The Canadian government has agreed to sell the majority of Ridley Terminals to a company owned by US investment firms Riverstone Holdings and AMCI Group.
The government said today that it has agreed to sell 90pc of its share in the terminal to Riverstone-AMCI for C$350mn (US$268mn). The remaining 10pc will be transferred to a limited partnership owned by the Lax Kw’alaams Band and the Metlakatla First Nation at the close of sale.
Ridley Terminals is a major point of departure for coal and petroleum coke exports to Asia. Ridley said earlier this year it expected its coal and petroleum shipments to potentially exceed 11mn metric tonnes in 2019, up from 9.1mn t in 2018.
The terminal handled 3.3mn t of metallurgical and thermal coal in the first five months of this year, up from 3.04mn t in the same period of 2018, according to data from the Port of Prince Rupert. It also handled 633,376t of petroleum coke, 69pc more than a year earlier.
The Canadian government announced plans to sell the terminal in August of last year. It said today it expects a net fiscal gain of about C$100mn after accounting for dividends from the terminal to Canada, Ridley’s current book value and transaction costs.
Riverstone and AMCI did not respond to requests for comment.
The sale is subject to review by the country’s Competition Bureau and other closing conditions.
Ridley was originally opened in 1983 to support coal development and related exports from mines in northeast British Columbia. It provides railcar unloading and product storage and loads dry bulk commodities onto ocean-going vessels.
The terminal’s largest customer is Conuma Coal Resources. Coal producer Teck is also a major customer.
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- On July 15, 2019