The offshore business behind the failed bid to open a coal mine on the West Cumbria coast has tabled a case with an international court with a view to seeking damages from the UK government for withdrawing support for the scheme.
This move is expected to see a claim being made in the International Centre for the Settlement of Investment Disputes, part of the World Bank, which is a forum for investor-State disputes.
Planning permission had originally been granted for the West Cumbria Mining scheme, and, in September 2019 the then Conservative led Government declined to call in the plans, effectively signalling the green light for the £175m project.
But there were calls from environmentalists to reconsider the decision in 2021. However, in December 2022, the government again backed the Woodhouse Colliery scheme.
In July 2024, however, following the General Election, the new Labour government withdrew its support and in September that year the High Court ruled the plans should be quashed.
The Ministry of Housing, Communities and Local Government began reassessing the planning application by writing to interested parties, including Friends of the Earth and West Cumbria Mining. It extended the deadline for the mining company by two weeks after they did not respond.
The case has been filed by Woodhouse Investment Pte Ltd, a Singaporean company, and West Cumbria Mining (Holdings) Limited, making a claim under the terms of a Bilateral Investment Treaty between the UK and Singapore, dating back to 1975.
In this case the Acting Secretary-General has registered a request for the institution of arbitration proceedings.
The companies are being represented by the barrister and Conservative MP Geoffrey Cox and the law firm Withers.
West Cumbria Mining is itself owned by Singapore registered Woodhouse Investment Pte Ltd, and whose ultimate parent company is Cayman Islands registered EMR Capital Resources Fund. They insisted to TheBusinessDesk.com that they would deliver a “significant world class scheme” with an investment of more than £200m, all privately funded, during construction.
EMR is chaired by mining veteran Owen Hegarty, the former managing Director of Rio Tinto Asia and head of its Australian copper and gold business from 1989 to 1994.