TORONTO (miningweekly.com) – Vancouver-based Teck Resources expects coal sales this year will be at the upper end of its previous 18-million to 20-million ton forecast, after wrapping up contract negotiations with more than 80% of its traditional customers, the group said late on Friday.

The miner has seen “significant increases” in sales to China, and is cancelling planned shutdowns at several mines in order to meet the higher demand.

Customers have also committed to take delivery of 2,3-million tons of carry-over tonnage – contracted coal not shipped last year - during the current coal year at 2008 coal year prices.

“Increased production and sales for the remainder of the year are expected to significantly reduce site unit operating costs, as the per ton impact of fixed costs, which represent about 25% of the cost structure, is reduced,” Teck said.

Strip ratios are expected to decline by approximately 25% in the second half of 2009 compared to the first half.

The company's cost of sales in the 2009 calendar year is expected to be in the range of C$53/t to C$56/t.

Transportation costs are also expected to decline owing to the impact of coal price-linked terms in Teck Coal's transportation contracts.

Teck, formerly Teck Cominco bought Fording Canadian Coal Trust last year, making it one of the world's biggest producers of steelmaking coal.

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