Fording receives draft opinion of synergies CALGARY, May 3 /PRNewswire-FirstCall/ -- Fording Canadian Coal Trust (TSX: FDG.UN, NYSE: FDG) today announced that, in accordance with the Plan of Arrangement, it has received the draft opinion of the independent expert engaged to assess and determine the synergies of Elk Valley Coal Partnership for the coal year ending March 31, 2004. The Trust's principal asset is its 65% interest in the partnership, held through the Trust's operating subsidiary, Fording Inc. Teck Cominco Limited and its affiliates own the remaining interest in the partnership. The Trust's interest in the partnership can be reduced to 60% if the partnership realizes certain synergies and/or improves the operating results from the Elkview mine (collectively referred to as synergies) in respect of any coal year during the period April 1, 2003 to March 31, 2007. The draft opinion of the independent expert indicates that sufficient synergies have been realized such that the Trust's interest in the partnership would be reduced to 60.2% effective April 1, 2004. The partnership agreement allows the Trust and Teck Cominco to review and comment on the draft opinion of the independent expert, with a final opinion to be issued no later than June 15, 2004. If any disagreements between the Trust and Teck Cominco arise with respect to the final opinion, they will be subject to resolution by binding arbitration. Accordingly, the actual change in the Trust's ownership of the partnership will not be finalized until this review process is completed. The board of directors of Fording Inc. has formed a special committee comprised of directors who are independent of Teck Cominco to oversee the consideration of the draft opinion. As part of this process, the special committee has retained the services of a mining engineering firm to review the draft opinion and supporting work and to advise the committee of its findings. The Trust's reduced interest in the distributions of the partnership would take effect April 1, 2004, and each 1% change in the Trust's ownership, taken by itself, is expected to reduce distributions to unitholders by approximately 1.5% from what they would otherwise be for the remainder of 2004. The attainment of synergies is accretive to cash available for distribution to unitholders from what would have been available in the absence of achieving synergies even after taking into account the change in the Trust's ownership of the partnership. The ultimate impact on distributions to unitholders is being studied, but will reflect the reduced ownership of the partnership offset, in part, by continuing synergies. 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 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. DATASOURCE: Fording Canadian Coal Trust CONTACT: Mark Gow, CA, Controller, (403) 260-9834,

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