Luscar partners to double Coal Valley

Equal partners Sherritt International (S-T) and the Ontario Teachers’ Pension Plan Board, teamed under the Luscar Energy Partnership banner, have unveiled plans to double the capacity of the Coal Valley mine, 100 km south of Edson, Alta.

The $75-million plan entails doubling the coal wash plant capacity and adding additional mining equipment, with the aim of boosting annual thermal coal production to 4 million tonnes by the second quarter of 2006. The scheme is expected to create 100 new permanent jobs.

The plan calls for $25 million to be spent on mine development and rehabilitation and expansion of the existing coal cleaning plant; the remaining $50 million will go toward the leasing of new mining equipment.

The Coal Valley mine saw shipments reduced during the recent third quarter after the failure of a thickener, but recovered after repairs to produce around 2 million tonnes in 2004. Earlier this year, the mine’s workforce was inked to a new 5-year collective agreement. The deal provides for greater workforce flexibility, which is expected to result in increased productivity.

The additional production resulting from the expansion will be shipped via rail to B.C. coal terminals for shipping to Pacific Rim locations, where the partnership "expects export coal markets to remain relatively strong over the next few years.”