President of Fording Canadian Coal Trust Jim Popowich said the challenges include the increased use by integrated steel mills of low-quality coals and new coal supply availability.
“To respond to these challenges, Elk Valley Coal’s current focus is on ensuring that its value proposition to its customers makes Elk Valley Coal their supplier of choice for their high-quality hard coking coal needs,” he said.
The average coal price in the third quarter of 2006 was $124 per tonne, down from $147/t in the same quarter of 2005.
The company said income from operations of $144 million decreased $120 million from 2005 due to lower coal revenue and the higher unit cost of product sold.
Revenue decreased $119 million as a result of lower US dollar coal prices, lower coal sales volumes and a stronger Canadian dollar.
Coal sales volumes of 3.5 million tonnes for the third quarter were 8% lower than 2005 levels due to some customers reducing their requirements for hard coking coal primarily as a result of the substitution of lower quality coals.
