CALGARY – FORDING CANADIAN COAL TRUST says its operating subsidiary ELK VALLEY COAL has completed approximately 80% of its annual price negotiations with its customers. If the rest of the process goes similarly, the average coal price beginning April 1, 2006, will be US$109/tonne.The 2006 price is down 10% from the 2005 price.
Fording says its customers have considerable inventory, which will be felt as a lower sales volume during the first quarter of this year. Overall, the company expects production to between 22 million and 25 million tonnes during 2006. Volume is directly related to global steel demand and prices.
Visit www.ElkValleyCoal.ca for a look at the company’s six Canadian mines.