B.C.’s biggest miner has secured the port capacity needed to handle additional coal exports, should it re-open the Quintette coal mine near Tumbler Ridge.
Teck Resources (TSX:TCK.B) said Thursday it had inked a 10-year agreement with Ridley Terminals in Prince Rupert to secure capacity for steel-making coal exports from 2015 to 2024.
The agreement would see Teck ship 2.5 million tonnes of coal per year through Ridley, representing a 108% increase in the company’s export capacity at Ridley when compared with current export numbers.
“We are very pleased to have another important agreement in place that supports the shipment of our product,” commented Bob Bell, vice-president and chief commercial officer, coal, at Teck.
Although the deal represents capacity for only 11% of Teck’s current annual coal production, the company said the deal would provide “sufficient export capacity” for additional production from its Quintette coal mine.
Teck is working on a feasibility study to re-open the mine, and said earlier this year the operation could be back in production in 2013 after being shuttered 11 years ago.
Teck’s potential re-emergence in the Northeast B.C. coal sector comes amid renewed optimism for the industry, largely underwritten by Asian demand. (See “Mining majors zero in on B.C. coal stocks” – issue 1140; Aug. 30-Sept. 5.)
Ridley Terminals is expanding its handling capacity to 24 million tonnes to ensure its ability to meet an influx of exports in the coming years.
At press time, Teck’s shares were down 3.4% to $41.47.
Joel McKay
Twitter:jmckaybiv