Cash available to the trust’s unit holders for the quarter was $147 million ($1 per unit), down slightly from $151 million ($1.03 per unit) for 2005.
Coal sales volumes of 3.5 million tonnes and 6.6Mt, for the second quarter and the year to date respectively, were 8% lower than 2005 levels due to termination of contracts with the majority of customers in China and other customers not taking deliveries of coal shipments as anticipated.
President of Fording Canadian Coal Trust Jim Popowich said the company was pleased with the results.
“Cash returns to unit holders continued to be substantial, although we are seeing the impact of the lower 2006 coal year pricing, which came into effect during the quarter. Elk Valley Coal’s sales volumes were up from the first quarter, and there are some encouraging signals in the steel market that should result in better second-half coal sales,” he said.
Popowich said the settlement of labour contracts at the trust’s Fording River and Elkview mines was an important accomplishment in the quarter, with multi-year agreements now in place at all unionised operations in the Elk Valley.
The company also announced that Boyd Payne would join Elk Valley Coal as president and chief executive in the third quarter. Payne was most recently the marketing vice-president for BHP Billiton Mitsubishi Alliance.
Payne will assume the responsibilities of Popowich by the end of 2006, at which time Popowich will retire after 37 years of service with Fording Canadian Coal Trust, Elk Valley Coal and their predecessor companies.
