Fording Announces Elk Valley Coal to Develop Cheviot Creek Pit CALGARY, March 16 /PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (TSX: FDG.UN, NYSE: FDG) today announced that the Elk Valley Coal Partnership will proceed with the development ofthe Cheviot Creek pit at its Cardinal River Operations located near Hinton, Alberta. The initial production rate at Cardinal River will be 1.4 million tonnes of clean coal per year. The first coal production is anticipated by the end of the fourth quarter of this year. If market demand remains strong, production may be expanded to 2.8 million tonnes per year in 2005. "Our outlook for coking coal sales is very positive," said Jim Popowich, President and CEO of Elk Valley Coal. "Strong export coal markets present us with an excellent opportunity to continue our operations near Hinton, Alberta, and to increase our production capacity for high-quality coking coal." Jim Popowich continued: "With 62 million tonnes of coal reserves in the permit area, mining at the Cardinal River Operations will provide jobs and economic benefits to the community for more than 20 years." Elk Valley Coal has submitted its mine license application to obtain the remaining approvals from the Alberta Energy and Utilities Board and Alberta Environment to develop the Cheviot Creek pit. Mining activities will begin in the new mining area once the mining license approval is received. The existing work force of 120 employees at Cardinal River Operations will complete miningof existing pits and will progressively shift to work on developing the infrastructure for the new mining area. These activities will include the construction of a private coal haul road and power line, both of which have received the necessary regulatory approvals and permits. The capital cost to develop the Cheviot Creek pit to an annual production rate of 1.4 million tonnes is estimated at $50 million, which is expected to be largely incurred during the second half of 2004. Additional capital cost to expand production to 2.8 million tonnes per year is anticipated to be another $70 million. The Trust's 65% share of the anticipated capital expenditures will be financed with existing bank credit facilities until permanent financing is arranged. Itis anticipated that financing of this project will not impact cash available for distribution in 2004. 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 65% ownership of Elk Valley Coal and is the world's largest producer of the industrial mineral wollastonite. Elk Valley Coal, 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. DATASOURCE: Fording Canadian Coal Trust CONTACT: Media Contact: Elk Valley Coal Corporation, Dermot Lane, Director, Public and Environmental Affairs, 403-260-9816; Community Contact: Cardinal River Operations, Lloyd Metz,General Manager, 780-692-5110; Investors: Fording Canadian Coal Trust, Mark Gow, CA, Director, Investor Relations, 403-260-9834,

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