The 1987 Coal Review FORDING

With its head office in Calgary, Fording Coal employs about 1,240 personnel in Alberta and British Columbia. Established in 1968 to develop coal reserves, Fording is a wholly-owned subsidiary of Canadian Pacific. Fording River Operation

The primary product of this mine, in southeastern British Columbia, is high-quality metallurgical coal, used to make coke for the international steel industry. Also produced and sold worldwide is thermal coal, used by power utilities, cement companies and other industries.

The mine’s proven reserves consist of more than 500 million tonnes of raw coal found in 12 different seams ranging in thickness from 1.5m to

Chiefly a 24-hour-per-day truck- and-shovel operation, the mine also uses a 45-cu-m dragline. Clean coal production in 1987 exceeded five million tonnes — an increase of 5% over 1986, and a record for the mine. Mining productivities (measured as total bank cubic metres of material moved per manshift) were 12% higher in 1987 when compared to 1986. The 1987 productivities are at twice the level attained in 1981. In recognition of this achievement, the company won a Silver Trophy in the productivity category of the Canada Awards for Business Excellence. It also won a Certificate of Merit for its achievement in marketing coal in both the export and domestic markets.

Record sales of 5.2 million tonnes were achieved in 1987, slightly greater than the previous high established in 1986. Sales distribution was as follows: 45% to Japan, 24% to other Pacific Rim countries, 19% to North America, 8% to South America, and 4% to Europe. Fording received a Canada Export Award for successfully competing in the international market place and for being the largest exporter of metallurgical coal to the United States. Whitewood Operation

In 1987, Fording continued contract mining at the TransAlta-owned Whitewood mine, 65 km west of Edmonton, Alta. Coal delivered from this typical, prairie, open-cast mine was 2.2 million tonnes in the second year of the 5-year contract. Production for 1988 is expected to be 3.1 million tonnes.

Last June, Fording contracted with TransAlta Utilities to undertake a major $2.2-million reclamation project to construct a recreational lake in previously mined-out lands. The project was 85% complete by the end of the year. Genesee Power Project

Fording Coal and the city of Ed monton have formed a joint venture — the Genesee coal mine, which is to supply about three million tonnes of coal to feed the Genesee Power Plant, operated by Edmonton Power.

Fording is developing the mine, which is about 55 km southeast of Edmonton. Operations are scheduled to begin late in 1988 with commissioning of the first phase of the power plant, a 400-mw generating unit, in 1989. The second phase of the plant, also a 400-mw unit, will follow in 1991.

The company will manage and operate the coal mine, which will use a 50.4-cu-m dragline to strip overbur den from the coal seams, followed by coal-loading and hauling operations. Brooks Coal Project

Fording has 120 million tonnes of sub-bituminous thermal coal reserves in the Bow City area, about 28 km southwest of Brooks, Alta. The company received preliminary approval from provincial authorities to develop a 460-ha surface coal mine in the area and to produce up to 300,000 tonnes of coal annually. Formal project approval is believed imminent. The project could inject into the area more than $3 million and employ about 30 people.

In December, 1986, Fording developed an exploration test pit near Bow City and removed 10,000 tonnes of coal. This coal was stockpiled at the mine site. In October, 1987, the coal was crushed and trucked about 31 km to Cassils, Alta. The coal was then transported by unit train to the west coast and shipped to an offshore customer for test burning.