The new deal, which expires at the end of May 2014, provides a 3% annual wage increase for the 2.5 million ton per annum operation. It replaces the deal that expired on May 31, 2009.
The Line Creek mine, opened in 1981, is in southeastern British Columbia and has a reserve of about 17Mt.
Earlier this month, Teck Resources agreed to a two-year, 3Mtpa coal supply agreement with Westshore Terminals Limited Partnership.
Under the agreement, coal will be supplied at fixed rates and will originate from Line Creek as well as Teck’s Elkview and Cheviot operations in British Columbia.
The previous Elkview agreement, expiring March 31, included varied port rates.
Teck and Westshore have also amended their agreement permitting Westshore to handle coal for the Fording, Greenhills and Coal Mountain mines.
Teck will continue to use Westshore’s facility and will ship additional coal through the Neptune Terminals where the Vancouver producer holds a 48% interest.
