All-Canadian royalty portfolio
Genesee (thermal coal)
70km southwest of Edmonton, Alberta, Canada
Westmoreland Coal Company
Capital Power Corporation
Electrical Coal "mine mouth" (tonnage based royalties with no commodity price exposure)
|LTM (as of December 31, 2017) Royalty Revenue||$6.8 million|
|Annual production capacity||5 mt|
The Genesee Mine is located approximately 70km southwest of Edmonton, Alberta. The open pit mine, which has been in operation since 1989, has an annual production capacity of 5.6 mt, and has been operating at approximately 5 mt production. Its coal is delivered to the Genesee power station which is adjacent the mine. The power station is operated by CPC.
The Genesee power station is comprised of three power generating units with total capacity of 1,376 MW. Units 1 and 2 are owned and operated by CPC and unit 3 is jointly owned by TransAlta and CPC. Unit 1 began operating in 1994, unit 2 in 1989 and unit 3 in 2005. The units were originally expected to be decommissioned in 2039, 2044 and 2055 respectively, but the government decision to shut down coal-fired electricity generation by 2030 impacted our Genesee royalty most. In 2016, an impairment charge of $72 million was recognized, as the expected cash flows from 2030 onward were no longer to be realized.
CPC and TransAlta are two of the leading utilities in Canada.
Coal produced is suitable for direct delivery from the pits to a power plant, with no processing or preparation necessary. The coal has low sulphur content, usually less than 1%.Previous Page
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