Following Monday’s announcement that the labour strike at Teck Resources Ltd.’s (TSX:TCKA and B) Elkview coal mine would continue, the company has lowered its output estimates for the year.
Earlier this week workers at the Elkview mine near Sparwood, B.C., rejected a five-year collective agreement that would have seen production resume after an almost two-month stoppage (see “ Striking Teck workers at Elkview mine reject new deal ” – BIV Business Today , March 21).
The company cited the continuing labour dispute, along with unusually difficult winter weather conditions, for production and shipment shortcomings in the first quarter.
Teck lowered its expected coal sales in 2011 to between 23.5 and 24.5 million tonnes. This is compared with its previously announced guidance for coal sales of 24.5 to 25.5 million tonnes for the year.
The mine at Elkview has an annual production capacity of 56 million tonnes.
Teck also said it expects the unit mining cost of product sold to be $63 to $67 per tonne for the year and $77 to $80 per tonne for the first quarter, mainly due to lower coal volumes.
The company had previously announced expectations of costs between $59 and $63 per tonne.
Teck also expects annual copper sales to be 330,000 to 340,000 tonnes as a result of the unusual and heavy rainfall at its Quebrada Blanca operation as well as problems with ore throughput at the new concentrator at its Carmen de Andacollo operation.
Copper sales figures had earlier been estimated at 350,000 tonnes.
At press time, Teck shares were down $0.75 to $52.25.