Teck Resources Ltd. will be implementing temporary shutdowns this summer in response to an oversupplied market and weak prices.
According to an announcement made by the company today, each of Teck’s six Western Canadian steelmaking coal operations, including the operations in the Elk Valley, will be shut down for approximately three weeks in the third quarter.
The shutdowns will be staggered over the summer months, with steelmaking coal operations temporarily closing for 20 days.
A release issued by Teck said the shutdowns are in response to “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,” Teck President and CEO Don Lindsay said in a statement. “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 tonnes — a 25 per cent reduction for the quarter.
The Teck release also noted that additional coal production adjustments may be implemented this year as “market conditions continue to evolve.”
The company now estimates annual coal production to be at 25-26 million tonnes.
Despite these temporary shutdowns, Teck maintained that the company will continue to meet all contracted and committed coal sales.
Teck Coal Limited Manager, Community & Aboriginal Affairs Nic Milligan also noted that the temporary shutdowns will not affect ongoing work related to implementation of the Elk Valley Water Quality Plan.
For more information on the shutdown, visit the company’s website at www.teck.com.