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Key facts: Aberpergwm coal mine expansion

We'll keep this post up-to-date with the key facts so keep checking back!

Key facts


Coal & refuse to be excavated: 72 million tonnes in total - 30 million tonnes of which will be "middling" coal to be dumped or put back into the coal mine.

Coal to be sold: 42 million tonnes during the life of the extension

CO2: 100-120 million tonnes of CO2, according to uses listed below (2022 BEIS Conversion Factors)

Methane: up to 1.17 million tonnes of methane, a powerful climate accelerant

Coal operator (mining company): Energybuild Ltd/Energybuild Mining Ltd.

Type: Anthracite

Claimed uses:

  • 2022: According to Energybuild Ltd, 60% of the coal goes to steelworks, 20% domestic heating (80% overall), with the remaining to mixed industrial uses
  • 2023: Energybuild Ltd predicts, overall, 70% of the coal will go to steelworks and domestic heating (reduction of 10%), with the remaining to mixed industrial uses

The planning application said power stations and steel works. With Aberthaw power station closed, Energybuild now talks of Pulverised injection for steelmaking, household heating, cement, and water filtration.

County Council Local Planning Authority: Neath Port Talbot

Address: Glynneath, Neath, SA11 5AJ

Physical size: Because this is an underground mine, much of the excavation would be invisible but very real, as communities victim to flooding mine shafts have experienced. The underground tunnelling has permission to extend to 2.3km squared, taking you roughly half an hour to walk from one side of the tunnels to the other. And this doesn’t factor in the vertical shafts, sending offshoots that go beneath the River Dulais.

Time: Planning permission to mine coal until 2039 (this is often subsequently extended).

Published: 22/04/2022

Aberpergwm: Live locally? Get informed & active

Energybuild hasn't kept local people in the loop...

... So we thought we would!

Volunteers from Neath Port Talbot Friends of the Earth have given out flyers in Glynneath to start conversations and direct people towards this information about the mine expansion, and about how you can take action as people living near Aberpergwm.

References

1Planning Application P2014/0729 Mining Zones Map (Neath Port Talbot Council planning portal)

[2]Coal Authority production statistics: 25666 (2019) 16957 (2020) 19690 (2021) tonnes was produced. Average 20,771 tonnes of coal.

[3]Planning Permission document P2014/0729 (14)

[4]Planning Permission document P2014/0729 (22)

[5]Planning Permission document P2014/0729 (7)

[7] Wales carbon budgets/targets March 2021: https://gov.wales/climate-change-targets-and-carbon-budgets

[8] Core samples show 88.3% fixed carbon content https://orca.cardiff.ac.uk/115771/1/Zagorscak%20and%20Thomas%20(2018).pdf (126)

[9] In excess of 95% fixed carbon content: https://mineralmilling.com/anthracite-filter-media/

[10] Coal in Steel : Problems & Solutions (Coal Action Network)

[11] Wales carbon budgets/targets March 2021: https://gov.wales/climate-change-targets-and-carbon-budgets

[12]Channel 4 News report, research provided by Global Energy Monitor https://www.channel4.com/news/are-cop26-promises-on-coal-being-broken (04.02.22)

[13] https://www.iea.org/reports/net-zero-by-2050

[14] https://www.nature.com/articles/s41586-021-03821-8

 

CAN instructs Barristers to take Welsh Government and the Coal Authority to task over Aberpergwm colliery extension.

Update

Check out what else we're doing now to stop the Aberpergwm coal mine expansion

See our first letter and our second letter 'before action' from lawyers Richard Buxton Solicitors challenging the decisions made around the Aberpergwm coal mine expansion licence.


 

Under direction by grassroots campaign organisation, Coal Action Network, Barrister Estelle Dehon has sent a letter-before-action to the Welsh Government and the Coal Authority on the grounds that:

  1. Welsh Ministers can apply the Wales Act 2017 to the Aberpergwm coal mine extension licence - requiring approval from Welsh Ministers before the licence becomes valid for coal mining within Wales.
  2. Coal Authority misinterprets its own powers. It can consider wider factors which could include climate change and can still withdraw the licence for the Aberpergwm colliery extension prior to it being ‘granted’ (it is currently only ‘offered’).

Our Barrister thinks they got it wrong.

