Greenhills - a competitive transformation

"Fording Coal is a wholly owned subsidiary of Canadian Pacific Limited. The company was founded in 1968 to mine metallurgical coalfor export at the Fording River operations in southeast British Columbia.Today, Fording Coal Limited also operates the Whitewood mine under contract to TransAlta Utilities and the Genesee mine under a joint venture arrangement with Edmonton Power. Both these operations are located just west of Edmonton and produce subbituminous low-sulphur coal which is used for power generation. Fording also owns and operates two industrial mineral mines in the United States and is mining overburden under a lo-year contract with Syncrude Canada at Fort McMurray.As of December 1992, Fording Coal Limited owns and operates the Greenhills mine which was closed due to bankruptcy. This papers deals with the innovations and changes which have been made and those which are currently being implemented to make this operation competitive in the world export coal market. IntroductionOn December 4, 1992, following a tendering process, Fording Coal was awarded 80% controlling interest in the Greenhills mine by Trustee Arthur Andersen Inc. Assets acquired included 100010 of the land and coal leases and 80% of the major joint venture assets including all structures. The remaining 20% is owned by Pohang Steel Canada Ltd., a wholly owned subsidiary of Pohang Iron Steel Co. of Korea. The Greenhills mine had been in continuous operation since 1983 and was finally closed due to bankruptcy of its majority owner on October 31, 1992.A permit to operate the Greenhills mine was issued by the British Columbia government on January 29, 1993, and Fording Coal Limited started mining operations in late February 1993.To return the Greenhills mine to profitability significant changes were required in workforce productivity, mining methods and equipment selection. These mine plan changes are designed to make the Greenhills operation competitive in world markets, provide longterm employment for the company's workforce and ensure that a secure supply of coal is available."