BANKS DODGY DEALS CAMPAIGNS
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate
Banks and Human Rights
Banks and Nature
Our projects
Tracking the NZBA
Banks and Russia
Banks and Steel
Tracking the Equator Principles
Tracking the PRBs
Find a Better Bank
Banks and the OECD Guidelines
Media
News Publications
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
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Donate Mailing list Facebook Twitter Linkedin Login
Home › Dodgy Deals ›
Dodgy Deal
West Cumbria Coal MineUnited Kingdom

Project – Active

This profile is actively maintained
Contact:

Julia Hovenier, Banks and steel campaigner

julia@banktrack.org

Last update: 2024-09-13 15:29:39
December 2022 action by community members outside the proposed mining site. Photo: Coal Action Network

Project – Active

This profile is actively maintained
Contact:

Julia Hovenier, Banks and steel campaigner

julia@banktrack.org

Last update: 2024-09-13 15:29:39
Why this profile?

Why this profile?

The West Cumbria mine would be the UK's first new underground coal mine in 30 years. It was approved for construction shortly after the International Energy Association (IEA) stated that no new coal mines can be built if we are to remain within the 1.5°C limit. If built, it will generate 67 million tonnes of coal for steelmaking, and approximately 200 million tonnes of CO2 between now and 2049. Ecological concerns have also been raised, with doubts that the promised restoration after operations would be delivered, as is frequently the case in the UK. In addition, it will likely become a stranded asset, putting the long-term employment prospects of local residents in jeopardy.

What must happen

Given the massive climate impact and poor economic prospects of this mine, banks should not give project financing directly to West Cumbria Mining Ltd, nor should they finance the project through the capital market by investing in an EMR Capital fund. Banks should abstain from providing financial products of any kind to West Cumbria Mining Ltd.

About
Sectors Coal Mining , Iron and Steel Manufacturing
Location
Status
Planning
Design
Cancelled
Construction
Operation
Closure
Decommission
Website https://www.westcumbriamining.com/

The West Cumbria Coal Mine (Or Woodhouse Colliery Mine) is a metallurgical coal mine that was approved for development by the UK government in 2022. If constructed, the mine will produce 67 million tonnes of coal for steelmaking until the end of its lifetime in 2049. The exact buyers have not been disclosed, however it is estimated that some 80% of the coal is destined for steel plants in Europe, despite the mine being proposed as a domestic supply for UK steelmakers. The mining operations alone are estimated to emit a total of 2 million tonnes of CO2 and 340,000 tonnes of methane - actually using the coal mined will generate many times this. The parent company, West Cumbria Mining ltd, is 80% owned by Cayman Islands-based private equity firm EMR Capital. Approval of the mine has generated criticism from local, national, and international actors, on the grounds that the mine is not in line with the UK's climate commitments, and will further push global temperatures past the 1.5°C limit.

Impacts

Impact on human rights and communities

Promising jobs with no future West Cumbria Mining (WCM) has stated that the mine will create 500 local jobs on site, and aims to fill 80% of them with local residents. However researchers have found that the mine is highly likely to become a stranded asset, as the market for its coal is declining before the mine even opens, meaning it will not be profitable enough. In which case it will not deliver on its promise of training a local workforce, and providing them with high-paying long term employment. 

WCM states they plan to sell the coal to EU and UK steelmakers, however the UK and EU are rapidly phasing out coal-based steel production, and the high sulphur content of WCM’s coal makes it unmarketable to UK and EU steelmakers. Training workers to be skilled in a dying industry can not bring the high-paying resilient employment WCM promises. It is especially irresponsible when there is a far better long-term economic outlook for employment in low-carbon industries like renewable energy, retrofitting housing, public transportation, and recycling in the region, which could create up to 9000 jobs. Friends of the Earth have calculated that a programme to insulate homes in the area, cutting both carbon emissions and energy bills, could create as many jobs as the mine. 


