B.C. coal mine closing early, 500 out of work

Five hundred people in northeastern British Columbia are losing their jobs after the Quintette coal mine announced it's shutting down early.

The mine was scheduled to close three years from now. But its owner, the Teck Corporation, says the mine is losing about $1 million a month, so they're shutting it down in August.

The company blames the closure on falling sales and coal prices, along with a rising Canadian dollar. Coal prices have fallen by 28 per cent over the past two years while sales have fallen 40 percent, the company says.

The nearby, smaller Bullmoose mine will remain open for now. Both mines are owned by Teck, which took over the Quintette mine in 1991 after it applied for court protection from creditors.

The layoffs will likely devastate the town, which was built by the provincial government in the 1970s to house the mine's workforce.

"This is a regrettable situation," says Teck's Senior Vice-President of Mining, Mike Lipkewich. "Certainly the community at Tumbler Ridge will feel the loss of people living in the community."

The company says that by closing now, they will ensure that all employees and suppliers will be fully paid and all environmental obligations will be satisfied.