Westshore Terminals Investment Corp. (TSX: WTE.UN) said Nov. 19 that Westshore Terminals Limited Partnership has reached an agreement with Coal Valley Resources Inc. (CVRI) to extend the parties’ current agreement, previously set to expire March 31, 2017, for an additional five-year term.
The deal is now set to expire March 31, 2022. Under this extended contract, CVRI will ship coal volumes from its export coal mines of up to 3 million tonnes per coal contract year through the Westshore rail-to-ship transloading facility on the Pacific Coast of British Columbia.
Denis Horgan, General Manager of Westshore Terminals Limited Partnership, said: “This agreement underscores the importance of the long term CVRI-Westshore relationship and marks another important and positive step between the two organizations for future.”
This extended deal comes at a time when Canadian and U.S. coal producers are securing British Columbia terminal capacity for an expected climb in coal exports to Pacific Rim markets.
CVRI is a Sherritt International (TSX: S) unit that runs Sherritt’s Mountain Operations, which currently consist of the Coal Valley and Obed Mountain strip mines. Coal Valley is located about 100 kilometers south of Edson, Alberta, in the foothills of the Rocky Mountains. In 2009, Sherritt re-opened the Obed Mountain mine near Hinton, Alberta. The Mountain Operations produced about 4.4 million tonnes of export thermal coal in 2011.