Soon after the railroad arrived in 1912, a group of Britishfinanciers founded the Yellowhead Pass Coal and Coke Company.[3] The original Yellowhead Mine near Coalspur employed 70 men, produced 500 tons of coal per day, and sustained the small community. At the peak of production the mine employed 400 men.[4] A massive underground fire occurred in 1915[5] and again in 1922. The mine closed in 1923, although other mines in the area continued to operate until the 1950s.[2]
One of the earliest oil wells in the central Alberta foothills was drilled near Coalspur. In 1924 Imperial Oil sank a test well near the community, and discovered a significant flow of natural gas that was used to heat boilers in the mining camp. No commercial quantity of petroleum was found however, and drilling ceased near Coalspur,[6] although several natural gas fields were later discovered in the Coal Branch area.[2]
The population throughout the Coal Branch area declined during the 1950s as the railroads replaced steam locomotives with diesel, and the mines closed due to lack of markets. The Coalspur post office, which opened in 1914, closed in 1963. As of 2001, the community was home to a dozen or so residents.[2]