On March 4, Canada's leading metallurgical coal exporter Teck Resources Limited (Teck) announced that it has reached agreement with Westshore Terminals Limited Partnership (Westshore) on terms for the shipment of steelmaking coal from Teck's mines in British Columbia and Alberta for a four-year term from April 1, 2012 to March 31, 2016.
According to a company release, the new agreement contemplates Teck shipping 16 million mt of coal in the initial contract year, and larger amounts in subsequent years when Teck's production is scheduled to increase, all at fixed rates through Westshore. The commercial terms of the contract have been declared confidential.
The existing contract that covers coal from the Elkview, Line Creek and Cardinal River mines expires on March 31, 2012, and the contract that covers coal from the Fording River, Greenhills and Coal Mountain mines expires on February 29, 2012.
Teck's planned sales for calendar year 2011 are in the range of 24.5 to 25.5 million mt.