Teck Resources will target a 5% reduction in its workforce and delay the restart of its Quintette coal mine as part of efforts to reduce costs and CAPEX, the company said in its Q1 results.
The Quintette mine, which is expected to produce between 3 – 5 million tpa of metallurgical coal, will be put on care and maintenance until market conditions for a restart are favourable. In the meantime, the company will continue to work on obtaining the two remaining permits that are required to restart the mine.
Profit from Teck’s coal business unit was CAN$ 114 million, down by CAN$ 224 million in Q1 compared to the same period in 2013 primarily due to lower coal prices, higher unit costs and a CAN$ 30 million writedown of inventory.
Adapted from press release by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/mining/01052014/teck_delays_restart_of_quintette_metallurgical_coal_mine_coal783/