VANCOUVER – Teck Resources Ltd. (TSX:TCK.B) has reduced its coal production guidance for the second quarter and says unit mining costs will be greater as a result of higher labour and other expenses.
In a news release issued Monday, Teck said it now expects coal sales in the second quarter at the low end of its previously announced guidance range of 5.5 million to six million tonnes.
The company said it was reducing production guidance as a result of the March 11 earthquake and tsunami in Japan. Some customers have deferred shipments due to reduced steel production requirements, it said.
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Teck also says it expects the unit mining cost of product sold to be in the range of $71 to $76 per tonne for the year, primarily due to one-time costs related to labour settlements and higher than expected costs for items such as external mining contractors and diesel.
Teck expects average selling prices for the second quarter of 2011 to be about US$270 per tonne, down from its existing guidance of US$280 to US$290 per tonne.
This is due to changes in the sales mix related to the deferred shipments to Japan.
In Monday trading on the TSX, Teck’s B shares fell 69 cents to $42.97, a drop of 1.6 per cent.
Vancouver-based Teck is a diversified resource company involved in copper, kl coal, zinc and energy.
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