| TSX-V:WTN and AIM: WTN TSX-V:WTN and AIM: WTN
VANCOUVER, April 5, 2005 /PRNewswire-FirstCall via COMTEX/ --
Western Canadian Coal Corp. (TSX-V: WTN and AIM: WTN) ("WCCC" or the "Company") is pleased to announce that coal price negotiations with the north Asian steel mills have concluded with settlement prices for the Company's low volatile pulverized coal injection (LV-PCI) coal for the contract year commencing April 1, 2005 in excess of US$100 per tonne. These settlements reflect current international coal market prices for premium quality LV-PCI coal.
In addition, the Company's six-year contract for delivery to POSCO of 2.8 million tonnes of coal during the period to POSCO has now been confirmed following the successful trial shipments of LV-PCI coal in the first quarter of calendar 2005.
WCCC's Burnt River LV-PCI coal is exported through Ridley Terminals at Prince Rupert to major steel mills in north Asia including POSCO of South Korea, Baosteel of China, China Steel of Taiwan and four major Japanese steel mills. The Company is also exporting coal to Europe and is expanding its market development activities in both the Asian and Atlantic regions, to meet growing demand for both LV-PCI and hard coking coal.
On March 11, 2005, the Company submitted an application to the BC Ministry of Energy and Mines to amend its Dillon Mine annual production limit from 240,000 tonnes per calendar year to a continuous monthly rate of 80,000 tonnes. The proposed change in mine production rate would not increase the mine disturbance footprint or the total waste mined but would allow the Company to mine out the small deposit at an accelerated rate. Based on approval of the Dillon Mine amendment this quarter, the Company would expect to produce and sell approximately 800,000 tonnes of LV-PCI coal for its fiscal year ended March 31, 2006. This quarter's planned LV-PCI coal exports will include the balance of the trial shipments previously contracted in 2004 as well as new shipments to the Company's customers in Asia at the new contract- year prices.
Given the growing demand for premium quality LV-PCI coal, WCCC is working towards applications for an Environmental Assessment Certificate ("EA Certificate") and mine permit on the proposed adjacent Brule Mine. A Brule Project Description report was submitted to the BC Environmental Assessment Office in January 2005 and the application for the EA Certificate is expected to be submitted by the third quarter of 2005.
Gary K. Livingstone, WCCC's President and CEO, stated "The Company's sales to Asia are now fully committed for the coal year ending March 31, 2006 and the agreed pricing reflects the continued strong demand for LV-PCI coal as well as an acknowledgement by our customers of the premium quality of our product. The amendment for Dillon and the anticipated large mine application for Brule will establish the Company as a significant LV-PCI coal producer |