Luscar Extends Hinton Coal Mine for One Year
Wed Apr 17,12:49 PM ET
CALGARY, Alberta (Reuters) - Canadian coal company Luscar Ltd. said on Wednesday it will extend operations at its Hinton, Alberta, mine for one year because of higher prices for coal used to make steel.
The stronger prices for coking coal, mainly the result of mine closures around the world in recent years, will keep the Hinton operation open until the end of 2003.
"The relative strength and sustainability of coking coal prices has led the joint venture partners to the decision to mine this additional coal," Reg Toliver, Luscar's chief executive, said in a statement.
Another Canadian coal company, Fording Inc., said earlier this week the price of its coking coal jumped 16.5 percent to C$60.39 ($38.45) a tonne in the first quarter.
Located near the small town of Hinton about 300 km (185 miles) southwest of Edmonton, the mine currently employs 330 workers. About 60 jobs are scheduled to be cut by June.
Production from the operation was forecast at 1.25 million tonnes for 2003, down from 2.2 million tonnes this year.
The mine is operated by Cardinal River Coals, a joint venture between Luscar and Consol Energy Inc., a large U.S. coal producer.
Luscar was purchased last May by Sherritt Coal, a partnership of base metals and oil producer Sherritt International Corp., and a unit of the Ontario Teachers' Pension Plan Board.
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