Tags: Teck | mining | job | cuts

Teck Deepens Cutbacks With 1,000 More Jobs Culled in Price Rout

Wednesday, 18 Nov 2015 09:30 AM

Teck Resources Ltd. extended cutbacks as Canada’s biggest diversified miner battles to protect margins and contain credit costs amid slumping commodities prices.

The Vancouver-based producer lowered its 2016 spending plan by C$650 million ($488 million) and will eliminate a further 1,000 jobs, including senior management positions, bringing total job cuts in the past 18 months to about 2,000, it said in a statement dated Tuesday. It plans to halt an expansion at its Coal Mountain mine, meaning output there will cease in late 2017.

The company continues to bear the consequences of an ill- timed expansion into metallurgical coal. A 2008 acquisition saddled it with an additional $9.8 billion in debt and led to its spiral into junk credit-rating status as the financial crisis struck. Teck regained its investment grade in 2010 only to be relegated to junk again this year with downgrades from Moody’s and Fitch.

The measures intend to “maintain financial flexibility in light of very difficult market conditions,” Chief Executive Officer Don Lindsay said in the statement.“These steps build on our ongoing cost reduction program.”

Teck, which plans to announce its 2016 capital spending forecast in February, will pay an eligible dividend of C$0.05 a share.

The company’s stock has slumped 66 percent in the past year in Toronto, more than the 49 percent average decline by peers tracked by Bloomberg.

 

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Teck Resources Ltd. extended cutbacks as Canada's biggest diversified miner battles to protect margins and contain credit costs amid slumping commodities prices.
Teck, mining, job, cuts
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2015-30-18
Wednesday, 18 Nov 2015 09:30 AM
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