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- Atrium Coal (ATU) confirms its Elan Coal Project remains on pause following the release of the Alberta Government’s Coal Policy Committee (CPC) reports and resulting Ministerial Order
- An independent five-member panel held consultations across the Canadian province with Albertans and stakeholders over nine months
- The Ministerial Order put in place by Energy Minister Sonya Savage establishes an interim framework for the coal industry and reaffirms the reinstated 1976 Coal Policy
- The Elan Project is situated in Category 2 which remains suspended until written notice is provided by the Minister of Energy and/or the Minister of Environment and Parks
- ATU shares were down 20.9 per cent in the red, trading at 1.7 cents by the end of the trading day
Atrium Coal (ATU) has confirmed that its Elan Coal Project remains on pause following the release of the Alberta Government’s Coal Policy Committee (CPC) reports and resulting Ministerial Order.
The reports were conducted by an independent five-member panel who consulted across the Canadian province over nine months.
The Ministerial Order put in place by Energy Minister Sonya Savage establishes an interim framework for the coal industry as the government continues to work towards a new provincial coal policy, described as a “Coal Development Direction”.
In the Order, the Minister affirms the reinstated 1976 Coal Policy which dictates the conditions for which coal leasing, exploration and development can occur and has subsequently prohibited all future coal exploration approvals on particular land types.
The Energy Minister has also continued the suspension of coal exploration and development in the Eastern Slopes until “sufficient land use clarity has been provided through a planning activity”.
The Order categorises Alberta based mines into different categories which each category outlining specific instructions to the Alberta Energy Regulator.
The Elan Project is situated in Category 2, while considered “Exploratory” has stipulated that approvals in the Eastern Slopes remain suspended until written notice is provided by the Minister of Energy and/or by the Minister of Environment and Parks.
The CPC concluded there is a need to review and update legislation associated with coal management should Alberta choose to supply coal to international markets.
The report puts forward eight major recommendations “to complete a responsible, modernized policy for Alberta coal”.
Among the eight recommendations included to “modernise Alberta’s coal policy”, “meaningfully involve Alberta’s Indigenous communities in the land use planning process” and “[assessing] new coal projects with a net benefits test and public consultation”.
The Albertan government has accepted the findings of the CPC and commits to addressing its recommendations by “updating, strengthening or reinforcing existing regulations and legislation in the future”.
ATU has confirmed that the Government has not provided any guidance as to the timing of a new coal policy, with the company currently reviwieng the order and report to confirm the impact on future plans.
“We will consider our plans in partnership with our Indigenous and local community stakeholders to ensure that the Elan Project can be positioned for any potential future opportunity to collaboratively build a responsible mining project delivering a strategic resource needed by the world for the enduring interests of our shareholders and the people of Alberta,” Atrum Non-Executive Chairman Glen Koropchuk commented.
ATU shares were down 20.9 per cent in the red, trading at 1.7 cents by the end of the trading day. ATU shares have been down since its plunge on March 26, 2021.
