The profits from Canada’s Teck Resources’ metallurgical coal business unit for Q3 2022 increased 37% from a year ago, resulting primarily from favorable prices. The company reported average coal prices of $304 per metric ton (mt) in Q3 2022 and sales of 5.6 million mt, compared to 6 million mt in Q3 2021. Year-to-date, Teck’s met coal production totals 16.6 million mt vs. 18.3 million mt at the same point last year.
Teck’s annual met coal production capacity across its four operating mines in the Elk Valley in British Columbia is approximately 26 to 27 million mt. Those mines have been impacted by COVID-19, forest fires, floods, and, more recently, a plant feed conveyor failure at the Elkview mine.
The company revised its original met coal sales guidance for 2022 of 23.5-24 million mt to 22-22.5 million mt. Teck also reduced its 3-year production guidance commencing in 2023 from 26-27 million mt to 25-26 million mt.