On October 27 Ridley Terminals signed two new long term shipping agreements that will bring millions of tonnes of coal through Prince Rupert every year.
The first was with Coalspur Mines Ltd. and will includes the company shipping six million tonnes per year through Prince Rupert, with an option for an additional 2.5 million tonnes per year. The agreement begins in January, 2015 and is for a term of 14 years with an option for an additional seven years and is for export of thermal coal from Coalspur's Vista Coal Project.
"We are exceptionally pleased to have concluded this landmark agreement. It represents a major milestone in the development of Vista as it secures port allocation for the majority of the expected production until 2035. The agreement provides Coalspur committed access to the thermal coal markets in Asia and significantly de-risks the development of Vista as it advances towards the construction phase," said company CEO Gene Wusaty in a statement.
The other agreement is with Hillsborough Resources Ltd. This agreement establishes a new relationship between the company and Ridley Terminals that covers from now until December 31, 2021, with an optional two year extension. Hilsborough is currently looking to expand production in northeast BC, while Ridley Terminals is in the midst of expanding capacity.
“This agreement means communities in Northeast BC, which support the coal mining industry, can plan a future knowing Hillsborough has the terminal capacity it will need,” said RTI chair Bud Smith.