| | | Teck cuts 2016 spending by $650M, slashes 1,000 jobs
Teck Resources Ltd (C:TCK)
Shares Issued 566,889,810
Last Close TCK.B 11/17/2015 $6.23
Tuesday November 17 2015 - News Release
Mr. Don Lindsay reports
TECK ANNOUNCES DIVIDEND, $650-MILLION IN COST REDUCTION MEASURES
Teck Resources Ltd. will pay an eligible dividend of five cents per share on its outstanding Class A common shares and Class B subordinate voting shares on Dec. 30, 2015, to shareholders of record at the close of business on Dec. 14, 2015.
In response to persistent low commodity prices, Teck is implementing additional measures to reduce costs and conserve capital:
- Reduction in total spending of $650 million in 2016, to be achieved through $350 million of capital spending reductions and deferrals and $300 million of operating cost savings identified as part of the 2016 operating budget.
- Elimination of an additional 1,000 positions across Teck's global offices and operations, through a combination of layoffs and attrition. This will include a reduction in senior management positions and brings total labour force reductions over the past 18 months to approximately 2,000 positions.
- Withdrawal of the Coal Mountain Phase 2 (CMO Phase 2) project from the Environmental Assessment process and suspension of further work on the project.
The capital reductions and deferrals described above are in comparison to preliminary 2016 capital spending plans. The 2016 capital budget is still under review and Teck will announce forecast 2016 capital spending in February 2016.
"We are implementing these additional measures to conserve capital, lower our operating costs and maintain financial flexibility in light of very difficult market conditions," said Don Lindsay, President and CEO. "These steps build on our ongoing cost reduction program and I want to thank all employees for their efforts to improve efficiency and productivity, while remaining keenly focused on safety and sustainability."
The suspension of CMO Phase 2 means that mining will conclude at the existing Coal Mountain Operations in the fourth quarter of 2017. Teck will identify options between now and the end of 2017 to potentially replace the 2.25 million tonnes of annual coal production that were planned from CMO Phase 2 by optimizing production from its five other steelmaking coal mines.
We seek Safe Harbor.
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