Fording Inc. of Calgary has been awarded a five-year contract to operate both the Highvale and Whitewood coal mines. Fording has operated the Whitewood mine since 1986, but the Highvale deposits were previously mined by Luscar Ltd.
The mines are located about 65 km west of Edmonton and are owned by TransAlta Corp. The Highvale mine is Canada's largest coal producer at a rate of about 12.5 million tonnes of sub-bituminous B type coal per year. Whitewood is much smaller with an annual output of 2.1 million tonnes of sub-bituminous B coal.
The new 15-million-tonnes/year contract takes effect on Jan. 1, 2003. Fording will be compensated at cost reimbursement, management fee, and incentive fee. More details are available at www.fording.ca in the News Releases found in the Investor Relations section. Or for further information on this country's coal producers check out the Coal Association of Canada at www.coal.ca