Greens lose court battle at Cheviot

Vancouver — The Federal Court of Canada has dismissed two applications filed by the Sierra Legal Defence Fund on behalf of five environmental groups that challenged development of the Cheviot pit at the Cardinal River coal mine in Alberta.

The Cheviot pit was developed by Elk Valley Coal, owned 60% by Fording Canadian Coal Trust (FDG.UN-T) and 40% by Teck Cominco (tek-t). Environmental groups had opposed development of the project throughout a lengthy environmental assessment process that spanned eight years, citing potential adverse effects to wildlife and the general ecosystem.

The court found that the Department of Fisheries and Oceans had “appropriately exercised its duties with due diligence” in its assessment review of the project. The court ruling also stated that Elk Valley Coal secured all necessary provincial mining and environmental approvals and complied with all regulatory requirements in the development of the project.

Production is now under way at Cheviot, and Fording expects the Cardinal River operations will produce at an annual rate of 2.8 million tonnes per year by the end of 2005. Elk Valley Coal, which has other coal operations in Canada, is the world’s second-largest exporter of metallurgical coal. The company expects to supply about 27 million tonnes of coal to the steel industry this year.

In a separate development, Fording received court approvals to proceed with a reorganization plan approved by unit-holders earlier this year. The reorganization will result in a three-for-one unit spit expected to take place shortly.