CPR, coal trust reach rail deal
For the next five years, the
The key to the deal for Elk Valley was a commitment by CPR to increase coal shipments in the years 2006-2008 to meet scheduled coal production increases at Elk Valley. The partnership is expected to supply more than 27 million tonnes of coal products to the international steel industry in 2005.
“CPR’s commitment to increase coal movements during the term of the contract provides us with the confidence that Elk Valley Coal will have sufficient rail capacity for its current expansion plans,” says James Popowich, CEO of Elk Valley Coal and president of Fording Canadian Coal Trust.
The new contract provides Elk Valley with fixed rail costs in the first three years of the deal. Rates in 2004 were about $29 per tonne, or 20% higher than in 2003; in 2005 and 2006 they will be roughly $37 per tonne. The shipping rates for 2007 and 2008 will be linked to Elk Valley’s market price for coal, with floor and ceiling rates somewhere between 2005 and 2004 rates. CPR will get extra cash per tonne if fuel prices skyrocket between now and the end of the contract, and a further rate premium for any additional tonnes above base volumes.
Both parties agreed to drop legal proceedings relating to a previous contract.
The Fording Canadian Coal Trust is a mutual-fund trust that, through its wholly owned subsidiary, Fording Inc., holds a 60% interest in the Elk Valley Coal Partnership. Teck Cominco manages the Elk Valley Coal Partnership and has a 40% interest.
Atlas Copco in Asia
The Chinese government has given Swedish-based Atlas Copco permission to convert its 92% equity joint venture, Nanjing Atlas Copco Construction Machinery, into an entirely foreign-owned enterprise.
Nanjing Atlas Copco Construction Machinery was established in 1993 and currently employs 70 people. The company assembles, sells and services drill rigs and surface crawlers.
“The move is in line with Atlas Copco’s strategy of increasing its presence in Asia and of owning as much as possible of all companies in which investments are made,” says Magnus Gyll, vice-president of Atlas Copco (China) Investment Co.
Atlas Copco has been active in China for more than 80 years.
Snowden sponsors photo contest
Snowden Mining Industry Consultants wants your mining photos.
Until June 30, the Australian company is accepting submissions for the best amateur mining photos. The winner will receive A$10,000, with second place taking home A$3,000, and third-place, A$1,000. Photo submissions from contest winners and finalists will be published on the Snowden web site and exhibited at the Diggers and Dealers conference in Kalgoorlie in early August.
Submissions will be judged by renowned Australian mining photographer Richard Woldendorp.
The contest is open only to amateur photographers who are at least 18 years old. For a complete list of rules and instructions, visit www.snowdenau.com and click on the photo contest banner.
Rescan to conduct study
Based on a technical report compliant with National Instrument 43-101, and using a cutoff grade of 0.2% molybdenum, the Yorke-Hardy deposit contains a measured and indicated mineral resource of about 83 million tonnes grading 0.295% moly, or 293.5 million lbs.
Rescan was involved in the permitting and monitoring of the Ekati diamond mine in the Northwest Territories and the Voisey’s Bay nickel mine in Labrador. The company has been in business since 1981.
Credit line for Kazakstan
Export Development Canada (EDC) has backed a $30.5-million line of credit with Bank TuranAlem of Kazakstan to finance exports of Canadian goods and services to that country.
“This new multi-sector line of credit with BTA helps to meet the need for buyer financing in Kazakstan so that more Canadian companies can conclude transactions with buyers in this rapidly developing market,” says Rod Lever, EDC’s regional manager of international markets for the Russia Federation and central Asia.
Kazakstan has several rapidly growing sectors, including mining, energy, and agriculture.
With the aid of the EDC, Canadian export sales to Kazakstan more than doubled to $94 million in 2004 from $38.5 million in 2003.
In January, Bank TuranAlem had more than US$5 billion worth of assets. The EDC is a Crown corporation founded in 1944.
Bucyrus sells shovel
Bucyrus International of Milwaukee, Wisc., has sold a 495HD electric rope shovel to Montana Resources for use at its Continental copper-molybdenum mine in Butte, Mont. Delivery is expected sometime in late summer.
High energy costs once forced the open-pit operation to close for three years, but even higher commodity markets have brought the project back to life. Montana had previously used Bucyrus draglines and drills.
The 495 series shovel uses the Siemens AC-IGBT electric drive system, which eliminates brushes, fuses and other high-maintenance components on DC-powered machines. The rope shovel is also equipped with AccessDirect, which allows an engineer access to the machine’s electrical system via the Internet.
Bucyrus manufactures draglines, drills and shovels.
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