Westshore Terminals Locks in a Decade of Stability with Coal Giant EVR

VANCOUVER, BC – July 16, 2026

In a move that sends a powerful signal of long-term confidence through the commodities sector, Westshore Terminals Investment Corporation (TSX: WTE) announced today it has renewed and significantly expanded its service agreement with a key customer, EVR Operations Limited. The new ten-year contract not only secures a major revenue stream for the terminal operator well into the next decade but also includes immediate and substantial increases in shipping volumes for 2026 and 2027, providing a welcome near-term boost.

Behind the dry language of the corporate filing lies a story of strategic positioning and mutual assurance. The agreement, set to commence on January 1, 2028, commits EVR to shipping ten million tonnes of its product annually through Westshore's facilities, with an option to increase that to 11 million. The deal also includes a potential five-year extension at EVR's discretion, potentially locking in this crucial partnership until 2043. For investors and market watchers, this isn't just another contract renewal; it's a foundational piece of Westshore's future, providing a rare and valuable degree of revenue predictability in a volatile industry.

A Vote of Confidence Amidst Headwinds

To understand the full weight of this announcement, one must look at the company on the other side of the table: EVR Operations Limited, better known as Elk Valley Resources. As Canada's largest producer of steelmaking (metallurgical) coal, EVR is a titan in the global resource market. Its four mines in British Columbia's Elk Valley are critical sources for the international steel industry. The company's recent history, however, has been marked by transition and challenge.

In 2024, global mining and trading behemoth Glencore acquired a 77% majority stake in EVR from Teck Resources, ushering in a new era of ownership and strategy. More recently, the company has navigated significant hurdles, including over $3.6 million in provincial environmental penalties related to water treatment delays and breaches at its mining operations. Furthermore, just last year, EVR announced job cuts, citing difficult market conditions and the impact of steel tariffs on demand.

Viewed against this backdrop, the commitment to a long-term, high-volume contract with Westshore is a powerful statement. It suggests that despite near-term pressures, EVR's leadership, now under the Glencore umbrella, has a clear and confident outlook on the sustained global demand for high-quality metallurgical coal. "Committing to a decade-plus of shipping capacity isn't a decision made lightly," commented one industry analyst. "It signals a fundamental belief in the longevity of your operations and the stability of your end markets. It's a bet on the future, and a big one at that."

This move also serves as a strong endorsement of Westshore's operational capabilities. EVR relies on a diversified export strategy, holding a significant ownership stake in Neptune Terminals and a contract with Trigon Terminal. By locking in Westshore for such a substantial volume, EVR is solidifying a critical pillar of its logistics chain, ensuring it has the reliable port capacity needed to get its product to market for years to come.

Deconstructing the Deal's Financials

For Westshore Terminals, the financial implications are both immediate and enduring. The most pressing benefit comes from the amended terms for the current agreement. EVR has boosted its tonnage commitments from a range of 5-7 million tonnes annually to a much firmer 8-8.5 million tonnes in 2026 and 9-10 million tonnes in 2027. This represents a significant jump in guaranteed throughput and, by extension, revenue for the terminal operator in the next 18 months.

The true prize, however, is the long-term stability offered by the new agreement starting in 2028. The commitment to a baseline of ten million tonnes per year provides a solid foundation for Westshore's revenue projections for the next decade. The contract's structure is also noteworthy; it stipulates a fixed loading charge that escalates annually with the Consumer Price Index (CPI). This mechanism is crucial as it insulates Westshore from the erosive effects of inflation, ensuring that the real value of its revenue is protected over the life of the agreement. While EVR retains the right to reduce its annual commitment to a minimum of seven million tonnes under certain limited circumstances, the ten-million-tonne baseline stands as the operational target, providing a level of certainty that is the envy of the industry.

The Broader Picture for Canadian Exports

This agreement does more than just benefit the two companies involved; it reinforces the strength and resilience of Canada's resource export infrastructure. Metallurgical coal remains a cornerstone of B.C.'s economy and a vital component in global steel production. A long-term pact between a major producer and a key terminal underscores the health of this critical supply chain.

The commitment from EVR aligns with its other long-range plans, most notably the proposed extension of its Fording River operations, which could extend the mine's life by several decades. Securing port capacity through 2028 and beyond is a logical and necessary prerequisite for such a massive undertaking. It demonstrates a holistic, long-term strategy to maintain its position as a leading global supplier.

For the broader market, this deal serves as a tangible indicator of the future of steelmaking coal. While conversations around energy transition often focus on thermal coal, the demand for high-grade metallurgical coal remains intrinsically linked to steel production for infrastructure, manufacturing, and renewable energy projects like wind turbines. EVR and Westshore are effectively underwriting the belief that this demand will remain robust for the foreseeable future, providing a crucial data point for anyone analyzing the future of Canadian commodity exports.