ESG Enforcement Tracker

Key facts:

On 26 March 2021, Teck Coal Limited, a Canadian company operating steelmaking coal mines, pleaded guilty before the provincial court of British Columbia to two offences under the Fisheries Act. Both offences related to unlawfully depositing deleterious substance, specifically coal mine waste rock leachate, into water frequented by fish. Teck Coal admitted that, in 2012, it did not exercise all due diligence to prevent, or have in place a comprehensive plan to address, the deposit of deleterious substance waste into water frequented by fish.

When Teck Coal committed the offences in 2012, the maximum financial penalty that could be imposed was CA$1 million dollars; however, the Fisheries Act provided that each day an offence was committed constituted a separate offence. The parties jointly recommended that there should be a total monetary payment of CA$60 million, equating to approximately CA$80,000 per day.

In support of the recommended sentence, the following submissions were made:

– Teck Coal had regularly reported the rates and constituents of the deposits to the authorities, prior and during the offending period, and so the deposits were not done in a deceptive or secretive manner.

– Serious damage and harm was caused by the waste, including to the fish and their habitat and to the community. This harm and damage were aggravating factors.

– Teck Coal accepted responsibility in its early guilty plea, and saved lengthy court proceedings.

– Teck Coal made significant efforts and spent substantial sums to address the adverse effects caused by the waste rock from its mines. The efforts and sums predated the offences and have continued since.

– Teck Coal did not have any prior conviction and was cooperative throughout the investigation.

– Teck Coal and its parent company provided extensive material to establish their good corporate character.

The court agreed with the joint recommendation, which took account of aggravating and mitigating factors, and ordered Teck Coal Limited to pay CA$60 million.