TECK - Teck Resources Limited

NYSE - NYSE Delayed Price. Currency in USD
10.92
-1.97 (-15.28%)
At close: 4:04PM EST
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Previous Close12.89
Open12.50
Bid10.95 x 1000
Ask11.15 x 4000
Day's Range10.85 - 12.50
52 Week Range10.85 - 25.75
Volume15,424,338
Avg. Volume4,058,473
Market Cap5.871B
Beta (5Y Monthly)2.36
PE Ratio (TTM)2.45
EPS (TTM)4.47
Earnings DateN/A
Forward Dividend & Yield0.15 (1.11%)
Ex-Dividend DateDec 11, 2019
1y Target Est32.12
  • As Teck oil sands mine hopes for okay from Canada's Trudeau, 20 other projects on hold
    Reuters

    As Teck oil sands mine hopes for okay from Canada's Trudeau, 20 other projects on hold

    As Canadian Prime Minister Justin Trudeau considers whether to approve Teck Resources' Frontier oil sands project, roughly 20 others sit on the shelf as companies delay investment decisions hoping for new pipelines and higher prices. Trudeau's cabinet is expected to meet on Tuesday and decide on Frontier this week. Should Ottawa reject the project, Teck said on Friday it would write down Frontier by C$1.13 billion.

  • Bloomberg

    Teck Tumbles After Cutting Steelmaking Coal Target Amid Virus

    (Bloomberg) -- Teck Resources Ltd. dropped the most in three years after cutting its forecast for steelmaking coal as extreme weather and rail blockades disrupted output at a time when the coronavirus outbreak is threatening demand.The Vancouver-based company will temporarily reduce production and shut down its Neptune shipping terminal, it said Friday in its quarterly earnings report. The move will help address high levels of inventory and allow it to move forward with an upgrade at the Neptune facility.It’s been a tough period for Teck, as profit in 2019 was hurt by slumping coal prices and a C$910 million ($686 million) after-tax writedown on its stake in the Fort Hills oil-sands mine. Permitting delays and unrest in Chile will affect the cost of the company’s Quebrada Blanca Phase 2 project. A new schedule and updated capital estimate for that is planned for the first quarter.Teck dropped as much as 13% after the start of regular trading in Toronto, the most intraday since May 2016, and was down 11% as of 9:55 a.m. in Toronto.The miner is also waiting for approval from the Canadian federal government on its Frontier oil-sands project in Alberta. A negative decision could result in an additional impairment of about C$1.13 billion, Teck said. It expects a decision by the end of the month.Work to upgrade the Neptune Bulk Terminals will include a five-month shutdown from May to September, with completion of the work expected in the first quarter of 2021. If that’s delayed, “we may limit our production and sales temporarily on expiry of our contract with Westshore Terminals.” The miner has expressed frustration in its dealings with Westshore Terminals Investment Corp. and has been shifting steelmaking coal freight to its own facility as a result.“Given the potential for weaker demand in the short-term due to the effects of the coronavirus and the high inventory levels due to rail and port constraints, we are choosing to temporarily reduce production,” Teck said. “The extent and duration of impacts that the coronavirus may have on the demand and prices for our commodities, on our suppliers and employees, and on global financial markets is not known at this time, but could be material.”Key FiguresTeck forecast first-quarter steelmaking coal sales of 4.8 million to 5.2 million tons, compared with a Feb. 6 estimate of 5.1 million to 5.4 million tons.Full-year steelmaking-coal production is seen at 23 million to 25 million tons, down from 25.7 million last year.The company reported fourth-quarter adjusted earnings per share of 22 cents, missing the lowest analyst estimate compiled by Bloomberg.To contact the reporters on this story: Liezel Hill in Johannesburg at lhill30@bloomberg.net;Danielle Bochove in Toronto at dbochove1@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Steven FrankFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Teck Cuts Steelmaking Coal Target Amid Virus Threat

