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Teck provides update on wildfire impacts in British Columbia

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World Coal,

Teck Resources Limited has provided an update on the effect of rail disruptions resulting from wildfires in British Columbia (B.C.).

Rail service between Teck’s steelmaking coal operations and west coast terminals has been disrupted due to damage to the rail line near Lytton, B.C. that occurred on 30 June 2021. Teck has implemented measures to mitigate the effect of the disruption, rerouting shipments to Ridley Terminals in Prince Rupert. Limited rail traffic flow to the Lower Mainland terminals was re-instituted the afternoon of 5 July 2021.

Teck is assessing the overall impact to customer shipments and/or production, which will be dependent on the length of the rail disruption. CP and CN are working to assess damage and begin repairs.

At this time, based on guidance provided by the railways with respect to the timeline for repairs, Teck’s 3Q21 steelmaking coal sales are expected to be reduced by 300 000 – 500 000 t. Teck’s 2Q21 sales are unaffected as the disruption began on the last day of the quarter. Teck is also taking steps to mitigate the effect of rail disruption to transportation of product from Highland Valley Copper operations (HVC), which is not expected to have a material effect on 3Q21 sales at this time.

All of Teck’s B.C. operations are currently continuing to operate, with steelmaking coal operations continuing to produce and taking advantage of low levels of clean coal inventory at the mines. The ongoing wildfire risk is being closely monitored at all operations and comprehensive emergency management plans are in place, with employee health and safety being the top priority.

The company extends its deepest condolences to all those impacted by wildfires. Teck is reaching out to local emergency service and relief providers in the Thompson-Nicola region to offer support to aid residents during this difficult time.

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