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

52 people tragically killed in mining explosion in Kuzbass region of Russia

We are deeply saddened to hear that yesterday (25th November 2021) a suspected methane explosion killed 52 people, including 6 rescuers, at the Listvyazhnaya coal mine. The underground mine lies close to the town of Gramoteino, in the heavily mined Kuzbass coal field.

Climate Justice Memorial at Chubb Insurance, Newcastle

Today, on the eve of COP26 climate talks Coal Action Network were joined by Youth Strikers from across the world and the Pacific Climate Warriors, to set up a climate justice memorial at Lloyd’s of London HQ. The climate memorial was created to remember communities on the front lines of climate breakdown, who are being directly impacted by harmful projects and climate impacts. 

Johnson’s first comment on proposed Cumbrian coal mine

On the first day of the Conference of Parties Climate summit (COP26) in Glasgow Boris Johnson for the first time has said that he is not in favour of a new coal mine in the UK. Tommy Greene explains what happened in an article on Left Foot Forward.

People from Across the World hold Climate Memorial at Lloyd’s of London

Today, on the eve of COP26 climate talks Coal Action Network were joined by Youth Strikers from across the world and the Pacific Climate Warriors, to set up a climate justice memorial at Lloyd’s of London HQ. The climate memorial was created to remember communities on the front lines of climate breakdown, who are being directly impacted by harmful projects and climate impacts. 

Overview of the process to open a coal mine in the UK

This is a step-by-step guide as to how a company gets the legal stuff they need in place before they can start a new coal mine, or extend an existing one.

Climate Justice Memorial at Lloyd’s of London

Today [8th October 2021], protesters from Coal Action Network set up a climate justice memorial at Lloyd’s of London’s Head Quarters.

Final day of public inquiry into proposed Cumbrian coking coal mine

Today (1st October) is the last day of the public inquiry into the proposed West Cumbria coal mine. The inspector will privately deliberate the evidence presented, write up a report and make a recommendation to the Secretary of State, who is now Michael Gove.

New Coal Action Network report ~ Coal in Steel: Problems and solutions

New report from Coal Action Network. Coal in Steel provides background information to campaigns against proposed new coking coal mines and considering how coal needs to be phased out of steel production.

Creative opposition to proposed Cumbrian coking coal mine on first day of public inquiry

From West Cumbria to London, opposition to the controversial proposal for an underground coking
coal mine, sited near Whitehaven, is widespread and growing. On 7th September, the day the
public inquiry investigating the proposal by West Cumbria Mining Ltd started, members of the public gather in two locations to demand a greener future, in which a new coal mine has no place.

CONNECT WITH US

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