Vancouver-based coal mining company Hillsborough Resources Ltd. has signed a long-term service agreement with Prince Rupert’s Ridley Terminals Inc. (RTI) for coal export until 2021.
“This agreement means communities in Northeast B.C., which support the coal mining industry, can plan a future knowing Hillsborough has the terminal capacity it will need,” RTI chairman Bud Smith said in a press release.
According to a joint announcement from both companies this morning, the long-term agreement will address Hillsborough’s shipping needs as it looks to further expand production and assist RTI with its expansion plans.
RTI plans to double its capacity to 24 million tonnes from 12 million tonnes annually through four different phases. Phase one is underway.
“Hillsborough will be a part of the expansion of Ridley, as they look to further develop mining interests in B.C.,” RTI president George Dorsey said in the release.
Hillsborough is part of the Vitol Group of Companies.
Michelle Bryant, RTI corporate affairs manager, didn’t disclose terms of the deal but noted that the deal doesn’t directly fund the terminal’s expansion plans.
“No funds change hand until we ship through a product from a mine,” she said.
Bryant noted that the deal is one of a number of service agreements signed recently, including a deal signed yesterday with Perth, Australia-based Coalspur Mines Ltd., which has operations based in Calgary.
In September, Teck Resources (TSX:TCK.B) announced a 10-year coal export agreement with RTI. (See “Teck inks 10-year coal export deal with Ridley Terminals” – BIV Business Today, September 2).
Calls to Hillsborough weren’t returned by press deadline.
Jenny Wagler
@JennyWagler_BIV