The company also reduced budgeted capital expenditures by $730 million and take other steps to reduce expenditures and increase cash flow. Teck has already paid down US$210 million of the bridge loan incurred to fund the Fording transaction. Teck also announced the sale of its interest in the Lobo-Marte gold property in Chile and a reduction in zinc production and increase in power sales at the Trail, British Columbia metallurgical complex.

"Current global economic and financial market conditions dictate that we take all prudent steps available to us to significantly reduce spending," said Don Lindsay, President and CEO. "The measures announced today, combined with previously announced tax savings, amount to $2.4 billion and should significantly enhance our ability to address our near-term debt obligations and better position Teck to refinance the bridge loan when conditions improve."

Sustaining Capital: Spending will be reduced to approximately $250 million for 2009, down from a forecast of $580 million for 2008, on a comparable combined company basis. Teck's operations have been well capitalized in recent years, creating an opportunity to defer sustaining capital costs while ensuring operations are maintained to a high standard.

Development Project Capital: Excluding the Fort Hills Project, spending will be reduced to approximately $250 million for 2009, down from $650 million forecast for 2008. The budget for 2009 will allow the company to complete projects key to Teck's long-term strategy, including the Andacollo concentrate project in Chile. Capital costs at Andacollo for 2009 are estimated at $160 million and, when completed in late 2009 or early 2010, the mine is expected to quadruple its current copper production and add significant gold by-product credits. The company will devote only nominal funding to studies on its other existing growth projects.

Fort Hills: The announcement earlier this week by the Fort Hills Partnership to defer a decision on the mine-only project and put the planned Sturgeon upgrader on hold will significantly reduce Teck's capital spending for 2009.

Petaquilla: Teck has elected to withdraw from the Petaquilla copper project in Panama and therefore has no funding obligations in respect to this project. The company will record a pre-tax, non- cash charge to earnings of $26 million in the fourth quarter.