Four months after the provincial government announced it was making a turn in the impending changes in coal policy, a private coal company says it has initiated legal proceedings based on the impacts of this investment.
Cabin Ridge Holdings Ltd. and Cabin Ridge Project Ltd. they announced on June 30 that legal proceedings had been initiated against the government.
In a statement, the companies argue that the province interfered “substantially and unreasonably” with the private company’s development rights and deprived it of “any reasonable use” of its mineral rights.
“Cabin Ridge companies have invested significantly in acquiring their freehold mineral rights and project assets for the purpose of developing a world-class metallurgical industry. [steelmaking] coal project, “the statement said.
The claim statement filed by the companies on June 27 says they are seeking damages in the amount of $ 3.441 billion due to the “loss of net present value” of the property.
Alternatively, the claim says, the companies are seeking a $ 56 million refund plus future and contingent repair costs.
The allegations have not been proven in the courts.
READ The claim statement filed by the companies behind the Cabin Ridge project:
The Cabin Ridge Project is located about 50 miles north of Coleman, Alta., A community with a population of just over 1,400 in southwestern Alberta.
Unlike most coal companies in the province that have coal leases, the Cabin Ridge project includes approximately 5,000 acres of free mineral rights, meaning coal is privately owned by the company.
The provincial government was hit with a barrage of criticism and legal challenges by landowners, municipalities and first nations after it said in May 2020 that, without public consultation, it would terminate Alberta’s 1976 coal policy. which limited the development of coal to the eastern slopes.
Alberta Energy Minister Sonya Savage announces the extension of restrictions on coal mining on the eastern slopes of Alberta in Calgary on March 4th. (Todd Korol / The Canadian Press)
In March, the government announced that it would keep this policy in place, temporarily banning coal development and exploration activities in parts of the Rocky Mountains.
The companies claim that the government’s change of position represented a “de facto expropriation” of its mineral-owned property and prevented it from further developing its project.
He also claims the measure deprived companies of their “substantial investments” in Alberta.
Without the reversal, the companies claim the proposed mine would create approximately 500 direct jobs during operations and approximately $ 2 billion in taxes and other revenue for the federal and provincial governments.
The director of the conservation program of the Canadian Parks and Wilderness Society (CPAWS) characterizes these claims as “quite dubious.”
“Recent research has shown that employment projections and revenue projections for coal projects in Canada are often greatly overestimated,” Becky Best-Bertwistle said.
“I’m very disappointed to see that Cabin Ridge can’t respect that Alberta people have said no to any new coal development on the eastern slopes.”
There was no response until press time to CBC’s requests to Cabin Ridge Holdings Ltd. and Cabin Ridge Project Ltd. for additional comments.
A spokeswoman for Alberta’s energy minister, Sonya Savage, declined to comment, saying the ministry could not comment on the issues in court.