    (Bloomberg) -- Teck Resources Ltd. lowered its forecast for steelmaking coal after the Canadian producer was hit by extreme weather and rail blockades just as the coronavirus outbreak threatens demand. The shares plunged the most in three years.The Vancouver-based company will temporarily reduce production and shut down its Neptune shipping terminal, it said Friday in its quarterly earnings report. The move will help address high levels of inventory and allow it to move forward with an upgrade at the Neptune facility.It’s been a tough period for Teck, as profit in 2019 was hurt by slumping coal prices and a C$910 million ($686 million) after-tax writedown on its stake in the Fort Hills oil-sands mine. Permitting delays and unrest in Chile will affect the cost of the company’s Quebrada Blanca Phase 2 project. A new schedule and updated capital estimate for that is planned for the first quarter.The miner is also waiting for approval from the Canadian federal government on its Frontier oil-sands project in Alberta. A negative decision could result in an additional impairment of about C$1.13 billion, Teck said. It expects a decision by the end of the month.Teck fell as much as 13% in early trading in Toronto, the most intraday since May 2016, and was trading down 11% to $15.13 at 9:37 am. in Toronto.Work to upgrade the Neptune Bulk Terminals will include a five-month shut-down from May to September, with completion of the work expected in the first quarter of 2021. If that’s delayed, “we may limit our production and sales temporarily on expiry of our contract with Westshore Terminals.” The miner has expressed frustration in its dealings with Westshore Terminals Investment Corp. and has been shifting steelmaking coal freight to its own facility as a result.“Given the potential for weaker demand in the short-term due to the effects of the coronavirus and the high inventory levels due to rail and port constraints, we are choosing to temporarily reduce production,” Teck said. “The extent and duration of impacts that the coronavirus may have on the demand and prices for our commodities, on our suppliers and employees, and on global financial markets is not known at this time, but could be material.”Key FiguresTeck forecast first-quarter steelmaking coal sales of 4.8 million to 5.2 million tons, compared with a Feb. 6 estimate of 5.1 million to 5.4 million tons.Full-year steelmaking-coal production is seen at 23 million to 25 million tons, down from 25.7 million last year.The company reported fourth-quarter adjusted earnings per share of 22 cents, missing the lowest analyst estimate compiled by Bloomberg.(Updates with details of Frontier project plans in fourth paragraph. Earlier versions corrected the currency on the writedown in third paragraph and changed sales to production in second bullet of Key Insights.)\--With assistance from Danielle Bochove.To contact the reporter on this story: Liezel Hill in Johannesburg at lhill30@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Steven FrankFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Teck Warns of $852 Million Hit if Trudeau Rejects Oil-Sands Mine

    (Bloomberg) -- Teck Resources Ltd. said it would take a C$1.13 billion ($852 million) impairment charge if Canadian Prime Minister Justin Trudeau’s cabinet rejects its proposed Frontier oil-sands mine, raising the stakes for the government’s decision.The company said in an earnings statement on Friday that it is still studying ways to optimize the project with new technology and other operational improvements. Vancouver-based Teck said it believes the project in northern Alberta will still be technically feasible and commercially viable.The warning from Teck adds to the pressure on Trudeau, whose government’s decision is due this month. His environmentalist base is lobbying against the Frontier mine, saying that an approval would make it difficult for Canada to meet its greenhouse gas reduction commitments.Meanwhile, the country’s energy industry is pushing hard for an approval, warning that turning down Frontier would dissuade future investment in the sector. Rejection would also fuel more anger in western Canada over the lack of progress on resource projects.Teck’s application for the project relied on long-term oil prices of $95 per barrel during its operating life from 2026 to 2066, levels that global benchmark prices haven’t seen since 2014. Teck said Friday that those economics don’t reflect subsequent efforts to improve the project.In the earnings statement, Teck disclosed a C$910 million after-tax writedown ($686 million) on its stake in the Fort Hills oil project. To contact the reporter on this story: Kevin Orland in Calgary at korland@bloomberg.netTo contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net;Derek Decloet at ddecloet@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Miner Teck floats oil sands exit as Trudeau government weighs C$20.6 billion project
    Reuters

    Miner Teck floats oil sands exit as Trudeau government weighs C$20.6 billion project

    Canadian miner Teck Resources Ltd on Friday floated a potential exit from the oil sands and warned of a possible C$1.13 billion ($852.12 million) hit should Prime Minister Justin Trudeau's government reject its Frontier bitumen mine. The fate of the C$20.6 billion mine is expected to be decided by next week in what has become a test of Canada's commitment to reduce greenhouse gas emissions and repair relations with the country's indigenous people. At full capacity, the mine would produce 260,000 barrels of crude oil per day, making it one of the largest in Alberta's carbon-intensive oil sands.

  • GlobeNewswire

    Teck Reports Unaudited Annual and Fourth Quarter Results for 2019

    Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) reported unaudited(1) adjusted EBITDA(2) (3) of $4.3 billion in 2019 compared with $5.4 billion in 2018. In the fourth quarter, adjusted profit attributable to shareholders was $122 million ($0.22 per share) compared with $500 million ($0.87 per share) in the fourth quarter of last year. “Ongoing global economic uncertainty negatively impacted commodity prices in the fourth quarter and that has continued into 2020, exacerbated by the effect on markets from the Coronavirus and the impact of severe weather conditions in British Columbia, followed by blockades on rail lines,” said Don Lindsay, President and CEO.

  • GlobeNewswire

    Teck Announces Dividend

    VANCOUVER, British Columbia, Feb. 20, 2020 -- Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) announced today that it will pay an eligible dividend of.

  • GlobeNewswire

    Teck Media and Investor Webcast Advisory

    VANCOUVER, British Columbia, Feb. 18, 2020 -- Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) President and Chief Executive Officer, Don Lindsay will be.

