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Estevan mayor grateful for $8 million in coal transition funding from province

Impending 25 layoffs are just the beginning, says mayor
Roy Ludwig coal transition
Estevan Mayor Roy Ludwig, a coal miner of 44 years, responds to the province's $10 million for coal transition funding for Estevan and Coronach.

Estevan 鈥 Estevan Mayor Roy Ludwig has been a coal miner for 44 years, and is considering taking an early retirement as part of the 25 positions currently being laid off. As such, a transition away from coal-fired power generation in Estevan is a very personal thing for him.

Estevan will be getting $8 million of the $10 million of provincial coal transition funding, announced by Premier Scott Moe in Estevan city council chambers on Feb. 28. The other $2 million will be going to Coronach, which is in a similar predicament.

Ludwig said, 鈥淲e thank Premier Moe, Minister Carr and Minister Duncan for all their efforts. I know that had to go through cabinet.鈥

He said, 鈥淐oal is very important to the city of Estevan. It鈥檚 been part of our community since the turn of the century, in the 1800s, we were mining coal.

鈥淚t鈥檚 a huge impact, to see, with the changes, with the carbon tax, with the changes of the regulations. The fact is our industry is under siege,鈥 he said.

Ludwig noted the impending 25 layoffs are just the beginning.

鈥淯nfortunately, now we can鈥檛 compete with natural gas, because of the carbon tax, because of the fact the gas does not have the regulations on them, as we do, as coal. So we have a tough road ahead. Not that we鈥檙e giving up. We will continue to pursue clean coal technology. It鈥檚 green energy. We feel that it does have an important part to play in our future. But again, I realize, down the road, these decisions have to be made, hopefully sooner than later. It tends to be economic decisions that will be made, and the economics of it will definitely come to bear.鈥

Ludwig said he understood the funding would come over the next three years, starting in 2020. It will go towards economic development, he said. 鈥淎s you know, we鈥檙e hitting the ground running on economic development in our community. We鈥檝e got one economic development officer. The federal government is also paying for another, short term, two-year transition officer. We鈥檙e looking at any opportunities that we can put in place to help build our community and create jobs.鈥

鈥淲e鈥檙e realizing at the end of the day there鈥檚 no great big corporation that鈥檚 going to land at our doorstep with hundreds of jobs. It will be incremental, a few jobs at a time. We鈥檒l probably be building that way. And of course, that鈥檚 not to say we鈥檙e not looking at bigger industries coming, manufacturing-based industries coming. We are. We are working very hard on that, but it鈥檚 a work in progress.鈥

Asked if this money takes away hope for additional CCS at Shand and with Boundary Dam Unit 6, he said, 鈥淲e hope not. We will continue to work very hard on the clean coal. Again, we feel that鈥檚 our future in this community, clean coal. And now that the first unit has been put into place and is working very well, with the fact that we can sell it (CO2) to the oil industry to revitalize the oil wells in a given sector, we do feel it does have a future for us in this community and we鈥檒l continue to support that.鈥

He noted that with oil companies willing to buy CO2, it will make clean coal more viable and put Estevan in the running for other technologies SaskPower is looking at. 鈥淲e feel that clean coal is definitely one of the ones in the running. That鈥檚 going to be our focus, going forward. And if we can top up the grid with nuclear, we鈥檒l be willing to look at that. The bottom line is jobs.鈥

Asked if he would invite a nuclear power plant at Estevan, Ludwig said overtures have already been made to New Brunswick to learn more about it, realizing it鈥檚 a 10-year window for a project like that to be initiated.

Federal role

Ludwig said, 鈥淲e do feel the federal government has responsibility here. With the carbon tax they鈥檝e put in place, with the fact they feel coal is black, and therefore its dirty, which we don鈥檛 agree with, we feel their responsibility should be pension bridging for people losing their livelihoods, and of course training and transition to new jobs, whatever that may look like, whatever that may be.鈥

The federal 鈥淛ust Transition鈥 task force last year recommended pension bridging not just in Saskatchewan, but other coal mining operations, but Ludwig has not heard back from the federal government on it.

He said Estevan set up a coal transition committee a year ago with stakeholders in the community, as well as representatives from the federal government. 鈥淲e are looking at federal transition funding,鈥 he said. 鈥淥ne of the things we鈥檙e looking at is an incubator, for small businesses to start up in a given area. We will supply the office and allow them to get up and running, and hopefully their business will take off and from there, hopefully their businesses will take off and they don鈥檛 need those additional resources.

The incubator, with federal funds, would be put in place to help people get started in new businesses. 鈥淭hat鈥檚 something we have started on. As we come forward with more and more suggestions on different businesses, different technologies that we want to perfect, different ideas that maybe this will work in our community 鈥 those are the transition funding, at this point that we鈥檙e looking at getting.鈥 听

Jody Dukart, international auditor and teller for the United Mine Workers of America, which represents the unionized workforce at the Estevan Mine, was present for the announcement and subsequent working lunch with the premier. He said on Mar. 1 that 鈥淚t would be nice for the provincial government to follow what Alberta did,鈥 referring to assisting with bridging pensions for those taking early retirement.

Dukart said he realizes that can be a touch subject with oilfield workers, as they have had a tough go of it but not received similar assistance. However, he noted 鈥淚鈥檝e got to fight for my members.鈥

There are 325 union members at the Estevan Mine, he noted. He explained an average coal miner wage is between $110,000 and $120,000 per year.听

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