ALBERTA REPORT: Let's get coal rolling.
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Summary
In 2020, Jason Kenney's United Conservative Party rescinded a policy that severely limited coal development in the eastern slopes of the Rocky Mountains. This move saw dozens of applications for new mining across the area. After an intense public backlash, primarily driven by activists and misinformation, the policy was put back in place, grinding all progress on new development to a halt. One project at the centre of the controversy is Northback's Grassy Mountain Coal Project.
Transcript
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Welcome and thank you for joining me today. My name is James Finkbeiner and this is the Alberta
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Report. Alberta has a long history of coal mining stretching back to the 1870s and just like our
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history with oil and gas, coal mining has been one of the pillars that built our beautiful
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province. Drumheller, Black Diamond, Coaldale, Colehurst and Coal Banks or modern-day Lethbridge
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all owe part of their beginnings to coal mining. These days, coal development in Alberta has been
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a hot-button issue. In 2020, Jason Kenney's United Conservative Party rescinded Peter Loughey's 1976
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coal policy that severely limited coal development in the eastern slopes of the Rocky Mountains.
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This move saw dozens of applications for new mining across the area. After an intense public
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backlash, primarily driven by activists and misinformation, the policy was put back in
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place, grinding all progress on new development to a halt. One project at the center of the
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controversy is Northback's Grassy Mountain Coal Project and here to speak with me today about
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this project is Northback's CEO, Mike Young. Mike, welcome to the show. Thank you very much for having
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me. Why is this project good for Alberta? Well, it's good for Alberta in lots of ways. It's a
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resource development project. So Alberta is a resource province. It makes its money primarily from
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both food, agriculture, oil and gas and coal. So it's just another resource project in the province.
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But it's particularly good for southern Alberta and particularly the Crowsnest Pass because they don't
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have a lot of industry down there. Crowsnest is one of the poorest municipalities in Alberta. Most of
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their revenue is generated through property taxes. They don't have any big industries. So it'd be very
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good for the local economy. It'd be very good for the First Nations people, a Blackfoot tribe. Down there
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that's closest is Begani. They're part of the Blackfoot Nation. There's also Siksika in the Guyana.
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And so it'd be good for them as well. They're going through some hard times at the moment. Part of that is
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because there's just no opportunities. Yeah. So now this mine in this specific area,
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this isn't a new mine, is it? There's already a mine on this location. Yeah, that's correct. So
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Crowsnest Pass has a huge history of coal mining. And, you know, underground, it's, there's, you know,
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several, several municipalities, not municipalities, but several towns stretched out along a long
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corridor. And they're all coal towns. And Grassy Mountain itself is the northern end of a mine
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called Green Hills. And when you go through grass, go through Crowsnest, as a lot of people do,
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next to the golf course, you'll see some old mine infrastructure. And that was part of
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this Green Hills mine. And to the north of it was Grassy. And they mined it a little bit underground.
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And then in the 50s and 60s, they mined as an open pit. And what they basically did was
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up the crest of the mountain, they did a small pit. They didn't go very deep because the technology at the
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time wouldn't allow it and the coal price didn't allow it. So it got closed in about 1969, we think.
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And then after that, the owners of the mine logged the area to the east. So it was logged.
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So, you know, together with the mining that was done, you know, and back then there was no such
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thing as reclamation, they just sort of dump stuff on the side of the hill and left. That and the
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So isn't part of this project also reclamation on the mine that's already there?
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Yeah, that's certainly one of the things that our stakeholders want to see is they want to see
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that mine cleaned up. So there's been some trees have grown back, but by and large, there's just a
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lot of waste piles on the side of the hill. It's quite dangerous. There's a lot of openings. There's
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old mine openings from underground and on surface. When they abandoned the operation, they didn't
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clean it up. They didn't, they made some safety things by just putting up, you know, barriers to
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entry. But by and large, there was no reclamation whatsoever. And so certainly the First Nations
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would like to be able to use the land again. Recreationists would like to be able to use the
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land. And so as part of a modern mining process, we would go through and clean up the mess.
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So you'd be able to go in, clean up what was already there, and then kind of the reward for
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going in, cleaning up this project would be being able to mine it again and kind of take care of the
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area. Yeah, it'd be one of the, you know, you call them fringe benefits. So that would certainly be
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the case. And, you know, we had a person come to site who works for an NGO. We brought her up onto
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the mountain and we, we actually have a policy of inviting anyone that wants to come and see it up
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the mountain. So, you know, your, your viewers could certainly reach out to us to do that. So we brought
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this person up the mountain and, and firstly, they were amazed that the lakes that are still left
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behind, aren't these steaming cauldrons of boiling, bubbling, acidic water. They're actually
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quite good water. But she also remarked that, you know, plants were able to grow back on their own.
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And would it be the case if we were actually doing planned reclamation, if it would be a better
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outcome? And we said, absolutely. And, you know, she gave us some other suggestions. And when she did
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that, one of the things she asked about was, you know, are you going to build wildlife corridors and
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refuges? And we said, yeah, that's something we'd really like to do. So it, you know, yes, it's mining and
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yes, it's disruptive. But at the end, it would be modern reclamation. And in the end, it would be
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better, better land use for the stakeholders in the area. So right now, it's not in great shape.
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But Albertans are fairly familiar with reclamation projects, like specifically in the oil sands,
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we've seen areas that were completely strip mined, returned back into boreal forest and productive
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wetlands again. So we would actually, so you're saying the same type of reclamation that would be
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planned and, and thought out for the entirety of the project, this whole area in the end would be
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in a better space than what it is right now. Yeah, eventually over time. I mean, we make no,
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no, we don't hide the fact that it's going to be a mine. But one of the things we can do is the way
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we want to mine is you can progressively reclimate as you go. So you start reclamation at the south end
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where we would start mining. And then as you move forward, reclimate. And one of the things we're
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really proud of is that our, the new designs that we're assessing will have much lower impact than
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previous designs. And also, we intend on putting a lot of the waste rock material back into the pits.
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And that was something that a lot of people try to do. And we're being very deliberate in the mine
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planning and how we do that. So we'd like to reclimate as we go. There's a lot of concerns. And, you know,
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it's historically people have walked away from their commitments, but we don't, we won't do that.
