BASE METALS & COAL: Teck tightens its belt

VANCOUVER – Teck Resources has announced the layoff of 1,000 employees from its global workforce as part of its plans to reduce spending by $650 million in 2016. The announcement brings the total workforce reduction to 2,000 positions over the past 18 months. The spending cuts next year will include $350 million in capital spending and $300 million in deferrals that will result in operating cost savings. Details of the 2016 capital budget will not be available until early next year. The company will also withdraw the Coal Mountain phase 2 project from the environmental assessment process and suspend further work on the project. The cancellation means that mining will end at Coal Mountain in the fourth quarter of 2017. Teck will identify options between now and the end of 2017 to potentially replace the 2.25 million tonnes of annual production that were planned from phase 2 by optimizing production from its five other metallurgical coal mines. Teck said the spending cuts are in response to persistent low commodity prices. Please see also Teck.com.