News

Western Canadian Coal signs Belcourt Saxon deal

16 November 2006 09:58:00

Western Canadian Coal, in which Cambrian currently holds a 43% stake, has today reached an agreement with Anglo American affiliate Anglo Coal Canada, NEMI Northern Energy & Mining and Hillsborough Resources.

The deal sets the platform for advancing the current Belcourt Saxon work program and funding, said the group.

It provides WCCC's consent to the transfer of NEMI's interest in the Belcourt Saxon Limited Partnership to Newco, formed by Anglo, HLB and NEMI.

The agreement provides a mechanism whereby the break fee issue arising from the previously proposed combination of WCCC and NEMI will be resolved quickly by reference to an independent expert rather than the courts.

In addition, it provides that WCCC and the parties will try to develop a definitive agreement based on their understanding on certain non-binding indicative terms.

These terms include a proposal for a grant of a 12-month option to WCCC for the sale to it of 0.8m tonnes per annum run-of-mine coal sourced from Newco operations for processing through WCCC's Wolverine coal plant.

"This agreement provides the framework for working together with Anglo to secure additional coal production for Western Canadian Coal upon commercial terms and working together on areas of mutual interest in the region," said WCC boss Gary Livingstone.

"We see Anglo Coal's entry in the region as an important step in advancing Northeast British Columbia's presence in international coal markets."

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