Ottawa’s Denial of Coal Mine Permit to Alberta First Nations Struck Down by Court

Ottawa’s Denial of Coal Mine Permit to Alberta First Nations Struck Down by Court
Minister of Environment and Climate Change Steven Guilbeault responds to a question at a news conference in Ottawa on June 14, 2023. Adrian Wyld/The Canadian Press
Jennifer Cowan
Updated:
0:00

The Federal Court has overturned a decision made by the federal government to deny a permit for an open-pit coal mine in the Alberta Rockies.

The Feb. 12 ruling will force Environment Minister Steven Guilbeault to reconsider an application made by two Alberta First Nations after a proper consultation period with the bands.

Judge Richard Southcott said the Piikani and Stoney First Nations did not receive the consultations they were promised by the joint federal-provincial panel that reviewed the application from Benga Mining, depriving the communities of “procedural fairness.”

Judge Southcott said the review panel that examined the Grassy Mountain proposal near Crowsnest Pass delivered its report to then-Environment Minister Jonathan Wilkinson on June 17, 2021. An accompanying news release promised both First Nations would be consulted prior to the minister’s decision.

The panel issued a final report to the minister just over a month later, announcing the consultation period had concluded, the judgement noted. The report said the federal Impact Assessment Agency found the consultation process conducted gave the First Nations adequate opportunity to voice their views on the project.

Mr. Wilkinson issued a decision statement in August of that year, denying the application due to the likelihood of “significant adverse environmental effects.”

Judge Southcott said that the decision deprived the First Nations the chance to present arguments on the perceived environmental impacts as well as on the economic benefits the mine would bring to their communities.

“In my view, the representation in the news release supports the First Nation applicants’ position that they had a legitimate expectation that they would receive the benefit of further consultation before the decisions were made,” Judge Southcott wrote.

“Once the news release gave rise to a legitimate expectation that such procedure would be followed, that procedure was required by the duty of fairness, and the First Nation applicants were entitled to take advantage of the opportunity.”

The court’s ruling compels Mr. Guilbeault to revisit the government’s 2021 decision after the promised consultations with both indigenous communities.

Benga Mining, which is now known as Northback Holdings Inc., lost an earlier bid for judicial review from the Alberta Court of Appeal and was also denied permission to take its request to the Supreme Court.

Despite the setbacks, Northback has continued its attempts to develop a mine at Grassy Mountain. The company holds exploration permits for the area and has applied to the Alberta Energy Regulator to develop the mine.

The Alberta government has imposed a moratorium on all coal development along the eastern slopes of the Rocky Mountains due to environmental concerns.

Northback, however, says its application under its original name, Benga, should allow it to be considered an “advanced project” and as such, exempt.

Lawyer Douglas Rae, who is representing Stoney First Nation, told The Canadian Press it’s unclear what will happen next.

The Canadian Press contributed to this report.