Our Barrister’s pre-action letter convincingly puts the power to stop the Aberpergwm colliery extension licence firmly in the hands of Welsh Government Ministers. Now it is up to those Ministers to take their rhetoric and put it into swift, decisive action to stop this climate calamity whilst there is still the opportunity to do so. Our pre-action letter also identifies why The Coal Authority, hosted by BEIS of the UK Government, isn’t bound by the narrow set of criteria it claims to be, and could, for instance, site climate change as a reason to withdraw this licence and reject future coal mining licence applications, becoming an ally to our climate commitments rather than an undermining force.

We tried knocking on their doors before putting a letter through their letterboxes…

Coal Action Network tried to avoid legal action, with supporters sending over 4000 emails to Lee Waters of the Welsh Government and Michael Gove of the UK Government, urging them to come to work together and arrive at a common understanding as to which could intervene on the pending licence to extend the Aberpergwm colliery—and then take that action to stop the licence before it’s granted. However, along with our open letter, Ministers ignored thousands of concerned members of the public. As Ministers refuse to respond to the public’s and civil society’s concerns, we must resort to this legal action.

We hope they see sense.

We hope that the Welsh Government and The Coal Authority act swiftly to stop this coal mine, in accordance with the legal grounds identified within the pre-action letter. This may avoid the need for a judicial review. But we cannot allow it to go unchallenged, that every institution and individual involved has shrugged off the responsibility for committing us to the extraction of 70 million tonnes of coal, selling 40 million tonnes of coal, and the release of 1.17 million tonnes of methane and c.100 million tonnes of CO2. This is a terrible climate injustice, it must be stopped, and those responsible must be held to account. The time to draw a line in the sand is now. No new coal mining for any purpose. And the IEA agrees with us (p103).

It's not just about the Aberpergwm colliery extension. This needs to end.

If we must resort to a judicial review to prevent this coal mine, we intend to crowd-fund it and we hope you’ll share it widely. As well as stopping this coal mine extension, a successful legal challenge will dissuade the other coal companies which have conditional licences from the Coal Authority to attempt new coal mines. We would significantly raise the bar against new coal mines.

Published: 09/02/22

Licenced: the Aberpergwm coal mine extension

Update

Check out what we're doing now to stop the Aberpergwm coal mine expansion.

On 25th January 2022...

...Whilst the Welsh and UK Governments continued to argue over which could stop it, The Coal Authority approved the full licence for an underground coal mine extension to Energybuild Ltd. The company can now mine a further 40 MILLION TONNES of coal until 2039, emitting an est. 100 MILLION TONNES of CO2 and up to 1.17 MILLION TONNES of methane emissions.

This is exactly what we warned would happen, but it’s not over yet.

We, at Coal Action Network, are taking action against this climate trashing project and want you to join in. This is a rapidly evolving issue, and we will post specific actions you can get involved with here on our website, as well as our social media platforms. Watch this space.

Campaign plans

We will:

  • Take legal advice on how to challenge legality of this coal mine – with a view to prevent potential coal mines in the future, particularly as mining companies will be watching this case closely, as several other coal companies are holding conditional licences already.
  • Consider mass participation digital and creative actions.
  • Counter the growing greenwash emanating from Energybuild Ltd.
  • Be direct and targeted in exposing backtracking from politicians on their positions against coal mining.
  • Investigate concerns raised that there may be no guarantees Energybuild Ltd, or a new company that buys the mine, will restore the area after mining ceases.

Why must we stop this coal mine?

  1. The UK is already off-course to meeting its Paris Agreement climate commitments. Waving through 100 million tonnes of CO2 endangers not just the UK’s decarbonisation progress, but also the European countries that it will be exported to.
  2. Currently, around half of the coal mined in Aberpergwm is sold to TATA’s Port Talbot Steelworks—the 2nd biggest single-site source of CO2 in the UK, and that’s largely down to the coal used to make the steel. The UK Government set a target for the UK steel industry to decarbonise by 2035, to have any hope of meeting its climate commitments… that’s 4 years before this coal mine is due to close. The problem is, if Energybuild Ltd would make coal more widely and cheaply available, so steel companies will keep using it rather than investing in the infrastructure to use alternatives to coal. This would create a delay to the decarbonisation of the steel industry that we cannot afford.
  3. Other mining companies will be watching this closely; if the Aberpergwm coal mine extension goes ahead, it could spark a disastrous new wave of coal mining applications.
  4. This is the first test of the Welsh Government’s tough stance on coal in Wales. If the Welsh Government are seen to support this coal mine, it will undermine the hard-won progress to make coal mining untenable at the highest political level within Wales.

