Australian coal company puts Alberta project on hold after reinstatement of 1976 policy

Australian coal company Atrum Coal announced Friday it would pause operations at its Elan project, located just north of Grassy Mountain, citing upcoming consultations on coal policyscheduled by the Alberta government.

Atrum'sElan Hard Coking Coal project is located on what was designated"Category 2" lands under Alberta's 1976 coal policy, under whichopen-pit mining typically is prohibited.

Last year, the Alberta government cancelled its 1976 Coal Development Policy for Alberta with no public consultation.

In the wake of mounting opposition from municipalities, First Nations and other Albertans, the government reinstated thatpolicy pending a public consultation process.

Atrum is still allowed to conduct activities on the Elan project under its previously approved coal exploration permit from last year, but has halted all "significant" activities on the site, including any planned drilling in 2021.

"We fully accept the Alberta government's reinstatement decision. We also welcome a consultation process that is rigorous, inclusive and transparent," said Atrum's CEO, Andrew Caruso, in a release.

Atrum Coal's shares plunged following the announcement, closing down more than 70 per cent.

Consultations set to begin next week

In its release, Atrum said it expected process details on Alberta's consultation would be released publicly next week. It went on to say that all site-based activities, excluding environmental studies, would be paused for the time being.

In February, the Alberta government said public consultations would begin March 29, but additional details surrounding the nature of those consultations have yet to be released.

WATCH |'What we're doing today ... is what we should have done in the beginning,' Savage says:

Alberta reinstates 1976 coal policy, pending public consultation

4 years ago

Duration 16:04

Energy Minister Sonya Savage's full press conference announcing the provincial government's backtrack on its previous decision to cancel the 1976 Coal Development Policy for Alberta.

In late February, one critic said aconsultation that utilized feedback collected by the same department encouraging expansion would likely be insufficient.

"Alberta Energy has lost a lot of trust in their dealings with the coal issue," Katie Morrison of the Canadian Parks and Wilderness Society told The Canadian Press.

"It does seem a little like a quick-and-dirty process to get back to the business they started with."

The province previously said that it would not issue any new coal leases in Category 2 lands until consultations are complete.

In response to a request for more information on the upcoming consultations, a spokesperson provided a statement attributed to AlbertaEnergy MinisterSonya Savage.

"We remain committed to widespread consultation on a modern coal policy that will be by Albertans and for Albertans," the statement reads.

"Public consultations will begin on March 29, and more details about the government's engagement approach will be released in the coming days."