Impact on climate

Colossal carbon dioxide emissions will be emitted if the mine gets built. An independent consultant estimated that the mine will emit 2 million tonnes of CO2 between now and 2049. This number only includes CO2 emissions from the mine operations itself, and does not include emissions from burning the extracted coal which will be around 200 million tonnes according to Coal Action Network. There are also fresh concerns that the mining company significantly under-stated the methane release from the coal mine, a powerful climate change gas. These are emissions that the UK carbon budget cannot afford, if remaining within 1.5°C limits. The chairman of the Climate Change Committee Lord Deben stated that the coal mine is “absolutely indefensible” in the context of the UKs legally agreed climate commitments. 

“Net zero” strategies are limited in scope and unfounded. West Cumbria Mining has stated that they will build and operate the world’s first ‘net-zero’ underground coal mine. They do not include emissions from burning the extracted coal in this commitment. Their strategy for net-zero includes carbon offsetting through an agency called Gold Standard. The chief executive of Gold Standard, Maragaret Kim, stated that using their reforestation and renewable energy-based carbon credits to offset a coal mine was “nonsense”, as any new extraction of fossil fuels is unjustifiable, and cannot be offset. 

Major and unnecessary emissions would be released from burning the coal produced at the mine, which is destined for steel making. Steelmaking currently accounts for 11% of global CO2 emissions, in part because the most common steel making technique today requires burning coal to reduce iron ore. However, technological improvements coupled with increased demand for green steel is triggering a rapid transition away from coal-based steel production. The mine is predicted to sell 64 million tonnes of coal between now and 2049 to burn in the steelmaking process. Coal Action Network calculated that this could emit 200 million tonnes between now and 2049, which is equivalent to the United Arab Emirates' total 2021 emissions. With low-carbon alternatives available, there’s no justification for continuing to lock the world into coal-based steel. 

Significant methane emissions from the mine could jeopardise the UK’s methane pledge, and dramatically accelerate global warming. A report by Ember found that WCM underestimated their potential methane emissions by 3.5x, and that their claimed ability to mitigate methane emissions by 95% are technologically unfounded. With current technologies, at most they can reduce it by 69%. Ember estimates that the mine could add almost 40% to the UK’s fossil production methane emissions by 2030. When the UK signed the global methane pledge in 2021, they committed to reducing methane emissions by 30% by 2030. The West Cumbria mine puts the UK at a high risk of exceeding their agreed methane limits. 


Impact on nature and environment

Biodiversity loss would result from the construction and operation of the mine. Even with future conservation and restoration plans proposed by West Cumbria Mining (WCM), an independent ecological consultant estimated that there would be a net loss of 8.88% biodiversity in the region. There is also a worrying trend in the UK of underdelivering on restoration programs after the lifetime of mines. 

Potential destruction of an ancient woodland ecosystem. The development plans of the West Cumbria coal mine include plans to build a conveyor belt to a rail loading facility. While one option would tunnel under the woodlands, another option is to use a “cut-and-cover” method, which would result in the clearing of ancient woodlands. While the full ecological impact has not been assessed, the clearing of ancient trees will have a negative impact on the soil and biodiversity of the woodlands. Bat and bird populations in particular would be under threat from the operations of the mine. 

Financiers

In June 2014, EMR Capital acquired 81% of West Cumbria Mining for GBP 14.70 million, gaining control of the company, and becoming the majority owner of the West Cumbria coal mine. In 2018 BNP Paribas, Societe Generale, and HSBC provided EMR Capital with USD 160 million in financing, through a loan and a revolving credit facility. By financing EMR Capital, banks are de facto providing EMR Capital with the money to further develop the mine

According to West Cumbria Mining ltd 2021 accounts, EMR Capital has invested at least £24 million in licence fees and exploration costs to date, and West Cumbria Mining ltd is currently looking to raise finance for the construction of the mine through an unknown financial advisor.

