Coal Royalty Information

The Alberta government collects royalties each year from coal producers.

In 2014, the Alberta government collected $15.5 million in royalties from coal. Royalty is not assessed on Freehold production of coal.

Coal royalties are set by regulation under the Coal Royalty Regulation. Under this regulation there are two royalty regimes:

The royalty rate for Crown-owned Subbituminous (Plains) coal,
used mainly to generate electricity, is: $0.55/tonne.
The royalty rate for Crown-owned Bituminous (Mountain/Foothills) coal, which is based on a revenue
minus costs royalty regime, is:

- Before mine payout: 1% of mine mouth revenue
- After mine payout: 1% of mine mouth revenue plus 13% of net revenue

  Coal Royalty Rates

The royalty rate for Crown-owned Subbituminous (Plains) coal is:

  • $0.55/tonne

The royalty rate for Crown-owned Bituminous (Mountain/Foothills) coal is:

  • Before mine payout: 1% of mine mouth revenue
  • After mine payout: 1% of mine mouth revenue plus 13% of net revenue

See Forms and Reporting for more information.

For further details, please refer to:

The Coal Royalty Regulationsexternal link icon

The Coal Royalty GuidelinesPDF icon (3.14 MB)

If you prefer a print copy of the Guidelines or any forms, please contact Coal and Mineral Development.