Coal

Long before Alberta's first oil and gas boom, the province relied on coal to heat homes, generate electricity, and provide fuel for transportation. In the late 1800s, coal was the first energy commodity to be exported from the province. However, by the 1960s, oil and natural gas mostly replaced coal as Alberta's primary energy sources.

Today, Alberta export it to other countries where it is used to produce power and steel.

The following information is an overview of how the AER regulates coal mining and how we ensure the public and the environment are protected.

Types of Coal Mined in Alberta

Two types of coal are mined in Alberta: thermal and metallurgical.

• Thermal coal is burned to run steam turbines for generating electricity. It is also used to heat homes. As of 2024, there are no coal-fired electricity generation plants in Alberta.  However, coal continues to be mined for international export. Learn more about the phase out of coal on the Government of Alberta website.
• Metallurgical coal, which is harder than thermal coal, burns at higher temperatures and is used for smelting iron and making steel.

Methods of Coal Mining

There are two ways to mine coal in Alberta: underground mining and surface mining.

Underground mining involves excavating a coal seam by tunnelling directly into the seam, without removing most of the overlying material (rock or soil), known as overburden. In Alberta, room and pillaris the most common underground coal mining method. Parallel tunnels are dug into the coal seam and connected at regular intervals, resulting in a grid of underground openings (rooms) separated by blocks of coal (pillars).

Surface mining involves removing overburden to gain access to a coal seam. Two methods of surface mining are used in Alberta: open-pit mining and strip mining.

Strip mining is used when the coal seam itself is close to the surface and relatively flat. Overburden is removed uniformly to access the seam. This is most often seen in the Prairies.

Open-pit mining is used when the coal seam is at an angle or is "folded" (meaning it is wavy or has an otherwise inconsistent surface). An open-pit mine targets the portion of the coal seam closest to the surface and involves removing overburden and the coal seam in increments, creating benches.

As mining progresses, each bench is moved inwards from the bench above, forming a pit. The angles of the pit walls are designed to minimize the amount of overburden removed and ensure stability during mining operations. This approach generally minimizes the amount of overburden removed. This type of mining is most often seen in the Eastern Slopes of the Rocky Mountains.

Mountaintop removal is not used in Alberta. This method envolves removing the top of a mountain to expose the coal seams underneath. It results in a relatively flat landscape where the summit previously existed.

How We Regulate Coal Mining

It is our job to ensure that companies mine coal in Alberta responsibly. Our work starts before a mine is built and continues after mining is complete.

Companies must obtain a coal lease from the Government of Alberta to develop coal resources.

The life cycle of a coal development has three distinct phases: exploration, construction and operation, and closure. We review and decide on applications and oversee and regulate each development phase. We conduct inspections, monitor compliance, and take enforcement actions throughout each development phase. During the closure phase, we issue reclamation certificates.

Continue reading for more information on each of these phases.

AER Response to Ministerial 03/2025

On January 16, 2025, we received Ministerial Order 2025-03 (MO 2025), which rescinds three previous ministerial orders (002/2022; 054/2021, and 093/2021) concerning coal mining activities in the Eastern Slopes and confirming the 1976 policy for coal development in Alberta.

Under the direction of Ministerial Order 2025-03, we must lift all previously suspended approvals that occurred under ministerial orders 054/2021, 093/2021, and 002/2022 by January 31, 2025.

In addition, we must extend the expiry dates for any suspended approvals, covering the time they were on hold so that approval holders are not penalized for the suspension period.

Until Alberta’s modernized coal policy is ready, coal exploration and development applications will be subject to the land categories outlined in the 1976 policy when evaluating coal applications.

We will consider all directions by the Minister, including the Coal Industry Modernization Initiative policy guidance in the Government of Alberta’s December 20, 2024 news release.

AER Coal Application Processes 

Companies must submit applications and receive our approval before developing coal projects, regardless of the development phase. Learn more about how we decide on coal mining authorizations.  Additional applications are often required as a mine expands and evolves throughout its life cycle and the development phases.

Coal Regulations and Guidance Documents