Vancouver-based Canadian coking coal producer Teck Resources Ltd’s coal sales fell below its guidance because of extreme weather in British Columbia and warned that COVID-19 was leading to higher costs and could disrupt production. Teck said steelmaking coal sales for the fourth quarter came in at 5.1 million tonnes, below the 5.2 million to 5.7 million tonnes in its revised guidance it issued December 5 after the record rainfall in B.C that knocked out rail and road infrastructure. The lower sales came as extreme cold weather in BC this winter led to further interruptions and substantial reductions to rail service and port activities. The company had guidance for 6.4 million to 6.8 million tonnes sold for the quarter before the November deluge.Teck said coal production at Elk Valley wasn’t affected by the November events because inventories at its operations were low at the time, but that the cold weather disruptions have led to near-record inventories and the company could be forced to reduce production if there are further transportation disruptions. The disruptions have also increased costs at its operations, but higher steelmaking coal prices should offset those costs and it expects to substantially make up the lost sales volume in the first half of this year.Teck also said that the Omicron variant of COVID-19 is leading to increased staff absences at its coal operations in BC as well as at its QB2 project in Chile. It says that while absences have yet to have a major impact, the situation poses a risk to first quarter production and that costs have risen because of labour inefficiencies related to COVID-19.
Vancouver-based Canadian coking coal producer Teck Resources Ltd’s coal sales fell below its guidance because of extreme weather in British Columbia and warned that COVID-19 was leading to higher costs and could disrupt production. Teck said steelmaking coal sales for the fourth quarter came in at 5.1 million tonnes, below the 5.2 million to 5.7 million tonnes in its revised guidance it issued December 5 after the record rainfall in B.C that knocked out rail and road infrastructure. The lower sales came as extreme cold weather in BC this winter led to further interruptions and substantial reductions to rail service and port activities. The company had guidance for 6.4 million to 6.8 million tonnes sold for the quarter before the November deluge.Teck said coal production at Elk Valley wasn’t affected by the November events because inventories at its operations were low at the time, but that the cold weather disruptions have led to near-record inventories and the company could be forced to reduce production if there are further transportation disruptions. The disruptions have also increased costs at its operations, but higher steelmaking coal prices should offset those costs and it expects to substantially make up the lost sales volume in the first half of this year.Teck also said that the Omicron variant of COVID-19 is leading to increased staff absences at its coal operations in BC as well as at its QB2 project in Chile. It says that while absences have yet to have a major impact, the situation poses a risk to first quarter production and that costs have risen because of labour inefficiencies related to COVID-19.
