Teck Resources Limited will be implementing temporary shutdowns in the third quarter of 2015 at its six Canadian steelmaking coal operations. This decision is in order to bring into line production and inventories with developing coal market conditions.
Each of Teck’s steelmaking coal operations will be temporarily shut down for approximately three weeks in the quarter. Shutdowns will be staggered over the summer months among the operations.
Third quarter production will fall by approximately 1.5 million t (Mt) to 5.7 Mt, a decrease of 22% for the quarter, with expected sales in the range of 6.0 – 6.5 Mt.
“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,” said Don Lindsay, President and CEO. “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.”
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcoal.com/coal/29052015/teck-steelmaking-coal-market-conditions-2344/