Teck Announces Full Production at Trail and Update on Coal Sales
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VANCOUVER, BRITISH COLUMBIA, Jul 30 (MARKET WIRE) --
Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) ("Teck") today
announced that its Trail Operations will return to full refined zinc
production of 25,000 tonnes per month effective September 1st after
operating at a curtailed rate of approximately 20,000 tonnes per month
since December 2008. Teck's mined zinc production will not be affected,
as the higher refinery production rate will be achieved by Trail taking
delivery of its full contracted tonnage of Red Dog concentrate.
Strengthening customer demand over the past several months has depleted
refined metal inventories to minimal levels, and orders for specific
products by a large number of steel mill customers for Q3 and Q4 are 44%
above the order rate for the first half of the year. Trail produces zinc
grades and product shapes to meet customer specifications that cannot be
met by metal in LME warehouses.
Teck also announced today that it has reached agreement with most of its
traditional coal customers on 2009 coal year deliveries, with pricing
consistent with the previously announced 2009 coal year benchmark
settlement price of US$128 per tonne. Teck's realized average coal price
for 2009 calendar year is expected to be between US$155 - US$160 per
tonne. The expected realized price includes the impact of tonnage to be
delivered at 2008 coal year prices. For the 2009 coal year which began
April 1st, Teck expects to deliver 3 million tonnes of coal at 2008
prices, of which 1.5 million tonnes were delivered in the second quarter.
Teck expects clean coal production to be approximately 12 million tonnes
for the second half of the 2009 calendar year with the benefit of higher
pre-stripping rates during the first half of the year. Additional
equipment and manpower would be required in order to maintain production
at this annualized rate of 24 million tonnes past the end of 2009, but a
number of factors including anticipated 2010 market conditions will be
reviewed before any decision can be made.
Forward-Looking Statements
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, realized coal prices, and zinc and coal production
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, failure of Teck's customers to meet their contractual
obligations, changes in conditions in the steel market, changes in
foreign exchange rates, unplanned disruptions in production or
transportation, changes in general economic conditions or conditions in
the markets for metallurgical coal and zinc, 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
Teck is a diversified resource company committed to responsible mining
and mineral development with major business units focused on copper,
metallurgical coal, zinc, gold 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. Further information about Teck can be found at www.teck.com.
Contacts:
Teck Resources Limited
Greg Waller
Vice President, Investor Relations & Strategic Analysis
(604) 699-4014
www.teck.com
Copyright 2009, Market Wire, All rights reserved.
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