Teck Resources Ltd. announced Tuesday they will be reducing their global workforce by five percent, cutting roughly 600 jobs.
Although Teck just recently reported a rise in coal production of eight per cent in the first quarter of 2014 over the first quarter of 2013, the price of metallurgical coal continues to drop.
“The industry continues to face challenging market conditions for the commodities Teck produces,” explained Nic Milligan, manager, Community and Aboriginal Affairs, Teck Coal Limited. “Where possible, efforts will be made to achieve planned reductions through attrition – only critical vacancies will be filled.”
With close to 11,000 employees worldwide and mining operations in Canada, the U.S., Chile, and Peru, Milligan could not confirm how the cuts would be distributed.
“Detailed plans will be developed for each Teck site and office in the coming weeks, including Teck’s operations in the Elk Valley,” he said. “We’re taking these company-wide measures now in order to maintain competitiveness and emerge stronger from the current price cycle.”
Milligan added, “Moving forward we will continue to assess and ensure our operations are aligned with market conditions.”
Teck is suspending work on the revival of its Quintette property in northeastern B.C. near Tumbler Ridge, effectively eliminating 80 positions. The company has already spent over $200 million of the $860 million budgeted for the coal mining project.