SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Dated June 21, 2004
Fording
Canadian Coal Trust
(Translation of Registrant's Name Into English)
Suite 1000, 205-9th Avenue SE
Calgary, Alberta Canada T2G 0R4
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F ______
Form 40-F ___X___
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ______
No __X__
(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________.
This report furnished on Form 6-K shall be incorporated by reference into each of the Registration Statements under the Securities Act of 1933 of the registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FORDING CANADIAN COAL TRUST
July 21, 2004
By:/s/ James E. Jones
James F. Jones
Corporate Secretary
Exhibit Index
The following is a list of Exhibits included as part of this Report on Form 6-K.
Description of Exhibit
Number
Press Release entitled “Fording and Teck Cominco Agree Significant
Synergies Achieved”
Exhibit 99
July 21, 2004
Via Edgar
Securities and Exchange Commission
450 Fifth Street N.W.
Washington, D.C. 20549
RE:
Fording Canadian Coal Trust File NO. 1-15230
Form 6-K Report dated July 21, 2004
Dear Sir or Madam:
On behalf of Fording Inc. transmitted herewith for filing under the Securities and Exchange Act of 1934, as amended, is the Company’s Report on Form 6-K.
Yours truly,
James F. Jones
Corporate Secretary
Attachments
For Immediate Release
FORDING AND TECK COMINCO AGREE
SIGNIFICANT SYNERGIES ACHIEVED
CALGARY, July 20, 2004 – Fording Canadian Coal Trust (TSX: FDG.UN, NYSE: FDG) and Teck Cominco Limited (TSX: TEK.A and TEK.B) today announced their agreement that significant synergies have been achieved by Elk Valley Coal Partnership following its formation in February 2003. As a result, Teck Cominco’s current 35% interest in Elk Valley Coal will increase to 40% over three years. During this period, the Trust’s unitholders will continue to benefit from the synergies achieved to date and those that are anticipated to be realized going forward. As such, the level of distributions to the Trust’s unitholders should not be materially affected solely as a result of the change in the respective levels of interest in Elk Valley Coal.
The agreement governing Elk Valley Coal provides that Teck Cominco may increase its interest in the partnership to a maximum of 40% to the extent that synergies from the combination of various metallurgical coal assets contributed to the partnership exceed certain target levels. The report of an independent expert engaged by the partners concluded that sufficient synergies had been realized such that Teck Cominco’s interest in the partnership should be increased to 40%.
Teck Cominco and the Trust have reviewed the expert’s report. The Trust established an independent special committee of the board of directors of Fording Inc., the Trust’s wholly owned subsidiary, to assess the synergies achieved and the likelihood that additional synergies would be realized. It recommended that the best interests of Fording Inc. and the unitholders of the Trust would be served if Teck Cominco receives its additional interest in Elk Valley Coal over the next two years. The recommendation of the independent special committee follows an extensive review and analysis of the issue, including advice from independent engineering, financial, accounting and legal advisors.
Teck Cominco and the Trust have agreed that the Trust’s interest in Elk Valley Coal will be reduced to 62% effective April 1, 2004, 61% effective April 1, 2005 and 60% effective April 1, 2006 and Teck Cominco’s interest will be correspondingly increased. The latter two reductions are conditional on Teck Cominco being the Managing Partner at the effective date of the reductions.
“The combination of these businesses and management expertise is producing the positive results that we expected and hoped for,” said Mr. Michael Grandin, Chairman and Chief Executive Officer of the Fording Canadian Coal Trust. “We believe that continuing value enhancements for unitholders created by tightly focused management of these world class assets will more than offset the reduction of our interest in Elk Valley Coal.”
Mr. David Thompson, Deputy Chairman and Chief Executive Officer of Teck Cominco said: “Management of Elk Valley Coal Partnership has worked hard to create substantial synergies in areas of production integration, capital spending, transportation logistics and many other areas of opportunity.”
As part of the review process, Fording Inc.’s independent special committee consulted with Ontario Teachers’ Pension Plan given their key involvement in the negotiations resulting in the creation of the Elk Valley Coal Partnership and the synergies adjustment. Mr. Brian Gibson, Senior Vice-President, Global Active Equities of OTPP said: “We are very pleased with this agreement on synergies and are confident that it reflects both the significant progress that has been achieved to date as well as the continuing commitment of the partners to maximize the value of the combined assets.”
As a result of the change in its interest, the Trust will record a reduction of net assets and an equivalent non-cash charge to earnings equal to the proportionate decrease in its interest in the net assets of Elk Valley Coal, which will be discussed in the 2004 Second Quarter News Release.
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., currently holds a 62% ownership 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.
Teck Cominco is a diversified mining company, headquartered in Vancouver, Canada with assets totaling approximately $5.5 billion. Its shares are listed on the Toronto Stock Exchange under the symbols TEK.A and TEK.B. The company is a world leader in the production of zinc and metallurgical coal and is also a major producer of copper and gold.
Certain information included in this document is of a forward-looking nature. Forward-looking information is subject to known and unknown risks, as well as uncertainties and other factors. Accordingly, actual results may differ materially from those expressed or implied in forward-looking information. Some of the risks, uncertainties and other factors affecting Fording Canadian Coal Trust and Teck Cominco Limited are discussed in their respective public filings with the securities regulatory authorities in Canada and the United States. Copies of Fording Canadian Coal Trust's and Teck Cominco Limited’s Canadian filings,
including their most recent management information circular, annual information form, annual report, quarterly reports, material change reports and news releases, are available online at www.sedar.com, and copies of Fording Canadian Coal Trust’s U.S. filings, including its most recent annual report on Form 40-F as supplemented by filings on Form 6-K, are available at www.sec.gov. Information in this document is presented as of July 20, 2004 and is subject to change after this date. However, Fording Canadian Coal Trust and Teck Cominco Limited disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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For further information contact:
Catherine Hart
Coordinator, Investor Relations
Fording Canadian Coal Trust
Ph. 403-260-9817
Email: catherine_hart@fording.ca