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#ableg
If you look at the companies with coal leases in AB you'll notice they're VERY small companies that only exist for a specific project (Ex. Montem, Ram River, Atrum) or they're a subsidiary of a mining major. (Benga)
We should all be concerned about this... 1/n
#ablegIf you look at the companies with coal leases in AB you'll notice they're VERY small companies that only exist for a specific project (Ex. Montem, Ram River, Atrum) or they're a subsidiary of a mining major. (Benga)
We should all be concerned about this... 1/n
For instance...
Montem: 0.23 cents per share, market cap $46M, Sept 2020 IPO
Atrum $0.26 cents per share $150M market cap
Benga, limited subsidiary of Riversdale resources, which is a subsidiary of the mining giant Hancock Prospecting (still with me?) 2/n
Montem: 0.23 cents per share, market cap $46M, Sept 2020 IPO
Atrum $0.26 cents per share $150M market cap
Benga, limited subsidiary of Riversdale resources, which is a subsidiary of the mining giant Hancock Prospecting (still with me?) 2/n
Companies like Montem and Atrum with market caps in the 10s or 100s of millions don't have a chance at being able to pay cleanup costs unless the project is a screaming success.
For comparison, Teck Coal has a market cap of 12.59 BILLION.
Who's on the hook then? Albertans. 3/n
For comparison, Teck Coal has a market cap of 12.59 BILLION.
Who's on the hook then? Albertans. 3/n
What about Benga which is developing Grassy Mountain?
Benga is a limited liability corporation and a subsidiary of a subsidiary of Hancock. Hancock is massive and has deep pockets but has ZERO obligation.
Again, who's on the hook? Albertans. 4/n
https://albertawilderness.ca/meet-the-australian-companies-behind-the-grassy-mountain-project/
Benga is a limited liability corporation and a subsidiary of a subsidiary of Hancock. Hancock is massive and has deep pockets but has ZERO obligation.
Again, who's on the hook? Albertans. 4/n
https://albertawilderness.ca/meet-the-australian-companies-behind-the-grassy-mountain-project/
And another layer to this, Coal mining being boom and bust is well documented. It happened in America as well.
Companies go bankrupt, leaving huge environmental disasters for the taxpayer to clean up. #mountainsnotmines 5/n https://www.vox.com/energy-and-environment/2019/7/9/20684815/coal-wyoming-bankruptcy-blackjewel-appalachia
Companies go bankrupt, leaving huge environmental disasters for the taxpayer to clean up. #mountainsnotmines 5/n https://www.vox.com/energy-and-environment/2019/7/9/20684815/coal-wyoming-bankruptcy-blackjewel-appalachia
""Who will cover the $411 million in remaining cleanup costs? Taxpayers.""
I'm starting to think this is a feature, not a bug...
5/n #saveourwater https://www.vox.com/2016/9/2/12757074/coal-bankruptcy-mine-cleanup
I'm starting to think this is a feature, not a bug...
5/n #saveourwater https://www.vox.com/2016/9/2/12757074/coal-bankruptcy-mine-cleanup
A third, just to hammer the point home.
"Declaring bankruptcy means executives pocket cash and workers lose livelihoods, while the public sector pays for environmental cleanup." 6/n https://newrepublic.com/article/158596/fossil-fuel-companies-bankruptcy-bailout
"Declaring bankruptcy means executives pocket cash and workers lose livelihoods, while the public sector pays for environmental cleanup." 6/n https://newrepublic.com/article/158596/fossil-fuel-companies-bankruptcy-bailout
But those examples are in the US and we're different in Alberta, right? We have a strong regulatory system, right?
Well, we're on the hook for $100 billion in orphan well clean up so just look at that as a preview of what's to come with coal...
7/n https://thenarwhal.ca/the-story-of-albertas-100-billion-well-liability-problem-how-did-we-get-here/
Well, we're on the hook for $100 billion in orphan well clean up so just look at that as a preview of what's to come with coal...
7/n https://thenarwhal.ca/the-story-of-albertas-100-billion-well-liability-problem-how-did-we-get-here/
Oops, sure looks like coal has the same problems as with orphan well liabilities.... 8/n
https://ablawg.ca/2020/09/22/the-2020-2021-orphan-fund-levy-and-the-missing-consultation-on-environmental-liability-management-reform/
https://ablawg.ca/2020/09/22/the-2020-2021-orphan-fund-levy-and-the-missing-consultation-on-environmental-liability-management-reform/
As one briefing paper published by the University of Calgary put it, “This type of system works well during an oil boom but not so well during an oil bust.”
Who was it that was JUST saying how notoriously boom and bust coal is? Oh yeah. that was me.
9/n
Who was it that was JUST saying how notoriously boom and bust coal is? Oh yeah. that was me.
9/n
"But we'll make a whole bunch of money in the meantime!" 
Maybe. But only if the mines operate for years and are a massive economic success
Alberta's royalty structure for coal starts at 1%, rising to 13% only AFTER the company pays off it's initial capital investment 10/n
Maybe. But only if the mines operate for years and are a massive economic success
Alberta's royalty structure for coal starts at 1%, rising to 13% only AFTER the company pays off it's initial capital investment 10/n
In short, Alberta is taking all the risk for minimal upside.
The risks to our province's finances, environment, water, and health simply aren't worth it.
Write your MLA. Tell them to reinstate the 1976 coal policy!
Thanks for reading to the end.
11/11
The risks to our province's finances, environment, water, and health simply aren't worth it.
Write your MLA. Tell them to reinstate the 1976 coal policy!
Thanks for reading to the end.
11/11
@threadreaderapp unroll plz
