The British Columbia government is facing another legal challenge over a moratorium on uranium and thorium exploration and mining – something that has already cost provincial taxpayers $30 million.
In a claim filed in BC Supreme Court, Anthem Resources Inc. (TSX-V:AYN) says the government's moratorium amounts to expropriation and seeks damages and compensation for being prevented from exploiting its rights to conduct exploration of claims it has interests in.
Although it does not state how much the company is suing for, it calculates that it spent $635,556 on exploration of two uranium and thorium deposits before the moratorium came into effect.
A spokesperson for the company could not be reached for comment.
It is the second legal challenge the B.C. government has faced since it placed a moratorium on uranium and thorium exploration and mining in 2008.
In 2011, the B.C. government settled out of courtwith Boss Power Corp. (TSX.V:BPU), which received $30 million in an out of court settlement.
Anthem holds an interest in the Blizzard claims near Kelowna, which is owned by Blizzard Uranium Corp., a subsidiary of Boss Power.
Under an agreement signed in 2006, Anthem would have ended up owning a 5% stake in the Blizzard claims.
Under that agreement, Blizzard would fund the first $1 million in exploration costs, and would receive a 5% stake, to be paid on a royalty basis of $1 per pound of uranium oxide that might be mined.
But in its statement of claim, Anthem said that agreement could not be concluded due to the moratorium.
Anthem says it spent $382,221 in exploration on that deposit before the moratorium came into effect in 2006, shutting down all uranium and thorium exploration in B.C.
"But for the moratorium, Anthem would have acquired that 5% interest," the company says in its statement of claim.
Anthem also spent $253,335 on another uranium-thorium claim – the KET/REN claims in South Central B.C. and is seeking damages and compensation for that claim as well.
In both cases, the deposits have no minerals of value apart from uranium and thorium, the company states in its claim.
Through a freedom of information request, Business in Vancouver revealed government spin control as it dealt with a backlash from mining companies.
In an attempt to put a positive spin on the moratorium, the B.C. government asked the Association for Mineral Exploration BC (AME BC) for a government-friendly quote.
"With all the bad news lately that has been delivered from Victoria … there is no appetite from our 5,000 members to participate in providing positive quotes for the government," the association wrote back in 2008.
In one internal email between government bureaucrats, chief gold commissioner Patrick O'Rourke wrote that he didn't think Boss Power would be "overly difficult" to deal with.
In fact, Boss sued the government over the moratorium and ended up getting $30 million from taxpayers.
