10-year sales agreements between Elk Valley Coal, Nippon Steel and POSCO finalized
03 Agosto 2005 - 1:30AM
PR Newswire (US)
Agreements Provide Sales and Production Stability CALGARY, Aug. 2
/PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (TSX: FDG.UN,
NYSE: FDG) today announced that Elk Valley Coal has finalized 10
year sales agreements with Nippon Steel Corporation (NSC) and POSCO
for an aggregate of 4.85 million tonnes per annum of metallurgical
coal for 2005, increasing to 6.25 million tonnes per annum for the
2007 coal year onwards. In addition, subsidiaries of NSC and POSCO
have each contributed U.S.$25 million for a 2.5% limited
partnership interest in a new entity, the Elkview Mine Limited
Partnership ('EMLP'). Effective August 1, 2005, EMLP acquired the
Elkview metallurgical coal mine in southeastern British Columbia
from Elk Valley Coal Partnership (a general partnership between
subsidiaries of Teck Cominco Limited and the Trust) in
consideration for a 94.99% general partnership interest. A wholly
owned subsidiary of Elk Valley Coal will also be a general partner
and will be responsible for management of the Elkview mine. The
proceeds of the NSC and POSCO investment in EMLP 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. "We are very pleased to have entered into this transaction
with two of our largest customers," said Jim Popowich, President of
the Trust and Chief Executive Officer of Elk Valley Coal. "It
represents a significant step forward in reaching our goal of sales
and production stability over the next decade. We welcome the
participation of two of the world's major steel producers in Elk
Valley Coal's continued growth." 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, and expects
to supply approximately 27 million tonnes of high-quality coal
products to the international steel industry in 2005. 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 August 2, 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, (403) 260-9834; Catherine
Hart, Investor Relations Analyst, (403) 260-9817; Email: , Website:
http://www.fording.ca/
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