Teck Resources To Implement Temporary Shutdowns In Q3 At 6 Canadian Ops

(RTTNews) - Teck Resources Limited (TCK_A.TO, TCK) said it would implement temporary shutdowns in the third quarter at its six Canadian steelmaking coal operations to align production and inventories with changing coal market conditions.

Each of Teck's steelmaking coal operations will be temporarily shut down for around three weeks in the quarter.

Shutdowns will be staggered over the summer months among the operations. Teck will continue to meet all contracted and committed coal sales for its entire suite of products.

Third-quarter production will be reduced by about 1.5 million tonnes or Mt to 5.7 Mt, down 22 percent for the quarter, with expected sales in the range of 6.0 - 6.5 Mt.

Annual coal production is now estimated at 25 - 26 Mt. Additional coal production adjustments will be considered over the course of 2015 as market conditions continue to evolve.

Guidance for unit operating and distribution costs for the year is unchanged. Capitalized stripping is now expected to be about $65 million lower than original guidance, reflecting lower coal production and reduced stripping costs due to lower diesel costs and productivity improvements since the start of the year.