On Nov. 17, Teck Resources Ltd. announced the “elimination” of 1000 jobs worldwide, across all of Teck’s global offices and operations.
The job eliminations are expected to happen through a series of layoffs and attrition. The reduction in jobs is expected to bring their labour force reductions to a total of 2000 positions over the past 18 months.
Teck also announced the suspension of any further work on the Coal Mountain Phase 2 project and from the environmental assessment process. The halt on the Coal Mountain project means mining could conclude at the current Coal Mountain Operation in two years. Teck said they plan to identify options between now and late 2017 to replace the 2.25 million tonnes of coal production that were planned from the expansion of the Coal Mountain Operation.
“We are implementing these additional measures to conserve capital, lower our operating costs and maintain financial flexibility in light of very difficult market conditions,” said Don Lindsay, Teck’s President and chief executive in a press release. “These steps build on our ongoing cost reduction program and I want to thank all employees for their efforts to improve efficiency and productivity, while remaining keenly focused on safety and sustainability.”
The international coal company announced dividends of five cents per share, which is lower than the earlier semi-annual payment of 15 cents per share.
Currently, it is unclear how many positions will be affected in the Elk Valley area. The layoffs and suspension of Phase 2 on Coal Mountain is in response to low commodity prices.
Teck also announced the intention to reduce total spending by $650 million in the next year, though a $350 million reduction of capital spending and deferrals along with $300 million of operating cost savings, which will be identified in the 2016 operating budget.