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Teck inks agreement to expand Canadian coal shipments with Ridley Terminals

Teck Resources Ltd. signed an agreement with Ridley Terminals Inc. allowing it to boost metallurgical coal shipments through the latter's facilities on the West Coast of Canada from 3 million tonnes per year to 6 million tonnes per year starting in January 2021.

The agreement runs to December 2027 and includes an option to increase capacity to 9 million tonnes.

The agreement comes as Teck continues to upgrade facilities at Neptune Terminals in British Columbia and on the back of Canadian National Railway Co.'s plans to upgrade rail infrastructure Teck uses to transport coal from its mines in the region.

Teck said the Ridley agreement will give its coal supply chain more flexibility and improve performance.

With increased capacity at other terminals, analysts have said they expect Teck to shift coal shipments away from Westshore Terminals Investment Corp.'s limited partner, Westshore Terminals LP, as Teck's Westshore shipping contract ends in the first quarter of 2021.

A Teck spokesperson could not be reached outside regular working hours in Vancouver, British Columbia, where it is headquartered.