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People are concerned that you'll walk away from it afterwards. But if you're progressively
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reclamating, not only are you reducing that liability at the end of the mine, but you're
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proving to people your bona fides that you're going to follow through. Yeah, well, that would be the same
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type of reclamation plan that a lot of the oil and gas companies have. As they're done in an area,
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they start the reclamation process. And some of the earliest areas that were mined first are almost
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completely reclaimed now. And unrecognizable. Exactly. You can't tell that they were mining
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there. They're beautiful, they're cleaner, they're healthier than they were before. So, you know, that's
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one of the biggest things I think that people don't understand about this project is that there's
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already a mine there. The mine was just left. It was abandoned. The day that they left, nothing's really
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changed in that area, except for some small measures here and there. But, you know, on net,
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in the end, the environment would be cleaner and healthier. But this project's already been rejected
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by the regulators. Part of the reason that they gave was there wasn't enough net benefit versus
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the environmental cost. Why are you guys seeking to revive the project now?
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So I just want to really drill into the wording of your question. So it wasn't a project that was
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denied. It was a development application for the project that was denied. Why is that important?
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Well, a lot of people say, well, the project was denied is dead, right? And that's not the case. And
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the greatest metaphor is you buy an old house, and you want to knock it down and build a new house.
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Okay, so you've bought the block, you own it, just like we own grassy, some part of his crown land and
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part of it is private. So we own this this project, the house, the block, we're going to knock the house
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down. That's been done. We want to build a new house. And so you put your plan into the planners,
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the city planners, and the neighbors get to have a look at it. They go, Oh, it's too big. It's shadowing
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my roses. I can see them in my backyard. Nope. And the regulator goes, Nope, that house, that house
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isn't allowed. So you go away, and you come back with another plan, which addresses the issues.
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It's no different. You have a right, this is Canada, this isn't Russia. You have a right to come back
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with another application that addresses the issues you're talking about. And that's, that's what we
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So, so, so, like, a lot of people are saying it's legally dead. It's a zombie project. And that's
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obviously not true, then. So what you're, you're working on is you're working to address the original
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concerns from the original application, and, and help address the concerns of the neighbors and
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different land users in that in that area. What kind of concerns from the local residents are you
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hearing? So the local residents, like leaving, well, let's go back to the, to the, the original
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application and the joint review panel. So they were talking about fish, selenium, westlope cutthroat
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trout in one of the two creeks, and the economic benefit. So the economic benefit, coal prices are
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double what they were back then, and they're not going south. Coal demand is, is increasing steel
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making coal, particularly the kind of coal that we're looking at. And we actually have steel
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companies coming to us because they can see a shortage of steel making coal coming. And they
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have, you know, these are Japanese, Korean steel makers, Indian steel makers, they're not moving
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to green steel. So metallurgical coal demand is going to be there for a long time. And if you have a
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shortage, the price goes up. So the economic benefit to the, the region is going to be higher.
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What we're doing is we're looking at those concerns, water, Gold Creek, and we're redesigning
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the mine to really mitigate or completely avoid them. The locals' concerns are around dust,
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and we have dust suppression. The JRP actually, in their report, said that while dust was an issue,
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it wasn't, it wasn't something that was significant. The train loadout, we're looking at addressing some
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of the issues. People were worried it was going to be this monster tower, like it would look like a
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wheat bin, I guess. We're looking at ways of mitigating that. Water quantity, in reality,
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doesn't actually use that much water. That's a bit of a myth. So we need to address that through
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education. So it's kind of an interesting, it's interesting, we have real issues to address.
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And then we've got educational issues to address, because there was a lot of mythology around coal and
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grassy particularly. So we've got a great team doing our external affairs.
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And so we've got a great technical team addressing the technical issues. So it's a bit of a, there's
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Yeah. And with the water issues, honestly, when this project was first announced,
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I thought the same thing that a lot of Albertans thought. Most of them thought thermal coal,
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and we'd obviously phased out thermal coal and our thermal coal power generation in the province.
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A lot of our thermal coal mines across the province have shut down because we've got lots of it and
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we're not burning it here anyways. But the second thing that a lot of people were upset about was
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selenium in the water and the water system that comes out of this. This is the headwaters that feed
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the South Saskatchewan, the old man, pretty much every major water system in southern and southeastern
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Alberta. So what are you guys doing to address those concerns? And what's the difference
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in the metallurgical coal versus the thermal coal?
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So let's do your last question first. So metallurgical coal is used for steelmaking.
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75% of the world's steel is made today using metallurgical coal in a blast furnace. That technology
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is around the world. It's very modern. It's used in Asia, China, Japan, Korea. Those would be our
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major customers. We still have blast furnaces in parts of Canada and America. So metallurgical coal
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is part of that process and it cannot be replaced in a blast furnace. It is used in the furnace for,
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it has various attributes I won't get into. Not all coal can be metallurgical coal. It's a very specific
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subset. All coal can be thermal coal. And then thermal coal, of course, is used to generate power.
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And so, as you pointed out, Alberta has moved away from that. They're still experting thermal coal.
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Coal is growing globally, mainly because of Asia, but in North America and Europe,
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thermal coal use is declining, right? Because there's other power sources coming on stream.
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Getting to selenium. So selenium is a byproduct of a lot of industries, agriculture, human waste,
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power generation, and coal mining. And we know, you know, because of tech and the legacy issues there,
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that selenium is an issue that people worry about. For us, it's an education issue because selenium is
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actually something you need. If you were to go buy smart water black label, you would have
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selenium in that bottle. In fact, the water in that bottle would be supersede BC's water quality
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standards for selenium, but not Calgary's. But selenium is an issue. Now, we have the benefit of
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starting new. And we have a multi-phase approach. So the first thing we want to do is identify
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which rocks have more selenium, because not all the rocks have it. So by doing that, we can avoid
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generating it in the first place. Like what happens is the rock gets exposed to rain and
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oxygen and the selenium goes into the water system. So the first thing to do is find the selenium
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bearing rock and isolate that from the elements, if you like. The second thing is we have the advantage
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that there are many selenium treatment processes that work. So people look at tech and they go,
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it doesn't work. Well, it does. Tech is dealing with historic mining methods that created the
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problem. And it's very difficult to retrofit once you've created those issues. We're starting new.
