While no financial details were disclosed for either pact, the companies said the transport deal would cover up to 12 million tons of coal per year and would run through the end of 2019.
CN will supply the equipment to carry Coalspur's coal to tidewater.
Total free-on-board operating costs for Vista are projected to be $C56.98 ($US56) per tonne in the first five years of production, $59.55/t in the first decade and $66.40/t over the mine’s lifespan.
Coalspur and CN also have finalized an agreement for the construction of a 6.5km (about 4 miles) railway line that will give CN access to Coalspur's loading site and the ability to load an entire train at Coalspur’s property in one continuous load.
The project is expected to start in the third quarter, with completion in early 2015, pending regulatory approvals.
CN will have responsibility to ensure design and construction specifications for the line are met.
“The agreements provide further clarity and stability over our operating costs in the initial years of mining at Vista,” Coalspur president and chief executive officer Gill Winckler said.
The complex’s rail and port logistics costs make up about half of the producer’s FOB cash costs. Those rates are under contract.
“Coalspur continues to deliver on its milestones,” Winckler said.
“We are in the final stages of detailed negotiations for the funding arrangements for Vista and remain engaged with regulatory agencies so that we can secure regulatory approvals for Vista phase 1, enabling us to commence construction in the second quarter of 2013.”
