Released on January 27, 2000
Seventy-two jobs at the Bienfait coal mine are now secure as a result of LuscarLtd.'s successful bid for a new three-year coal supply contract with Ontario
Power Generation Inc. The contract is due in part to royalty/tax modifications
made by the provincial government.
At a community ceremony in Bienfait today to celebrate the new contract, Gordon
Ulrich, President and CEO of Luscar Ltd. thanked Energy and Mines Minister
Eldon Lautermilch and the provincial government for its role in helping to
secure the contract and the future of the mine.
The government will be providing a remission of the Bienfait Mine royalty/tax
payable over the next three calendar years, to a maximum of $1.4 million per
year.
The Bienfait Mine has been supplying coal to Ontario's power utility for
several decades but was faced with strong competition from U.S. suppliers when
the contract came up for renewal last year.
"The government responded to the potential mine closure and its impact on the
community by modifying the mine's royalty payments and enabling a more
competitive bid," Lautermilch said.
"The government's decision to provide this support is evidence of the
importance which we attach to maintaining the competitiveness of our resource
industry," Lautermilch said. "The jobs, tax revenues and spin-off businesses
in local communities produced by the resource industry are also stabilizing
factors in Southeastern Saskatchewan, where farmers have been struggling with
low income due to poor weather and low commodity prices."
"I am confident that with the continued efforts of our employees and ongoing
support of our partners and stakeholders, Bienfait Mine will maintain its
competitive position in this very challenging marketplace," Ulrich said.
Ontario Power Generation's commitment is for a base contract tonnage of 1.4
million tonnes per year, with prices adjusted annually based on the consumer
price index.
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For more information, contact:
Gail Smith
Energy and Mines
Regina
Phone: (306) 787-3037