British Columbia’s Energy and Mines Minister Anne Edwards has delivered some good news to residents of Elk Valley: a firm offer to buy two coal mines left in limbo by the recent bankruptcy of Westar Mining.
The sale of the Balmer and Greenhills mines to Edmonton-based Luscar is expected to close in mid-November. In the meantime, the company, government officials, and other stakeholders intend to work to satisfy a number of conditions necessary to complete the deal.
The fine-tuning will likely involve firming up a proposed contract between Luscar and a local of the United Mine Workers of America. The contract calls for the workforce at Balmer to be reduced to about 750 from 1,300, and will also allow Luscar to contract out certain jobs at the mine.
Union employees have been off the job at Balmer since early May because of a labor dispute. Greenhills, perceived as the more attractive asset, only recently shut down because it ran out of working capital.
Ten parties filed a deposit with the bankruptcy trustee to assess the two mines, and four proposals were submitted for consideration. But several groups backed away because of concern over recent changes to the province’s labor code introduced by the province’s New Democratic Party government in late October.
A free business counselling program is being made available by government to help Elk Valley small businesses adapt to “changing economic conditions.” The Elk Valley is in southeastern British Columbia, and communities affected by the industry downturn include Fernie, Sparwood and Elkford.
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