Fording announces higher coal prices
01 Febbraio 2005 - 10:45PM
PR Newswire (US)
Fording announces higher coal prices Tight Market Conditions
Contribute to Substantial Price Increase for 2005 Coal Sales
CALGARY, Feb. 1 /PRNewswire-FirstCall/ -- Fording Canadian Coal
Trust (TSX: FDG.UN, NYSE: FDG) announced today that Elk Valley Coal
has completed almost all of its annual price and volume
negotiations with its coal customers. Substantially all sales of
metallurgical and other coal for the 2005 coal year beginning April
1, 2005 have now been priced at an average of U.S.$122 per tonne on
an FOB west coast port equivalent basis. "The unprecedented demand
for high quality hard coking coal has contributed to the
significantly higher contract prices we have been able to secure
for the 2005 coal year," said Jim Popowich, President of Fording
Canadian Coal Trust. "Our decision to expand Elk Valley Coal's
current metallurgical coal capacity by about 12% - from 25 million
tonnes to 28 million tonnes - by the third quarter of 2005 should
allow our unitholders to further benefit from these market
conditions. Substantially all hard coking coal contracts for the
2005 coal year are priced at an average of U.S.$125 per tonne on an
FOB west coast port equivalent basis. A small portion of 2005
calendar year sales are based on contracts that are not on the
April 1 to March 31 coal year cycle. Sales for calendar 2005 also
include some sales priced at 2004 coal year prices. In addition,
some contracts include additional amounts for ocean freight and
small volumes of PCI and thermal coal is sold for less than the
hard coking coal price. Taking these factors into account, the
weighted average price of 2005 calendar year sales for all coal is
expected to be slightly over U.S.$100 per tonne, nearly double the
average price of U.S.$52 per tonne obtained in 2004. Coal sales
volumes for the 2005 calendar year are targeted to exceed 27
million tonnes, a 2 million tonne increase over our 2004 sales
volumes. Achieving these targets will require Elk Valley Coal to
continue running its operations at capacity and depends on the
ability of rail and port service providers to handle the additional
volumes, both of which are subject to many operating risks and
other uncertainties. 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, currently
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. 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 February 1, 2005 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: Susan J.
Soprovich, Director, Investor Relations, Fording Canadian Coal
Trust, (403) 260-9834, ; Catherine Hart, Coordinator, Investor
Relations, Fording Canadian Coal Trust, (403) 260-9817,
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