Teck Resources Limited announced Friday that it has reached agreement with Westshore Terminals Limited Partnership on terms for the shipment of steelmaking coal from Teck’s mines in B.C. and Alberta for a four-year term from April 1, 2012, to March 31, 2016.
The new contract will result in Teck shipping coal volumes of not less than 16 million tonnes per coal-contract-year, increasing to 17 million tonnes and with the possibility to do more, all at fixed rates through Westshore.
The existing contract that covers shipments of coal from the Elkview, Line Creek and Cardinal River mines expires on March 31, 2012, and the Port Services Agreement that covers shipments of coal from the Fording River, Greenhills and Coal Mountain mines expires on February 29, 2012.
Last year, Teck was forced to lower its coal sales guidance due to capacity problems at Westshore Terminals.
However, at that time, the bulk-handling terminal said it was making improvements to allow it to handle Teck’s deliveries in 2011.
Westshore runs the largest coal-loading facility on the west coast of the Americas.
The commercial terms of this latest contract are confidential.