Coalspur Mines Signs Rail Deal with CN to Move Coal from Vista to Ridley Terminals

Coalspur Mines Limited (ASX:CPL,TSX:CPT) announced that they have signed an agreement with CN to transport coal from their Vista Coal Project to Ridley Terminals Inc.

As quoted in the press release:

The Agreement with CN is for a seven-year period, effective from 1 January 2013 and extending through to 31 December 2019. Pursuant to the terms of the Agreement, as with most western Canadian coal producers, CN will supply the equipment to carry Coalspur’s coal to tidewater. The key elements of the Agreement are consistent with the terms announced by Coalspur on 14 December 2012 and include transportation of up to 12 million tonnes per annum of coal; and defined rates with agreed escalation and fuel surcharge calculations.

Coalspur’s President and CEO, Gill Winckler, said:

The agreements provide further clarity and stability over our operating costs in the initial years of mining at Vista. Rail and port logistics costs account for approximately 50% of Coalspur’s FOB cash costs, which are now under contracted rates.

To view the whole press release, click here.