Published: 03/02/2022 updated 08/02/2022

An open letter to stop the Aberpergwm coal extension

Update

The Coal Authority has issued the Aberpergwm coal mine with a licence to mine an extra 42 million tonnes of coal, ignoring the est.100 million tonnes of CO2 this will generate and jeopardise the UK's and Wales' ability to meet their climate commitments. Check out what we're doing now to stop the Aberpergwm coal mine expansion.

Dear Ministers Lee Waters and Michael Gove,

Combined, both of you have received nearly 4000 emails from people who are dismayed by the news that the deep coal mine operated by EnergyBuild Ltd in Aberpergwm may imminently have the licence to extend it deconditionalised by The Coal Authority regulator. The people we have spoken with are shocked that the UK is embarking on a new commitment to mine up to 40 million tonnes of coal until 2039, emitting around 100 million tonnes of CO2—as well as methane—into our atmosphere. Common questions we heard included “how can this happen just after COP26?”, “shouldn’t this decision be made by Wales?”, and “why don’t these Ministers seem to know who can stop this?”.

Will you answer their questions and respond to their concerns?

Our recommendations:

In the short term, it is critical that Ministers from both the Welsh and UK Governments work together to overcome the political impasse reported by the BBC and The Guardian, and block this coal mine. There are several routes to achieve this. Inaction on this coal mine extension would have unacceptable consequences for the UK’s climate change emissions, and international leadership on phasing down coal.

For the longer term, the UK Government must end the recurring embarrassment of coal mines progressing through a planning system that does not support the its climate commitments. Applications for new coal mines in West Cumbria and near Druridge Bay, as well as a coal mine extension at Nant Helen in Wales, all required Ministers to step in the last-minute. This pattern shows that the planning process needs updating.

We recommend that Minister Michael Gove therefore issues a policy statement that rules out planning permission for all new and extended coal mining across the UK. This be irrespective of the type of coal or proposed end use. The policy statement would send a clear signal domestically and internationally that the UK is serious about leading the global phase-down of coal, and accelerating the decarbonisation of energy and steel production, the latter of which currently drives 11% of climate change emissions.

An invitation to consign coal to history

We invite Minsters from the Welsh and UK Governments to reach out to Coal Action Network and consign new coal mining and extensions to history. Coal Action Network has operated as a grassroots group since 2008 to support local communities across England, Scotland, and Wales to oppose nearby coal mining and associated impacts. As one local community member, after successfully opposing a nearby opencast coal proposal in December 2020, said:

“Coal is our heritage, but it cannot be a part of our future”

Yours sincerely,

Supporters, and the team at Coal Action Network

Published 29.12.2021

Committing to 100 million tonnes of CO2 over 18 years before the dust settles on COP26 just 280 miles away

Update

The Coal Authority has issued the Aberpergwm coal mine with a licence to mine an extra 42 million tonnes of coal, ignoring the est.100 million tonnes of CO2 this will generate and jeopardise the UK's and Wales' ability to meet their climate commitments. Check out what we're doing now to stop the Aberpergwm coal mine expansion.

The quick read:

Currently, the Welsh Government and the UK’s Government Ministry of BEIS are arguing over which has the legal power to cancel the impending licence for a coal mine extension in Aberpergwm, south Wales. EnergyBuild Ltd, the coal operator, is on the brink of getting a licence to extend an existing deep coal mine to extract a further 40 million tonnes of coal, emitting around 100 million tonnes of CO2 and methane, until 2039. The licence could be obtained any day, and work begin shortly thereafter (we’ve illustrated the main legal steps a coal mine takes between application and diggers on the land). This is a very live issue.

Demand Ministers block this coal mine extension now.

Squabbling ministers

The governments of Wales and the UK both believe that the other has the power to stop the coal mine extension from going ahead. In the meantime, and in the shadow of the recent COP26 in Glasgow, a licence to extract a further 40 million tonnes of coal could slip through any day. The estimated 100 million tonnes of CO2 and methane this would emit over the next 18 years, would discredit the much-boasted 2050 Net-Zero commitment, Boris Johnson’s recent statement in the press against new coal, and the Welsh Ministerial statement against coal in March 2021. The signal this may send to other world leaders, that they can make commitments then ignore them, is hard to quantify but may be even more significant. Ministers Lee Waters of the Welsh Government, and Michael Gove of the UK Government, need to come together to stop this coal mine and make good on their respective governments' climate commitments.

