This mine reportedly has the potential to become one of North America’s largest export thermal coal mines as it ramps up to produce 12 million tons annually beginning in 2015. The new haulage pact is expected to be executed in first-quarter 2013.
In related news, the Canadian Government stated its intention to privatize the now booming Ridley Terminals. Over the years, Ridley has required millions in financial support to get it operating properly again. But with Asian export markets growing and available West Coast terminal capacity very limited, last year, the British Columbia facility broke records in revenues, profits and volume. It signed 11 new contracts, including several with U.S. coal producers, to ship PRB and western bituminous coal to Asian customers.
Ridley Terminals is rapidly expanding capacity to 24 million metric tons per year. The government has promised that a controlling interest in Ridley Terminals will not be sold to a state-owned company outside of Canada and that any buyer continues to operate Ridley on an open-access, commercial basis.
