TRANSPORTATION: Teck secures cuts to rail costs

VANCOUVER — Arbitration has secured lower rail freight rates with Canadian Pacific Railway (CP) for Teck Resources. The new rail rates are expected to save Teck $70 million for the 2009 coal year that began on April 1. The company says total transportation costs for the 2009 calendar year will be in the range of $33 to $35 per tonne of coal.

Separately and confidentially, Teck negotiated new rates with Canadian National Railway (CN).

CP and CN haul coal from Teck's five mines in southeast British Columbia to Westshore Terminals at Roberts Bank and Neptune Terminals in North Vancouver.

Information about all of the Teck's coal producers is posted at www.Teck.com.