The Alberta government has agreed to pay $95 million to an Australian coal company as part of a legal resolution concerning adjustments to the province’s coal policy. In a recent communication to shareholders, Evolve Power disclosed the financial terms of the settlement, which was initially agreed upon by the province earlier this year. This settlement follows a previous $143 million agreement with another company, Atrum Coal, earlier in the same year.
Evolve and Atrum were part of a group of coal companies that took legal action against the province in 2023 due to alterations in Alberta’s coal policies. The changes began in 2020 when the UCP government repealed the longstanding coal policy established in 1976, which had enforced broad environmental protections in the Rocky Mountains region. Subsequently, in 2021, the government temporarily reinstated the former policy amid public opposition, pending consultations. After conducting these consultations in 2022, the government decided to retain the 1976 coal policy but allowed four “advanced projects” to proceed through regulatory processes.
In 2023, Evolve and Atrum, along with other coal companies, filed a lawsuit against the government seeking $15 billion in damages, citing that the policy alterations in 2020 had led them to invest in coal mining projects that were later affected by the changing rules.
In another development, Northback Holdings, the entity behind the proposed Grassy Mountain coal project, lodged a separate claim in June 2024 related to regulatory procedures. By late 2024 and early 2025, the provincial government announced and implemented further adjustments to the coal policy, including lifting a ban on coal exploration in the Eastern Slopes of the Rocky Mountains.
As part of the settlement with Evolve Power, the company has agreed to relinquish coal leases for two projects, named Chinook and Greenfield, retaining only the Tent Mountain Project. Evolve had initially planned to mine coal at Tent Mountain before transitioning to the development of a pumped-hydro energy storage facility, which was later sold to TransAlta in early 2025.
Following these developments, the Alberta NDP’s environment critic, Sarah Elmeligi, criticized the UCP government for inconsistent decisions on coal exploration and permitting, resulting in significant financial costs to Albertans. Elmeligi highlighted the impact on public funds and expressed concerns about the ongoing legal actions from other coal companies.
Kennedy Halvorson from the Alberta Wilderness Association echoed these sentiments, expressing disappointment over public funds being allocated for large payouts to coal companies and called for more transparency in the handling of the coal lawsuits.
Responding to inquiries, a spokesperson for Energy Minister Brian Jean’s office mentioned that the settlement terms are confidential, and the government’s ability to disclose details is legally restricted. The spokesperson assured that the government is working towards a fair resolution that aligns with the interests of Albertans, despite limitations on public disclosures regarding the settlements.