UPDATE: Teck Resources Down 3% After Announcing Coal Shipment Agreement With Ridley Terminals
Teck Resources Limited (TCK-B.TO) is down 3% as it and Ridley Terminals Inc. announced that they have reached agreement on terms for the shipment of steelmaking coal from Teck's mines in British Columbia and Alberta for a 10-year term from January 1, 2015 to December 31, 2024, with an option in Teck's favour to extend the term for a further two years.
The new agreement contemplates Teck shipping 2.5 million tonnes of coal per year throughout the contract period, and is a successor to an existing agreement expiring at the end of 2014, which allows Teck to ship up to 1.2 million tonnes in 2011 and 2012, and up to 4.2 million tonnes in 2013 and 2014 pending the re-start of Teck's Quintette operation. An additional existing agreement allows 500,000 tonnes per year to be shipped through February 28, 2021. The commercial terms of these contracts are confidential.
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