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So that means we can look at what works. We have a bit of a menu and we can say that works,
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that works, that works. And what's really interesting is there's a mine called Tent Mountain,
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which is right up against the border of BC, just in the Crowsness Pass. And it's an old mine. And there
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is a stream there that has high selenium from the mine. It goes into a wetland. And when it comes
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out of the wetland, the selenium is gone. So there are natural processes at work. And we have that on
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site as well. So we have many, many ways of dealing with it. The key thing is that we have to prove to
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the regulator that we can do it before we can mine. So the public is safe. The public is safe, right?
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Some people say, I don't trust the regulator. Well, that's another issue for another day. But we have to
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prove to the regulator we can do it. And we won't get a licensed operate unless we can. And so that's
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the approach we're taking. But we're looking at avoidance and mitigation first. And that way,
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you don't even have the problem. So by, you know, going in, reclaiming the site, upgrading it,
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bringing it up to today's environmental standards, you guys would essentially be able to put new mining
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practices that are in place to prevent some of the selenium from ever reaching the natural water
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bodies in the first place, or actually even being released to get into the water in the first
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place. So you guys are already planning the mitigation before you even start this project.
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Correct. That's a really good, it's a really good pickup. And as well as the remediation. So,
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you know, a lot of people remediation, historically, sometimes remediation can be an afterthought.
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You know, yeah, we've got a, we've got money parked for that. But we want to integrate everything
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into upfront and in design because you've got, you've got your equipment on site, modern equipment,
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modern methods, let's do it all as we go. But you're absolutely right.
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Well, it's actually it's kind of fascinating, because obviously, Calgary, we've got our own
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water issues going on right now with the feeder main break and repair and all of that. But in doing
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some research around that, the city of Calgary has actually been pushing rain gardens and rain gardens
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might be something that many Calgarians are familiar with. And essentially, the plan is,
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is to catch the runoff running off of your property, your roof, and trapping it into essentially a
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wetland with proper plants in it. And it helps prevent sediment and debris from running off of
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your property into the city's wastewater system, and then back into the natural river system. So
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essentially, you're saying, you know, we could do the same thing here. And, you know, the selenium that
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we can't prevent from getting into the water in the first place, we can put natural wetland systems
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in place that would then help us clean this before it ever reaches is the river. So and you know,
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that obviously would help to mitigate some of the concerns that a lot of people have, you know,
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the South Saskatchewan River, St. Mary's Irrigation District, like a lot of irrigation, a lot of farmers,
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ranchers, everything depends on this water supply. But let me just pick up on something there. So
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the levels, and I don't want to get into the numbers, but the levels of selenium that we will
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be able to release into the local ecosystem after treating the water are so low that they're not going
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to get into like, by the time they get into the crow's nest and into the old man, you want to be
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able to find the atoms. If we have a an episode where it's elevated and say it's twice, say it goes
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up to 20. It's still not going to be measurable downstream. So the levels of selenium that would
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cause problems with say livestock and humans is so high that in our estimation, and this is something
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that's part of our education process is, it's so high, it would almost be impossible for us to do it on
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purpose, much less by accident. So, yep, we'll have systems in place, we'll manage the selenium,
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the selenium release will be within the limits that the government sets, and the people downstream
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are not going to be harmed. And the thing is, is we are the crow's nest flows into the old man.
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And then the other rivers, a lot of the other watersheds flow into the old man as well. So we
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can't even affect them. And that's, that's another one of the things that we have to educate people on
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is, you know, there's people up near Nanton and High River and Calgary and Edmonton,
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not worry about their water. Well, it's just physically impossible for us to even affect it.
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Yeah. So that's, that's part of the education process. And what's really interesting is the
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more you talk to people, the more they go, huh, I didn't know that. So we have to do a lot of
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educating. Yeah. As this is kind of unfolded, I found that I'll read quite a bit about it. And the
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more that I read, the more I'm surprised. I'm like, we, is that part of a lot of the disinformation
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that's gone out about this is just, you know, there's, it's going to pollute the water,
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there's going to be all of these problems. And, and you, but you know, you've got tech right down
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the road and that mine has been operating for how many years decades. And there's really been no
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big issues. There's been no incident. There's no, no, it's interesting. You got to look for it.
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Yeah. And that's the issue. It's like, we have that same issue. You know, we hear
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myths and stories and you go, well, show us. Where are the photos? Where are the fish? Where
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the, you know, and the first nations tell us that, you know, they, they say, you know, we were here
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when those mines were operating with no environmental standards. Yeah. And we were fine. We lived here on
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the old man before the dam, you know, we played it, we fished in it. We've never seen an issue.
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Yeah. So yes, selenium, you know, scientifically, there can be issues with fish and the levels have
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to be surprisingly high. And the standards that they've brought in are very low, right? So you've
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got a lot of room to move if you do have an issue where you aren't managing it. I don't think we'll ever
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have that issue, but there's a lot of buffers. But as far as human safety and animal safety goes,
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it's virtually impossible for any of these projects to have an effect that dire, right?
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And that's, that's part of education. But what's really interesting is, is the misinformation,
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in my view, is lazy. Because it's catchphrase is like, oh, coal's a thirsty business.
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But they never finish the sentence. They never say, compared to, and then they go, oh, wait,
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actually, coal's not really that thirsty when I compare it to other industries. You know,
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so it's lazy to be misinformation. It's like buzzwords and catchwords. And, you know, if you,
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if you actually want to find the truth, you got to work.
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Well, exactly. And like, there's how many coal mines through Alberta?
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You know, I should know that. I'll come back to you on that. There's a lot.
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There's a ton, especially up north, right? And the Hinton area, Grand Cache.
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Yeah. So there are coal mines that are operating.
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Yeah, safely. And we have no issues with the water. And those same, those water systems in
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northern Alberta, they flow into the Red Deer, also flows across the country, huge for agriculture.
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The North Saskatchewan, they all go straight across the prairies. They're all crucial to agriculture.
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And we're already doing this. And we're doing this historically. And this project would be
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one of the most modern, with the most sophisticated environmental controls on it.
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Absolutely. And for some reason, we're pushing back on it.
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Yeah. Right. So you're not, you know, people aren't going to forget about it. You're not some,
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you know, copper project in the middle of nowhere that people don't really worry about. So,
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you know, anything we do is going to be heavily scrutinized. And we're aware of that. That's,
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that's, that's proper. In fact, you know, when I was working in Australia,
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um, so I grew up in Canada, and then I went to Australia for a six month holiday and stayed for 35 years.
