August 30, 2008

Fording settles 90% of coking coal contracts for 2008

Fording Canadian Coal Trust announced that Elk Valley Coal has completed negotiations for approximately 90% of its anticipated coal sales for the 2008 coal year.

Fording Canadian Coal said that “If the remainder of the 2008 contracts are settled on similar terms, the average price for the 2008 coal year is forecast to be approximately CAD 275 per tonne for all coal products as compared with an average price of CAD 93 for the 2007 coal year. The average coal sales price may vary from quarter to quarter due to sales mix, including the timing of PCI and thermal coal sales.”

The average price of 2008 calendar year coal sales is forecast to be in the range of CAD 195 to CAD 205 per tonne. The actual sales price received for the calendar year will be dependent on total sales volumes shipped in the year and the timing of sales of lower valued products, including PCI and thermal coal.

Elk Valley Coal has approximately 3.5 million tonnes of carryover tonnage from the 2007 coal year. Approximately two thirds of the carryover is expected to be delivered in the second quarter and the remainder is expected to be delivered relatively evenly over the balance of the coal year.