The Fording Canadian Coal Trust held 60%* interest in the Elk Valley Coal Partnership and 100% of NYCO, an industrial minerals business.
For a more detailed review of the Partnership and its coal products check its website at www.elkvalleycoal.ca.
For more information about industrial minerals businesses, visit the NYCO and American Tripoli websites.
*Elk Valley Coal was initially owned 65% by Fording Canadian Coal Trust and 35% by Teck Cominco, the managing partner. The agreement governing Elk Valley Coal provided for an increase in Teck Cominco’s interest to a maximum of 40% to the extent that synergies from the combination of various metallurgical coal assets contributed to Elk Valley Coal exceed certain target levels. The report of an independent expert engaged by the partners concluded that sufficient synergies had been realized to increase Teck Cominco’s interest to 40%.
The Trust and Teck Cominco considered the report of the independent expert and agreed substantial synergies were achieved. As a result, the partners agreed that the Trust’s distribution entitlement will reduce to 62% effective April 1, 2004, to 61% on April 1, 2005, and to 60% on April 1, 2006. Teck Cominco’s entitlements will increase correspondingly over the same period.
