Company faces its second environmental fine in two years for pollution
CST Canada Coal Limited has been fined $9,000 by the Alberta Energy Regulator (AER) after 1.1 million liters of mine wastewater spilled into the Smoky River in northwestern Alberta.
The regulator cited the company for failing to prevent the release and for not immediately reporting the incident, which occurred on March 4, 2023.
According to the AER’s findings, the spill originated from a frozen valve at the company’s metallurgical coal mine near Grande Cache, located approximately 430 kilometers northwest of Edmonton. The malfunction caused a tailings pond to overflow, allowing wastewater to flow into the Smoky River—a major tributary of the Peace River—for at least 17 hours before being contained. The regulator estimates that approximately 9,000 kilograms of suspended solids entered the waterway, posing risks to fish and other aquatic life.
CST Canada Coal Limited has not publicly commented on the fine.
In a statement provided to CBC News, the AER said its penalties are calculated under a legislative framework designed to ensure consistency, transparency, and deterrence.
The fine has sparked criticism from some officials and environmental advocates who argue that the penalty is too low to deter repeat offenders.
Marlin Schmidt, a New Democratic Party legislator and former environment critic, told CBC News that operators with a history of environmental violations should face more significant penalties and increased scrutiny.
He questioned whether fines of this scale effectively prevent future infractions and criticized the cost of enforcement relative to the outcomes.
Tara Russell, program director with the Canadian Parks and Wilderness Society’s northern Alberta chapter, said the company’s record raises questions about its ability to manage mine waste responsibly.
Speaking to CBC News, she described the $9,000 fine as inadequate for a spill with the potential to cause environmental harm, suggesting that penalties of this size may erode public trust in regulatory oversight.
An AER investigation found several deficiencies in CST’s handling of the spill. The company did not have proper reporting protocols or qualified personnel on-site to address the issue. Ice removal equipment needed for repairs was also unavailable.
The investigation also highlighted delays in notifying the regulator. On-site workers did not immediately inform senior staff, and the AER was contacted more than seven hours after the spill was detected.
The wastewater contained fine sediments that could harm aquatic species, including Arctic grayling and bull trout. According to the AER’s findings, these particles may damage fish gills and cause behavioral changes that threaten their survival.
This is the second time in two years that CST Canada Coal Limited has been penalized for environmental violations at the Grande Cache mine.
In 2023, the AER fined the company $22,000 for releasing untreated mine wastewater into the Smoky River in December 2022. That incident, attributed to frozen pipes and malfunctioning sensors, was also not immediately reported.
Additional concerns have arisen from the company’s operations. In June 2023, heavy rains and flooding caused another unreported wastewater release from the mine.
The AER also conducted multiple inspections last year related to "rock-wall instabilities," including one incident where a piece of heavy equipment and its operator were partially buried.
The mine, purchased by Hong Kong-based CST Group in 2017 after the bankruptcy of previous operator Grande Cache Coal, has faced ongoing regulatory scrutiny since the acquisition.
Schmidt said the AER’s handling of the case signals a lenient approach toward industry violations. He argued that other coal operators may view the relatively small fine as an indication that environmental breaches will not result in significant consequences.
The AER has not confirmed whether further action will be taken against CST Canada Coal Limited or whether future violations will prompt more substantial penalties.
