Elk Valley Realizes Lower Prices
Teck Cominco Ltd. announced that Elk
Valley Coal has completed negotiations for
approximately 90% of its anticipated coal
sales for the 2007 coal year commencing
April 1, 2007. If the remainder of the contracts
are settled on similar terms, the
average contracted coal price for the 2007
coal year is forecast to be approximately
US$91 per ton, down from US$107 in
2006. The weighted average price of
2007 calendar year coal sales is expected
to be approximately US$96/ton, down
from US$113 in 2006. The 2007 calendar
year average price includes approximately
six weeks of carryover tonnage from
the 2006 coal year. March’s rail performance
to date has been negatively affected
by avalanches in the mountains and a significant
rail line washout west of
Kamloops, British Columbia. Rail service
to the west coast ports has now been
restored and sales volumes for the quarter
are expected to be approximately 4.5 million
metric tons (mt), depending on vessel
loadings to quarter end. Weather related
transportation risks may continue into the
second quarter. For the 2007 calendar
year, sales volumes are expected to be in
the range of 21.5 to 23 million mt.
Reduced sales volumes for the first quarter
and low port inventory levels have
restricted Elk Valley Coal’s ability to maximize
sales volumes for the calendar year
while maintaining product quality targets.