Teck Resources Cuts Zinc Production Forecast Due To British Columbia Fires

加拿大泰克资源最大的多元化矿业公司, on Tuesday lowered its forecast for 2021 refined zinc production as widespread wildfires in British Columbia over the summer affected its operations.

The Vancouver-based miner's Trail Operations in British Columbia were temporarily closed for about 10 days in August because of poor ambient air quality caused by wildfires.

Located in the community of Trail, the complex produces refined zinc and lead, a variety of precious and specialty metals, chemicals and fertilizer products.

The company now expects annual refined zinc production to be between 285,000 and 290,000 tonnes, down from its previous estimate of 290,000 to 300,000 tonnes.

Teck noted that further headwinds were likely to weigh on production in the third quarter, which would put it either at the lower end of its previous guidance or back down entirely.

Tektronix also lowered its third-quarter zinc sales forecast for its Red Dog business in northwest Alaska to 145,000 to 155,000 tons from its previous forecast of 180,000 to 200,000 tons.

The company, which has been working with the Toronto office of Barclays Investment bank on a possible sale or spin-off of its coal division, said unprecedented high prices for steelmaking coal had changed its plans.

'We have decided to maintain saleable production by running more expensive equipment and relying on overtime to offset increased absenteeism, which has also led to higher unit costs,' Thek said.

Don Lindsay, Tektronix's chief executive, has held talks with large companies including Glencore and Lundin Mining over the past year, but the talks have not resulted in a deal, according to Mining sources.

Tektronix produced more than 21 million tons of steelmaking coal from four sites in western Canada last year. The business accounted for 35 percent of the company's gross profit before depreciation and amortization in 2020, according to its website.

The company has publicly talked in the past about possibly divesting or selling its coal assets to focus on increasing its exposure to copper, one of the key metals needed to spur a green energy transition.

The world's leading miners, including BHP Billiton, Rio Tinto and Anglo American, have been divesting their coal assets, particularly thermal assets.

The trend has spread to banks, with several international banks bowing to pressure from shareholders and lobby groups to avoid investing in coal.

Australian banks have been making headlines recently as Macquarie, ANZ Bank, Commonwealth Bank and Westpac have said they intend to stop financing coal.

Last week, South Africa's Rand jumped on the coal exit train, announcing an end to lending for new coal-fired power stations and mines in 2026.