Maxim Power Corp. and Ridley Terminals Inc. Conclude Long Term Terminal Services Agreement
December 15 2011 - 5:53PM
Marketwired
Maxim Power Corp. ("MAXIM") (TSX:MXG) announced today that its
wholly owned subsidiary, Summit Coal Inc. ("Summit"), and Ridley
Terminals Inc. ("Ridley") have executed a long term terminal
services agreement for the shipment of coal through Ridley's Prince
Rupert terminal for a ten year term commencing January 1, 2015,
with an option to renew for an additional two year period. Summit
is the General Partner for Summit Coal Limited Partnership.
The agreement provides Summit with firm terminal capacity and
terminal processing services to enable the majority of Summit's
proposed coal production to access the valuable seaborne coking
coal market. Signing this agreement reduces the development risk of
its new coal mine as Summit advances to the construction phase of
its Mine 14 project ("M14"). The new agreement contemplates Summit
shipping up to 750,000 tonnes of metallurgical coal from its newly
developed mine in 2015 and thereafter 900,000 tonnes per annum
through to 2024.
The terminal services agreement is an important step forward as
Summit moves towards production of metallurgical coal from its
mine. Summit has secured firm delivery dates for critical mining
equipment and intends to commence construction of the mine early in
2012. The mine represents a valuable metallurgical coal resource
and is also an important part of MAXIM's overall fuel supply
strategy that will see production of residual fuel product
sufficient to meet the existing fuel requirements of the Milner
power plant as early as 2013 and will support a portion of the fuel
requirements for MAXIM's proposed 500 MW Milner expansion
project.
Ridley Terminals
Ridley Terminals is a Canadian Federal Crown Corporation that is
located in Prince Rupert, British Columbia. Ridley Terminals is the
most northern deep-water port in North America and has the capacity
to handle capesize vessels up to 250,000 deadweight tonnage.
Current handing capacity is 12 million tonnes which is undergoing
an expansion up to 24 million tonnes. The facility is serviced by
the Canadian National Railway and is well positioned to handle
coals from a variety of North American origins.
About Summit Coal
Summit Coal is a coal exploration and development company and is
part of the MAXIM group of companies. Its principal asset is M14,
located near Grande Cache, Alberta, Canada.
About MAXIM
Based in Calgary, Alberta, MAXIM is an independent power
producer, which acquires or develops, owns and operates innovative
and environmentally responsible power projects. MAXIM currently
owns and operates 45 power plants in western Canada, the United
States and France, having 815 MW of electric and 117 MW of thermal
net generating capacity. MAXIM trades on the TSX under the symbol
"MXG". For more information about MAXIM, visit our website at
www.maximpowercorp.com.
Statements in this release which describe MAXIM's intentions,
expectations or predictions, or which relate to matters that are
not historical facts are forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties which may cause the actual results, performances or
achievements of MAXIM to be materially different from any future
results, performances or achievements expressed in or implied by
such forward-looking statements. MAXIM may update or revise any
forward-looking statements, whether as a result of new information,
future events or changing market and business conditions and will
update such forward looking statements as required pursuant to
applicable securities laws.
Contacts: Maxim Power Corp. John R. Bobenic President and CEO
(403) 263-3021 Maxim Power Corp. Michael R. Mayder Vice President,
Finance and CFO (403) 263-3021
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