Canada-based metallurgical coal and zinc producer Teck Resources Limited has announced that weather conditions in southeast British Columbia which started in December are expected to negatively affect production capacity in the first quarter of 2011.
Teck Resources said that transportation company Canada Pacific Railway has issued notice of force majeure in respect of avalanche conditions in and around the Rogers Pass area of southeast British Colombia which are impacting rail movement. In addition, as announced by Westshore Terminals on January 12, a mechanical failure is expected to reduce coal handling capacity at the Westshore Terminals port for at least two weeks. Weather is also causing delays in recommissioning of the coal dryer at the Greenhills Mine and in shipping of wet coal.
Based on information currently available, Teck Resources said that it expects first quarter coal sales in the range of 5.0 to 5.5 million mt, in comparison to 5.25 million mt in the first quarter of 2010. Teck Resources' planned sales for calendar year 2011 are in the range of 24.5 to 25.5 million mt.