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 2003, the Alberta government collected $9 million in royalties from 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.