Gina Rinehart takes Canadian government to court in bid to keep coal dream alive

It’s Australian billionaire Gina Rinehart versus the Canadian government as the miner seeks to challenge a decision by the federal environment minister to reject her $800 million metallurgical coal mine project in the Rocky Mountains.

Benga Mining, a subsidiary of Riversdale Resources which was taken over by Mrs Rinehart’s Hancock Prospecting two years ago, launched an appeal last month in Alberta to reverse a decision by the province’s energy regulator that the Grassy Mountain coal project should not go ahead.

Gina Rinehart’s Canadian coal fight has gone to the country’s federal court.

The project, which would have a mine life of 23 years and extract 4.5 million tonnes of metallurgical coal a year for use in the steel-making industry, needed both provincial and federal approval.

The Alberta Energy Regulator refused to grant provincial permits in June because of adverse impacts on water quality in the mountains and a species of trout, effectively sinking the project before federal consideration even took place.

But Canada’s Federal Minister of Environment and Climate Change Jonathan Wilkinson was still required to take on the regulator’s report and make his own decision about whether the project was likely to cause significant environmental damage.

Benga launched legal action in Alberta’s court of appeal in July â€" disputing assertions by the regulator it had not provided enough information and saying it had misconstrued environmental evidence â€" and asked the minister in a letter to hold off on any decision until after the challenge.

The miner also contended the regulator had ignored support by First Nations representative groups for Grassy Mountain. The Piikani Nation and the Stoney Nakoda Nations also launched provincial appeals.

Mr Wilkinson did not respond to the letter, however, as he decided earlier this month to follow the regulator in rejecting the project.

“The government of Canada must make decisions based on the best available scientific evidence while balancing economic and environmental considerations,” he said.

“It is in Canada’s best interests to safeguard our waterways for healthy fish populations like the Westslope Cutthroat Trout, respect Indigenous peoples’ culture and way of life, and protect the environment for future generations.”

There are several metallurgical coal projects from exploration to mines proposed in Alberta.Credit:Cabin Ridge

Benga has been critical of the minister for his decision and is taking him and Canada’s cabinet to the federal court over the issue, with the intent of having it quashed or set aside, after filing for a judicial review last week.

The company’s chief executive John Wallington said in a statement it was dismayed the minister would render a decision “hastily” and based off the report from the regulator, which was facing multiple legal challenges.

“Not only were the minister’s and cabinet’s decisions premature and ill-informed, they were also made without adequate consultation with the relevant First Nations, something that is unconscionable within the rigours of a modern regulatory approval process,” he said.

“Benga’s parent company has to date outlaid in excess of $700 million in acquiring the project and in pursuing the necessary regulatory approvals.

“At the time of acquiring the project, we were warmly welcomed and made to feel that Canada was very much open for business and intent upon attracting international investment ... however, the minister’s and cabinet’s decisions that we are now seeking to review raise serious questions about sovereign risk and just how open, transparent and fair the regulatory regime actually is.”

The application for permission to appeal in the Alberta court is set to be heard on September 30. No date has been set for a federal court hearing.

Peter de Kruijff is a journalist with WAtoday.

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