10 year sales arrangement between Elk Valley Coal, Nippon Steel and Posco
20 Dicembre 2004 - 3:30PM
PR Newswire (US)
10 year sales arrangement between Elk Valley Coal, Nippon Steel and
Posco Agreement Provides Long-Term Sales and Additional Capital for
Elkview Expansion CALGARY, Dec. 20 /PRNewswire-FirstCall/ --
Fording Canadian Coal Trust (Fording), Teck Cominco Limited (Teck
Cominco), Nippon Steel Corporation (NSC) and POSCO today announced
that they have entered into letters of intent which contemplate
that NSC and POSCO will enter into 10 year sales contracts covering
an aggregate of 4.85 million tonnes per annum of metallurgical coal
for 2005 from the Elkview and other Elk Valley mines, increasing to
6.25 million tonnes per annum for the 2007 coal year onwards. In
addition, each of NSC and POSCO will acquire for U.S.$25 million a
2.5% equity interest in a new entity which will own and operate the
Elkview metallurgical coal mine in southeastern British Columbia.
The Elkview mine is currently owned by Elk Valley Coal Partnership,
a general partnership between Teck Cominco and Fording. The
proceeds of the NSC and POSCO investment in Elkview will be used to
increase the annual production capacity of the Elkview mine to
seven million tonnes of coal from its current level of six million
tonnes. "The long-term nature of this agreement is of great value
to Elk Valley Coal and the unitholders of Fording Canadian Coal
Trust, while providing capital necessary to accelerate expansion
plans at the Elkview mine," said Jim Popowich, President of Fording
and Chief Executive Officer of Elk Valley Coal. "We are also very
pleased to be strengthening our long-term relationships with NSC
and POSCO, who are important customers of Elk Valley Coal."
Completion of the transactions is subject to board approvals, due
diligence, the negotiation and settlement of binding agreements and
other customary conditions. The transactions are expected to be
completed during the first quarter of 2005. About Fording Fording
Canadian Coal Trust is an open-ended mutual fund trust. Through
investments in metallurgical coal and industrial minerals mining
and processing operations, the Trust makes quarterly cash
distributions to unitholders. The Trust, through its wholly-owned
subsidiary, Fording Inc., holds a 60% interest in the Elk Valley
Coal Partnership and is the world's largest producer of the
industrial mineral wollastonite. Elk Valley Coal Partnership,
comprised of Canada's senior metallurgical coal mining properties,
is the world's second largest exporter of metallurgical coal,
capable of supplying approximately 25 million tonnes of
high-quality coal products annually to the international steel
industry. The Trust's shares are traded on the Toronto Stock
Exchange under the ticker symbol FDG.UN and on the New York Stock
Exchange under the symbol FDG. About Teck Cominco Teck Cominco is a
diversified mining company, headquartered in Vancouver, Canada with
assets totalling approximately $6 billion. Shares are listed on the
Toronto Stock Exchange under the symbols TEK.MV.A and TEK.SV.B. The
company is a world leader in the production of zinc and
metallurgical coal and is also a major producer of copper and gold.
Further information can be found at http://www.teckcominco.com/.
Forward-looking Information Certain information included in this
document is of a forward-looking nature. Forward-looking
information is subject to known and unknown risks, as well as
uncertainties and other factors. Accordingly, actual results may
differ materially from those expressed or implied in
forward-looking information. Some of the risks, uncertainties and
other factors affecting Fording Canadian Coal Trust are discussed
in our public filings with the securities regulatory authorities in
Canada and the United States. Copies of Fording Canadian Coal
Trust's Canadian filings, including our most recent management
information circular, annual information form, annual report,
quarterly reports, material change reports and news releases, are
available online at http://www.sedar.com/, and copies of our U.S.
filings, including our most recent annual report on Form 40-F as
supplemented by filings on Form 6-K, are available at
http://www.sec.gov/. Information in this document is presented as
of December 20, 2004 and is subject to change after this date.
However, Fording Canadian Coal Trust disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
DATASOURCE: Fording Canadian Coal Trust CONTACT: Ron Millos, Chief
Financial Officer, Fording Canadian Coal Trust, (403) 264-1063
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