CALGARY ELK VALLEY COAL has signed agreements with NIPPON STEEL and POSCO for the sales of 4.85 million tonnes of metallurgical coal this year increasing to 6.25 million tonnes/year in 2007 and the remainder of the 10-year deal.
In addition, Nippon and Posco are each contributing US$25 million toward a new entity, Elkview Mine Limited Partnership, which acquired the Elkview coal mine from Elk Valley Coal Partnership. The proceeds of the investment will be used to increase production at the mine to 7 million tonnes/year from the current 6-million-tonne level. More information about the deal is available from Susan Soprovich, director of investor relations at 403-260-9834 or at www.Fording.ca.
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