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.
West Cumbria Mining Ltd want to extract 2.78 million tonnes of coking coal annually that would emit around 8.4 million tonnes of CO2 each year until 2049. Cumbria County Council approved the application, but in March 2021, the government decided it will be the final arbitrator. This was the result of requests from many quarters, including over 113,999 people supporting Coal Action Network's demand the government call in the decision.
A flock of canaries descended on the Ministry of Housing, Communities, and Local Government in central London, with messages to the Robert Jenrick from members of the public. Around 70 members of the public gathered in total split between with the canaries at the Ministry and those at the proposed mine site near Whitehaven, Cumbria.
Underground coal miners used to take canaries in cages into the mines. The birds would weaken and die when exposed to lethal gasses released by mining, acting as an early detection to protect the miners working deep underground.
Jill Perry from West Cumbria, who attended the Cumbrian rally spoke via phone and megaphone to the concerned people gathered in London. She said, “The steel industry is very carbon-intensive but is making fast strides in weaning itself off coking coal and onto green hydrogen so we don't need this new coal mine, we need to encourage the British steel industry to solidify its future by going green, and Whitehaven to provide a more certain future for its residents by going for green jobs.”
The whole flock outside the Ministry of Housing, Communities, and Local Government to sounded the alarm about the damage approving this new coal mine proposal would do to limiting climate change. Many people are concerned what a new coal mine would do to the UK’s reputation in climate leadership, the government’s net-zero commitment, investment in jobs of limited future prospects, and to steel decarbonisation momentum.
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.
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.
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.
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.
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.
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.
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.
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.
Original research by Vivek Krotecha, 2021
Published: 01/09/2021
If the Secretary of State fails to stop the West Cumbria coal mine, we, the undersigned, will.
We, the undersigned, say that the fight to stop the West Cumbria coal mine is not over if the Secretary of State grants West Cumbria Mining Ltd. permission to wreak climate chaos.
We commit to taking the action necessary to prevent the damage that West Cumbria Mining Ltd.’s proposed coking coal mine would cause to the local environment, UK climate leadership, and global climate change if the Secretary of State fails to stop it after the public inquiry.
Limits of the public inquiry
The Planning Inquiry that’ll guide the Secretary of State’s decision will be limited by a National Planning Policy Framework that’s no longer fit for purpose in its failure to centre contributions to climate change in planning considerations. A recent precedent also means the Planning Inquiry may not even consider the ‘downstream’ impacts of the coal mine—namely how the coal will be used. Starting a new coal mine means more coal is used and generating greater emissions, but these emissions may be discounted. This would limit the public inquiry to consideration of the impacts from the mining only. We will not be bound by the limitations imposed on the public inquiry.
This mine must be prevented
We are living on the brink of climate catastrophe as well as many collapsing local ecosystems around the UK. Allowing this new coal mine now would cost the UK in terms of its environment, publicly funded infrastructure, and climate leadership, with any tax income in question. Resources must instead be invested in generating green jobs within West Cumbria, proving that it is not a choice of jobs in climate-trashing industries or unemployment—as that’s not a choice to most people.
Our commitment
We resolve to take the direct action that’s necessary to stop the proposed West Cumbria coal mine if the public inquiry and Secretary of State fail the British public and our future generations by permitting this climate wrecking proposal to go ahead. This direct action will involve a diversity of online and offline tactics that have a proud history of playing a vital role in protecting people, animals, and the environment where other methods have been ineffective and exhausted. In the UK, this includes the civil rights movement, women’s vote, disabled rights, genetically modified farming, and the phase-out of using coal to generate electricity.
Signed so far:
Bristol Rising Tide
Coal Action Network
Columban Missionaries Britain
Earth First! Gathering UK
Earth First! North East
Green Anti-capitalist Front
Insurance Rebellion
Reclaim the Power
Rising Tide UK
West Cumbria Friends of the Earth
XR North East and Cumbria
Copies of the statement have been posted to West Cumbria Mining Ltd, and EMR Capital - who are their financial lifeline (explained in this parody investment brochure).
Coal Action Network is one of 11 action groups committing to take direct action against the proposed Cumbrian coking coal mine, should the government reject all of the evidence at the public inquiry and approve the mine. Download a PDF of the joint statement or this press release.
Direct action groups are signing onto a public statement (below), committing to take action to stop the controversial coal mine proposal, if, after the public inquiry, Gove approves it despite direct warnings from its own Climate Change Committee. Copies of this statement, along with a parody booklet about West Cumbria Mining Ltd’s links with investors in the Cayman Islands tax haven, and a flyer for public rallies planned on the first day of the public inquiry were posted to offices of connected companies around the world this week.
EMR Capital was recently reported to be wavering in their financial support to West Cumbria Mining Ltd due to the costs in legal and expert fees of trying to win the upcoming public inquiry. The most recent annual accounts show that this finance is essential for West Cumbria Mining Ltd to operate.
Direct action can cause severe delays to large-scale projects and cost companies huge amounts—HS2 Ltd recently estimated protestors had cost the company £75million so far. The possibility of further delays and yet further costs may concern other investors or insurance providers that would have otherwise shown interest if the coal mine eventually got the go ahead from Micheal Gove.
Direct action has been a prominent element of many struggles for social improvement and reform throughout history, more recently including civil rights movement, women’s vote, disabled rights, genetically modified farming, and the phase-out of using coal to generate electricity. With the local campaign having exhausted other options, groups signing onto this statement are therefore committing to using direct action again to end all coal mining in the UK.
These groups believe, that irrespective of its stated use, industry cannot continue using coal and other fossil fuels—citing that impacts of climate change are already causing ecosystems to start failing in some countries where people are often more reliant on them for their survival.
ENDS
Updated 24 September to reflect the change of Secretary of State in the latest cabinet reshuffle means Micheal Gove will make the decision following the planning inspectorates recommendation.
