Coal produces black ink for Hillsborough

Net income of $545,000 was reported by coal producer Hillsborough Resources .T(HLB-T) for the second quarter of 1997, compared with income of $9.3 million a year earlier.

The 1996 results included a gain of $8.8 million realized from the distribution of about 1.3 million shares of Canabrava Diamond (CNB-V) to shareholders of Hillsborough.

Hillsborough reports that coal production during the first half of 1997 rose to 535,000 tonnes from 462,000 tonnes a year earlier. The cash cost of sales was $35.40 per tonne, or 98 cents less per tonne than a year ealier.

The company’s Quinsam coal mine on Vancouver Island has been ready to enter full production since the summer of 1996. However, owing to interruptions to production schedules and lower yields, the mine has not yet reached design capacity.

For the first six months of this year, clean coal production averaged 90,000 tonnes per month, or 10% less than design capacity. To improve the situation, some operating changes and training programs have been initiated.