'Unacceptable environmental effects': New federal policy restricts thermal coal

The federal government is making it more difficult to develop thermal coal in Canada with a new policy that says all such mines create "unacceptable environmental effects."

The move erects another roadblock for Coalspur Mines and its Vista mine expansion in Alberta, the only such mine in Canadacurrently before regulators.

Federal Environment Minister Jonathon Wilkinson said the move wasmade because of the need to stop burning coal for power the singlegreatest source of greenhouse gases in the world.

"Phasing out thermal coal is the most critical climate changeissue right now," he said.

The policy, released Friday, does not rule out such development.

But approvals will be tough to get.

"The government of Canada considers that any new thermal coalmining projects, or expansions of existing thermal coalmines inCanada, are likely to cause unacceptable environmental effects," itsays. "This position will inform federaldecision-making on thermalcoal projects."

It says the federal cabinet must consider sustainability andclimate change in weighing any new projects, regardless ofsize.

"What we're saying is this is something that does not fit from apublic policy perspective," Wilkinson said. "A proponentcancontinue on through the process, but that's a pretty high bar tosurmount."

Coalspur's Vista mine expansion project near Hinton, Alta., whichwould be the largest thermal coal mine in NorthAmerica, has filedan application to the provincial regulator. Wilkinson has ruled theproject should face a federalenvironmental assessment, althoughCoalspur is challenging that decision in court.

The company has been informed the new policy will apply to it,Wilkinson said. He added the policy gives more certaintyto othercompanies considering similar projects.

Wilkinson said he believes the new policy lies within federalpower despite its impact on natural resources, a provincialjurisdiction.

"We're comfortable this is something within our purview to do,"he said. "The vast, vast, vast majority of Canadians wouldthinkthat this is something that's a no-brainer."

Canada is a founding member of the Powering Past Coal Alliance, agroup of countries trying to reduce the use ofthermal coal aroundthe globe. Wilkinson said permitting new mines would harm Canada'sefforts in that forum.

"We've been the leader in the international community tellingother countries that they should be phasing out thermal coal andthen we approve new thermal coal mines? People would say thatdoesn't make any sense."

Policy doesn't affect metallurgical coal

The new policy does not affect metallurgical coal, the type ofcoal found in most of the controversial new coal explorationprojects in the Alberta foothills.

The federal government has been asked to step in on many of thoseprojects. Wilkinson has until July 1 to decide if he will request afederal assessment for Montem Resource's Tent Mountain mine.

Wilkinson called emissions from steelmaking a different issue.

"[Thermal coal]is a short-term issue," he said.

"Our commitment with other countries is to help them phase out [coal]nine years from now. That's not much time."

Canada has promised to phase out the burning of coal for power by2030.