An explosion at Teck Resources Ltd.’s (TSX:TCK.A; NYSE:TCK) Greenhills coalmine Monday afternoon saw the diversified miner’s stock price drop more than 10% Tuesday morning.
The company said the explosion occurred in the coal dryer. All employees, visitors and contractors have been accounted for, Teck said, although four people were treated for minor smoke inhalation.
Greenhills is located near Elkford in southeast B.C.
The company’s stock fell as low as US$29 on the New York Stock Exchange in early trading Tuesday morning, after closing at US$32.53 yesterday afternoon. At press time, the company’s stock was valued at about US$30.
Teck said the cause of the accident was unknown.
“The only thing we can say is it’s going to take a few days before we even get an initial assessment of how long the impact on production might be, the damage to the building appears pretty extensive from the visual from outside,” Greg Waller, Teck’s vice-president, investor relations and strategic analysis, said in an interview with BIV Tuesday morning.
The company has insurance to cover any accidents or interruptions at the mine, he said, and it expects the financial loss to be minimal.
The company has also mobilized teams to control a brush fire triggered by the explosion.
Waller said the mine will continue operating. The full extent of any production interruption is not yet known.
Teck has an 80% stake in Greenhills. The mine was expected to produce 4.3 million tonnes of metallurgical coal this year. Teck’s share is approximately 3.4 million tonnes. In 2009, Teck produced 18.9 million tonnes of coal from six mines.
The Vancouver-based company is B.C.’s largest miner.