CN and Coalspur Sign MoU to Develop High-Quality Supply Chain for West Coast Thermal Coal Exports

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CN
CNI
and Coalspur Mines Limited announced today that they have signed a memorandum of understanding (
MOU
) under which they will develop a high-quality logistics supply chain to transport export thermal coal from Coalspur's Vista Coal Project (Vista) near Hinton, Alta., to Western Canadian ports starting in 2015. The MOU establishes the framework for an agreement that will accommodate Coalspur's plan to commence coal production in 2015 at a rate of approximately 2.5 million tonnes per annum (Mtpa), rising to about 11.2 Mtpa by 2019. CN will transport Vista production to west coast ports including Ridley Terminals Inc. (
RTI
), located at the Port of Prince Rupert, B.C. Coalspur recently signed a throughput agreement with RTI to handle up to 8.5 Mtpa of export coal at the terminal. CN and Coalspur will jointly design and build a rail siding at the Vista site capable of handling the loading of 175-car unit trains at a full capacity of gross weight on rail of 286,000 pounds per car. The two parties expect to negotiate a definitive transportation agreement in 2012, following completion of Coalspur's ongoing Bankable Feasibility Study on Vista.
Posted In: NewsContracts
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