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Closure of the Prince Mine
May 16, 2001
On the recommendation of the Board of Directors
of the Cape Breton Development Corporation (DEVCO), the government today
approved a plan to begin the immediate and orderly closure of the Prince Mine --
the last remaining coal mine in Cape Breton.
The extraction of the remaining coal and the
recovery of equipment is expected to take until the fall to complete.
The decision to close the mine follows a
world-wide search resulting in the assessment of 60 potential buyers and
exhausting all possibilities of concluding a reasonable sale -- the objectives
for which included:
- Fair value for the assets to DEVCO and the
government,
- Reasonable employment arrangements for
transferred employees, and
- Timely completion of a transaction.
We understand that people and communities of Cape
Breton will be hit hard by this announcement. But we want them to know that just
as the government has supported DEVCO for over 30 years,
we will help the communities and workers affected make the transition.
DEVCO and its employee representatives are
being requested to establish an appropriate human resources strategy for the
workers affected by this decision.
The two Job Transition Centres, developed
following the closure of the Phalen mine, will
continue to provide support measures.
To assist the people of Cape Breton adjust to the
closure, the government has also committed an additional $28 million to
build a more diversified and future-oriented economy in the area.
will be allocated to The Cape Breton Growth Fund (CBGF);
$10 million
will be directed to Enterprise Cape Breton Corporation to
be invested in the most affected communities.
This brings to $96 million that the government
has invested in additional economic development activities on the Island since
the January 1999 announcement.
The CBGF was established in 2000 specifically to
administer economic adjustment funding provided as a result of the Government
of Canada’s decision to withdraw from coal mining on Cape Breton Island.
The Fund’s initial investments have resulted in
1350 created or planned new jobs. It is
also working to conclude other investments that will add significantly to
this total.
Since 1967, the Government of Canada has
invested $1.8 billion in DEVCO’s coal operations The Corporation has accumulated
current liabilities of another $550 million, the costs of which will fall to
the Government of Canada.
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