Coal news and updates

Teck reports Elkview plant outage, updates its steelmaking coal production guidance

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - On Tuesday, Teck Resources (TSX: TECK.A and TECK.B, NYSE: TECK) announced that there has been a structural failure of the plant feed conveyor belt at its Elkview steelmaking coal operation in the Elk Valley of British Columbia.

According to the company’s statement, initial estimates are that production at Elkview Operations will be interrupted for 1-2 months as repairs are implemented.

The company said that Elkview will reschedule planned plant maintenance to take advantage of plant downtime and mine operations will focus on pre-stripping during the outage.

Importantly, assuming a two-month suspension of plant operations, Teck expects the impact on 2022 steelmaking coal production will be in the range of 1.5 million tonnes.

“When also factoring in the impact of the recent labour action at Westshore Terminals, Teck’s third quarter steelmaking coal sales are now expected to be between 5.5 - 5.9 million tonnes versus our previously announced guidance range of 5.8 - 6.2 million tonnes,” the company said in a press-release.

Headquartered in Vancouver, Teck is one of Canada’s leading mining companies with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets