Coal company pushing for compensation from Alberta as court date approaches

A coal company suing the Alberta government is arguing that recent comments made by Alberta's energy minister back up its claim for compensation.

Evolve Power Ltd., formerly Montem Resources Ltd., is one of five coal companies suing the provincial government for billions in damages tied to coal policy changes.

In December, the Alberta government announced it was developing new rules to shape the future of coal mining in the province, promising them by late 2025.

As a part of that news conference, Energy Minister Brian Jean noted that freehold coal rights have existed in Alberta longer than Alberta has been a province.

"The government cannot expropriate freehold coal rights without paying fair compensation to the owners of those property rights," Jean said.

That statement caught the attention of Peter Doyle, the CEO of Montem Resources' Alberta operations, and Evolve's legal team, who felt it aligned with the upcoming court case.

"He plainly said … that the freehold property right or freehold coal rights that were taken or are being taken by the government have to be justly compensated," Doyle said in an interview. "That's all we're seeking."

When asked to comment on Doyle's view, a spokesperson in Jean's office wrote that it "was not appropriate for government to comment on this or any other matter as it goes through the courts."

"The Government of Alberta has filed a statement of defence denying the allegations. We continue to respect the judicial process," the statement reads.

Four separate statements of claim, to be heard at the same time this April, allege Alberta's 2022 decision to change coal mining rules cost them financially and resulted in a "de facto expropriation" of their coal assets.

Such claims seek compensation on the basis that these coal mines would have gone into production and produced profits over their lifetime.

The Alberta government opened up mountains to more mining in 2020 but later reversed course on those plans after a period of public outcry. 

The companies involved in the April trial are Cabin Ridge Holdings Ltd. and Cabin Ridge Project Ltd.; Atrum Coal Ltd., along with its subsidiary, Elan Coal Ltd.; Black Eagle Mining Corp.; and Montem.

A fifth company, Northback Holdings, launched a damages claim in June 2024, which will be heard separately. Combined, the five companies are seeking north of $15 billion in damages.