Teck Resources Plans $650 Mln In Cost Reduction Measures; 1,000 Positions To Go

(RTTNews) - Teck Resources Ltd. (TCK_A.TO, TCK) said that in response to persistent low commodity prices, it is implementing additional measures to reduce costs and conserve capital.

Reduction in total spending of $650 million is planned for 2016, to be achieved through $350 million of capital spending reductions and deferrals and $300 million of operating cost savings identified as part of the 2016 operating budget.

The company plans elimination of an additional 1,000 positions across Teck's global offices and operations, through a combination of layoffs and attrition. This will include a reduction in senior management positions and brings total labour force reductions over the past 18 months to about 2,000 positions.

Teck also intends withdrawal of the Coal Mountain Phase 2 project from the Environmental Assessment process and suspension of further work on the project.

Further, the company said it would pay an eligible dividend of $0.05 per share on its outstanding Class A common shares and Class B subordinate voting shares on December 30, to shareholders of record at the close of business on December 14.