Local and global-local consequences

The distance between the coal mine and the nearest residence in Aberpergwm is just 330 metres. Although this is a deep coal mine rather than opencast, this proximity can still be associated with impacts from coal dust from coal stockpiles stored above ground, noise, HGV movements, and light pollution. Future impacts of the underground working are also uncertain with increasingly extreme weather events associated with climate change.

For people living in many parts of the Global South, on flood planes, or near sea-level, climate change is not an abstract threat for future generations – it's impacts are life and death, and are experienced now and locally to them. The line between who we think of as ‘local communities’ is beginning to blur as the impacts are increasingly experienced beyond the site of operations. The economic and health impacts of the coal mine extension going ahead or closing will be immediate, direct, and tangible on the residents in Aberpergwm. The impacts of the CO2 and methane from this coal mine will be delayed, indirect, and, although modelling tools attempt to quantify it, fairly intangible on communities threatened now by climate change. However, the consequences are profound for both groups, and must be considered.

Recycling the greenwash doesn’t make it more true

Cutting through the greenwash, a significant portion of the coal will be burned at steelworks releasing huge amounts of CO2 and other pollutants, jeopardising the rapid decarbonisation required of the global steel industry and other industries which are reliant on coal.

Energybuild Ltd

A visit to Companies House online will reveal a complicated operating structure of many small companies with similar names and shared registered addresses associated with Energybuild Ltd, the coal operator in Aberpergwm. The company itself has negligible assets, so the possibility of recovering funds if the company suddenly folded with liabilities is limited. The situation with its holding company, Energybuild Resources Ltd is also concerning, with net liabilities of £2.7 million and assets valued at £950 thousand as of the end of 2019 – meaning that if the company were to fold, around 65% of those liabilities may not be fulfilled, including restoration works.

Heritage in coal

Wales played a major role in mining the coal that powered the UK through an industrial revolution. Coal is a central part of a proud heritage in many communities throughout Wales, and for a few remaining areas, coal mining is still the major industry.

The closure of many coal mines under the Thatcher Government put thousands out of work, generating bitterness and deprivation that continues to this day. Much of this hardship could have been avoided if coal mining had been phased out and replaced by reinvesting some of the wealth that mining generated back into the communities that toiled to extract it.

Coal or unemployment?

Local shops and pubs, in particular, in recent press coverage have come out in support of a licence for the coal mine extension, highlighting their reliance on the custom of coal miners that work there. But without the support for creating alternative jobs that’s been absent so far, these businesses will be in the same position when the coal mine does eventually close.

Will the UK Government learn from its past mistakes in coal, and make good on its promise to ‘level up’ the UK with an approach that includes investment in infrastructure, retraining in desirable and viable jobs, and financial support for small and medium sized enterprises, particularly cooperative and social-interest companies that build and reinvest in their communities? Only when the UK and Welsh governments step up will communities in Aberpergwm have a genuine choice on whether to tolerate a coal mine nearby for another 18 years.

Coal is our collective heritage, but it cannot be our future

The Aberpergwm extension may represent the final gasps of an industry we owe much to but must move beyond. As one tenacious community member fighting a coal mine near Newcastle put it, "coal is our collective heritage, but it cannot be our future".

 

Following almost 4000 emails, we've followed up with an open letter to Ministers Lee Waters and Michael Gove.

Overview of the process to open a coal mine in the UK

Download in PDF

This is an illustrated step-by-step guide as to how a company gets the legal stuff they need in place before they can start a new coal mine, or extend an existing one. The information herein is a very simplified outline of the main steps to, a much deeper reading is recommended as understanding this process will highlight what the opportunities are for avoiding any future coal mining applications slipping through or reaching the stage of a resource-demanding public inquiry, like the West Cumbria coal mine application recently has.

Lloyd's of London Climate Memorial - #DefundClimateChaos Global Day of Action

Essential details

Join our creative actions on 29th October 2021 in either:

London

Time: From 0900 - 1100

Address: Lloyd's of London HQ, 1 Lime St, London, United Kingdom EC3M 7HA

Nearest tube station: Bank

Newcastle

Time: From 1500 - 1700

Address: Rotterdam House,116 Quayside, Newcastle upon Tyne, United Kingdom NE1 3DY

The action

Join us in either London or Newcastle for a memorial to bring to life the memories of every person harmed by the injustices of the climate crisis, as well as celebrate their fierce resistance to it.

