March 22, 2006 — Graymont Western Canada Inc. is pleased to announce an agreement with the Athabasca Northern Railway (ANR) for a new lime transload terminal site just south of Fort McMurray, AB. This agreement provides Graymont with the rights to sufficient property for a full service lime transload terminal facility. This facility will efficiently transfer quicklime, limestone and other related products from railcar to truck for local delivery to customers in the region.
The Graymont Lime Group is a leader in efficient and economic rail and truck transportation of lime and limestone products in North America, shipping over 3,000,000 tonnes of product annually. The Graymont Lime Group currently operates 19 rail to truck terminals in the US and Canada. The new facility will be Graymont’s fifth lime terminal in Western Canada alone and will enhance the ability of our four regional lime production facilities to economically and reliably service customers in Northern Alberta.
Graymont currently supplies 100% of the quicklime market in the Fort McMurray area. We anticipate construction of the Fort McMurray Terminal when demand for lime products north of the terminal, increases significantly beyond the current 2,000 tonne per year market.
Graymont’s strategy is to anticipate market growth wherever it occurs and to be prepared to service a market when it develops. In addition to the new terminal facility, Graymont is evaluating a number of sites in Western Canada for future development of a Greenfield lime production facility. Additional lime production capacity will be constructed if and when demand increases dramatically beyond current levels. Based on current actual customer forecasts, there is insufficient demand for lime products to justify the construction of new lime production capacity in the Fort McMurray area. Graymont has sufficient excess lime capacity in Western Canada to service the limited market expected to develop in that area over the next three to five years and intends to maintain its competitive market position.
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