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Teck lowers coal and copper sales forecast for 2011

Published: 14:38 23 Mar 2011 GMT

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Teck Resources  (TSE:TCK.A,TCK.B) (NYSE:TCK) said late Tuesday that it now expects lower coal and copper sales in 2011 due to labour disputes and harsh winter weather.

Previously, the company said it anticipated selling between 24.5 to 25.5 million tonnes of coal this year, but now projects sales in the range of 23.5 to 24.5 million tonnes because of the "ongoing labour disruption" at its Elkview operation in BC, and "unusually difficult" winter weather conditions.

Since a workers' strike at Elkview began in January, the company has been in negotiations. On Monday, workers opposed a new five year collective agreement, with the work stoppage now set to continue as Teck attempts to restart discussions.  

Earlier this month, Teck had cut its first quarter coal sales forecast by 13% due to winter weather affecting rail shipments.

The company also said that annual copper sales will be lower, in the range of 330,000 to 340,000 tonnes in 2011 due to usual heavy rainfall at its Quebrada Blanca operation, and production issues at the Carmen de Andacollo site.

"This reduction will largely be reflected in the first quarter results for 2011, with total expected copper production of 75,000 tonnes," Teck said in a statement.

The company added that it expects minimal impact to the shipment of its core commodities to Japan following the recent natural disaster.

Teck, with mines in Canada, the US, Chile and Peru, sells copper, steelmaking coal and zinc, and also owns interest in a large oil sands project. The company's shares were down nearly 1.9% on Wednesday, trading at $52.21 as of 10:38am EST.

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