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Home › Dodgy Deals ›
Dodgy Deal
Elk Valley Resources metallurgical coal minesCanada

Project – Active

This profile is actively maintained
Contact:

Julia Hovenier, Banks and Steel Campaigner, BankTrack

Last update: 2024-11-21 00:00:00
Line Creek Coal Mine in Elk Valley, B.C. Canada. Photo: Ecoflight

Project – Active

This profile is actively maintained
Contact:

Julia Hovenier, Banks and Steel Campaigner, BankTrack

Last update: 2024-11-21 00:00:00
Why this profile?

Why this profile?

The Elk Valley metallurgical coal mines in Canada have been polluting the water, and threatening the culture and livelihood of Indigenous communities for decades, due to their use of the Mountain Top Removal coal mining method. Glencore bought these mines in 2024, and plans to expand one of them (the Fording River Mine), arguing that the coal will be used for steel, making it less harmful for the climate. However, no matter what sector coal is mined and burned for, it is equally bad for communities and the climate. 

What must happen

Banks should not finance Glencore, as a company that continues to plan to expand its coal mining activities. In particular, banks should not finance Glencore unless the company: 

  1. Cancels the Fording River mine expansion project

  2. Works with workers and communities to develop asset-by-asset just transition plans for the closure of all four mines in the Elk Valley Complex, as well as the coal export terminal in the Port of Vancouver by 2050.

About
Sectors Coal Mining , Iron and Steel Manufacturing
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
Website https://www.glencore.ca/en/evr

The Elk Valley metallurgical coal mines are a complex of four mines – Elkview mine, Fording River mine, Greenhills mine, Line Creek mine – located in British Columbia, Canada. They are operated by Elk Valley Resources, a subsidiary of the Swiss mining company Glencore. Elk Valley Resources also owns a 46% stake in the Neptune Coal Export terminal in the Vancouver port. In 2022 the mines produced 21.5 million tonnes of metallurgical coal. In November 2023, Glencore bought Elk Valley Resources from Canadian miner Teck Resources for $9 billion. The sale was approved by Canadian regulators in July 2024, granting Glencore a 77-per-cent stake in the mines. Japan’s Nippon Steel Corporation and South Korea’s POSCO have already gained a 20% and a 3% stake in the mines, respectively. 

Impacts

Impact on human rights and communities

Contaminating Indigenous waters across borders The fish populations south of the Elk Valley mines hold cultural and spiritual significance for the Ktunaxa Nation, which includes four First Nations in British Colombia, as well as the Confederated Salish and Kootenai Tribes in Montana and the Kootenai Tribe of Idaho. The pollution from the Elk Valley mines is threatening these fish populations. Members of the Ktunaxa Nation are watching as their sources of food and income become contaminated by high levels of selenium leaching from the waste rock of the Elk Valley mines, which can have serious health effects for humans in excessive exposure. The Ktunaxa Nation has been advocating for the Canadian and US government to look into and regulate the pollution since 2012. After nearly 10 years of advocacy by the Ktunaxa Nation and local groups, in March 2024 the International Joint Commission, a multilateral body of the US and Canada, launched a 2-year study to assess and eventually mitigate pollution from the mines. This was despite lobbying by the former owners of the mine, Teck Resources, and by the government of British Colombia, against the study. 

Contaminating drinking water Pollution from the Elk Valley mines has seeped into the secondary drinking water wells of neighbouring town Fernie. The city found that the levels of selenium exceeded provincial water quality guidelines, and as a result is having to investigate a new backup water supply.

Cross-border toxic air pollution A July 2024 study found that toxic coal dust from the blasting, and transportation activities in the Elk Valley mines was causing a cloud of pollution to travel into Alberta communities 60 km away. The coal dust contains “PACs” - a toxic substance found in fossil fuels that can cause lung cancers, cardiovascular disease, frequency of birth defects, and reduced quality of life.  At the moment, Glencore does not monitor PACs in its air quality monitoring. 


Impact on climate

Perpetuating coal-based steel The steel industry is responsible for 11% of global CO2 emissions due to its reliance on coal. According to the International Energy Association (IEA), in order to reach the goals of the Paris Agreement, metallurgical coal production will need to fall 90% by 2050. However, none of the Elk Valley mines have a plan to phase down production. In fact, contrary to what is needed, Elk Valley Resources is also planning to expand its Fording River Mine so that it can continue mining there into the early 2070s. This is in spite of a clear call from the IEA that no new coal mine expansions are needed, as existing mines are sufficient to meet coking coal demand through 2050. By investing in coal mining for steel until 2070, Elk Valley Resources, and its eventual owners, are betting on a fossil steel future that the planet cannot afford. According to an analysis by SteelWatch, continued use of coal in steel making would consume almost a quarter of the planet’s remaining carbon budget for 1.5°C. 

