The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Teck Resources Ltd. May 28 reported plans to temporarily shut down six Canadian steelmaking coal operations in order to align production and inventories with changing coal market conditions.
"Rather than push incremental tonnes into an over-supplied market, we are taking a disciplined approach to managing our mine production in line with market conditions," explained Teck President and CEO Don Lindsay.
Each of Teck's steelmaking coal operations will be shut down for about three weeks during the third quarter.
The temporary closures will be staggered over the summer months.
As a result, Teck's coal production is expected to drop by roughly 1.5 million metric tons to 5.7 metric tons for the quarter.
Annual coal production is now estimated at 25-26 metric tons, and Teck said additional coal production adjustments will be considered over the course of 2015 as market conditions continue to evolve.
Guidance for unit operating and distribution costs for the year is unchanged.
Capitalized stripping is expected to be about C$65 million lower than original guidance reflecting lower coal production and reduced stripping costs this year due to lower diesel costs and productivity improvements since the start of the year.
Teck said this measure builds on cost reductions previously undertaken by the company, which have resulted in C$640 million in annualized savings to date.
"We will continue to focus on reducing costs and improving efficiency to ensure our mines are cash positive throughout the cycle and well-positioned when markets improve," said Lindsay.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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