Teck Announces Agreement with Westshore
Teck Resources Limited announced that it has signed a non-binding term sheet reflecting an agreement in principle with Westshore Terminals Limited Partnership on proposed terms for the shipment of steelmaking coal following expiry of the current contract on March 31, 2021.
The proposed agreement will provide for the shipment of between 5 and 7 million tonnes annually at fixed loading charges. The 5 to 7 million tonne range will apply for the 9 months from April – December 2021 and for each 12-month period (January – December) in subsequent years until the contract volume is concluded. Teck will ship 32.25 million tonnes under the agreement.
The proposed agreement with Westshore complements upgrades underway at Neptune Terminals and capacity at Ridley Terminals. Together, these will provide greater flexibility and optionality for Teck shipments and contribute to reduced costs and improved performance and reliability throughout the company’s steelmaking coal supply chain.
The proposed agreement is subject to definitive documentation, and the financial terms of the agreement will not be made public.