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Job Losses Anticipated at Teck Coal

Coal News - Published on Tue, 15 Oct 2019

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Teck Coal September 26 alerted all employees of possible job losses and the implementation of a cost reduction program in order to stay ahead of a rapid downturn in the global market. In a letter to all coal employees, Robin Sheremeta, SVP, Coal, Teck Resources Limited stated, “Many of you are aware of the current downturn in commodity pricing generally and most recently, the severe downturn in coal pricing. Over the last few weeks, the price of coal has plunged from $210 per tonne to $130 per tonne. Not only is the magnitude of the decline substantial, but the rate of the decline is unprecedented; we have lost 80% of our margins in just four months with no end in sight. As a result, our organization is taking steps across all of Teck to protect the business through this uncertain time. Every experienced coal miner knows that a positive market like the one we’ve been in the last three years, never lasts forever and that we will eventually need to manage through a downturn. That is the nature of our business. Those downturns persist until either supply clears from the market or demand increases. The previous downturn occurred gradually over five years and it was largely driven by oversupply.”

Sheremeta said “Unfortunately, with the US-China trade war, Brexit and a host of other world issues, this downturn has materialized much faster. World economies are in a synchronized global slowdown and that is fundamentally impacting demand for all of Teck’s products, most recently coal.”

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Posted By : Rabi Wangkhem on Tue, 15 Oct 2019
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