DiscoverEstevan has learned that coal production requirements out of the Estevan branch of Westmoreland Mining have been dropping, according to a source close to the matter.
According to the documents we've obtained, there was a 29 per cent drop in June compared to the same period last year. There's a projected drop of 38 per cent in production requirements slated for October. For 2025, Westmoreland Mining is set to produce 3,131,115 tonnes of coal in mines around Estevan, a steep 28 per cent decline from 2023's numbers. For comparison, 4,369,793 tonnes of coal was produced last year.
The source alleges that the drop in demand is caused by the planned shutdown of Unit 5 at the Boundary Dam Power Station, as well as planned work on existing Units 3 and 6. Documents show that Unit 5 will be used on a 'needed' basis, meaning it'll only spin up if the demand from the grid requires it.
As a result of the coal slowdown, local union miners voted on shift changes yesterday. The solution was for miners to have 10-hour shifts with no built-in overtime to prevent layoffs. Westmoreland Mining assured their employees that they'll be able to manage staffing through attrition, employees retiring, and the odd worker leaving, Rick Dawhaniuk, the union president, shared in a statement.
"At this time, there are no layoffs. However, due to current projected reduced demand at the power stations, we do need to lower our hours accordingly, so that's what we're in the process of doing," Jon Heroux, the corporate counsel for external affairs with Westmoreland Coal, said.
Heroux confirmed that demand from their customers is down significantly. He added that moderate weather and temperature conditions have contributed to the slowdown. Another reason Heroux attributed is the Great Plains Power Station just outside of Moose Jaw that's set to go online soon.
"We are very, very committed to ensuring our employees and their families remain as whole as possible. But once people leave, it's pretty difficult for us to get them back," he added.
Heroux argued that government policy is another factor that's slowing down coal demand. "Quite frankly, I don't think it's any secret that the federal government...the Trudeau government and, to a lesser extent, the Sask government have said they want to get rid of coal-fired generation completely at a date certain - and now they've actually accelerated those plans. So, we have to keep that in mind and then go forward based on that. We are trying to preserve as many jobs as we can as long as we can while that's out there."
He cited the federal carbon tax and the shift in energy production to renewable sources by 2035 as a couple of drivers for coal being down in Estevan. Heroux said that Westmoreland is working hard to retain their employees, and that none of them are being reduced to less than a full-time status.