GOVERNMENT OF CANADA CANCELS RIDLEY TERMINALS DIVESTITURE PROCESS

News Release

No. H002/06
For release February 7, 2006
OTTAWA - Lawrence Cannon, Minister of Transport, Infrastructure and Communities, today announced that the Government of Canada has set aside the process that was underway to divest Ridley Terminals Inc.
"By making this decision, the government is fulfilling one of its platform commitments," said Mr. Cannon.
"With favourable conditions in commodity markets and continued growth in Pacific Rim trade, this government is committed to ensuring the long-term operation of Ridley Terminals Inc. in a way that supports industry and trade objectives. We are committed to maximizing the value of this essential trade asset for Western Canadian industry; the people of Prince Rupert and the rest of British Columbia; and indeed all of Canada," added the Minister.
"This is exciting news for the people of British Columbia and Prince Rupert, and for anyone hoping to ship commodities through this important terminal. As a result of today's decision, it is now possible for Ridley Terminals to take steps to enter into long-term contracts within the context of an approved corporate plan," said Chuck Strahl, Minister of Agriculture and Agri-Food, Minister for the Canadian Wheat Board and Minister responsible for British Columbia.
A directive restricting the signing of long-term contracts had been put in place by the previous government in anticipation of completion of the divestiture process.
Ridley Terminals Inc. is a federal Crown Corporation that operates a bulk terminal on federal land leased from the Prince Rupert Port Authority in Prince Rupert, British Columbia. It was constructed in the early 1980s to support the coal mining industry in northeastern B.C.
Worldwide coal markets suffered a significant downturn in 2003, resulting in many mine closures and reduced production. The industry has experienced a resurgence in the past two years with world coal prices rising and demand for coal exceeding production over this period. Significant new mine capacity is expected to come on stream in northeastern B.C. as a result.
The Government of Canada began the process to divest ownership of the terminal in April 2003. The decision to limit Ridley Terminal's capacity to sign long-term contracts was taken in October 2005. Proponents short-listed in the previously ongoing request for proposals process will be duly notified of this decision.
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Contact:
Robert Greenslade
Acting Press Secretary
Office of the Minister, Ottawa
(613) 990-6140
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GOVERNMENT OF CANADA CANCELS RIDLEY TERMINALS DIVESTITURE PROCESS

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