Westmoreland Coal Company
Tonnage based electrical coal royalty with no commodity price exposure
|2019 Royalty Revenue||C$5.6 million|
|Annual Production Capacity||3.3 million tonnes of thermal coal|
|Estimated Decommissioning Year or Royalty End||2024|
The Sheerness Mine is located approximately 160km northeast of Calgary, Alberta. Operations commenced in 1986 and currently have an annual production capacity of 3.3 million tonnes of thermal coal. Coal is delivered by road from the open pit mine to the Sheerness power station, which is adjacent to the mine.
The power station is comprised of two power generating units with total capacity of 760MW. Units were originally expected to be decommissioned in 2036 and 2040, respectively; however, the government has mandated a shut down of coal-fired electricity generation by 2030. Altius commenced legal action against the federal and provincial governments in 2018, Altius commenced legal action against the federal and provincial governments in 2018, arguing that the action taken by the governments is tantamount to expropriation. This action is ongoing in 2020.