Teck and Westshore reach agreement on BC coal shipments

Neptune Terminals, one of the largest multi-product bulk terminals in North America, has the capacity to handle more than 24 million tonnes a year. Credit: Neptune Terminals.

Teck Resources (TSX: TECK.A and TECK.B, NYSE: TECK) announced it has signed a non-binding term sheet reflecting an agreement in principle with Westshore Terminals Limited Partnership on proposed terms for the shipment of steelmaking coal following expiry of the current contract on March 31, 2021.

The proposed agreement will provide for the shipment of between 5 and 7 million tonnes annually at fixed loading charges. The 5 to 7 million tonne range will apply for the 9 months from April – December 2021 and for each 12-month period (January – December) in subsequent years until the contract volume is concluded.

Teck will ship 32.25 million tonnes under the agreement.

The proposed agreement with Westshore complements upgrades underway at Neptune Terminals in North Vancouver and capacity at Ridley Terminals in Prince Rupert.

These will provide greater flexibility and optionality for Teck shipments and contribute to reduced costs and improved performance and reliability throughout the company’s steelmaking coal supply chain, Teck said.

1921 0

Comments

Your email address will not be published. Required fields are marked *

More Canada News