Demand for Met Coal Slows, Teck Slashes Jobs
Coal production in the fourth quarter of 2008 decreased by 5% to 5.2 million mt compared with the same period last year. In addition, production at the Elkview and Cardinal River mines was disrupted by unexpected mechanical breakdowns, which were resolved before year end.
In January, the company announced it would reduce its global workforce by about 1,400 positions, or 13%. The workforce reductions, according to the company, will eliminate redundancies at the corporate level created by the Fording acquisition. The layoffs are expected to save the company approximately $85 million. Teck also said it plans to reduce coal production in 2009 to 20 million mt.