. Economic effects are estimated in Environmental Impact Assessments (EIAs) submitted to the Government of Alberta and the Government of Canada. The Grassy Mountain mine is the only project to have reached this stage (although it was not approved), so it is the only mine with available economic impact information. According to estimates, the mine would create 385 long-term jobs and generate $140 million and $210 million in provincial and federal corporate income taxes, respectively. The EIA projects that $195 million in provincial royalties would be paid over the twenty-three-year operating life of the project, based on an assumed average coal price of $140 per tonne. Additionally, the project is expected to contribute approximately $1.5 million annually in property taxes to municipal governments, supporting growing communities' needs for water and sewage services. The report also notes that the mine would attract workers to the region, increasing the population and likely expanding the number and diversity of businesses servicing the community.

Voice Your Opinions

While there is currently no public process specifically designed for discussing and debating the pros and cons of coal mining, Albertans are represented by elected officials at the municipal, provincial, and federal levels, as well as by Chiefs and Councils in Indigenous communities. You are encouraged to share your opinions directly with your representatives.

Coal exploration and mining permits are typically reviewed and authorized by provincial authorities through the Alberta Energy Regulator, while larger-scale mines also require federal approval.

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