“Each of Teck's steelmaking coal operations will be temporarily shut down for approximately three weeks in the quarter,” the Vancouver-based miner said.
“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.”
The move will reduce projected September quarter production by 1.5 million tonnes, or 22%, to 5.7Mt, while sales will dig into stockpiles by reaching a range of 6-6.5Mt for the period.
“Annual coal production is now estimated at 25-26 Mt,” Teck said.
“Additional coal production adjustments will be considered over the course of 2015 as market conditions continue to evolve.”
The move puts Teck in the same category as coal producer Glencore, which is also aiming to reduce supply as coal prices continue to weaken. This stands in contrast to miners like BHP Billiton and Rio Tinto which are increasing production from their low-cost operations to win more coal market share.
“Rather than push incremental tonnes into an over-supplied market, we are taking a disciplined approach to managing our mine production in line with market conditions," Teck president and CEO Don Lindsay said.
"We will continue to focus on reducing costs and improving efficiency to ensure our mines are cash positive throughout the cycle and well-positioned when markets improve."