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I'm not very good at math. But, you know, I came back. But when I was over there, we were,
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we were developing a uranium project. And we had, you know, opposition green groups. And I once said
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to one of the green groups, you know, what would be really good is if we set up an independent panel,
00:22:42.040
it would be one of our members, one of you guys and an independent person. And that would be an
00:22:46.040
environmental panel that quarterly would meet, they would assess our last quarter's performance,
00:22:50.520
and then, you know, what are we doing next quarter, and you can actually have the oversight,
00:22:54.120
and I invited this guy said, you could be part of that, we would do that, we would be transparent.
00:22:58.200
You know what he said, he said, I wouldn't be able to raise money if I did that.
00:23:04.280
Like, it's a business, right? And I get it. And I'm, you know, so, so, you know, I would extend
00:23:09.160
that to anyone, like, we're going to be transparent, we're running public tours, come up and see the
00:23:13.720
mountain, come and ask me questions, I'll give them, I'll give my business card to anyone.
00:23:16.600
Yeah, like we had, when we first put the programming program out, we had 126 statements of concern.
00:23:24.680
Now, we shouldn't have seen any of them, because they didn't actually conform with the act, but we
00:23:28.920
got them. The AR said, here, you deal with them. So we did. And what we did subsequently was,
00:23:35.320
we actually wrote to each one of those people, and invited them to sit down with me, so that I could
00:23:41.560
listen to their concerns. And we had three people that realistically, you know, said, yeah, we'll,
00:23:47.720
we'll do that. And I've had, I've already had one of the meetings, and it went really, really well.
00:23:51.960
And we listened, and we addressed their concerns. And they went away and said, that was a really good
00:23:57.000
meeting. So, you know, we're, we're about being transparent, and having people ask the questions.
00:24:02.040
Yeah, well, and I think, with a lot of things, education is the most important. Most specifically,
00:24:10.040
for Albertans, and I'm born and raised here, I've lived here my entire life. Albertans like to be asked.
00:24:17.560
And I've noticed that the way this like, over a beer, mostly. And it feels like to me, the way this was
00:24:24.600
originally rolled out was just kind of a surprise to everyone. You know, there hadn't really been a lot
00:24:29.720
of push for new coal development, mining development across Alberta, the NDP had already phased out our
00:24:36.440
thermal coal generate a power generation. And then all of a sudden, you know, seemingly out of nowhere
00:24:43.080
for the general public, Jason Kenney stands up and goes, Well, we're going to resend 1976 coal policy.
00:24:48.760
And, you know, Peter Lougheed's policy, and people think instantly Peter Lougheed Provincial Park,
00:24:54.040
what they're going to mind Peter Lougheed Provincial Park, and it all got confusing. And
00:24:58.680
and just blown right out. So what do you say to the critics who say coal mining coal development
00:25:07.240
is no longer acceptable, not only in Alberta, but specifically in the Alberta Rocky Mountains
00:25:14.520
and the eastern slopes, I would say to them that they're right, in some places, that every project
00:25:22.440
needs to be needs to be assessed on its merits. And there will be places where yes, you shouldn't mind.
00:25:29.320
Absolutely. I agree with that. I'm a mountain biker. I'm a hiker. I'm more mountain biker than hiker,
00:25:34.520
but you get the point. I love the outside. That's one of the reasons I went into geology,
00:25:38.520
because I got paid to be in the bush and go camping. So you will not meet many geologists who
00:25:44.920
aren't environmentalists as well. But there are also people who understand where minerals come from,
00:25:49.480
and we have a modern life, and we need these things. So I would agree that in some instances,
00:25:54.920
it is too big a risk to have a mine for other developments, not just mining, but logging and
00:26:02.760
ranching and everything else. There's places you shouldn't do it. But there are places you can do it,
00:26:07.480
and you can do it responsibly, and you can do it safely, and you can do it without harming the
00:26:11.240
environment. And grassy is one of those places. And if you're going to do it, you should do it in a
00:26:15.000
place that it's already been done. Well, that's right. That is currently a mess.
00:26:18.200
With modern environmental laws. Like, this is one of the things, you know, we had something
00:26:22.280
happen in Australia, the same thing. And they tried to stop a coal mine, because they believed
00:26:26.360
that if they stopped the coal mine, that coal wouldn't get burnt. Well, that's wrong. It's just
00:26:29.480
going to come from somewhere else. And the somewhere else is going to have lower environmental
00:26:33.480
standards, lower human rights standards, lower labor standards. And the net benefit to the planet is
00:26:39.000
worse. So if you're clear about the planet, then let's do it here under the microscope.
00:26:44.760
If you only compare about your own little patch or your ideologue, well, I can't really help you.
00:26:51.560
Let's talk about that too, because part of the opposition to this project is that
00:26:56.840
the coal that will be mined from here will not benefit Canada. Like you said, your customers are
00:27:02.360
primarily China, India, South Korea. So the coal is going to be shipped someplace else. But what would
00:27:11.320
be coming back to Canada that we wouldn't need this type of coal for? Well, jobs and foreign income,
00:27:18.440
right? Jobs and foreign income. You can't, you can't sustain a modern economy through debt.
00:27:23.720
Although there are people who think you can, but you need, you need countries, countries that
00:27:29.000
do well. And Australia is a great example. They have to sell something. Now, luckily,
00:27:33.400
Canada has tourism. Well, Australia's tourism too. But that doesn't pay all the bills. And
00:27:38.680
developing your resources responsibly is a way of paying your bills. I mean, Alberta has the lowest tax
00:27:44.600
in the country. And there's a reason for that. People are coming to Calgary as net growth. And there's
00:27:48.840
a reason for that. It's a great place to live. I mean, I love Alberta. I'm sure I was born here.
00:27:53.160
And then robbed at birth or something and moved to Ontario, right? But the thing is, is there's a
00:28:00.200
reason that this is a great province. And that's because of its resources and tourism, right? But
00:28:05.160
tourism is very focused in particular areas, as you know, if you go to Lake Louise in the middle of
00:28:09.720
the afternoon during summer, you know, it's pretty, there's a lot of tourism. But the thing is, is the
00:28:15.240
benefits that are, like I said, local, so crow's nest is better off that that puts less strain on
00:28:21.720
on the public purse, because people live there, they're unemployed, they have to be subsidized,
00:28:27.320
or, you know, crow's nest has to be looked after by the province. But there's foreign income coming
00:28:33.160
into the country. And there's, you know, there's royalties and the benefits of First Nations as well.
