Teck Resources will implement temporary shutdowns in the third quarter at its six Canadian metallurgical coal mining operations to align production and inventories with changing coal market conditions.
Each of Teck’s met coal 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 will continue to meet all contracted and committed coal sales for its entire suite of products.
“Rather than push incremental tons into an oversupplied 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.”
Third-quarter production will be reduced by approximately 1.5 million metric tons (mt) to 5.7 million mt, a reduction of 22% for the quarter, with expected sales in the range of 6.0-6.5 million mt. Annual coal production is now estimated at 25-26 million mt. The company said additional coal production adjustments will be considered over the course of 2015 as market conditions continue to evolve.