17 January 2005
Coal Transportation
Contract Dispute
Fording Canadian Coal Trust
(TSX: FDG.UN, NYSE: FDG) and Canadian Pacific Railway (TSX/NYSE: CP) today announced that
Elk Valley Coal and CPR have agreed to engage in a mediation process, beginning
20 Jan 2005, to attempt to settle their dispute over freight rates applicable to the
transportation of coal from Elk Valley Coal's mines in southeastern British Columbia to Vancouver
area ports for overseas export.
The mediation process is not binding and success will depend upon the parties reaching a consensus.
The parties have agreed to keep confidential all matters pertaining to the mediation and its progress. The parties have also agreed to hold in abeyance, pending the outcome of mediation, the outstanding legal proceedings commenced in 2004 before the Court of Queen's Bench with respect to the matters in dispute.
For further information, please refer to Fording Canadian Coal Trust's news release of
14 Dec 2004, and that of CPR dated 13 Dec 2004.
About Fording
Fording Canadian Coal Trust is an open-ended mutual fund trust. Through investments in
metallurgical coal and industrial minerals mining and processing operations, the Trust makes quarterly
cash distributions to unitholders. The Trust, through its wholly-owned subsidiary,
Fording Inc., holds a 60% interest in the Elk Valley Coal Partnership and is the world's largest
producer of the industrial mineral wollastonite. Elk Valley Coal Partnership, comprised of Canada's
senior metallurgical coal mining properties, is the world's second largest exporter of metallurgical
coal, capable of supplying approximately 25 million tonnes of high-quality coal products
annually to the international steel industry. The Trust's shares are traded on the Toronto Stock
Exchange under the ticker symbol FDG.UN and on the New York Stock Exchange under the symbol FDG.
About Canadian Pacific Railway
Canadian Pacific Railway is a transcontinental carrier operating in Canada and the U.S. Its
14,000-mile rail network serves the principal centres of Canada, from Montreal to
Vancouver, and the U.S. Northeast and Midwest regions. CPR feeds directly into America's heartland
from the East and West coasts. Alliances with other carriers extend its market reach throughout the
U.S. and into Mexico. Canadian Pacific Logistics Solutions provides logistics and supply chain
expertise worldwide. For more information, visit CPR's website at www.cpr.ca.
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