ST. JOHN’S, Newfoundland and Labrador–(BUSINESS WIRE)–Altius (TSX: ALS; OTCQX: ATUSF) reports that the Genesee Limited
Partnership (“Genesee LP”), of which Altius is the General Partner, has
filed suit against the governments of Alberta and Canada. The suit
claims $190 million in damages while describing actions that it feels
were tantamount to expropriation of its royalty interest in the
integrated Genesee mine and power plant in Alberta. More particularly,
the suit claims an unlawful taking of its property and undue
interference with its economic interests. A full copy of the statement
of claim is available on our website at www.altiusminerals.com.
In 2014, Altius made a significant investment in the royalty from the
coal that underpins the integrated Genesee mine and power plant in
Alberta, Canada. This investment decision relied upon policies and
regulations enacted in 2012 that permitted the Genesee power plant’s
advanced clean burning technologies to continue to generate electricity
from coal under a decommissioning schedule that extended to 2055.
Subsequent to Altius’s investment, both Alberta and Canada announced
policy and regulatory changes that will instead cause the Genesee power
plant to discontinue all coal-fired electrical generation, and the
payment of underlying coal royalties, by 2030.
The damage claim amount of $190 million is the estimated future value of
the portion of the royalty that has been taken as a result of the policy
change. The calculation of lost future value used similar parameters and
financial model inputs as we understand were used by the Province of
Alberta in determining compensation of more than $733 million to the
operator of the Genesee power plant for its expected future losses
related to the same policy and regulatory changes.
“Altius is a small Canadian company that relied upon a clearly defined
policy and regulatory framework to make a major investment. We then
suffered grave damages when these governments changed their policy in a
manner that essentially expropriated our future royalty entitlements
without compensation,” commented Altius CEO Brian Dalton. He added,
“While we fully respect the rights of both governments to change
environmental and economic policy as they see fit, we believe that it is
also reasonable for us, or any other good faith investor in Alberta and
Canada, to expect fair compensation in accordance with the rule of law
when it becomes the collateral victim of such policy change.”
Altius directly and indirectly holds diversified royalties and
streams that generate revenue from 15 operating mines. These are located
in Canada and Brazil and produce copper, zinc, nickel, cobalt, iron ore,
potash and thermal (electrical) and metallurgical coal. The portfolio
also includes numerous pre‐development stage royalties covering a wide
spectrum of mineral commodities and jurisdictions. In addition, Altius
holds a large portfolio of exploration stage projects which it has
generated for deal making with industry partners that results in newly
created royalties and equity and minority interests.
Altius has 42,955,726 shares issued and outstanding that are listed
on Canada’s Toronto Stock Exchange. It is a member of both the
SP/TSX Small Cap and SP/TSX Global Mining Indices.