Institution type
Finance type
Year
Companies

Project sponsor

West Cumbria Mining Ltd

United Kingdom
Website
No companies
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

High court blocks Cumbria plan for UK’s first new deep coalmine in 30 years

2024-09-13 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

Future impact of proposed fossil fuel projects must be assessed, UK court rules

2024-06-20 | The Guardian
Blog
BankTrack news BankTrack blog Partner news Partner blog

67 organisations call on banks to cease financing metallurgical coal

Banks risk stranded assets & climate catastrophe in steel lending without metallurgical coal exclusions
2023-12-07 | Nijmegen | BankTrack, Reclaim Finance
BankTrack news BankTrack blog Partner news Partner blog

New coal mine's business case 'is dead'

2023-12-04
Blog
BankTrack news BankTrack blog Partner news Partner blog

Met coal: financial institutions’ missing policies

Since 2016, the world’s biggest banks have provided US$ 557 billion in finance to the 50 biggest developers in the metallurgical sector
2023-11-23 | Reclaim Finance
Blog
BankTrack news BankTrack blog Partner news Partner blog

West Cumbria Coal Mine: dodgy mine, dodgier financier

2023-11-20 | Reclaim Finance
BankTrack news BankTrack blog Partner news Partner blog

Fresh calls to scrap Cumbrian coalmine amid steel industry’s green push

2023-11-08 | The Guardian
Blog
BankTrack news BankTrack blog Partner news Partner blog

Banks have no planned exit from coal for steelmaking

A new briefing from BankTrack calls on banks to urgently restrict finance for metallurgical coal
2023-10-10 | Julia Hovenier – BankTrack
BankTrack news BankTrack blog Partner news Partner blog

Insurance Firms Won’t Provide Financial Backing for Cumbrian Coal Mine

Four companies have ruled out underwriting the controversial plans for a deep mine off the coast at St Bees
2023-09-15 | Byline Times
BankTrack news BankTrack blog Partner news Partner blog

Pump ass, not gas

Why the LGBT Awards must drop banks as well as big oil
BankTrack mentioned
2023-06-28 | huck
BankTrack news BankTrack blog Partner news Partner blog

Whitehaven coal mine approval jeopardises UK’s international commitments

2023-03-10 | Ember
BankTrack news BankTrack blog Partner news Partner blog

New Cumbria coalmine likely to break UK’s climate pledge, analysis says

2023-01-17 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

UK’s first new coalmine for 30 years gets go-ahead in Cumbria

2022-12-07 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

ClientEarth alerts Cumbria coal mine financier to legal risk

2022-07-27 | ClientEarth
Resources
Documents
Links
2023-11-28 00:00:00

Investing in EMR Capital/West Cumbria Mining is risky business

BankTrack publication
2023-11-28 00:00:00 | BankTrack
2023-10-10 00:00:00

Still bankrolling coal (for steel)

Why banks must quit metallurgical coal
BankTrack publication
2023-10-10 00:00:00 | Julia Hovenier, BankTrack
2022-05-10 00:00:00

Green steel and Cumbrian coal

Why the intended market for coal from the Whitehaven mine is already declining fast
NGO document
2022-05-10 00:00:00 | Friends of the Earth
2023-03-10 00:00:00

Whitehaven coal mine approval jeopardises UK’s international commitments

NGO document
2023-03-10 00:00:00 | Ember
2021-05-07 00:00:00

SLACC Statement of Case

NGO document
2021-05-07 00:00:00 | South Lakes Action on Climate Change
2021-05-06 00:00:00

Friends of the Earth statement of case

NGO document
2021-05-06 00:00:00 | Friends of the Earth UK
2020-07-01 00:00:00

Planning Statement

Woodhouse Colliery
Company document
2020-07-01 00:00:00 | West Cumbria Mining
2022-07-27 00:00:00

Letter from ClientEarth to EMR Capital

Correspondence
2022-07-27 00:00:00 | ClientEarth
2022-12-07 00:00:00

Planning Decision Letter

Other document
2022-12-07 00:00:00 | UK Government
2023-01-06 00:00:00

West Cumbria Mining 2021 Accounts

Company document
2023-01-06 00:00:00 | West Cumbria Mining Ltd
2021-09-01 00:00:00

Coal in steel: problems and solutions

NGO document
2021-09-01 00:00:00 | Coal Action Network

South Lakes Action on Climate Change Coal Mine Campaign

Coal Action Network: West Cumbria Mine Campaign

WCM Website News Update – May 2023

Updates

2024

2024-09-13 00:00:00 | Cumbria coal mine plan thrown out by High Court judge

The UK’s first new deep coalmine in 30 years will not be allowed to go ahead after a ruling in the high court. On Friday morning, Justice Holgate ruled that plans to build the facility in Whitehaven, Cumbria, would not proceed, in what campaigners called a “victory for the environment”. The ruling suggests all UK fossil fuel extraction projects can be challenged on similar grounds (The Guardian).

