Question Period Note: Coalspur Vista Coal Underground Mine and Phase II Expansion Projects

Coalspur Vista Coal Underground Mine and Phase II Expansion Projects

• The Impact Assessment Act is designed to protect the environment, ensure sustainable projects can move forward safely, and instill public confidence in how the Government of Canada makes decisions concerning major resource projects.
• On September 29, 2021, the Minister of Environment and Climate Change designated the Vista Coal Underground Mine and Phase II Expansion under the Impact Assessment Act. As part of this process, Canada engaged with over 40 Indigenous groups, including Ermineskin Cree Nation, to ensure that their views and perspectives were considered.
• The proponent will need to submit an Initial Project Description to commence the planning phase of the Projects under the Impact Assessment Act.
• Our Government defends the original designation Order, and on September 29, 2021, filed a Notice of Appeal of the Ermineskin decision with the Federal Appeal Court. The Government of Canada also stands by its June 2021 thermal coal policy statement that notes any new thermal coal mining projects, or expansions of existing thermal coal mines in Canada, are likely to cause unacceptable environmental effects.

• Coalspur Mines (Operations) Ltd. (the Proponent) is proposing the Phase I Vista Coal Underground Mine Project (underground expansion to the existing thermal coal mine) and the Vista Coal Mine Phase II Expansion Project (westward surface expansion from the existing mine project) (the Projects) for the extraction and export of thermal coal located near Hinton, Alberta.
• Under section 9 of the Impact Assessment Act (the Act), the Minister of Environment and Climate Change (the Minister) has the discretionary authority to designate physical activities (projects) not identified in the Physical Activities Regulations (the Project List). In 2019, the Phase II Expansion Project was considered for designation; it was not designated at that time. In May 2020, new designation requests were received after the Proponent filed a new application with the Alberta Energy Regulator for the Vista Coal Underground Mine. The Minister also reconsidered the Phase II Expansion, and on July 30, 2020, he determined that the Vista Coal Underground Mine, as well as the Phase II Expansion, warrant designation pursuant to subsection 9(1) of the Act.
• Two applications for judicial review were filed regarding the July 2020 designation Order designating the Projects: on August 28, 2020, by the Proponent, and on August 31, 2020, by Ermineskin Cree Nation.
• On July 19, 2021, the Federal Court granted the application for judicial review filed by Ermineskin Cree Nation on the basis of failure to consult, set aside the designation Order, and remanded the matter for reconsideration. Because the designation Order was set aside, the Court deemed Coalspur Mines Ltd.’s judicial application moot and therefore dismissed it. On September 29, 2021, Canada filed a Notice of Appeal in the Ermineskin matter with the Federal Appeal Court. On October 1, Coalspur Mines Ltd. also filed a Notice to Appeal. It is anticipated that the hearing of the appeals may take place in the spring of 2022.
• In order to comply with the Federal Court decision, the Impact Assessment Agency of Canada (the Agency) undertook a reconsideration process from August to September 2021, including significant engagement with Ermineskin First Nation.
• On September 29, 2021, the Minister determined that the Projects warrant designation. Reasons included direct and cumulative effects to fish and fish habitat, including fish species at risk, and impacts to Indigenous peoples and their rights.
• As a next step, the Proponent will be required to submit an Initial Project Description to the Agency, thereby commencing the planning phase under the Act.
• On June 11, 2021, the Government of Canada announced its Policy Statement on future thermal coal mining projects and project expansions. The Policy states that new thermal coal mining projects or expansions are likely to cause unacceptable environmental effects within federal jurisdiction and are not aligned with Canada’s domestic and international climate change commitments.
• Simultaneously on June 11, 2021, the Minister issued a notice to the Proponent under section 17 of the Act that he is of the opinion that it is clear that the physical activities would cause unacceptable environmental effects within federal jurisdiction.

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