On February 28, 2003, the Fund paid $150 million in cash for a 9.1% investment in the newly formed Fording Trust. The Fund financed this investment through loans of $120 million from a Canadian chartered bank and $30 million from an affiliate of Westar. These loans were guaranteed by the Company. Fording ‘Trust will hold 65% of the Canadian Coal Partnership (the Partnership) and 100% interest in Fording’s industrial minerals business. The Partnership acquired all the metallurgical coal assets of Fording, Teck and Luscar. The Company’s coal handling contracts previously negotiated with Fording, Teck and Luscar, including the exclusivity agreements, will continue in effect. 11. Subsequent events (a) Coal Partnership (b) Ship loader accident For accounting purposes, the Company will record an extraordinary gain in 2003, which will be the insurance proceeds to replace the damaged equipment net of the carrying value of the damaged equipment which will be written off. The cost of replacement equipment will be capitalized to plant and equipment and depreciated consistent with the Company’s depreciation policy. Proceeds from business interruption insurance will be included in earnings before depreciation, interest and income taxes on the statement of earnings. On January 2, 2003, high winds caused the two ship loaders at Berth 2 at the Company’s terminal site to collapse. Both ship loaders were severely damaged. The ship loader at Berth 1 was undamaged by the storm. ‘The Company’s insurers have confirmed the Company’s coverage under the All Risk Property Policy, including business interruption compensation for the accident (net of applicable deductions). The repair and replacement cost is estimated to be $15 million. ‘This estimate may change as repairs and replacements are undertaken. The Company anticipates the operations at Berth 2 will resume in the summer of 2003. 25 December 31, 2002 and 2001 (Figures in tables are expressed in thousands of dollars) fl. Westshore Terminals Lid. Notes to Financial Statements