Teck Resources Sees Steelmaking Coal Facility Halt Production Following Equipment Failure
Teck Resources (TSX: TECK.A, TECK.B) late last night announced an operational hiccup to its steelmaking coal operation in British Colombia, referred to as Elkview. The facility has seen certain structural failures that will take the facility offline for a period of time.
The company has indicated that a structural failure occurred on the plant feed conveyor belt, with initial estimates stating that production will be interrupted for up to two months as repairs are undertaken. While it will interrupt the firms guidance, the company is being strategic about the downtime, with planned plant maintenance now set to occur in the interim, while the mine itself will focus on pre-stripping during the outage.
The downtime is expected to reduce the plants annual steelmaking coal production by 1.5 million tonnes. As a result, third quarter steelmaking coal sales have seen their guidance reduced to 5.5 to 5.9 million tonnes, versus the prior guidance which had a range of 5.8 to 6.2 million tonnes.
The Elkview Operation is one of four steelmaking coal operations that is operated by Teck in the Elk Valley. The operation is one of the largest in the Valley for Teck, with annual production having a capacity of 9.0 million tonnes.
Teck Resources Class B shares last traded at $43.20 on the TSX.
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