Methane emissions Drastically reducing methane emissions is key to limiting global warming to 1.5°C. Although methane only stays in the atmosphere for around nine to 12 years, it has a warming impact 84 times that of CO2 over a 20-year period. Metallurgical coal mines are a major source of methane emissions. Global Energy Monitor estimates that the methane emissions from the four Elk Valley mines total 119.2 million cubic meters per year, adding the equivalent of 6.5 million tons of CO2 over 20 years. 


Impact on nature and environment

Destructive Mountain Top Removal methods decimate fish populations The Elk Valley mines use the controversial Mountain Top Removal method, where the top of the mountain is blown off to access the coal seam, and the waste rock is dumped into the valley. The waste rock from mining has polluted the waterways with selenium, which causes reproductive failures and deformities in fish, birds and amphibians. A 2023 United States Geological Survey study found selenium concentrations in the Elk River have increased 551% in the past four decades. As a result, fish populations are dying off fast. Between 2017 and 2020, the trout population downstream of the mines declined 93%. 

Financiers

Glencore, POSCO, and Nippon Steel did not receive direct debt financing for the acquisition of these mines. However, commercial banks were involved as financial advisers in the acquisitions: Barclays advised Teck Resources, while Goldman Sachs and Bank of Montreal advised Glencore. 

You can see a full list of Glencore's financiers here. 

Institution type
Finance type
Year
Companies

Glencore

Switzerland
Profile
Website

Nippon Steel

Japan
Profile
Website

POSCO Holdings

South Korea
Profile
Website
No companies
Governance
Bank policies
The following bank investment policies apply to Elk Valley Resources metallurgical coal mines:
Goldman Sachs
2022-01-25 00:00:00

Sector Guidelines: General Industries, Agriculture/Soft Commodities, Metals & Mining, Oil & Gas, Power Generation

Date listed represents date as accessed on website
Bank policy
2022-01-25 00:00:00 | Goldman Sachs
2022-03-30 00:00:00

Corporate Social Responsibility Policy

Bank policy
2022-03-30 00:00:00 | Goldman Sachs
2024-06-28 00:00:00

Environmental & Social Due Diligence Guidelines

Bank policy
2024-06-28 00:00:00 | Goldman Sachs
Bank of Montreal (BMO)
2018-12-31 00:00:00

Statement on climate change

Bank policy
2018-12-31 00:00:00 | BMO
2021-03-11 00:00:00

Statement on coal lending

Bank policy
2021-03-11 00:00:00 | Bank of Montreal
2020-12-14 00:00:00

Environmental Policy

Bank policy
2020-12-14 00:00:00 | Bank of Montreal
2024-03-12 00:00:00

Statement on Human Rights

Bank policy
2024-03-12 00:00:00 | Bank of Montreal
Barclays
2018-04-30 00:00:00

Coal statement

Bank policy
2018-04-30 00:00:00 | Barclays
2024-02-09 00:00:00

Climate change statement

Bank policy
2024-02-09 00:00:00 | Barclays
2024-02-08 00:00:00

Transition Finance Framework

Bank policy
2024-02-08 00:00:00 | Barclays
BBVA
2023-12-18 00:00:00

Commitment to Human Rights

Bank policy
2023-12-18 00:00:00 | BBVA
2024-05-13 00:00:00

Environmental and Social Framework

Bank policy
2024-05-13 00:00:00 | BBVA
Commerzbank
2024-04-15 00:00:00

ESG Framework 2024

Bank policy
2024-04-15 00:00:00 | Commerzbank
2024-05-13 00:00:00

Position on Human Rights

Bank policy
2024-05-13 00:00:00 | Commerzbank
2024-05-13 00:00:00

Policy Statement on human rights and environmental due diligence

Bank policy
2024-05-13 00:00:00 | Commerzbank
JPMorgan Chase
2021-10-08 00:00:00

Environmental and social policy framework

Bank policy
2021-10-08 00:00:00 | JPMorgan Chase
2022-12-22 00:00:00

2022 Climate Report

Bank policy
2022-12-22 00:00:00 | JPMorgan Chase
Mizuho Financial Group
2022-05-17 00:00:00

Strengthening Sustainability Actions ENG

Bank policy
2022-05-17 00:00:00 | Mizuho Financial Group
2020-06-15 00:00:00

Environmental policy

Date listed represents date as accessed on website
Bank policy
2020-06-15 00:00:00 | Mizuho Financial Group
2023-09-27 00:00:00

