Elk Valley Coal Announces 10-Year Sales Agreement With JFE Steel Corporation
24 Ottobre 2005 - 11:18PM
PR Newswire (US)
Annual Sales Volume to Increase 39% from Current Level CALGARY,
Oct. 24 /PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (TSX:
FDG.UN, NYSE: FDG) and Teck Cominco Limited (TSX: TEK.A, TEK.B)
today announced that Elk Valley Coal and JFE Steel Corporation of
Japan have entered into a strategic collaborative relationship that
seeks stable sales and supply of Elk Valley Coal hard coking coal.
Based on this strategic relationship, Elk Valley Coal and JFE have
signed a letter of intent that calls for the execution of a 10-year
sales contract for the sale and purchase of 2.5 million tonnes per
annum of metallurgical coal from the 2006 to and including the 2015
coal contract years. Coal sales volumes under the proposed contract
increase Elk Valley Coal's anticipated annual shipments to the JFE
by 39% over the 2005 coal year sales level. This contract
represents an aggregate of 25 million tonnes over the 10-year term.
"We are very pleased to be strengthening our relationship with JFE
Steel through this agreement," said Jim Popowich, President of
Fording and President & Chief Executive Officer of Elk Valley
Coal. "The long-term nature of the agreement brings significant
value to Elk Valley Coal and the unitholders of Fording Canadian
Coal Trust as it helps stabilize coal sales volumes going forward."
These agreements are subject to finalization of a detailed sales
contract and a letter of intent concerning future cooperation,
which is expected to be completed by December 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 subsidiaries,
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, supplying high-quality coal
products 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 October 24, 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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