British Columbia’s Environmental Appeal Board has upheld an $800,000 fine against Anglo American plc (LON: AAL) for repeated permit violations at its Trend Roman coal mine in the province’s northeast.
The late August decision confirmed the penalty first issued in 2022. At the time, it was the largest fine ever levied under B.C.’s Environmental Management Act.
The board found Anglo failed to monitor waste discharges into fish-bearing waters and neglected to limit airborne particulate emissions. In addition, the mine discharged selenium into three creeks and rivers at levels that exceeded legal limits by up to 350 per cent. Selenium occurs naturally, but in higher concentrations it can cause deformities, reproductive failure, and population declines in fish and birds.
The case stemmed from operations at the Peace River coal mine, located 30 kilometres south of Tumbler Ridge. Anglo American, through its subsidiary Peace River Coal, suspended production there in 2014 because of low coal prices. The company also sold the idled mine to Conuma Resources in February this year.
According to the decision, the Director determined that Peace River failed to submit six quarterly reports and one annual report. The mine also recorded 40 instances of selenium exceedances at a downstream monitoring station. The Director classified these as major contraventions, carrying a base penalty of $20,000 per day.
Anglo’s share price slipped after the ruling. The stock fell 1.3 per cent to £22.57 in London on Thursday and has declined 1.2 per cent this week.
Read more: Antimony recovery results from NevGold’s Limo Butte project exceed expectations
Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization
The new owner has faced environmental compliance issues
The new owner, Conuma Resources, has expanded aggressively in northeastern B.C. The company restarted production at its Quintette coal mine in 2023, 24 years after Teck Resources Ltd. (TSE: TECK.B) (TSE: TECK.A) (NYSE: TECK) placed the site into care and maintenance. Furthermore, Conuma bought Quintette from Teck in 2022 for USD$120 million. It now operates four coal mines in the province: Brule, Wolverine, Willow Creek, and Quintette.
However, Conuma has also faced compliance issues. In June 2024, regulators fined the company for over 400 environmental protection violations at its Brule mine. Those infractions, which occurred between 2020 and 2023, included failing to monitor mine waste discharges and neglecting to control dust emissions.
The case displays ongoing regulatory scrutiny of coal operations in northeastern B.C. Anglo American has exited the mine, but its past infractions remain under penalty. Meanwhile, Conuma has inherited both the assets and the challenge of meeting environmental expectations in the region.
Citi recently downgraded Anglo American to Neutral from Buy, cutting its target price to GBP 28 from GBP 30.
The bank said recent share gains already priced in much of the upside from restructuring. RBC Capital Markets took a harsher view, lowering its target to GBP 21.30 from GBP 22 and maintaining an Underperform rating.
RBC flagged weaker copper production forecasts and trimmed EBITDA estimates by up to 14 per cent for 2027. Meanwhile, CFRA kept a Hold rating with a GBP 24 target, noting that a US $2.9 billion impairment at De Beers underscored continued risks to earnings stability.
.
joseph@mugglehead.com