Human Rights Policy

Bank policy
2023-09-27 00:00:00 | Mizuho Financial Group
Morgan Stanley
2024-09-01 00:00:00

Environmental and Social Policy Statement

Bank policy
2024-09-01 00:00:00 | Morgan Stanley
2024-05-07 00:00:00

Human Rights Statement

Bank policy
2024-05-07 00:00:00 | Morgan Stanley
Sumitomo Mitsui Financial Group
2023-05-15 00:00:00

Strengthening efforts against climate change

Report over progress in advancement of climate change response
Bank policy
2023-05-15 00:00:00 | Sumitomo Mitsui Financial Group
2023-03-30 00:00:00

Statement on human rights

Bank policy
2023-03-30 00:00:00 | SMFG
Standard Chartered
2024-02-26 00:00:00

Prohibited Activities

Bank policy
2024-02-26 00:00:00 | Standard Chartered
2024-10-31 00:00:00

Climate Change Position Statement

Bank policy
2024-10-31 00:00:00 | Standard Chartered
2024-10-31 00:00:00

Nature Position Statement

Bank policy
2024-10-31 00:00:00 | Standard Chartered
UBS
2023-02-01 00:00:00

Sustainability Exclusion Policy

Bank policy
2023-02-01 00:00:00 | UBS Asset Management
News
BankTrack
Partners
Blog
External
Blog
BankTrack news BankTrack blog Partner news Partner blog

Elk Valley in Canada: With money from global banks, Glencore sacrifices entire mountain ranges for coal, polluting the water irreversibly.

But the Ktunaxa Nation is fighting back
2025-02-04 | BankTrack, ING Fossielvrij, Wildsight
Blog
BankTrack news BankTrack blog Partner news Partner blog

Time to end metallurgical coal expansion

NGOs launch first Met Coal Exit List for the finance industry
2025-01-23 | Berlin | BankTrack, urgewald, Coal Action Network, Coal-free Finland, Ecodefense, Global Energy Monitor, Nordic Center for Sustainable Finance, Rainforest Action Network, Reclaim Finance, SteelWatch, The Sunrise Project
BankTrack news BankTrack blog Partner news Partner blog

Teck Coal is headed to court on water pollution charges — again

2024-07-16 | The Narwhal
BankTrack news BankTrack blog Partner news Partner blog

Food harvested near Teck coal mines higher in selenium than grocery store food, health risk study shows

2024-07-03 | The Narwhal
BankTrack news BankTrack blog Partner news Partner blog

L&G investment business to sell Glencore stake over thermal coal

2024-06-26 | Reuters
Blog
BankTrack news BankTrack blog Partner news Partner blog

Banking on Nippon Steel is a high risk bet on climate chaos

Financiers of Nippon should be wary of the steel company's coal-expansion plans
2024-06-21 | Cherry Achando – BankTrack
BankTrack news BankTrack blog Partner news Partner blog

Mountaintop Removal Coal Mining Contaminates Snowpack across a Broad Region

2024-06-18 | Environmental Science & Technology
BankTrack news BankTrack blog Partner news Partner blog

Investor Bulletin: Response to Glencore’s updated climate plan

2024-03-22 | Australasian Centre for Corporate Responsibility (ACCR), ACCR
BankTrack news BankTrack blog Partner news Partner blog

Glencore abandons coal production cap as another climate pledge fails

2024-03-22 | Financial Review
BankTrack news BankTrack blog Partner news Partner blog

Costs to clean up Teck’s B.C. coal mines are billions higher than previously thought: report

2024-03-19 | The Narwhal
BankTrack news BankTrack blog Partner news Partner blog

Canadian miner Teck's Elk Valley clean up could cost at least C$6.4 bln, environment group says

2024-03-19 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Canada, U.S. launch international inquiry into southeast B.C. mine pollution

2024-03-11 | The Narwhal
BankTrack news BankTrack blog Partner news Partner blog

Glencore's prized Canadian coal mines come with rising environmental scrutiny

2023-12-14 | Reuters
Resources
Documents
Videos
2024-10-01 00:00:00

Glencores Coal Expansion Plans

BankTrack publication
2024-10-01 00:00:00 | BankTrack
2024-07-01 00:00:00

A bad deal for Canada: Mining giant Glencore’s Canadian expansion threatens climate and communities

NGO document
2024-07-01 00:00:00 | MiningWatch Canada

Coal Valley: The story of B.C.'s quiet water contamination crisis

2024-11-20 15:33:06

Tracing the impact toxic mining runoff from B.C.’s Elk Valley to U.S. border communities

2024-11-20 15:32:25
Send feedback on this profile
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Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
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