Mining company Teck Resources (TECK.B) has cut its guidance related to steelmaking coal sales after an equipment failure at its Elkview operation and a strike at Westshore Terminals in British Columbia.
The Vancouver-based company said it now expects its third-quarter steelmaking coal sales to be between 5.5 million and 5.9 million tonnes compared with a previous forecast of 5.8 million to 6.2 million tonnes.
Teck Resources said there was a “structural failure” on a key conveyor belt at its Elkview mine site in Sparwood, B.C., causing a production interruption that could last for two months until repairs are completed.
Teck Resources has estimated that the disruption at Elkview will cost its steelmaking coal production 1.5 million tonnes this year.
The company said the Elkview mine will reschedule planned plant maintenance and that miners will focus on pre-stripping operations during the production shutdown.
At the same time, an ongoing labour strike at the Westshore Terminal in Delta, B.C., which is a major export location for coal, is also impacting Teck Resources operations.
Teck Resources stock is up 11% this year and trading at $41.30 per share.
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