https://www.miningweekly.com
Coal|Export|Freight|Resources|Steel|Terminals
Coal|Export|Freight|Resources|Steel|Terminals
coal|export|freight|resources|steel|terminals

Teck CEO unloads on shipper with gripes about costs and cargo

Don Lindsay

The Westshore Terminals coal export facility, in British Columbia.

31st January 2020

By: Bloomberg

  

Font size: - +

TORONTO – A rift between between Teck Resources and the company it uses to export its coal widened as the Vancouver-based miner publicly accused the shipper of charging too much and contaminating some freight.

The head of Teck, already shifting some steel-making coal freight away from Westshore Terminals Investment , said on Wednesday that the export facility had contaminated “dozens” of shipments. Teck was forced to build its own terminal quickly, before a permit lapsed and its contract with Westshore expired, which drove up capital costs, according to CEO Don Lindsay.

“We had a lot of trouble with Westshore,” Lindsay told analysts at an industry conference in Banff, Alberta. “We’re not happy that the capex doubled. We had to get away from a company that used monopolistic pricing practices.”

Westshore, also based in Vancouver and operated by billionaire Jim Pattison, is the largest coal-loading facility on the west coast of the Americas. The company refuted Teck’s allegations.

Because Westshore had a ten-year contract with Teck, employees were able to ship the company’s coal “when they liked,” which often was not when prices were high, Lindsay said. That practice cost Teck $200-million in earnings before interest, taxes, depreciation and amortization during one quarter in 2018, when a million tons of sales were lost at a time coal margins exceeded $200/t, he said.

“We certainly disagree with the first two comments about not adhering to the contract and having tons of trouble with Westshore,” Nick Desmarais, Westshore’s corporate secretary, said by phone, referring to Teck’s allegations including the contamination of its coal. “And our rates are market rates.”

“They were contaminating our coal with thermal coal,” Lindsay alleged. “We had dozens and dozens and dozens of incidents, including one incident where it was so severe that our largest customer stopped sending ships to them.”

Edited by Bloomberg

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.549 0.582s - 89pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: