Teck Resources to lay off staff, reduce spending amid global uncertainty

Teck Resources Ltd. said it would eliminate jobs, start a cost-cutting program and defer some planned capital projects amid global economic uncertainty that’s weighing on commodity prices.

The Vancouver-based company is aiming to reduce about $500 million from its spending plan through the end of 2020, according to its third-quarter results statement.

“Over the past few years, we have focused our attention on maximizing production to capture margin during periods of higher commodity prices,” said Don Lindsay, president and CEO. “However, current global economic uncertainties are having a significant negative effect on the prices for our products, particularly steelmaking coal.”

The company is focusing on a program to improve efficiency and productivity across its business, and focusing on the Quebrada Blanca Phase 2 (QB2) Project in Chile, one of the world’s largest undeveloped copper resources. The project continues to target construction completion in the fourth quarter of 2021.

“We have also implemented a cost reduction program to reduce spending on our capital and operating costs for the balance of 2019 and 2020,” Lindsey said.

To achieve its targeted cost reductions, Teck said it will eliminate around 500 full-time jobs, “some of which we expect to come from attrition, the expiry of temporary or contract positions and current job vacancies.”

The company’s profit stood at $369 million or 66 cents per share for the quarter ended Sept. 30 compared with a profit of $1.28 billion or $2.23 per share during the same period last year. Financial Post