The first deep coal mine to be dug in the UK in a generation is owned by an international private equity firm, with executives whose mining interests have spread to Russia, Asia, Africa and Australia.
West Cumbria Mining positioned itself as a local company with an office in Whitehaven and promised to employ local people during its campaign for permission to mine 2.8 million tonnes of coking coal a year in place
But the company’s owners are thousands of miles away. West Cumbria Mining is based in Surrey, according to Companies House, and is owned by a private equity investment firm, EMR Capital, based in the tax haven of the Cayman Islands.
Key people at the helm of EMR Capital were prominent Australian mining company Oxiana, now OZ Minerals, and mining group Rio Tinto. The executive chairman of EMR capital is Owen Hegarty, who was a senior figure at Rio Tinto and founded Oxiana with Tony Manini, founder of EMR Capital. Manini created an Australian mining development company, Tigers Realm Coal, which has been actively involved in coal projects in Russia. Manini is the executive chairman of Asiamet Resources, based in the tax haven of Bermuda, which is developing copper mining projects in Indonesia.
Daniel Therkelsen of the Coal Action Network said the ownership structure could create problems as it would be difficult for a local planning authority to hold a remote private equity firm to account. He said it could be difficult to ensure working conditions and environmental pledges are met when the mine ceases operations.
Mark Kirkbride, the CEO of West Cumbria Mining, is described by EMR Capital as an executive who has worked with or is familiar with the EMR team for many years.
Kirkbride is also a member of the radioactive waste management committee, which the government says is an independent group set up to provide expert advice on building a nuclear dump for radioactive waste from past and future nuclear industry.
West Cumbria Mining is promoting the use of its coking coal in the UK steel industry, with the tagline: ‘Great Coal, Great Steel, Great Britain’. However, the vast majority of coal produced will be exported, because most UK steel producers have rejected the coal, which is high in sulfur and in excess for their needs. European steelmakers are also moving away from coal in favor of electric arc furnaces and renewable energy.
Criticism of the government’s approval of the mine, which will emit about 400,000 tonnes of greenhouse gas emissions a year, equivalent to putting 200,000 extra cars on the road, continued to grow on Thursday.
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Dr Daniel Quiggin, senior research fellow in the Chatham House think tank’s environment and society programme, said: “Plans to export 80% of coal show that the UK government is desperate for short-term economic gains term, instead of avoiding accelerating climate impacts that will devastate all of our lives for generations to come.
“UK climate leadership has been replaced by Britain leading the world off the cliff edge.”
The Guardian has contacted EMR Capital for comment. West Cumbria Mining declined to answer questions.