Canadian coal exporting giant Teck Resources Limited (Teck) announced on October 7 that it has signed a 10-year agreement with transportation company Canadian Pacific (CP) to transport its steelmaking coal from its five mines in southeast British Colombia to Vancouver-area ports.
A Teck statement said that the agreement reflects the companies' commitment to work together to achieve growth in the volume of coal shipped through a range of economic and marketplace dynamics and provides for flexibility over the long term. The agreement provides for investments by CP that enhance coal handling capacity to provide for Teck's volume growth.
"This agreement gives Teck the certainty we need to realize our growth strategy in coal and to deliver our increased production on a timely basis to our key markets," said Don Lindsay, Teck president and CEO.
It is a confidential agreement which commences April 1, 2011, Teck said.