Fording Canadian Coal Trust (fdg)

[SeriousMoney]

Elk Valley Coal Announces 10-Year Sales Agreement With JFE Steel Corporation - Annual Sales Volume to Increase 39% from Current Level <PR, 10/24/05>

CALGARY, Oct. 24 /PRNewswire-FirstCall/ - Fording Canadian Coal Trust (TSX: FDG.UN, NYSE: FDG) and Teck Cominco Limited (TSX: TEK.A - News, TEK.B - News) today announced that Elk Valley Coal and JFE Steel Corporation of Japan have entered into a strategic collaborative relationship that seeks stable sales and supply of Elk Valley Coal hard coking coal. Based on this strategic relationship, Elk Valley Coal and JFE have signed a letter of intent that calls for the execution of a 10-year sales contract for the sale and purchase of 2.5 million tonnes per annum of metallurgical coal from the 2006 to and including the 2015 coal contract years. Coal sales volumes under the proposed contract increase Elk Valley Coal's anticipated annual shipments to the JFE by 39% over the 2005 coal year sales level. This contract represents an aggregate of 25 million tonnes over the 10-year term.

"We are very pleased to be strengthening our relationship with JFE Steel through this agreement," said Jim Popowich, President of Fording and President & Chief Executive Officer of Elk Valley Coal. "The long-term nature of the agreement brings significant value to Elk Valley Coal and the unitholders of Fording Canadian Coal Trust as it helps stabilize coal sales volumes going forward."

These agreements are subject to finalization of a detailed sales contract and a letter of intent concerning future cooperation, which is expected to be completed by December 2005.

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 subsidiaries, 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, supplying high-quality coal products 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.

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