Proposed Coal Mining in Clearwater County: Status, Impacts, and Stakeholder Perspectives

Coal mining proposals in Clearwater County, Alberta have generated significant controversy, placing economic opportunities against environmental protection and tourism development. This report examines the current status of proposed projects, their potential impacts, and the complex web of stakeholder perspectives.

The Shifting Regulatory Landscape

Alberta's approach to coal mining in environmentally sensitive areas has undergone dramatic shifts in recent years. In May 2020, the provincial government rescinded the 1976 Coal Policy that had protected much of the eastern slopes of the Rocky Mountains from surface mining4. Following widespread public backlash, the policy was reinstated in February 20214. Most recently, in January 2025, the Alberta government rescinded the coal moratorium that had been in place since 2022 as part of the Coal Industry Modernization Initiative (CIMI)10.

CIMI purportedly aims to modernize coal industry regulations in Alberta while aligning with Albertan values and environmental responsibility. However, critics argue it effectively reopens sensitive areas to coal development. While the initiative prohibits mountaintop removal mining across Alberta and new open-pit mining in the eastern slopes, it still permits other surface mining techniques and underground mining to proceed in these areas10.

The federal government has also intervened, announcing in June 2021 that it would conduct environmental reviews of all new coal projects that could potentially release selenium, a toxic by-product of coal mining, into water sources3. This effectively means that all coal development projects in the region will be subject to federal assessment.

The Aries Project: Ram River Coal's Proposed Mine

The primary proposed coal mining project in Clearwater County is the Aries Mine, planned by Ram River Coal Corporation. According to company documents, the project would cover approximately 200 square kilometers near Nordegg35. The mine would target metallurgical coal (used in steel-making) with measured and indicated resources totaling 413 million tonnes67.

Ram River Coal's 2017 pre-feasibility study projected a 33-year mine life with production of 6 million tonnes of run-of-mine coal annually (4 million tonnes of clean coal)78. The company estimated an NPV of $843 million USD, an IRR of approximately 24%, and total cashflows of $3.6 billion USD68.

The project would be located approximately 30km from railhead serviced by CN Rail, with the company planning to ship coal to western Canadian coal terminals at Westshore and Ridley59. The company highlights its plans for "progressive reclamation," claiming that approximately 75% of the disturbed area would be reclaimed prior to the end of mining operations5.

Current Status of the Aries Project

Despite Ram River Coal's ambitious plans, the Aries project appears to be inactive at present. Global Energy Monitor lists the project as "cancelled" with a "Pre-Permit" status9. Alberta Beyond Coal confirms that previously-approved coal exploration permits and a deep-drill permit for the project have expired, and the company has not submitted any applications for exploration or development in three years3.

However, the recent decision by the Alberta government to rescind the coal moratorium could potentially revive interest in the project. The regulatory landscape remains in flux, creating uncertainty about whether this and other coal projects in the eastern slopes might move forward.

Environmental Concerns

The proposed coal mining in Clearwater County raises significant environmental concerns, particularly regarding water quality and wildlife habitat.

Water Quality and Selenium Contamination

Open-pit coal mining can leach toxins like selenium into water sources. This is particularly concerning for Clearwater County as the eastern slopes of the Rockies are the water source for millions of Albertans, providing water to residents of Clearwater County, Drayton Valley, Edmonton, and downstream communities in Saskatchewan and Manitoba113.

A risk assessment conducted by EPCOR Water Canada highlighted that coal mining has demonstrated negative effects on water quality, quantity, and aquatic ecosystems globally and within Alberta. The study noted that selenium contamination and its impacts on aquatic biota are among the most clearly identified issues associated with coal mining12.

Impacts on Wildlife and Habitat

The Ram River and its tributaries provide critical habitat for bull trout and cutthroat trout, with the area hosting some of Alberta's last strong populations of bull trout. Loss of this habitat due to coal mining would potentially devastate these threatened fish populations12.

Coal leases also overlap or neighbor several popular recreation areas, including Goldeye Lake, Fish Lake, and Crescent Falls24. The Aries Mine would be located just 800 metres upslope of the Ram River, threatening both recreational fishing opportunities and critical fish habitat2.

Economic Implications: Coal vs. Tourism

Clearwater County has been actively developing tourism as a sustainable long-term economic strategy, creating a direct conflict with potential coal mining operations in the region.