00:28:37.400
So it's, you know, it's multifaceted. But it's better to do it here. It's better for the country,
00:28:42.680
it's better for the local people, it's better for the economy. And it's only a little bit,
00:28:46.760
right? But you get lots of little bits, and they start to grow.
00:28:50.200
Well, okay, so one of the things that absolutely drives me crazy about resource development right
00:28:55.240
now, especially in Canada, but mostly in Alberta, is that the opposition is not coming from the areas
00:29:02.040
where these projects are proposed. The vast majority of the opposition to the oil sands is coming from
00:29:07.400
eastern Canada. On net, Alberta overly, overwhelmingly supports oil sands development,
00:29:14.440
the people in Fort McMurray, as well as the natives in the area, they work in that industry,
00:29:19.320
they're developing those resources. And most of the opposition to this project appears to be coming from
00:29:27.480
in the cities in Calgary, in Edmonton, people nowhere near these projects. How do the people in the
00:29:33.800
area feel about the projects? And what kind of jobs are those communities looking at from a project
00:29:39.160
like this? That's a great question. So Crowsnest is made up of predominantly people who are
00:29:47.000
descended from coal miners. It was a big mining area. And there's a lot of people there who are
00:29:51.480
descendants, and a lot of them work at Tech. So Crowsnest, for your viewers, is on the Alberta side of
00:29:58.520
Crowsnest Pass, and on the other side is Sparwood in the Elk Valley. And those people,
00:30:02.040
you know, they drive to work every day, and they might be up to an hour, up to 90 minutes to get
00:30:06.360
to work every day, on a fairly narrow road when you get on the BC side. And then, so for us,
00:30:14.920
there are people, the First Nations, and the people in Crowsnest, there's already a ready workforce,
00:30:20.680
somewhat. But we'll have technical jobs, we'll have, you know, there's, when you look at a mine site,
00:30:25.880
they basically have almost every job you can think of. If you've got, you know, there's surveyors,
00:30:29.800
there's electricians, and plumbers, and there's chemists, and there's geologists, and there's
00:30:33.080
mining engineers, and truck drivers, and truck mechanics, and diesel mechanics, and, you know,
00:30:36.440
it goes on and on and on. It's a big undertaking, right? So I've, I've developed mine sites before,
00:30:40.840
and it's amazing. And you get people from all over the country coming to work. So, so, you know,
00:30:46.440
the benefit to the workforce is huge. And one of the things that I particularly feel passionate about
00:30:52.520
it is that if we can take someone from the tech organization, and they're working in Crowsnest,
00:30:57.960
well, they're getting an extra hour with their kids every day. So there's so many benefits,
00:31:01.640
some of which you can measure, and some which you can't. And we, we have, so Crowsnest have markets
00:31:06.840
every week in Blairmore. And we have a booth there, and people come up, and they say, when are you
00:31:10.920
starting? What's your roster going to be? What are you going to pay? You know, so there's a lot of interest.
00:31:15.000
Yeah, so a lot of people in those communities, they, they want those jobs. And even
00:31:19.560
a friend of mine actually works at Tech. So he drives from Lethbridge and stays in a bunkhouse for
00:31:25.960
his days on, and then drives back to his family in Lethbridge. So, you know, these mines would
00:31:31.720
increase jobs across all of Southern Alberta, well, in that general area. But what you're saying is the
00:31:38.600
communities that have a giant green truck world, well, it was one of the world's largest trucks at
00:31:45.240
the time. The giant green mining truck proudly on display. They're, they're, they're supportive
00:31:50.600
of a project like this. Yeah, they are. And, and to go back to your original question about, you know,
00:31:56.920
the, the opposition being not in that area, there are people down there that are concerned, for sure.
00:32:04.680
But, you know, there is overwhelming support down there. And in fact, we just did some polling,
00:32:09.640
and it's consistent with polling we did two years ago and other people's polling. When you go out,
00:32:13.720
actually do proper polling, when you go and get a random population, Albertans support, majority
00:32:19.800
of Albertans support coal mining. And that number goes up when you talk about steelmaking coal. So
00:32:25.160
the myth that, you know, 85% of Albertans don't, don't support coal mining is just wrong. So again,
00:32:32.440
it comes back to education. And what's interesting is that the people closest to the project are most
00:32:37.560
supportive, because they understand it. As you move away, you then you drift into myth.
00:32:41.880
Oh, exactly. You know, and, and so, you know, they're listening to people who aren't experts,
00:32:47.080
basically. Yeah. And I mean, I find it fascinating. You know, Nahid Namchi, the, now the leader of the
00:32:55.560
NDP, has been going around talking about how we have a shortage of schools, I think 20 to 30 schools,
00:33:03.080
just in Calgary alone, due to the increase. By the looks of things, the federal government will not be
00:33:08.760
slowing down immigration. So what are the actual economic benefits to the province and royalties?
00:33:16.600
But not just royalties, every single one of these employees will pay income tax, they will pay GST,
00:33:23.080
they will support the local economy. So, you know, not, not as Alberta as a whole, what kind of economic
00:33:29.400
benefit are we talking about for Alberta, but also what kind of economic benefit are we talking about
00:33:34.360
for the communities and the Crow's nest pies? Yeah. So it's a hard question to answer right now,
00:33:38.520
because we, we don't have a final mine plan. So we don't have those numbers. But, you know, the,
00:33:43.880
the other mine plan that we submitted and was rejected, there was, I think, over 400 people on
00:33:48.680
the construction site and over 300 on, on the mine site. So those numbers wouldn't be too far off.
00:33:55.240
But as you say, you know, you're generating royalties, coal prices are going up. Right now,
00:34:00.120
they're around between 200 and 250 a ton. When the study was done previously, it was around 140.
00:34:07.720
So we're seeing the coal price go up. There is royalties. It's not a huge royalty in Alberta,
00:34:14.360
but it is what it is. But it's the income tax, there's people spending money in that community.
