VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 30, 2009) - Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) ("Teck") today announced that its Trail Operations will return to full refined zinc production of 25,000 tonnes per month effective September 1st after operating at a curtailed rate of approximately 20,000 tonnes per month since December 2008. Teck's mined zinc production will not be affected, as the higher refinery production rate will be achieved by Trail taking delivery of its full contracted tonnage of Red Dog concentrate.
Strengthening customer demand over the past several months has depleted refined metal inventories to minimal levels, and orders for specific products by a large number of steel mill customers for Q3 and Q4 are 44% above the order rate for the first half of the year. Trail produces zinc grades and product shapes to meet customer specifications that cannot be met by metal in LME warehouses.
Teck also announced today that it has reached agreement with most of its traditional coal customers on 2009 coal year deliveries, with pricing consistent with the previously announced 2009 coal year benchmark settlement price of US$128 per tonne. Teck's realized average coal price for 2009 calendar year is expected to be between US$155 - US$160 per tonne. The expected realized price includes the impact of tonnage to be delivered at 2008 coal year prices. For the 2009 coal year which began April 1st, Teck expects to deliver 3 million tonnes of coal at 2008 prices, of which 1.5 million tonnes were delivered in the second quarter.
Teck expects clean coal production to be approximately 12 million tonnes for the second half of the 2009 calendar year with the benefit of higher pre-stripping rates during the first half of the year. Additional equipment and manpower would be required in order to maintain production at this annualized rate of 24 million tonnes past the end of 2009, but a number of factors including anticipated 2010 market conditions will be reviewed before any decision can be made.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur, or be achieved.
