Coalspur, CN Make Transportation Arrangements for Vista Project

Coalspur Mines Limited (ASX:CPL,TSX: CPT) announced that they have arranged the transportation logistics for their Vista Coal project with CN (TSX:CNR, NYSE:CNI).

As quoted in the press release:

Coalspur and CN have agreed on an innovative seven year commercial contract that forms the foundation for a collaborative coal supply chain for Vista. At full production of twelve million tonnes per annum , the agreement with CN will enable Coalspur to achieve savings in total logistics costs from the Vista Feasibility Study released inJanuary 2012.

Coalspur President and CEO, Gill Winckler said,:

Securing these key terms of the rail agreement with CN is an important milestone for us, providing certainty around our logistics costs and confirming the strong business relationship that we are building with CN. The agreed terms effectively recognise the scale of the Vista operation and will reduce our projected total FOB operating cost to deliver savings of approximately C$20 million per annum over the first five years of production as compared to the Vista Feasibility Study.

To view the whole press release, click here.