2023

2023-05-16 00:00:00 | West Cumbria Mining confirms construction finance

West Cumbria Mining ltd releases a statement confirming that it has raised a "new multimillion pound funding package" which will cover construction costs of the mine through 2024. 

2023-01-13 00:00:00 | Legal challenge launched against UK government's approval of the mine

Friends of the Earth and South Lakes Action on Climate Change launch a legal challenge to the UK government's decision to approve the application.

2022

2022-12-07 00:00:00 | UK Government approves the application for the mine

After three delays over several months, UK Secretary of State for Levelling Up, Housing and Communities Michael Gove approves the application. The decision is widely criticised, including by the government’s official advisors, the Climate Change Committee.

2022-11-01 00:00:00 | Climate czar of UK warns against mine

Alok Sharma, COP 26 President and UK government climate czar, warns that the mine would be bad for the climate and jobs

2022-07-27 00:00:00 | ClientEarth sends legal warning to EMR Capital

ClientEarth sends a letter to EMR Capital, warning that they are opening themselves up to legal risk by financing the project, as they’re at risk of “breaching the duties it owes to investors in the fund”.

2021

2021-09-13 00:00:00 | Planning inquiry begins

Planning inquiry held, run by a Government-appointed inspector. The main objectors are Friends of the Earth England, Wales & Northern Ireland (FOE) and South Lakes Action on Climate Change (SLACC). Cumbria County Council reverses its previous support and remains neutral.

2021-03-01 00:00:00 | Application goes back under consideration

Then Communities Secretary Robert Jenrick, “calls in” the application, meaning final approval will lay with the UK government rather than Cumbria County Council.

2021-02-01 00:00:00 | Protests over application approval

Over 80 Civil Society groups, climate scientists, and Lord Deben, chairman of the Climate Change Committee, make public appeals to the then Prime Minister Boris Johnson and Cumbria County Council opposing the mine. Cumbria County Council announced it will reconsider its decision on the application “in light of new information contained in the CCC’s December report”

2020

2020-12-11 00:00:00 | UK national Climate Change Committee makes statement on steel and coal

The UK national Climate Change Committee releases a report stating that steel manufacturers must phase out coal rapidly in the coming decade in order to achieve the UK’s legal target of net zero by 2030. 

2020-10-01 00:00:00 |  Cumbria County Council approves the application

2017

2017-05-01 00:00:00 | Coal mine application submitted

West Cumbria Mining submits an application for a new deep coal mine, with a lifetime of 50 years. In the application, they state the mine will extract 2.78 million tonnes of coal for steelmaking, with 85 per cent exported to Europe; and create 500 jobs in the community, and 2,000 more in the supply chain. They estimate the total cost of the mine to be £240m. 

 

2014

2014-06-10 00:00:00 | EMR Capital acquires West Cumbria Mining

Cayman Island-based private equity firm EMR Capital acquires 81% of West Cumbria Mining ltd. for £14.7 million, for the development of its Whitehaven Coking Coal Project. West Cumbria Mining Ltd announces its intention to explore the coast off Whitehaven for premium coking coal. 

Send feedback on this profile
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate Banks and Human Rights Banks and Nature
Our projects
Tracking the NZBA Banks and Russia Banks and Steel Tracking the Equator Principles Tracking the PRBs Find a Better Bank Banks and the OECD Guidelines
Media
News Publications
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
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Vismarkt 15
6511 VJ Nijmegen
The Netherlands
Contact@banktrack.org
Donate Mailing list Facebook Twitter Linkedin
©2023 BankTrack
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted