VANCOUVER — Teck Resources Ltd. (TSX:TCK.A, TSX:TCK.B) is temporarily shutting down each of its six Canadian steelmaking coal mines for three weeks due to weak market conditions.
The company said Thursday the suspensions will be staggered over the summer months.
"Rather than push incremental tonnes into an over-supplied market, we are taking a disciplined approach to managing our mine production in line with market conditions," Teck chief executive Don Lindsay said.
"We will continue to focus on reducing costs and improving efficiency to ensure our mines are cash positive throughout the cycle and well-positioned when markets improve."
The company said additional production adjustments will be considered as market conditions evolve.
The move is expected to cut third quarter production about 22 per cent or 1.5 million tonnes to 5.7 million tonnes.
Teck says annual coal production is now estimated at 25 million to 26 million tonnes.
The company says it will continue to meet all contracted and committed coal sales.
In addition to coal, Teck is a major producer of copper and zinc.
Last month, Teck cut its semiannual dividend to 15 cents per share from 45 cents due to low commodity prices.
