In an interview with International Longwall News, Teck spokeswoman Catherine Hart said the 13% reduction in staff, which equates to about 1400 jobs, would be at the following mines: Teck Coal (240); Copper Chile (439); Trail (43); Pend Oreille (155); Cominco Engineering Services Ltd (68); Exploration (258); and Highland Valley (84).

“Most people affected by this decision were notified today [January 8] and we expect the majority of these positions to be eliminated by the end of the first quarter,” she said.

“Where positions are being reduced through attrition and retirements, we would expect those reductions by the end of 2009.”

Teck has not yet announced which of its mines will be impacted by slowed production.

The plan is part of a larger-scale strategy to reduce costs while it works to “bolster competitiveness in the face of persistently weak commodity prices”, officials said, and the moves will save the company about $C85 million ($US70.9 million) annually.

“Our focus today is on taking the necessary actions to position each operation to be competitive in the current environment,” Hart told ILN.

Teck officials also said the miner’s coal production would see cuts due to a decline in international steel demand; its coal production in 2009 will be an estimated 20 million tonnes.

In the meantime, the company is making other significant changes, such as reducing staff and contractors in research and development as well as exploration. Hart noted the company has no new operations planned in the short term.

“Given continued economic uncertainty, a significant reduction in our workforce is needed to further reduce costs and position Teck for both short and long-term competitiveness,” said company president Don Lindsay.

“Notwithstanding the substantial decline in commodity prices, this was a difficult decision and I want to thank the affected employees for their contributions to the company.”

Teck said it anticipated a charge of about $35 million stemming from the reduction to be taken in the first quarter for severance and other associated costs.

In the meantime, Hart told ILN that Teck will keep a close watch on the industry outlook and could not speculate on when or if workers would be called back.

“We will continue to monitor market conditions and adjust as appropriate,” she said.