Canadian diversified major Teck Resources has lowered its third-quarter steelmaking coal sales guidance, following an outage at the Elkview plant and labour action at Westshore Terminals.
The company’s sales guidance has been lowered to between 5.5-million and 5.9-million tonnes, compared with its previously guided range of 5.8-million and 6.2-million tonnes.
On Tuesday, Teck reported a structural failure of the plant feed conveyor belt at its Elkview operation in the Elk Valley of British Columbia. Production would be interrupted for one to two months as repairs were implemented.
The miner said Elkview would reschedule planned plant maintenance to take advantage of plant downtime and mine operations would focus on pre-stripping during the outage.
Assuming a two-month suspension of plant operations, the impact on the company's 2022 steelmaking coal production would be in the range of 1.5-million tonnes.
The strike at Westshore Terminals, in Vancouver, would also impact on sales, Teck said.
Dock and warehouse workers, affiliated with Local 502 of the International Warehouse and Longshore Union, walked off the job on Saturday, shutting down coal exports.
Westshore, the biggest coal export terminal on the west coast of North America, takes coal from British Columbia and Alberta, as well as the Powder River basin and Montana.