Weak steelmaking coal markets have resulted in a significant drop in profit for Teck. Teck Resources Limited reported last week an annual adjusted profit attributable to shareholders of $1.5 billion, or $2.60 per share, in comparison with a record $2.5 billion, or $4.18 per share, in 2011.
“From an operations perspective, 2012 was a good year,” explained Don Lindsay, President and CEO. “Our copper production was a record, we continued to increase our steelmaking coal production, and we obtained new labour agreements for a number of our operations.
“However, due to uncertain global economic conditions, prices for all of our major products were down compared to last year, which resulted in lower earnings and cash flows than in 2011.”
Steelmaking or metallurgical coal is a key profit driver for Teck. The company is Canada’s largest diversified mining company and the operator of the nation’s largest copper and coal mining operations, including the Fording River, Line Creek, Greenhill, and Elkview mines located in the Elk Valley.