With Ridley Terminals in Prince Rupert at or near its coal-handling capacity, a prospective coal project in Northern B.C. could be left without a viable export option.
Ridley just signed a five-year deal with St. Louis-based Arch Coal to ship two million tonnes of coal this year and 2.5 million tonnes in the following four years.
The latest contract would tap out Ridley's 12-million-tonne-a-year capacity, a concern to Teck Resources which is examining plans to re-open its Quintette mine in the Tumble Ridge area, 150 kilometres northeast of Prince George.
"We're trying to understand what the impact would be," said Teck spokesperson Marcia Smith, who noted that shipping through Vancouver is not a viable option.
Teck Resources shut the Quintette operation earlier in the decade, but skyrocketing coal prices have caused the Vancouver-based company to consider re-opening the mine. A feasibility study will be complete by the fall of this year, after which the company will make a decision.
The mine would employ 350 or more people, said Smith.
A transportation bottleneck at Ridley Terminals that dampens coal expansion would have implications for Prince George, a supply and service centre for the mining sector in Northern B.C.
Smith said if the project goes ahead there would be spinoff benefits for Prince George, particularly during the start up of the mine.
The city's economic development agency, Initiatives Prince George, is aware of the issue.
Initiatives Prince George CEO Tim McEwan said Thursday expanding capacity for commodities such as coal and lumber is important for the entire economy of Northern B.C., including in Prince George. Earlier this week, he told a federal 2011 budget input session, expanding coal capacity at Prince Rupert was a priority.
Transportation bottlenecks will restrict Northern B.C.'s ability to take advantage of growing markets in Asia, particularly in China, he said. "The need is there now," said McEwan.
Ridley Terminals representatives could not be reached immediately for comment on Thursday.
The terminal, a federal Crown corporation, has a long-term lease with the Prince Rupert Port Authority.
The port authority said it supports signing contracts to handle coal from anywhere in North America.
Prince Rupert Port Authority official Shaun Stevenson said the port, and its facilities, are meant to act as a gateway for all of North America, not just Canada or a particular region.
He said there are expansion plans for the Ridley Terminals, but he didn't know the timing.
There is a rich history of coal mining in the Tumbler Ridge area which began in the early 1980s.
After the Quintette and Bullmoose mines closed in 2000 and 2003 respectively, new operators started operations several years later.
The new operators were tapping into underutilized rail infrastructure and capacity at Ridley Terminals in Prince Rupert, which has the closest sailing distance to Asia of any port on the west coast of North America.
Western Coal has several coal mining operations employing about 950 people. Of those about, 50 are Prince George residents.
Almost all of the coal mined in the Tumbler Ridge area is metallurgical coal, in demand in Japan, Korea and China for manufacturing steel.
