Episode summary
Can a Billionaire-Backed Coal Mine Revive a Struggling Canadian Town?
Wall Street Week
· · 12 min · Guests: Corb Lund
Summary
A proposed metallurgical coal mine in Alberta’s Crowsnest Pass is dividing the region between hopes for economic revival and fears of long-term environmental damage. Northback, backed by Australian billionaire Gina Rinehart’s Hancock Prospecting, wants to reopen and expand Grassy Mountain, a project it says could create jobs, bring spending into Alberta, and supply steelmaking coal to Europe and Asia as Canada tries to diversify trade beyond the United States.
The company argues the mine sits on a long-mined site, could produce about 2.5 million tons a year, and would support a 25-year operation with most spending staying in Alberta. Brad Johnston says global supply could tighten by 2030 and that Northback’s coal is attractive because it has low phosphorus and sulfur. Supporters in the community see the project as a rare chance to revive a town that has lost logging, oil and gas, and earlier coal employment.
Opponents, led by Corb Lund, say the mine risks groundwater, wildlife and nearby communities, including downstream users in the Crowsnest watershed. Lund says the petition to stop new coal mining fell short of a provincial vote, but he still doubts the company’s promises. The Alberta Energy Regulator will decide whether the project moves forward, with a ruling potentially a year away.
Key takeaways
- Northback says Grassy Mountain could produce about 2.5 million tons of metallurgical coal a year, roughly 10% of British Columbia’s steelmaking coal output.
- Brad Johnston says as much as 90% of Northback’s operating spending could stay in Alberta, supporting the local economy around Crowsnest Pass.
- Corb Lund argues the project threatens groundwater and says he does not trust the company’s assurances on reclamation and water protection.
- The company says it will install a water treatment plant on day one and keep treating water for up to 25 years after mining ends.
- Supporters frame the mine as a trade-diversification play for Canada, with potential buyers in Japan, Korea and Europe.
Notable quotes
“-The world wants this coal. It needs it”
“-I don't believe anything they say, frankly. And I don't think they're telling the truth”
“-We think as early as 2030, there's going to be undersupply of steelmaking coal”
“we've invested almost $200 million in operating costs in the province, in the area”
“The only groups of people who want these mines are A, the Aussie coal companies, B, the small handful of people who get the jobs, very few jobs, which will be automated away as we speak, and the government people”
How the episode opens
-The world wants this coal. It needs it. -Not only is this a bad idea economically, not only is it a bad idea politically, I don't want to see this country messed up.
-I am extremely, capital P, R, O, coal. -In the heart of the southern Canadian Rockies, on the western border of Alberta, lies Crowsnest Pass, home to 5 historic mining communities that lost the key driver of their economies years ago, when the nearby coal mines closed down. -When I was younger, Crowsnest Pass was very vibrant.
There were a lot of businesses. And mines went away and businesses left. -You see this community just trying to struggle to have businesses and just a thriving culture.
And I've seen it just really just struggle and limp along. -We are the forgotten corner of Alberta. And nobody really gives a about us until we actually got a chance to get something good.
-As the world turns its back on coal production, some in Alberta see opportunity. Northback, a subsidiary of Australian billionaire Gina Rinehart's Hancock Prospecting, wants to reopen and expand a mine in the area, which would be the first of its kind to open in Alberta in two decades. Local business owner and rancher Lucas Michalsky sees the new proposed mine as a beacon of hope.
-Northback has put tens of million dollars into the Crowsnest Pass. All the people that are against it, I haven't seen them plant a single tree. I haven't seen them clean up a single old mine site.
I've never seen them put any money into the Crowsnest Pass. You know what we are? We're a little drive-through town.
This is a blue collar community. It always has been. And we've lost our logging.
We've lost our oil and gas. Mining is the only thing we have left because we never really had much of the first two.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- metallurgical coal mine
- canada trade relationships
- steelmaking coal exports
- water quality concerns
- regional jobs and investment
Companies and tickers mentioned
- Northback Holdings
Watch the episode
Watch “Can a Billionaire-Backed Coal Mine Revive a Struggling Canadian Town?” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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