Mining Company Sues B.C. Government

Cline Mining Corp. has filed suit against the provincial government over its mining ban in B.C.’s Flathead Valley. A coal mining company has filed suit against the B.C. government to claim damages to the tune of $500 million. Our Liberal government banned any mining back in 2010 in southeastern B.C.’s picturesque Flathead Valley, which also borders several other national parks in neighbouring Alberta and the U.S.

Flathead Valley mining ban | BCBusiness
The B.C. government faces a multi-million-dollar lawsuit for its 2010 mining ban in southeastern B.C.’s Flathead Valley.

Cline Mining Corp. has filed suit against the provincial government over its mining ban in B.C.’s Flathead Valley.

A coal mining company has filed suit against the B.C. government to claim damages to the tune of $500 million.

Our Liberal government banned any mining back in 2010 in southeastern B.C.’s picturesque Flathead Valley, which also borders several other national parks in neighbouring Alberta and the U.S.

The major problem with the ban is that several mining companies, including Cline, already held stakes in the valley. The valley’s watershed area is ripe with coal, oil and gas reserves, which brought companies flocking to the region for development. Thus the settlement talks began.

The B.C. government managed to settle with six of 10 claim holders for a total of $4.9 million, but it seems Cline was particularly dogged during negotiations. B.C.’s Energy and Mines Ministry issued a statement saying, “We are far apart on negotiations with Cline . . . . and have been trying to come to a reasonable settlement.”

As talks seem to be going nowhere, Cline filed suit in B.C.’s Supreme Court for damages related to the cost of lost coal licences, and compensation for the net value it would’ve gained over the life of the mines, which they estimate to be in excess of $500 million.