Thursday, November 10, 2011

CN and Coalspur eye export-coal agreement

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Canadian National and Coalspur Mines Limited have signed a memorandum of understanding to develop a logistics supply chain to move export thermal coal from Coalspur’s Vista Coal Project near Hinton, Alberta, to western ports starting in 2015.


At that time, Coalspur plans to start coal production at a rate of approximately 2.5 million metric tons a year, rising toabout 11.2 million metric tons by 2019. CN will transport coal to ports ports including Ridley Terminals Inc. (RTI) at the Port of Prince Rupert, B.C. Coalspur has signed a throughput agreement with RTI to handle up to 8.5 million metric tons of coal.

CN and Coalspur said in an announcement Thursday that they will jointly design and build a rail siding at the Vista site capable of handling the loading of 175-car unit trains. The two parties expect to negotiate a definitive agreement in 2012.