About Coal Royalties
The Alberta government captures a fair share of production value from coal in the form of royalties paid each year by producers of coal owned by the province.
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 regimes are monitored to ensure they remain competitive and appropriate for our province.