The company said late last week that the term for the agreement, under which no financial terms were disclosed, covered four years from April 1, 2012, to March 31, 2016.
Teck is expected to ship 16 million tonnes in the initial contract year, with larger amounts in subsequent years as production from its mines increases. All shipments through Westshore will be at fixed rates.
The companies have an existing shipment contract for coal from the Elkview, Line Creek and Cardinal mines that expires March 31 next year. Another contract covering coal from the Fording River, Greenhills and Coal Mountain operations will expire February 29, 2012.
Last October, Vancouver-based Teck signed a 10-year deal with Canadian Pacific Railway for the transport of coal from five of its operations to Vancouver ports.
The decade-long, term-confidential deal commences April 1.
“The agreement reflects the companies' commitment to work together to achieve growth in the volume of coal shipped through a range of economic and marketplace dynamics and provides for flexibility over the long term [and] provides for investments by CP that enhance coal handling capacity to provide for Teck's volume growth,” the company said at the time.
