Altius Files Compensation Claim for Genesee Limited Partnership Coal
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.”
About Altius
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 S&P/TSX Small Cap and S&P/TSX Global Mining Indices.
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