Canadian miner Teck Resources said its first quarter production and sales volumes for its metallurgical coal operations were negatively by logistical issues at Westshore Terminals. Orders from customers were in place to exceed the company’s original sales guidance of 6.3 to 6.5 million metric tons (mt). As a result, clean coal stockpiles at its mines reached high levels, forcing some plants to idle, consequently affecting production. Teck’s met coal segment reported a first quarter gross profit of $816 million compared with $963 million a year ago. Met coal prices averaged US$207/mt in the first quarter, slightly lower than a year ago and the fourth quarter of 2017. The company’s first quarter sales were 6.1 million mt compared with 5.7 million mt a year ago. According to Teck, the lack of consistent, reliable vessel loading and unloading of Teck trains at Westshore Terminals ultimately resulted in high clean coal stockpiles at the Elk Valley mines. In addition, CN service was below expectations with reported shortages of crews, cars and locomotives through the first quarter resulting in high clean coal inventories at its Cardinal River Operations.
Teck Ships Less Met Coal in the First Quarter
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