Luscar Ltd. has settled a five-year-old legal dispute relating to the engineering, design, manufacture and commissioning of a coal conveyor system at Line Creek mine in southeastern British Columbia.
The US$10.7-million conveyor system was originally installed in April of 1996, but required a redesign and the replacement of some components, which Luscar completed at its expense in 1999.
Under the settlement, Luscar will recover C$10.1 million it spent on repairs. The full and final settlement is due by the end of January.
Line Creek is situated 27 km north of Sparwood, B.C., and produces bituminous metallurgical and thermal coal for delivery to domestic and international customers.
The mine is held by a 50-50 joint venture between Luscar and Pittsburgh-based Consol Energy (CNX-N). Luscar is owned by the Luscar Energy Partnership, an alliance between Sherritt International (S-T) and the Ontario Teachers’ Pension Plan.
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