00:34:18.600
And then there's the, what we call the, you know, the effect of, for every one job you have in mining,
00:34:23.480
there's several jobs that come off the back of that, because, you know, one of our policies is we'll,
00:34:27.960
we'll spend local. And there's a lot of companies there that, you know, diesel mechanics,
00:34:34.440
small vehicle mechanics, it's a town, I mean, it's one of, it's interesting, because in Australia,
00:34:39.640
mostly the mines are very remote. And so they have to be self sufficient, they build camps,
00:34:43.720
and everyone flies and flies out, you've got everything there. Yeah, here, we've already got
00:34:47.960
established businesses that can help with operations. So you kind of tap into that you tap into,
00:34:55.080
these people are already experts, we want to get people trained up, particularly First Nations,
00:34:59.960
to get them get capacity built with them. And it benefits us and it benefits the community
00:35:06.440
to not have fly in fly out, to have as many people local as you can. And Lethbridge is
00:35:10.600
by and large local, it's not that far away. Yeah. Same as Pincher Creek, you know, Brocket,
00:35:15.480
and other towns, Fort McLeod. So there's lots of towns there with people that we're talking to all the
00:35:20.520
time, and looking forward to the project getting up. Yeah. And one of the things that the naysayers
00:35:27.320
are saying is that a project like this is going to deter tourism, and it's going to prevent it from
00:35:35.880
becoming, you know, the next Canmore or something like that. What do you what do you say for that?
00:35:41.720
Well, Canmore has a mine. It's an old mining town, you know, it was called mining town,
00:35:46.440
up until I think 1979. And it's a map, it was a massive mine. Like they had to do a lot of work
00:35:51.400
afterwards to, to make it safe to build, you know, three sisters on top of it. It also has an existing
00:35:58.200
mine. A lot of people forget that, right? There's the limestone mine just up the road. Yeah. The
00:36:02.840
Akshaw, you know, there's the cement plant. So it actually has a mine seems to be doing okay. Everybody
00:36:07.400
driving from top of the path drives very passive. And what do they do? They stop and they take a picture.
00:36:12.920
Yeah, people are interested in these things, right? So Crows Nest has this fascinating mining history,
00:36:17.960
right? Has history of prohibition and bootlegging. It's a really fascinating place. And why can't you
00:36:24.360
have both? All right. Fernie has it. Fernie's just down the road from mining. You know, the Elk Valley,
00:36:29.720
people go there fishing, hunting. But, you know, to me, Crows Nest has this really unique opportunity to
00:36:35.800
be a really unique tourist destination. Because there's so much old mining infrastructure around and
00:36:40.440
people look at Colbank in Banff. That's an old mining town. And there's a hiking trail through it.
00:36:48.040
So there's this really neat opportunity to have both to have a town that's actually vibrant.
00:36:52.920
So now you've got more hotels, you've got more shops, you get more tourists. Because one of the
00:36:57.720
problems is, you know, what comes first, you go build a bunch of stuff and hope the tourists come?
00:37:01.320
Or do you just organically build the town up through an industry that then allows more tourism?
00:37:05.800
So to me, you go, okay, let's put some money into some of these old buildings to make them safe.
00:37:09.800
Let's tell a story. Because there's a lot of them. We walk around the bush and get paid to do
00:37:13.960
it. We find lots of really interesting historical things. And there's nothing like walking through
00:37:19.640
history. So I think you can have both. And I think Crows Nest has a really unique opportunity to
00:37:24.680
be a unique tourist destination through mining. And there's places in Australia, like Ballarat and
00:37:29.720
Bendigo and Victoria that are historical mining towns, and people come there to see the mining
00:37:34.360
history. You know, if you want, if you want to Banff National Park, or Jasper National, you go to
00:37:39.880
Canmore and you go to Banff, right? But if you want a different experience, and you're close to
00:37:44.920
Waterton, you're close to Castle, you're close to your BC, there's no reason this couldn't be a
00:37:49.640
really unique tourist destination and have both industries.
00:37:52.440
Yeah, so what you're saying is, is it doesn't have to be one or the other.
00:37:56.280
And there's plenty of examples across the world of where you can do both. One of the things that I
00:38:02.520
find fascinating about this is right now, as you said, this is one of the poorest areas of the
00:38:08.920
province, there's not a massive amount of income. But in order to develop a tourism industry, you need
00:38:16.840
someone to invest in that area. And right now, outside of coal mining, there's not a lot of other
00:38:24.120
industry rushing into that area to make investments. So do you see an investment of this size and of
00:38:30.360
this type, actually helping the community grow and be able to invest back into itself to diversify
00:38:37.080
its industry, and not just rely on the coal mining industry?
00:38:40.840
Not only can we, we have. So one of the things that we did, Riversdale did, was a land swap with the
00:38:49.160
golf course. So the golf course, Crowsnest golf course, was down on the flats next to Highway 3.
00:38:55.880
And so what the company did was they did a land swap, built them a new golf course up in the more
00:39:00.440
hilly area, and built them a new clubhouse. And it is a major attraction to Crowsnest. It is, it is a,
00:39:06.680
I think it's been judged as the top, top three golf courses in Alberta. It's beautiful scenery.
00:39:14.440
So we've done it. We've proved that you can do it. And that is one of the biggest and best tourist
00:39:20.040
destinations in that part of the world right now. So yeah, absolutely, you can do it. And then if you're
00:39:25.640
really passionate, as I am, and planned about it, you've got the old town of Lille, access is really
00:39:32.440
difficult. You've got the old mine at Hillcrest, which had a really horrendous disaster, but it's
00:39:37.800
part of history. You've got this tipple that's right on the highway, right? Yeah, we'll pull out,
00:39:43.720
people go see it. It's fascinating. You know, there's so much history there that people are
00:39:47.800
driving past to get somewhere else. We'll just stop them there, stay in Crowsnest and find out
00:39:53.320
this has got a rich history and it was a big part of the province's history.
