Procedural Posture

This document is a Notice of Intent to Submit a Claim to Arbitration filed by Australian investors Hancock Prospecting Pty Ltd and Riversdale Resources Pty Ltd, on their own behalf and on behalf of their Canadian enterprise, Northback Holdings Corporation. The claim is brought against the Government of Canada pursuant to Section B of Chapter 9 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Factual Background and Measures at Issue

The dispute arises from the Claimants' investments in metallurgical coal mining projects in southwestern Alberta, principally the Grassy Mountain Project. The Claimants allege that Canada, through the actions of both federal and provincial authorities, systematically frustrated the development of these assets. The challenged measures include the 2017 establishment of Castle Provincial Park and the subsequent cancellation of associated Crown leases, which allegedly sterilized the Claimants' contiguous mineral rights. Furthermore, the Claimants challenge the denial of regulatory permits by the Alberta Energy Regulator and the federal Minister of Environment and Climate Change, arguing that the Joint Review Panel process was improperly influenced by political pressure. Finally, the Claimants challenge Alberta's 2022 imposition of an indefinite moratorium on coal exploration and development in the Eastern Slopes.

Legal Claims and Positions

The Claimants assert that Canada's conduct violates multiple substantive protections under Chapter 9 of the CPTPP. Specifically, the Claimants allege breaches of Article 9.6 (Minimum Standard of Treatment), characterizing the regulatory denials and policy reversals as arbitrary, unfair, and lacking in due process. The Notice further asserts that the measures constitute an unlawful indirect expropriation under Article 9.8, depriving the Claimants of the value of their freehold mineral rights and Crown leases without prompt, adequate, and effective compensation. Additional claims are advanced under the National Treatment (Articles 9.4.1 and 9.4.2) and Most-Favored-Nation (Articles 9.5.1 and 9.5.2) standards.

Relief Sought

The Claimants seek compensation for damages estimated to exceed USD 7 billion, encompassing the net present value of the affected properties, sunk acquisition and development costs, and lease rental payments. The Claimants also request pre-award and post-award interest, tax gross-up compensation to maintain the award's integrity, and the full recovery of legal costs and expenses incurred in both the arbitration and the underlying domestic proceedings.