Northback Holdings Corp., a subsidiary of Australian billionaire Gina Rinehart’s Hancock Prospecting Pty Ltd., is promoting the economic benefits of its revised Grassy Mountain coal mine in Alberta’s Eastern Slopes, just days after a petition with over 200,000 signatures called for a permanent ban on mining in the region.
Economic Promises and Provincial Revenue
A report commissioned by Northback claims the mine would generate approximately $2.2 billion in tax revenue for Alberta over its 26-year lifespan. The study also forecasts a $7.1-billion boost to the province’s annual GDP and estimates that an average of 1,356 full-time jobs would be created annually in Alberta, with an additional 400 jobs nationally. These figures include direct employment, supply chain effects, and spending from employee wages.
“When you look at the benefits of the project (in) a place like Crowsnest Pass, it’ll be significant,” said Mike Young, Northback’s chief executive, in an interview.
Opposition and Petition
The company’s push comes amid strong public opposition. A petition signed by more than 200,000 Albertans demands a permanent ban on coal mining in the Eastern Slopes. About 150 protesters gathered outside the Alberta Energy Regulator’s office in Calgary on Jan. 14, 2025, to voice their concerns.
Academic Scrutiny of Costs
A 2021 study from the University of Calgary’s School of Public Policy, co-authored by economics professor Jennifer Winter, questioned whether the economic benefits outweigh the costs. The authors concluded that “coal mine development is not likely to be a net benefit to Alberta, and the costs are likely to outweigh the benefits.” They argued that any single mine’s economic impact would be small relative to the provincial economy, with benefits concentrated on the proponent and tax revenue being “marginal.” The study also highlighted potential costs from displacing existing activities like ranching and tourism, as well as significant environmental risks to water, wildlife, vegetation, and air.
Regulatory History and Revised Proposal
The Grassy Mountain mine proposal has been under discussion since 2014. Hancock Prospecting took over the project before the COVID-19 pandemic, but the original proposal was rejected in 2021 by provincial and federal regulators due to environmental risks and inadequate community consultation. In 2025, the Alberta Energy Regulator partially reversed course, approving Northback’s request to begin exploration, though it emphasized that this does not guarantee mine approval. Northback plans to submit a scaled-down version of its proposal later this year.
According to Northback’s website, the metallurgical coal mine would create 300 to 400 direct, permanent jobs. However, Young remains determined to proceed despite ongoing opposition.