00:39:56.440
Well, exactly. Well, I mean, the Frank slide's down there. I mean, you're a geologist. So Frank slide
00:40:04.200
is just to me, one of the most fascinating things in history. And the fact that the mountain is still
00:40:09.160
moving and they're still monitoring it on a daily basis. A lot of people just haven't, you know,
00:40:15.160
they drive through it. They're on their way to Fernie. They're on their way to Crownbrook. They're on their
00:40:19.000
way to the Kootenays and they don't stop and they don't actually check out the history. And there is a lot
00:40:24.680
of great history in there. But without a project like this moving into the area, you know, what
00:40:30.840
incentive right now do they have to go build hotels? Well, you know, if you've got 300 people coming to
00:40:35.400
do construction, three, 400 people to do a construction project, they're going to build
00:40:39.880
some hotels in the area. You're going to get the investment. When those hotels are done,
00:40:43.560
when we're finished with construction and we're moving on to permanent mining, people are going to
00:40:47.720
move to the area and they're going to build more hotels and then they're going to diversify and
00:40:51.960
they're going to use the new golf course and, you know, other investments in the area to grow.
00:40:56.280
And I just don't think that's a bad thing. You know, I grew up just outside of Medicine Hat. Right
00:41:02.120
in my backyard is the old Ajax coal mine. Well, the city of Medicine Hat built a regional park right
00:41:07.640
beside it, Echodale Regional Park. And, you know, it's the entrance to the old coal mine and they have
00:41:12.680
the history and, you know, that's, I guess that would have closed well before I was born. But
00:41:20.680
this essentially is just taking the history of the coal mining across the province and what we've
00:41:25.880
already done and what we've done well in other areas and putting a modern touch and a modern spin
00:41:31.160
on a modern project on this. That's right. And, you know, going back to your Kenmore example,
00:41:36.600
there's a place there where people, there's a dog park and next to it is a recreation area called Quarry Lake.
00:41:42.200
It's a coal quarry. It's a coal mine that's been reclamated and people use it. And there's lots
00:41:48.760
of examples of that around not only Canada, but all around the world where reclamation is actually
00:41:53.800
very successful. Sometimes people haven't done the right thing, right? But, you know, as I said,
00:42:00.440
we're going to be under the microscope. We're going to be held to a very high standard. We have our own
00:42:03.880
high standards internally. And we want to, you know, we have part of our mission, vision and values
00:42:11.960
just to leave a lasting legacy. And, and that's what we're doing and that's what we want to do.
00:42:18.600
Yeah. And I think that's really important. So what, what are the next steps now for this project?
00:42:24.200
Because obviously it has seen some of the most interesting hurdles. I think of any project's
00:42:31.560
history. I think this tech frontier oil sands mine and, and this specific coal project have been
00:42:37.960
probably Canada's two most bungled projects that I've ever had. Just the goalposts keep moving.
00:42:45.640
You know, it seems like you get to exactly what we need to do to meet the environmental protection
00:42:52.280
demands and the, and the goalposts move. So what, what's next for this project? What's next for your,
00:42:56.840
for your company? So it's a drilling program. So one of the findings from the joint review panel
00:43:03.960
report that came out and denied the application was that there were some shortcomings in, in, in the work
00:43:13.800
that had been done by the previous team. And the regulator was very specific that there was a requirement
00:43:23.080
for more site specific data. So that means collecting data on site and some of that data requires drilling.
00:43:29.000
So we designed a drilling program. It wasn't a drilling program to extend the resource. It was,
00:43:35.320
the drilling was all going to be done inside the, the known pit boundary to get geotechnical data.
00:43:42.360
So that helps you with your footprint, because if you have good geotechnical data, it means that your,
00:43:46.760
your pit walls can be a little bit steeper, just as safe, and you don't have as big a footprint.
00:43:51.880
We needed more, what we call hydrogeology. So that's groundwater, surface water, and to do that,
00:43:59.480
we had to drill. And so we put in a drilling application just over, just under a year ago.
00:44:06.520
And that obviously, because it's grassy, garnered a lot of attention. And so,
00:44:10.920
you know, it's interesting, you talk about Frontier, because there's only been two drilling
00:44:13.960
programs that have gone to a public hearing. It's Frontier and grassy. Yeah. Yeah. And, and so,
00:44:19.400
that's not normal either for this type of program. Oh, God, no. Oh, no, no, no, no, no, no, no. And,
00:44:24.680
but the regulator, because there was a lot of public interest, decided it was, it was best to
00:44:28.040
have a hearing. And look, we're on board with that. We're ready for the hearing when, yeah,
00:44:31.640
hopefully, hopefully, a lot of people really think of this as some massive national foreign company that
00:44:41.640
is going to come here, ruin the, this mountain and take the money and run. And if anything,
00:44:49.400
you guys have been trying to do an outward education program and say no. And like you've said,
00:44:54.280
you're, you're inviting people to go look at the mind, go look at the project. So this isn't some
00:44:59.160
evil corporation and some faceless person that, that's, that's doing this, you guys are, are trying,
00:45:05.400
you guys are doing everything that's required of you. Well, that's right. I mean, let's, let's not,
00:45:10.600
let's not beat around the bush. You know, the last time the, it went through the approvals process,
00:45:15.560
the whole coal policy thing blew up. And so the goalposts certainly did move, right, hugely. And,
00:45:21.880
and unfortunately, the project got caught up in it, but it is what it is, right. And now what we're
00:45:27.480
doing is we're taking the, the findings from that report. And, and in fact, I always look at silver
00:45:33.480
linings. Okay. So this mine will be better, lower impact, lower water use, right. It's going to be a
00:45:41.400
better outcome. So although it's been kind of a pain for everyone, it's a better outcome. And
00:45:47.720
that's what the regulator is there for. Okay. What they should have done was said, yeah, you can build
00:45:52.040
it, but here's a bunch of conditions. They didn't, we are where we are. Now the next, next phase, as we
00:45:57.400
said, drill, get more data, enhance our planning to be even better. And then we'll, we'll see from there.
00:46:04.760
So there's no application in the process right now. We have the right to do a new application if we
00:46:11.000
want. But right now we're going to do this drilling work on our mine plans and, and see what that looks
00:46:16.200
like. And so far, you know, we've taken a lot of feedback from people. We did, we do what's called
00:46:22.200
the listening tour. We go out and listen to people. As you say that everyone likes to have a, to, to be
00:46:28.360
asked their opinions. Albertans like to be asked, educated, and then give their permission. Correct.
00:46:34.840
And I feel like every Albertan, uh, it, it, every Albertan feels this way. And it doesn't matter what
00:46:40.280
the project is. They feel like they personally have to say yes to something, whether it's to you, uh,
00:46:46.520
out loud on social media or just in their own head, they have to, you know, they have to be convinced.
