Government rejects ATH appeal

ATH Resources has been ordered to take part in a Government carbon emissions reduction scheme that could cost it £1.4m a year.

The mining company had appealed against its inclusion in the Carbon Reduction Commitment Scheme but that has now been rejected by Energy Secretary Ed Davey.

ATH argues that the scheme will break European Union laws and is considering asking for a judicial review of the decision.

Alistair Black, chief executive of ATH, said: “Whilst it is clearly disappointing that our appeal has been dismissed by the secretary of state at this stage, the outcome of ATH’s contention that the entire CRC Scheme is contrary to EU law has yet to be determined. 

“If the CRC Scheme is found to be in contravention of EU law it will have a major implication for the operation of the Scheme in its current form.”

ATH said it was discussing the matter further with its legal advisers and would not be making payments until “further clarity of the legality” of the scheme had been received.

The Carbon Reduction Commitment Scheme forces the UK’s biggest energy users to buy permits relating to their carbon emissions.