Metallurgical coal exports from B.C. are about to take a steep dip, thanks to a strike at one of B.C.’s coal export terminals and a major plant failure at the Elkview coal mine that could take up to 1.5 million tonnes of coal out of production.
Earlier this week, unionized workers at the Westshore coal export terminal in Delta went on strike. Now, Teck Resources (TSX:TECK.B) has experienced a major plant failure at its Elkview metallurgical coal mine – a busted conveyor belt. Metallurgical coal is used in making steel, and is B.C.'s second most valuable export, after lumber.
Teck estimates it could take one to two months for repairs to be made to its Elkview conveyor system.
“Assuming a two-month suspension of plant operations, Teck expects the impact on 2022 steelmaking coal production will be in the range of 1.5 million tonnes,” Teck said in a news release.
“When also factoring in the impact of the recent labour action at Westshore Terminals, Teck’s third quarter steelmaking coal sales are now expected to be between 5.5 - 5.9 million tonnes versus our previously announced guidance range of 5.8 - 6.2 million tonnes.”
