Alberta government slammed for incompetence as pays out $143M in coal policy reversal

EDMONTON — Alberta is paying out more than $140 million to end one of five lawsuits launched against it over its coal mining policies.

A notice published online by Atrum Coal dated last week says the company has agreed to end its lawsuit and surrender its land back to the province in exchange for the payment.

The company’s notice says it received just under $137 million last week, and will receive another $6 million after it completes some reclamation work.

It says the settlement proceeds will be distributed to shareholders.

Atrum, which had initially sought more than $3.5 billion from the province, is one of two companies suing the province that announced settlements were reached last month.

The other, Evolve Power, has yet to share details and in its own notice last month said its settlement had only been agreed to in principle and that terms were still being finalized. The company’s notice said it expected to have an agreement finished in September.

Atrum’s payout drew criticism Wednesday, with Opposition NDP Leader Naheed Nenshi saying in a statement that Albertans should be outraged.

“Taxpayers are on the hook for nearly $150 million directly as a result of this government’s flip-flopping on their coal policy,” Nenshi said.

“This money could have been used for teachers, nurses, schools or hospitals. Instead, it’s going into the pockets of shareholders and directors of a coal company.”

Stephen Legault, an Alberta-based senior manager with the advocacy group Environmental Defence, called the payout “a phenomenal waste of taxpayers’ money.”

“If the (United Conservative) government hadn’t first rescinded (its coal policy) and then flip-flopped on a moratorium on new mining projects in response to demands by Albertans, we wouldn’t be extorted to protect our headwaters from coal mining,” Legault said in a statement Wednesday.

“Every decision (Energy Minister Brian Jean) and Premier (Danielle) Smith make to bow to the interests of wealthy foreign coal mining companies means Alberta slips further and further behind the rest of the world in the energy transition.”

Jean’s office said in a statement that the government has no plans to lease the lands previously owned by Atrum again and the requirement placed on the company to complete reclamation work highlights the province’s commitment to protecting the eastern slopes of the Rocky Mountains and Alberta’s foothills.

Atrum and Evolve are among five companies that are suing Alberta for a collective $16 billion. With Atrum’s suit settled, Alberta could still be on the hook for over $12 billion.

Evolve said in its statement of claim that it was seeking $1.75 billion.

Four of the companies, including Evolve and Atrum, have argued that Alberta effectively expropriated their land when it suddenly reinstated its long-standing coal policy in 2022, putting new coal exploration and development projects on ice across much of the province.

The policy was lifted less than two years prior, and companies had been encouraged at that time to buy land and leases for coal mining projects.

Alberta lifted the coal policy again earlier this year in favour of a new rule system, and Smith said at the time that protecting taxpayers from a massive legal payout was something her government had in mind by lifting the policy.

The fifth company suing Alberta, Northback Holdings — which in May had exploratory permits approved for its controversial Grassy Mountain project — is arguing that Alberta’s regulatory process is flawed.

Nenshi on Wednesday called on the government to publicly disclose the settlement it reached with Evolve and others if further settlements have been reached, but Jean’s office said the details of the settlements remain privileged.

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

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

This report by The Canadian Press was first published July 23, 2025.

Jack Farrell, The Canadian Press