In London this will be outside Lloyds of London, a company (not related to Lloyds bank) that profits from providing insurance to climate wrecking projects, without which they wouldn’t be able to go ahead. You’ll hear from Pacific Island Warriors, Silver Town Tunnel local campaigners, and others that are suffering climate change impacts and fighting climate wrecking projects.

In Newcastle, we will be outside the offices of Chubb, one of Lloyd of London's 'syndicates', who are also involved in the insurance of fossil fuel projects, such as the Adani coal mine. We will hear from campaigners opposing the opening of the West Cumbria coal mine, as well as from the Campaign to Protect Pont Valley, who will talk about resistance, loss, and what it means to live with a coal mine on their doorstep

You can sign up for the action now and receive updates, or just turn up on the day and follow us on Twitter or Facebook to stay up-to-date instead.

Anyone is welcome to bring their own memorial-themed materials to this action, and here’s a video on how to do that:

Background

The climate crisis is harming the poorest and least responsible of us first and worst. Five million people will die this year due to fossil fuels globally, only 40,000 of those in the UK. The blame for this falls squarely at the feet of governments, corporations and banks that continue to profit from death. As people globally face extreme and destructive weather, we will come together to demand care & repair with them.

The Lloyd’s of London insurance market, one of the world's largest insurers of fossil fuel projects. We want to shed light onto Lloyd’s of London's appalling environmental record, and the colonialist practices from which Lloyd’s grew. From the insurance of slave ships, to the insurance of climate-destroying projects that dispossess indigenous peoples of their land, Lloyd’s have blood on their hands.

See you on the streets!

Coal in 2021

Opencast coal extraction

Opencast coal extraction causes extensive damage to local environments by opening up the land like a quarry, destroying habitats and polluting the air and water. Imported coal, from Russia, Venezuela, Colombia, the USA and Australia, also carries significant environmental and human rights impacts.

As of July 2021 it was confirmed there are no more applications or appeals for opencast coal extraction in England. There are two opencast coal mines operational in South Wales.

Coal for steel (coking coal)

There are two potential sites for new underground coking coal mines. West Cumbria Mining Ltd and NAE want to extract millions of tonnes of coking coal a year from sites in Cumbria and the Scottish borders. The coal would be exported to European steelworks.

Both sites would produce coking coal which is processed into coke and used at steel works which use high carbon blast furnaces. Port Talbot and Scunthorpe steelworks use these methods and are the second and third biggest single source emitters of carbon in the UK.

It is possible to make steel without coal using electric arc furnaces and recycling as well as through direct reduction iron production. New methods to produce steel with hydrogen are being trialled.

Power stations

Coal-use in electricity declined to its lowest ever level in 2021, thanks to grassroots and NGO campaigning for a total phase-out of coal by 2025 which has now been brought forward to 2024.

There are now only three power stations left open in the UK, running occasionally.

Global impacts

Coal is the fuel that contributes most to climate change. Climate change impacts communities in the Global South, who least caused the problem, first and hardest.

The UK is also the financial centre of global coal mining, as many of the world's major mining companies are listed on the London Stock Exchange, as well as coal insurers and financiers.

The UK heads up the international 'Powering Past Coal Alliance' and hosts COP26 in 2021, but has yet to end coal extraction at home or fully end financial support for international coal mining.

West Cumbria Mining Ltd and EMR Capital - we reveal all.

Overview

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.

Who owns who, and how

  • EMR Capital Resources Fund 1, LP. owns EMR Capital Investment (No.3B) Pte. Ltd.
  • EMR Capital Investment (No.3B) Pte. Ltd owns 80% of shares in West Cumbria Mining (Holdings) Ltd – enough to control it like a puppet.
  • West Cumbria Mining (Holdings) Ltd is the parent company of West Cumbria Mining Ltd.

Why does that matter?

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.

Who are EMR Capital Resources Fund 1, LP.?

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.

Why does that matter?

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.

Loans and financial dependence

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.

Why does that matter?

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.

Taxes

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.

Why does that matter?

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.

See a PDF of our parody investment brochure from EMR Capital... are you convinced?

Original research by Vivek Krotecha, 2021

Published: 01/09/2021