Tourism Development Initiatives

According to Clearwater County's website, "tourism and recreation are economic generators that will remain long after the revenues from oil, gas and forestry have faded away"2. The county has identified "tourism development nodes" - key spots for developing its fledgling tourism industry2. The county's draft municipal development plan, released in December 2020, mentioned tourism and recreation a combined 86 times, while coal was mentioned only once2.

Local tourism operators have invested significantly in the region's natural assets. Shannon Zapach, who built tourist cabins in the area, expressed concern that coal leases now butt right up against her property. "Our long-term vision relies on the area's natural assets — water, wildlife and wilderness, the assets unique to this region — in order to have a sustainable tourism strategy," she told The Narwhal2.

Conflict Between Coal and Tourism

Coal leases now cover nearly 10% of Clearwater County's area, according to data from the Canadian Parks and Wilderness Society, with the area of coal leases more than quadrupling since the government's announcement to rescind the coal policy in 20202. Many of these leases directly overlap with areas designated for tourism development.

At a county council meeting in late January 2021, Councillor Laing raised concerns about the compatibility of coal mining with tourism development: "We're trying to grow Nordegg. We've invested millions... Is tourism and open-pit mining going to work together?"2

Community and Stakeholder Perspectives

The proposed coal mining has generated strong reactions from various stakeholders, including local residents, municipal governments, environmental organizations, and Indigenous communities.

Local and Municipal Opposition

Clearwater County Council has expressed concerns about coal mining in the region. In March 2021, the council voted unanimously to send a letter to the provincial government expressing concerns they'd heard from constituents16. Councillor Theresa Laing reported receiving approximately 400 emails and letters, with only a couple supporting increased mining in the mountains16.

This aligns with broader municipal opposition across Alberta. By March 2021, 28 Alberta municipalities had expressed some level of concern over the province's handling of coal mining expansion, ranging from small towns like Turner Valley to the province's four largest cities1617.

Indigenous Perspectives

Indigenous perspectives on coal mining are mixed. Some First Nations have supported mining projects for their economic benefits. For example, Chief Stanley Grier of Piikani Nation supported the Grassy Mountain coal project (in a different part of Alberta), stating that "it is an example of how mining can be done in a way that benefits surrounding communities"15.

However, other Indigenous groups and grassroots organizations oppose coal mining due to environmental concerns. Adam North Peigan of Mountain Child Valley Society (MCVS), created to protect the eastern slope of the Rockies, argued that environmental impacts outweigh the benefits of coal mining15. Louis Bull Tribe, Stoney Nakoda Nation, and other Indigenous communities have requested federal reviews of coal projects over concerns about impacts on their rights and traditional territories18.

Provincial Engagement Findings

A provincial survey conducted between March 29 and April 19, 2021, found that the majority of Albertans feel the management of the province's coal resources affects them. "Environmental impacts of coal development" and "if and where coal development takes place" were ranked as the most important issues when discussing Alberta's coal policy14.

The survey also found that the majority of respondents believe there are areas of the province that are not appropriate for coal development, while almost one-third said there are areas where development could be appropriate14. Most respondents expressed concerns about coal exploration and development14.

Potential Future Developments

The future of coal mining in Clearwater County remains uncertain. While the Aries project appears inactive at present, the recent policy changes could potentially revive interest in coal development in the eastern slopes.

Several factors will influence whether the Aries project or other coal mines proceed in Clearwater County:

Regulatory Hurdles: Any new coal project would face significant regulatory hurdles, including federal environmental assessments focused on selenium contamination.
Market Conditions: The global market for metallurgical coal, which fluctuates with steel demand, will influence the economic viability of new mines.
Public Opposition: The strong public opposition to coal mining in the eastern slopes could continue to influence government policy and regulatory decisions.
Legal Challenges: As seen with other coal projects in Alberta, legal challenges from various stakeholders could delay or prevent mine development.

Conclusion

Coal mining proposals in Clearwater County represent a complex intersection of economic, environmental, social, and regulatory factors. While Ram River Coal's Aries project offers potential economic benefits through job creation and tax revenue, these must be weighed against significant environmental concerns and potential impacts on the county's developing tourism industry.

The shifting regulatory landscape adds another layer of uncertainty, with recent policy changes potentially reopening the door to coal development in previously protected areas. Meanwhile, strong opposition from local residents, municipalities, and environmental organizations suggests any attempt to advance coal mining in the eastern slopes will continue to face significant resistance.

As Alberta navigates these competing interests, decisions about coal mining in Clearwater County will have lasting implications for the region's environment, economy, and communities for generations to come.

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