The 1987 Coal Review OBED

The Obed mine, in west-central Alberta, enjoyed its best year ever, selling just under one million tonnes of thermal coal. However, the mine is still producing at only one-third of its 3-million-tonne-per-year capacity. Of particular significance in 1987 was the short-term sale of 270 tonnes of coal to the Thunder Bay Generating Station of Ontario Hydro. This represents Obed’s first sale to this generating station, although Obed coal had been sold to Ontario Hydro in 1984 for combustion at Nanticoke. The open-pit mine, which started up in August, 1984, is a joint venture operated by Obed Mountain Coal Co., a wholly-owned subsidiary of Unocal Canada. Production continued smoothly during the year, with the Page 757 Walking Dragline (for overburden removal) and the Easi- Miner (for coal removal) operating well. Mine costs were reduced during the year in response to the continued pressures of low market prices.

Obed is a non-union mine, and is known for its participatory manage ment program, which has been a feature of the operation since 1984. Two noteworthy events occurred in 1987. The first was that Obed passed one calendar year without a lost-time accident. The second event was the winning of the Province of Alberta Surface Mine Rescue competition in which 12 teams competed.

Obed maintenance personnel demonstrated their mechanical and electrical skills by completely re building a used Bucyrus-Eire 60R drill. A second shovel was also assembled during the year, and four trucks were rebuilt in-house. And in the expecta tion of coal markets finally firming in the near-future, Obed started planning for a cross-pit conveyor as an alternative to a second drag line.

Marketing efforts, besides the Ontario Hydro sale, included the retention of more than 400 tonnes of sales to Obed’s single largest long-term customer, Chugoku Electric of Japan. Other major sales were a result of participation in blend cargoes to Hong Kong and Korea. A significant blending tonnage, in co-operation with other western Canadian steam coal producers, appears to be part of Obed’s long-term plans. West coast industrial sales were also realized during the year.

The company says it is optimistic that both steam coal prices and tonnage will increase in 1988.