The Canadian Mining Journal is Canada’s first mining publication.
This article was originally published – February/2008
Coal contributed 7% of Sherritt’s revenue in the first nine months of 2007.
2003 was a pivotal year for the coal industry in western Canada, when the two major ownership groups exchanged thermal and metallurgical coal assets. Through its ownership of Luscar Coal Income Fund, Sherritt consolidated its holdings in thermal coal, while metallurgical coal was consolidated in the Elk Valley Coal Partnership.
Sherritt International and the Ontario Teachers’Pension Plan each own 41.2% interest in the Royal Utilities Income Fund, which controls Prairie Mines & Royalty Ltd. Sherritt manages the operations at PMRL’s eight surface mines in Alberta and Saskatchewan. The production from these mines is almost all sold to nearby coal-fired electrical generating plants. As well, Sherritt and the Ontario Teachers’ each own half of the Coal Valley export thermal coal mine in Alberta, which is operated by Sherritt.
While coal was not initially one of Sherritt’s traditional core businesses, it is now a substantial part of the Sherritt puzzle. The company moves 500 million tonnes (t) of material each year to mine 40 million t of coal, making Sherritt the largest surface miner in Canada.