PERTH (miningweekly.com) – The downward tumble of ASX-listed Atrum Coal’s share price has continued this week after a Joint Review Panel (JRP) nixed the development of the planned Grassy Mountain project, in Alberta, Canada.
The JRP found that the Grassy Mountain coal project, which is owned by Benga Mining, a subsidiary of Hancock Prospecting, was not in the public interest, and that the expected adverse environmental impacts on water quality and fish from the development of the mine would outweigh the projected positive economic benefits.
Atrum Coal, which is hoping to develop its own Elan project in Alberta, said on Tuesday that the company would take the time needed to fully understand the reasons for the JRP’s decision, and where warranted, would incorporate any learnings applicable to its own project into the design of the Elan hard coking coal project.
The future of the Elan project has been brought into question after the government of Alberta took a decision to reinstate the previously rescinded Coal Development Policy for Alberta.
The policy dictates the condition for coal leasing, exploration and development, and prohibits future coal exploration approvals on particular land types.
Elan is located on land designated as Category 2 under the coal policy, referring to land not normally considered for openpit coal mining, unless appropriate environmental stewardship is applied.
Furthermore, the Minister of Energy has also issued a directive to the Alberta Energy Regulatory (AER) that no mountaintop removal would be permitted, and that all restrictions under the policy categories would apply, including all restrictions on surface mining in Category 2 lands, and that all future coal exploration approvals on Category 2 lands would be prohibited, pending widespread consultation on a new coal policy.
Atrum said on Tuesday that it was the company’s expectation that the Elan project would be judged on its own merits, with the company continuing to seek approval to bring the project into production.
Meanwhile, fellow-listed coal developer Montem Resources has also taken note of the JRP ruling, with the company raising concerns that it would impact its own restart plans for the Tent Mountain mine, which is in close proximity to Grassy Mountain.
Montem told shareholders on Tuesday that the company had contacted the AER for guidance as to whether the Grassy Mountain decision would have an impact on its own plans, with the AER advising the company that each project’s application would be reviewed on its merits, and that it would consider Montem’s application in due course, when submitted.
Montem is currently awaiting a decision from the Federal Minister of Environment on whether he would designate the project for review.