BACK TO TOP

West Cumbria Mining Ltd and EMR Capital - we reveal all.

Overview

Coal Action Network has commissioned research revealing massive debts of over £29million, Cayman Islands tax havens, corporate structures that undermine responsibility, and taxes that may not get paid.

Who owns who, and how

  • EMR Capital Resources Fund 1, LP. owns EMR Capital Investment (No.3B) Pte. Ltd.
  • EMR Capital Investment (No.3B) Pte. Ltd owns 80% of shares in West Cumbria Mining (Holdings) Ltd – enough to control it like a puppet.
  • West Cumbria Mining (Holdings) Ltd is the parent company of West Cumbria Mining Ltd.

Why does that matter?

If West Cumbria Mining Ltd gain planning permission for the coal mine, the local council will apply ‘section 106 conditions’ that’ll mandate its responsibilities such as remediating the environment at the end of mining. Legally, West Cumbria Mining Ltd. will need to fulfil these conditions (though they’re often ignored) as well as other responsibilities such as compensation if things go wrong – but it doesn’t have its own money to do that, as it’s financially dependent on EMR Capital. If these liabilities add up to more than the likely profit, EMR Capital could just asset-strip what little West Cumbria Mining Ltd owns, and walk away, leaving taxpayers in the UK to clean up the mess. A similar event happened with Margam opencast coal mine in 2010.

Who are EMR Capital Resources Fund 1, LP.?

A private equity fund that specialises in investments within the mining sector. EMR Capital Resources Fund 1, LP. and EMR Capital Investment (No.3B) Pte. Ltd have offices in the Cayman Islands tax haven, Singapore, Hong Kong, and Australia. The company typically invests in a mine for 3-5 years, then sells it onto another private equity fund at a profit.

Why does that matter?

Selling a company at a profit is often done by cutting costs so the company is more profitable, at least in the short-term. Costs can be reduced by cutting employees (which happened recently), benefits, and operating standards such as environmental protection. The location of the company’s offices mean it has little accountability to the UK government, or us, if things go wrong such as people are injured or the environment requires remediation.

Loans and financial dependence

EMR Capital Investment has loaned West Cumbria Mining Ltd at least £29 MILLION so far. The interest on a portion of this loan rose to 15% in 2020. As of 2020, West Cumbria Mining (Holdings) Ltd owed £947,545 in interest alone. West Cumbria Mining Ltd’s 2020 annual financial report documents that the company’s viability is dependent on EMR Capital’s financial support.

Why does that matter?

This means that West Cumbria Mining Ltd is vulnerable to bankruptcy if EMR Capital Investment pull out, which it has reportedly started to consider. That could mean that the mine is started, causing a huge amount of local environmental damage, but not completed, with the taxpayer having to fix the environment to the extent it can afford to.

Taxes

West Cumbria Mining (Holdings) Ltd is operating over £12million in losses that’ll be offset against any future trading profit. Together with repaying its loan of £29 million to EMR Capital Investment and huge start-up costs, the amount that West Cumbria Mining pays in UK tax will be minimal for a long time.

Why does that matter?

A company profits from the natural resources and infrastructure owned and funded by us. This costs us in damage to the environment, infrastructure, and loss of natural resources. A key part of why companies are permitted to do this, is because we receive a proportion of that profit back in tax - more than it costs us, though it's obviously difficult to price natural resources and the environment that'll be impacted. West Cumbria Mining Ltd's finances means that we end up paying more than we get back, with company executives walking away with bonuses and huge profits that happen outside the reach of the UK tax authorities.

See a PDF of our parody investment brochure from EMR Capital... are you convinced?

Original research by Vivek Krotecha, 2021

Published: 01/09/2021

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Never miss an update! Sign up to our Newsletter

OTHER STORIES

Campaign to stop Aberpergwm

At the end of November 2021, we noticed the licence application for an extension to ‘Aberpergwm Colliery’ on the little-publicised webpage of the Coal Authority. This webpage contains a listing of all coal mine licences and licence applications and is a good one to bookmark and check back regularly…

Key facts: Aberpergwm coal mine expansion

42 million tonnes during the life of the extension + 30 million tonnes of “middling” coal to be dumped or put back into the coal mine.
Around 100 million tonnes of CO2 and up to 1.17 million tonnes of methane could be emitted during…

Aberpergwm FAQs & Action for local residents

Energybuild hasn’t been keeping local people in the loop, so we thought we would! Volunteers from Neath Port Talbot Friends of the Earth have given out flyers in Glynneath to start conversations and direct people towards this information about the mine expansion…

AIG’s climate commitments are a major step forward for US insurance industry’s exit from fossil fuels

“As one of the last major insurers without restrictions on coal insurance, AIG’s new commitments to reduce underwriting for coal, tar sands oil, and Arctic oil and gas are a major step forward for people and the planet,”

Coal round up February 2022

Update on coal extraction and use in the UK. The situation with coal production and use in the UK is changing. There are no new opencast mines proposed; only one proposed opencast coal extension and one existing opencast extraction site…

Lloyd’s failure to implement ESG policy is driven by its CEO John Neal

“It is a serious problem that John Neal has not been well enough briefed, or is just personally sceptical, about climate science and the findings of the International Energy Agency.”

CAN instructs Barristers to take Welsh Government and the Coal Authority to task over Aberpergwm colliery extension.

Our Barrister’s pre-action letter convincingly puts the power to stop the Aberpergwm colliery extension licence firmly in the hands of Welsh Government Ministers. Now it is up to those Ministers to take their rhetoric and put it into swift, decisive action…

Licenced: the Aberpergwm coal mine extension

On 25th January 2022, whilst the Welsh and UK Governments continued to argue over which could stop it, The Coal Authority approved the full licence for an underground coal mine extension to Energybuild Ltd. The company can now mine a further 40 MILLION TONNES of coal until 2039…

An open letter to stop the Aberpergwm coal extension

Combined, both of you have received nearly 4000 emails from people who are dismayed by the news that the deep coal mine operated by EnergyBuild Ltd in Aberpergwm may imminently have the licence to extend it deconditionalised by The Coal Authority regulator…

CONNECT WITH US

0
Would love your thoughts, please comment.x
()
x