00:46:51.080
Well, that's right. Cause there's, there's a real historic connection to land in Alberta
00:46:55.400
and even people coming into the province feel it. It's different. It's different. And land is,
00:47:01.800
you know, land is, um, important. And so we know that and we're doing what we can to make sure,
00:47:07.880
you know, people are educated. And, you know, if I have to talk to everybody in Alberta,
00:47:11.320
it's going to take a while, but I'll give it a crack. Yeah. You know, well, we'll, we'll try to
00:47:16.280
help our, our member, our members will hopefully share the message. Uh, but I mean, yeah, we, we are like
00:47:21.400
the birthplace of Canada's national parks. You know, we've got BAMF, the first national park,
00:47:25.400
right. And then Peter Lougheed, a conservative, you know, we can serve, we conserve our environment.
00:47:31.640
Uh, our farmers and ranchers are probably some of the biggest environmentalists ever.
00:47:36.040
And, and, you know, they've been, uh, villainized, you know, with, uh, cow farts and fertilizer,
00:47:41.320
uh, you know, our oil and gas industry is the cleanest oil and gas industry on this planet.
00:47:45.800
Absolutely. And they've been vilified and C-59, they're not even allowed to talk about the good
00:47:50.280
things they do anymore. And our coal industry, I, there's been no major coal disasters in Alberta,
00:47:57.320
uh, environmentally anyways. Uh, you know, we've been mining this resource historically and
00:48:03.400
responsibly for hundreds of years without issue. And, and now it feels like this is just the next
00:48:09.320
one, uh, the next industry that they're, they're going to vilify it. And it seems like this is just
00:48:14.760
wildly driven by activists and all intelligence around the issue is just, you know, what's
00:48:20.760
interesting is, okay. Say the activists are successful in coal mining stops in Alberta.
00:48:27.560
If you think the activists are going to stop at coal, you are naive and misguided. You're next.
00:48:33.800
Oh, I, right. And, and we already know the activists want everyone to be vague and then stop
00:48:39.800
eating beef. We already know that they're trying to stop oil, right? We know that. So to me,
00:48:47.160
look, a lot of ranchers support the project. There's, there's a fallacy that all the ranchers
00:48:51.000
are against it. That's just not true. Yeah. And it's mainly the local ranchers who support it.
00:48:56.360
So we, as primary producers, whether it's food or beef or oil and gas or coal, we are primary producers.
00:49:03.720
We're earning money for the province. We're providing jobs for the province.
00:49:08.520
We should be all working together to educate and ensure that we're following the standards
00:49:14.600
and ensure that we call out the people who are lying and spreading myths and misinformation
00:49:21.000
as, as a team, team Alberta, right? We should be doing that. This is Alberta. Yeah.
00:49:27.240
You know, it's, it's, people should be proud of what we do here. Well, and I mean,
00:49:31.880
you need metallurgical coal to build windmills. You need this coal to build solar panels.
00:49:37.160
So if we're going to start to decolonize. And you need more of it. Yeah.
00:49:40.200
You need more of it. So, you know, I ran a uranium company. I've run iron ore companies,
00:49:45.880
a company, I ran a copper nickel company. I know where the minerals go and what they're needed.
00:49:52.760
Right. Renewables have a place, but they have inherently lower energy density that will never
00:49:58.360
change and they require more metal. So as a geologist, I'm all for renewables. It's all,
00:50:03.000
yeah, let's build all renewables. We need more metal. Yeah.
00:50:05.320
So you need more of it. Right. And you need transmission lines. And because of the very
00:50:09.560
nature of the intermittency and how it's spread out. So, you know, you can't, you can't have one
00:50:15.080
thing without understanding that there's a requirement for the raw materials for it. Right.
00:50:21.080
Unless you just want to import everything, in which case your economy suffers usually. So yeah,
00:50:27.240
there's a lot, there's steel in everything. I mean, you know, that, that, that pipe that broke.
00:50:31.320
Yeah. That was concrete reinforced with steel. Yeah. Every time you see a concrete structure,
00:50:35.720
it's full of steel. Right. It is in every part of your life. Yeah. And you cannot live without it.
00:50:41.880
I like electric vehicles. They need steel. It's just syringes, everything, medical equipment.
00:50:49.160
And I always feel like, uh, if we are going to do these projects that we should do them in Alberta,
00:50:58.280
create Alberta jobs and, and, and then use our resources and reinvest back into our own province
00:51:05.000
and our own country for that matter. Well, not only that, so this is, this is, that's really
00:51:09.080
interesting. And, and when you develop expertise in, in modern mining that has the lowest impact
00:51:17.480
globally, you can also export that expertise. So you look at Australia and you look at Canada,
00:51:24.440
mining expertise in Australia and Canada has gone around the world, right? It's an export.
00:51:30.360
Those people are working overseas. Yeah. So we, we not only have a chance to, you know, show that
00:51:35.640
grassy can be done properly and responsibly, we can actually take that expertise and take it overseas.
00:51:43.080
There's so many opportunities. Oh, well, and that's the thing. Canadian ingenuity could, uh,
00:51:47.800
actually global or lower global emissions clean up global industry across the world.
00:51:53.880
Well, we know that and generally make the world a better place to be. Absolutely.
00:51:57.720
We, uh, we are running out of time though. I could probably sit here and talk about this with our,
00:52:01.640
or what about this was just a fascinating project to me. Uh, but where, where can, uh, our viewers,
00:52:10.360
where can the Western standard members get more information on this project and start to help
00:52:15.160
educating themselves? Sure. So they can go to northback.ca. That's the website. And on the website,
00:52:21.480
there's, uh, a lot of what we call factoids and there's going to be more, or they can email me
00:52:26.520
directly CEO at northback.ca. And they can send me a, an email and they can ask me questions or they can
00:52:35.160
tell me I'm full of crap, whatever, but I will answer them all. That's a, that's awesome. Thank you very
00:52:42.680
much, Mike, for coming in today. I appreciate it. And, uh, thank you to you, the Western standard
00:52:48.520
members for joining us today. Uh, if you're not already, you can become a member at, uh,
00:52:54.280
westernstandard.news, $10 a month or a hundred dollars a year. Thank you very much for tuning