ALBERTA – Coalspur Mines of Calgary and CN have signed an agreement for the transportation of thermal coal from Coalspur's Vista project near Hinton to Ridley Terminals on the Pacific coast. The agreement is for seven years beginning on Jan. 1, 2013. Up to 12 million tonnes of coal will be moved each year.
A 6.5-km long rail spur will be constructed between the existing CN line and Coalspur's loading site. Construction of the spur is to begin this year.
Coalspur said in a release that total FOB operating costs for Vista are projected to be $56.98 per tonne in the first five years of production, $59.55 per tonne in the first 10 years of production and $66.40 per tonne over the life of the mine.
The Vista coal mine will begin production in early or mid 2015 at an initial capacity of 3 million t/y, eventually reaching 12 million t/y. The deposit has a mine life of 29 years. Initial capital costs will be $527 million.
Additional information is available at Coalspur.com.