Fording Canadian Coal Trust
Encyclopedia
Fording Canadian Coal Trust (NYSE
: FDG; TSX
:FDG) was a Canadian
-based royalty trust
which owned a 60% stake in the Elk Valley Coal Partnership (EVCP), which in turn produced hard-coking
metallurgical coal primarily for steel
production. Through the EVCP it also owned a 46% interest in Neptune Bulk Terminals (Canada) Ltd., which operates a dedicated coal berth
at the Port of Vancouver
. Its market capitalization
was $11-billion USD
in 2008.
The trust was formed in 2003 to assemble various assets from Luscar Ltd./CONSOL Energy Canada Ltd. joint venture
s, Teck Cominco
Ltd., and the former Fording Coal Ltd. (which was originally a unit of Canadian Pacific Railway
until October 2001).
On July 29, 2008, Teck Cominco announced an agreement with Fording to purchase 100% of its assets; Teck Cominco had been the minority owner of the Elk Valley Coal Partnership, with a 40% stake. The purchase was closed on October 30, 2008, with a final cost of $14-billion USD to Teck. Elk Valley Coal Corporation will be renamed Teck Coal Limited.
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
: FDG; TSX
Toronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...
:FDG) was a Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
-based royalty trust
Royalty trust
A royalty trust is a type of corporation, mostly in the United States or Canada, usually involved in oil and gas production or mining. However, unlike most corporations, its profits are not taxed at the corporate level provided a certain high percentage of profits are distributed to shareholders...
which owned a 60% stake in the Elk Valley Coal Partnership (EVCP), which in turn produced hard-coking
Coke (fuel)
Coke is the solid carbonaceous material derived from destructive distillation of low-ash, low-sulfur bituminous coal. Cokes from coal are grey, hard, and porous. While coke can be formed naturally, the commonly used form is man-made.- History :...
metallurgical coal primarily for steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
production. Through the EVCP it also owned a 46% interest in Neptune Bulk Terminals (Canada) Ltd., which operates a dedicated coal berth
Berth (moorings)
A berth is a location in a port or harbour used specifically for mooring vessels while not at sea.-Locations in a port:Berth is the term used in ports and harbors to define a specific location where a vessel may be berthed, usually for the purposes of loading and unloading.Most berths will be...
at the Port of Vancouver
Port of Vancouver
The Port of Vancouver was the name of the largest port in Canada, the largest in the Pacific Northwest, and the largest port on the West Coast of North America by metric tons of total cargo, with 76.5 million metric tons...
. Its market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
was $11-billion USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
in 2008.
The trust was formed in 2003 to assemble various assets from Luscar Ltd./CONSOL Energy Canada Ltd. joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
s, Teck Cominco
Teck Cominco
Teck Resources Limited known as Teck Cominco until late 2008, is a Canadian mining company. It was formed from the amalgamation of Teck and Cominco in 2001.-History:...
Ltd., and the former Fording Coal Ltd. (which was originally a unit of Canadian Pacific Railway
Canadian Pacific Railway
The Canadian Pacific Railway , formerly also known as CP Rail between 1968 and 1996, is a historic Canadian Class I railway founded in 1881 and now operated by Canadian Pacific Railway Limited, which began operations as legal owner in a corporate restructuring in 2001...
until October 2001).
On July 29, 2008, Teck Cominco announced an agreement with Fording to purchase 100% of its assets; Teck Cominco had been the minority owner of the Elk Valley Coal Partnership, with a 40% stake. The purchase was closed on October 30, 2008, with a final cost of $14-billion USD to Teck. Elk Valley Coal Corporation will be renamed Teck Coal Limited.
External links
- Fording website (Feb. 2, 2008 snapshot from the Internet ArchiveInternet ArchiveThe Internet Archive is a non-profit digital library with the stated mission of "universal access to all knowledge". It offers permanent storage and access to collections of digitized materials, including websites, music, moving images, and nearly 3 million public domain books. The Internet Archive...
) - Elk Valley Coal website (Jan. 13, 2008 snapshot from the Internet Archive)