Vancouver Stephen Harper, Canada’s newly elected Prime Minister, and David Emerson, his newly appointed International Trade Minister, have pulled the plug on the proposed sale of Ridley Terminals in western Canada to Ontario-based Fortune Minerals (FT-T).
Ridley Terminals is a Crown Corporation that owns and operates a coal terminal in Prince Rupert, B.C. The facility was built in the 1980s for US$250 million to support the northeast coal industry, then being developed in eastern British Columbia and western Alberta. The facility has an annual capacity of about 16 million tonnes.
Shortly after the terminal was built, the coal industry suffered a downturn that left the port under-utilized and unprofitable. The industry has since rebounded, driven by an economic boom in China and other Asian economies. Many mines are being expanded, others are being developed, and exploration for new deposits is at robust levels.
The Coal Association and most coal producers opposed the proposed sale to Fortune, citing concerns about a single operator controlling access to a port built by government to support western coal producers. Fortune, which has a coal project about 330 km from the port, states that it has addressed access concerns raised by other coal producers.
David Emerson, a former Liberal cabinet minister, had long opposed the sale, which was supported by his former political party. After crossing the floor to join Harper’s Conservative Party, Emerson found a sympathetic ear with his new boss, who promptly cancelled the proposed sale.
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