Quick facts

  • The Rocky Mountains are not open for new coal development.
  • The 1976 Coal Development Policy has not been rescinded. Implemented by former Premier Peter Lougheed to protect the Eastern Slopes, the policy remains in place unchanged including all its prohibitions.
  • There is a stringent regulatory process in place to ensure public and environmental safety.
  • We have not changed direction on offering crown coal leases. On February 10, 2025, we posted an information letter reaffirming that applications for coal leases on crown land are not being accepted.
  • We have begun the work of engaging with coal industry experts to share our requirements of a modern coal policy and develop the recommendations for government on the details needed to implement the direction.

The future arrives

We are declaring a new policy direction – the Alberta Coal Industry Modernization Initiative – which will ban new open-pit mining in the foothills (Eastern Slopes) and keep selenium out of our water through the development of a modern, long-term legislative framework that guides responsible coal mining practices. 

In the first half of 2025, we will engage directly with the coal industry to develop a new, comprehensive coal policy which will be the culmination of work spearheaded by the Coal Policy Committee. 

This coal policy will be centered around protecting water. It will prohibit mountaintop removal coal mining, prevent new open-pit coal mines in the foothills and require that any new mining must use techniques which use best water practices and prevent adding selenium to waterways.

Alberta has an abundance of metallurgical coal which is in-demand worldwide to make steel for millions of end-uses, including passenger vehicles, home appliances, farm and industrial equipment and building materials.

Responsible coal development will create jobs for Albertans and bring new investment to our province. And our new policy will ensure that all Albertans will benefit from increased coal royalty rates.

Resources

Modernization timeline

  • Initiative announced

    We announced our approach to modernizing coal development regulation in Alberta.

    December 2024
  • Direction to Alberta Energy Regulator announced

    We announced confirmation of our modernized approach to the Alberta Energy Regulator.

    January 2025
  • Public and stakeholder communication

    We shared information about the Coal Industry Modernization Initiative with municipalities, First Nations and Albertans.

    Winter 2024 to Spring 2025
  • Stakeholder engagement

    We are currently engaging with stakeholders about Alberta's plan to develop a modern coal policy.

    We are here
  • Finalize plan

    We will finalize proposed changes and update legislation.

    December 2025

Bringing Alberta coal mining into the 21st century

Map showing where mountain-top mining and new open-pit coal mines will be prohibited.

A modern policy

Our Coal Industry Modernization Initiative will deliver a modern policy that protects the environment, drives investment in our province, and ensures Albertans are treated fairly by resource industries.

Albertans told us that our coal policies need to be modernized, strengthened and environmentally sound.

We are taking action to address the 2021 Coal Policy Committee’s recommendations to build a long-term legislative and regulatory framework to guide responsible resource development across the province.

Clear and practical regulations have always played a significant role in Alberta’s economic advantage. This new policy will again let rights holders present their plans for coal exploration and development projects to an independent decision maker for consideration. Those decision makers will have a strong coal policy to guide them as they make the best choice for Alberta.

This policy does not allow for unlimited coal development in Alberta’s precious natural spaces. We are delivering on Albertan’s expectations to deliver a 21st century coal policy that industry must conform to if they want to operate in the province.

Strong environmental protections

The protections set out in law and in the 1976 Coal Development Policy for national parks, provincial parks, wildland parks, wilderness areas, ecological reserves, and provincial recreation areas will continue.

  • Line icon of a mountain with two clouds and the sun.
    No mountaintop removal

    Mountaintop removal coal mining has not occurred in Alberta, but it will now be specifically prohibited.

  • Line icon of a construction truck
    No new open-pit coal mining in the Eastern Slopes

    No new open pit mines will be approved for the eastern slopes (all 4 Categories of the 1976 Coal Development Policy, subject to any further regulations flowing from land use planning work which is underway).

  • Line icon of a winding river with small trees on the banks.
    No new coal mining proposals without use of best water practices

    All new mining proposals must use techniques which use best water practices and prevent adding selenium into waterways, anywhere in Alberta.

    New proposals will either need to be underground mines or use mining technologies (such as highwall automated underground mining) that move minimal amounts of overburden, to prevent selenium leaching and siltation.

Why coal

Alberta is blessed with an abundance of metallurgical coal to make steel. This coal is not thermal coal, which was mined to generate Alberta’s electricity in the past.

The world needs Alberta's metallurgical coal to fuel economic growth and the transition to renewable energy. For many developing or expanding countries, steel will be an essential global component for infrastructure growth and development, including building solar panel installations and wind farms.

This steel will also return to Alberta in products like passenger vehicles, home appliances, farm and industrial equipment and building materials.

To ensure Albertans are fairly compensated for the development of this important natural resource, we will raise the coal royalty rates significantly on any new coal mines.

Working towards change

Industry engagement

We will engage with the coal industry in the first half of 2025 to inform industry of Alberta’s plans to achieve higher standards for coal mining, set new coal royalty amounts and to develop strategies that align with our commitment to balance regulatory improvement and environmental protection with an emphasis on water protection.

Legislative review

To ensure Albertans are fairly compensated for the development of this important natural resource, we will raise the coal royalty rates significantly on any new coal mines.

The legislative review and options development will be informed by analysis of Alberta’s coal royalty rates, economic analysis, stakeholder engagement and analysis and through reviews of other coal producing jurisdictions.

Related initiatives

Public engagement was completed in Fall 2024 for the South Saskatchewan Regional Plan 10-year review and the draft Upper Smoky Sub-Regional Plan. These planning areas overlap portions of the Eastern Slopes that contain high quality coal resources. 

The plans have the potential to set out management direction regarding where and under what conditions coal leasing, exploration and development may be pursued.

How we got here

Coal Policy Committee

The Alberta Coal Industry Modernization Initiative will pick up where the 2021 Coal Policy Committee left off.

More than 30,000 Albertans, from all walks of life and areas of the province, Indigenous and Métis peoples, municipalities and industry stakeholders shared feedback through the work of the Coal Policy Committee.

The committee considered this feedback and created recommendations that will help inform our modernized coal policy. Learn more about the Coal Policy Committee and its recommendations.

1976 Coal Policy

The 1976 Coal Policy is Alberta's current coal policy. It established the 4 land categories that dictate where and how coal leasing, exploration and development can occur.

Alberta coal policy history