Northback Holdings Corporation is preparing to revive the contentious Grassy Mountain coal project in Alberta with a smaller plan, five years after the original operation was rejected on environmental grounds, Canada's National Observer reported.

The Canadian company aims to file a revised application by the end of the year, CEO Brad Johnston told the Crowsnest Pass municipal council on August 25 while presenting a report on the project's expected socioeconomic impact.

The original Grassy Mountain mine was turned down in 2021 after a federal review concluded its environmental risks outweighed any economic gain.

At the time, an Alberta government survey found more than 85% of Albertans polled had little confidence that the regulatory process could ensure safe, efficient and environmentally responsible coal exploration and development. Yet in a 2024 plebiscite in Crowsnest Pass, more than 70% of voters backed the mine.

In May 2025, the Alberta Energy Regulator approved Northback's application for exploratory drilling as the first phase of a revised coal mine. A June impact report said the reimagined facility would be substantially smaller than the 2021 proposal.

Its site would cover 6,900 acres, cutting the mine footprint by more than 50%. Annual output would be 2.5 million tonnes of metallurgical coal, down from 4.5 million tonnes in the rejected plan. The new facility would apply water management strategies from the outset, including a treatment plan aimed at reducing selenium.

Alberta expects CAD $57 million ($41 million) in construction tax revenue and about $947 million from operations over the mine's 26-year life. Total provincial and federal tax revenue is projected at $2.2 billion.