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.

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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.