Cumbria mine developers seek compensation when we all thought the Woodhouse coalmine near Whitehaven had been confined to the dustbin of history. Well not quite, as on 11 August The Guardian reported that the government is being sued in a secretive “corporate court” despite the proposed new coalmine in Cumbria being quashed by the high court last September. In April it was confirmed that the coalmine’s developer, West Cumbria Mining, had withdrawn its planning application for the project, as we reported.
The case uses investor-state dispute settlement (ISDS) rules agreed in a 1975 trade agreement between the UK and Singapore, where the major investor in the coalmine is incorporated. And it is the first case brought by a fossil fuel company against the government resulting from its climate policy.
The case has been filed by Woodhouse Investment Pte Ltd, a Singaporean company, and West Cumbria Mining (Holdings) Limited. Woodhouse Investment holds 80% of West Cumbria Mining and is itself, surprise, surprise….owned by a firm in the Cayman Islands. Representing the companies are barrister and Conservative MP Sir Geoffrey Cox MP, KC for Torridge and Tavistock, and former Attorney General, and the law firm Withers, an international law firm with offices in the United Kingdom, Europe, Asia, United States, and the Caribbean. Withers specialises in tax, trust and estate planning (to name but a few).
Cox himself is both a colourful and controversial character. Following his sacking as Attorney General in September 2020, he was contracted by Withers. Between then and November 2021 Withers were reported to have paid Cox more than £800,000 in fees whilst he was still working as a MP. This did not seem to bother enough voters in North Devonshire where he was returned to the Commons in the 2024 general election (with a much reduced majority).
Needless to say, details of the claim have not been made public, but ISDS courts allow foreign investors to sue states when their activities are affected by government policies, such as ‘green’ regulations.
Chris Rowley of South Lakes Action on Climate Change said: ”SLACC is very disappointed to see this attempt to sue the UK taxpayer after their proposed coal mine was refused an extraction licence and its planning application was quashed by the UK High Court. It’s very hard to see what valid grounds West Cumbria Mining might have, and worrying that this might all take place behind closed doors. We hope that the UK Government will oppose this claim as strongly as they can.”
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