Teck works out new labor deal at Cardinal River coal ops

Teck Resources, Canada’s largest producer of metallurgical coal, said July 6 that the unionized employees at the coal-producing Cardinal River Operations have ratified a new five-year agreement commencing July 1 and running through June 30, 2017, replacing an agreement that expired on June 30.

Discussions with United Mine Workers of America Local 1656 were collaborative, said Mark Brown, General Manager at Cardinal River Operations. “We are very pleased to have a new five-year agreement,” he added.

As a result of the new collective agreement at Cardinal River, Teck said it expects to incur a one-time, after-tax charge to profit in the third quarter of approximately C$4m; C$1m of which will be a non-cash accrual.

“Our Cardinal River Operations (CRO) include the Luscar and Cheviot mines, as defined by our regulatory permits,” said the Teck website in an entry last updated on March 21. “Luscar dates back to 1969 when mining began at Cardinal River Coals Limited. Today, the Luscar mine is home to our coal processing plant, a main shop, haul road, ongoing reclamation and administrative offices. Recently, we began exploration activities at the Luscar site, but are not currently mining in this area. The Cheviot mine lies along an east-west trending valley centred around the historic town site of Mountain Park, an area rich in coal mining history.”

The Cheviot mine permit is organized into six mining zones: Cheviot Creek; Prospect; Harris; McLeod; Redcap and Mackenzie. In 2004, Teck received licenses to mine in Cheviot Creek, and in 2007 to mine in Prospect. In 2010, it received licenses to develop the McLeod zone and parts of the Harris.  Coal mined at CRO is primarily steelmaking coal, although a small amount of thermal coal is also produced. The current annual production capacities of the mine and preparation plant are approximately 1.7 million and 3.0 million tonnes of clean coal, respectively. At 2011 production rates, CRO is expected to have a mine life of about 28 years.

Teck (TSX: TCK.A and TCK.B, NYSE: TCK) is a diversified resource company focused on copper, met coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange and the New York Stock Exchange.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.