Teck Resources Ltd. (TSX: TCK.A and TCK.B, NYSE: TCK), Canada’s largest producer of metallurgical coal, announced May 28 that it will be implementing temporary shutdowns in the third quarter at its six Canadian met coal operations in order to align production and inventories with changing coal market conditions.
Each of Teck’s met coal mining operations will be temporarily shut down for approximately three weeks in the quarter. Shutdowns will be staggered over the summer months among the operations. Teck said it will continue to meet all contracted and committed coal sales for its entire suite of products.
Third quarter production will be reduced by approximately 1.5 million tonnes (Mt) to 5.7 Mt, a reduction of 22% for the quarter, with expected sales in the range of 6.0 – 6.5 Mt. Annual coal production is now estimated at 25 Mt – 26 Mt. Additional coal production adjustments will be considered over the course of 2015 as market conditions continue to evolve, the company added.
“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,” said Don Lindsay, President and CEO. “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.”