Lost production due to the pressure event is estimated to be approximately 200,000 metric tons (mt) of clean coal and the cost of repairs to the dryer is estimated at less than $10 million, in line with previous estimates.
Teck said metallurgical coal sales volumes for the first quarter of 2018 are now expected to be approximately 6 million mt, in comparison to previous guidance of 6.3 million to 6.5 million mt. Sales continued to be adversely affected by logistics issues during the quarter, the company said, also citing poor performance at Westshore Terminals.
The first-quarter 2017 price index for metallurgical coal volumes sold under quarterly contract on the basis of the average of three assessments for the period December 2017 through February 2018 is now established at $236.73/mt. Teck’s average realized price for the first quarter will depend on market direction, product mix, the timing of sales and vessel arrivals, spreads between various qualities of steelmaking coal, the arbitrage between FOB Australia and CFR China pricing, and other factors.