Westshore Terminals Investment Corp. (TSX: WTE) said Sept. 19 that Westshore Terminals Limited Partnership has reached an agreement with Teck Resources to extend the parties’ current agreement, previously set to expire March 31, 2016, for an additional five-year term.
The agreement is now set to expire March 31, 2021. This extended contract will require Teck to ship through Westshore coal volumes from its various mines, of not less than 16 million tonnes and up to 19 million tonnes per coal contract year, all at fixed rates.
Denis Horgan, General Manager of Westshore Terminals Limited Partnership, said: “This agreement underscores the importance of the long term Teck-Westshore relationship and marks another important and positive step between the two organizations for the future.”
Teck is Canada’s largest producer and exporter of metallurgical coal. Its stock trades on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK.
Space at the British Columbia terminals, some of which are expanding, is increasingly at a premium as new and established coal producers in the province look to ramp up production to meet expected long-term demand increases from Pacific Rim customers.