Ontario signs on for Western coal

Luscar has signed a 3-year deal to supply coal to Ontario Power.

No dollar figure was attached to the deal, with Luscar saying prices will be adjusted yearly according to the consumer price index. The Bienfait mine in southern Saskatchewan will supply 1.4 million tonnes of lignite coal per year to Ontario Power’s Atikokan and Thunder Bay stations. Ontario Power also has the option of increasing annual deliveries by 500,000 tonnes.

The deal follows the signing of new contracts for Luscar to supply char from its plant at the Bienfait mine. The plant will produce 100,000 tonnes this year, which is near-full capacity.