Teck Announces Coal Production Guidance
Teck Resources Limited TSX: TCK.A TSX: TCK.B NYSE: TCK
Other Recent News March 14, 2011 Ongoing Issues with Port and Rail
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 14, 2011) - Teck Resources Limited ("Teck", TCK.A and TCK.B, NYSE: TCK) announced today revised coal sales guidance for the first quarter of 2011. Sales have been affected by unusually difficult winter weather conditions, which have caused higher than normal rail delays due to avalanches, as well as an unusual number of locomotive power failures and train length restrictions due to cold weather. These weather related delays, together with two recent non-weather related derailments, and other mechanical issues have affected rail transport. In addition, operations at Neptune Terminals and Westshore Terminals have been affected by issues including high winds and mechanical failures. These issues have cumulatively affected coal transportation, restricting sales. The Elkview strike has not been a significant contributor to the reduction in sales as deliveries of Elkview coal from inventory continue, although slower rail loading times at Elkview have also affected rail cycle times. Teck and the union local representing the Elkview workforce commenced mediation on March 12 and mediation is ongoing.
Teck now expects coal sales in the first quarter to be in the range of 4.6 - 4.9 million tonnes. This compares to an average of 5.3 million tonnes of sales in the first quarter of each of the last six years. It is too early to assess any potential impact from the recent earthquake in Japan. Actual sales volumes will depend on rail and port performance for the balance of the quarter. Teck is working closely with its rail and port service providers to address these issues and to implement measures intended to enhance rail and port performance, including increasing train sets and slots, adding cars per train and adding crew. Teck expects performance to improve in the second quarter as a result of these measures assuming more normal weather conditions.
This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might", or "will" be taken, occur, or be achieved. Forward-looking statements include statements regarding Teck's expectations regarding coal sales volumes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Factors that may cause actual results to vary include, but are not limited to, changes in conditions in the steel market, unplanned disruptions in production or transportation, including due to weather or natural disaster, changes in general economic conditions or conditions in the markets for metallurgical coal, and other risk factors as detailed from time to time in Teck's reports filed with Canadian securities administrators and the U.S. Securities and Exchange Commission.
Certain of these risks are described in more detail in the annual information form of Teck and in its public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
About Teck Resources
Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK. www.teck.com