Alberta government pays out $95 million to end another coal policy lawsuit

EDMONTON — The Alberta government is paying out $95 million to a coal mining company to end another one of the lawsuits launched against it over its policy flip-flop more than two years ago.

The settlement with Evolve Power brings Alberta’s overall payout so far to nearly $240 million, as a separate agreement reached with another company, Atrum Coal, earlier this year saw the government pay $143 million.

A notice published by Evolve Power, previously known as Montem Resources, to its shareholders last week says it is surrendering two coal leases to the government as part of the deal.

“The board of directors, based on legal advice, believe this settlement is the best possible outcome having regard to the government’s actions and the impact on Montem,” the notice reads.

Like the settlement with Atrum Coal, the province is paying Evolve most of the settlement amount immediately, while $1.5 million will be paid out after the company completes some reclamation work at one of the sites it’s giving up.

“These reclamation activities are underway and are scheduled to be completed by the end of 2025,” the notice says.

It adds that Evolve’s board will soon meet to vote on dividend amounts to be paid to shareholders.

Energy Minister Brian Jean’s office, in a statement, said the province has no plans to re-lease the land surrendered by Evolve Power, but the government can’t provide further details on the terms of the settlement.

“That said, the government of Alberta is working to conclude these matters fairly,” Jean’s office said.

“The outcome of these settlements will be consistent with Albertans’ desires and best interests.”

Evolve and Atrum were part of a group of four companies that launched lawsuits in 2023 over Alberta’s coal mining policy flip-flop.

The companies have argued that Alberta effectively expropriated their land when it suddenly reinstated its long-standing coal policy in 2022 less than two years after it was lifted and companies had been encouraged at that time to buy land for potential mining projects.

Valory Resources, whose subsidiary Black Eagle Mining Corp. is part of that group of companies, confirmed Friday that it, too, had settled its lawsuit.

Glenn Vassallo, the company’s head of corporate and project finance, said in an email that the government’s decision earlier this year to lift its coal mining moratorium once again meant Valory “did not see merit in pursuing its legal claim.”

Vassallo didn’t respond to further questions about if the company had received payment or if it had voluntarily discontinued its claim.

A fifth coal mining company, Northback Holdings, launched its own lawsuit in 2024, arguing that Alberta’s regulatory processes for coal mining were flawed.

Combined, the companies sought close to $16 billion in damages, but with Evolve and Atrum reaching settlements that total now sits closer to $10 billion. Valory’s settlement means it could be lower still since it had sought $1.75 billion in damages.

Opposition NDP environment critic Sarah Elmeligi said the government’s settlement with Evolve was a waste of money.

“Their ‘will they or won’t they’ with the coal policy and an unfounded definition of ‘advance projects’ has led to lawsuits that you and I are paying for,” she said in a statement.

“That’s money that could have gone to protecting and reclaiming our headwaters, or teachers, schools, hospitals, or to helping families, but instead it’s going to another coal company.”

Jean’s office said part of the blame belonged to the NDP when they were in government in 2016 and advised the provincial energy regulator to consider a surface coal mining application in an area that was considered off limits.

Cabin Ridge Holdings, the fourth and final company suing the province over the policy flip-flop, did not immediately respond to questions about whether it had reached a settlement like the others.

This report by The Canadian Press was first published Oct. 24, 2025.

Jack Farrell, The Canadian Press