Teck sees lower coal sales as Japan mills defer shipments

Thursday, 23 Jun 2011

It is reported that Teck Resources Ltd the world’s second largest exporter of steelmaking coal second quarter sales will be at the low end of guidance after customers in Japan deferred shipments due to the earthquake and tsunami.

Vancouver-based Teck said in a statement that Teck had forecast sales at between 5.5 million tonnes and 6 million tons for the three months ending June 30.

Teck joins other coal producers including Australia Whitehaven Coal Ltd in cutting output as Japan steel mills repair damage caused by the earthquake and tsunamis that struck in March. Teck said its average selling price in the quarter will be about USD 270 a ton compared with previous guidance of USD 280 to USD 290 a ton.

Teck said “This is due to changes in the sales mix related to the deferred shipments to Japan. It said mining costs in the quarter may rise to between USD 80 and USD 84 a ton. Costs for the year may be USD 71 to USD 76 a ton, because of labour settlements and increased costs for mining contractors and diesel. (sourced from vancouversun)