By Canadian Press

Teck Resources says Q4 coal sales affected by rail disruptions in B.C.

Dec 6, 2021 | 5:34 AM

VANCOUVER — Teck Resources Ltd. says its coal sales in the fourth quarter will be lower than it had earlier estimated due to the heavy rain, flooding and mudslides in B.C. that have disrupted the railways in the province.

The company says it now forecasts its fourth-quarter steelmaking coal sales at 5.2 million to 5.7 million tonnes, compared with earlier expectations for between 6.4 million and 6.8 million tonnes, due to the disruptions in rail shipments to terminals in the B.C. Lower Mainland.

Teck, which has diverted shipments to Ridley Terminals in Prince Rupert, B.C., says when rail service is fully restored it will be able to substantially recover the delayed fourth-quarter sales in the first half of 2022.

Steelmaking coal production this year is expected to be between 24.5 million and 25 million tonnes, compared with previous guidance for nearly 25 million tonnes.

Teck estimated its 2021 annual adjusted site cash cost of sales to be about $64 to $66 per tonne, slightly above its previous guidance for $59 to $64 per tonne. Full-year transportation costs for the year are expected to be between $44 and $46 per tonne compared with earlier guidance for $42 per tonne.

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However, the company says the increased costs are more than offset by strong steelmaking coal prices. The average steelmaking coal price for the three months ended Nov. 30 settled at US$371 per tonne, up US$168 per tonne compared with the three-month average at the end of August.

This report by The Canadian Press was first published Dec. 6, 2021.

Companies in this story: (TSX:TECK.B, TSX:TECK.A)

The Canadian Press