  • The Metal Trump Wants More Than Gold
    Oilprice.com

    The Metal Trump Wants More Than Gold

    A little known metal is becoming increasingly important as technology continues to accelerate, and China controls nearly all of its production

  • Bloomberg

    Trudeau’s in a Bind Over an Oil-Sands Mine That Might Never Get Built

    (Bloomberg) -- Canadian Prime Minister Justin Trudeau’s desire to be seen as a climate-change crusader is again butting up against the reality of the nation’s formidable oil industry.This time the conflict is over Teck Resources Ltd.’s proposed Frontier oil-sands mine, which Trudeau’s cabinet is expected to approve or reject this month.Approving the mine would hurt Trudeau’s standing among his environmentalist base, many of whom already are disappointed with his C$4.5 billion ($3.4 billion) purchase of the Trans Mountain pipeline and now sometimes refer to him as “Justin Crudeau.” Meanwhile, rejecting Frontier would cause an uproar in conservative Alberta, where recent struggles in the oil industry have given birth to a fringe separatist movement.Yet for all the sound and fury around the Teck Frontier project, there is an uncomfortable truth hanging over the whole exercise: The mine may never actually be built.That’s because the oil world is completely different than when Teck first proposed the mine in 2011. At that time, worries abounded that the world was running out of crude and prices regularly topped $100 a barrel. Canada’s oil sands, which contain the world’s third-largest reserves, saw a boom of spending as companies and countries rushed to secure supplies.Then, fracking techniques unlocked massive reserves in Texas’s Permian Basin, helping the U.S. surpass Russia and Saudi Arabia to become the world’s top oil producer, with output more than doubling in less than a decade to about 13 million barrels a day.That flood of new supply has warped the global oil market and weighed on prices ever since. Teck’s application relied on long-term oil prices of $95 per barrel during its operating life from 2026 to 2066, according to a government review of the project last year. Neither West Texas Intermediate nor Brent crude have hit that level since 2014, and they are both below $60 now. Prices are even lower in Canada, where the Western Canadian Select benchmark is trading under $40 a barrel.“It’s not economically viable at these oil prices,” Laura Lau, who helps manage C$2 billion in assets at Brompton Corp. in Toronto, said in an interview. She estimated Teck would need an extended period of $70 to $80 oil before moving ahead. “They’re not going to make a final investment decision in the current oil environment.”The application also banked on increased pipeline shipping capacity out of Alberta, but two projects Teck expected would be built -- Enbridge Inc.’s Northern Gateway and TC Energy Corp.’s Energy East -- have since been canceled. Others, such as Enbridge’s Line 3 and TC Energy’s Keystone XL, have been delayed by years and still face uncertain futures.In fact, the transportation situation has grown so restrictive that Alberta’s government implemented mandatory production cuts last year to prevent a glut of oil from overwhelming the province’s pipelines and storage facilities and crashing prices. The province had planned to lift those restrictions at the end of last year, but had to extend them through this year because of delays to Enbridge’s Line 3 expansion.That prompted Exxon Mobil Corp.’s Canadian unit, Imperial Oil Ltd., to delay its C$2.6 billion Aspen oil-sands project, which had been approved and was scheduled to start production in 2022. Imperial Chief Executive Officer Brad Corson said last month that the company is still waiting for the curtailment policy to lift and for market and shipping dynamics in Alberta to improve before moving ahead.Teck still hasn’t committed to building Frontier if it’s approved. The Vancouver-based company’s current focus is on advancing the project through the regulatory process, and further decisions will depend on the outcome of that process, market conditions and other considerations, said Chris Stannell, a Teck spokesman.Teck CEO Don Lindsay said at an investor conference in Banff, Alberta, last month that the company will need a partner to develop the project with, sufficient pipeline capacity and high enough oil prices to justify the investment.For Trudeau, the question of whether to approve the mine is a particularly thorny test of his repeated slogan that environmental protection and economic growth go hand in hand.The mine is projected to create 7,000 jobs during construction and as many as 2,500 operating positions during its four-decade life, while contributing about C$70 billion to federal, provincial and municipal governments, according to regulatory documents. The project also would include best-in-class technology that would produce oil with less greenhouse gas emissions per barrel than about half of all oil refined in the U.S., according to the documents.Yet, the mine still would produce about 260,000 barrels of crude a day, more than the daily oil consumption of Norway, and emit the equivalent of about 4.1 million tons of carbon-dioxide a year. That would make it more difficult for Canada to meet its commitment to cut greenhouse gas emissions 30% below 2011 levels by 2030 and to reach net zero emissions by 2050.About 49% of Canadians support the project, while 40% oppose it and the remainder are undecided, according to a poll by the Angus Reid Institute released Wednesday.Alberta’s conservative Premier Jason Kenney already is ratcheting up the pressure on Trudeau, saying in a letter to the prime minister there is “no reason specific to this project that would justify denying federal cabinet approval.”“A decision to kill the project at this late hour, after all that Teck has done to satisfy regulators and social and environmental concerns, would echo in global markets like a slamming door,” Kenney said in the letter.The project has broad support in Canada’s oil industry, with the CEOs of rival oil-sands firms saying rejecting Frontier would hurt investors’ confidence in Canada and put a chill on future projects. Brompton’s Lau also said canceling the project would hurt investors’ view of Canada.As with any large energy project in Canada, Frontier would likely face fierce opposition, and possibly legal challenges, if approved. A number of environmental groups have already lined up against the project, including Indigenous Climate Action and Greenpeace Canada, which has a photo on its Twitter feed of actors Jane Fonda and Joaquin Phoenix holding signs bearing the hashtag “RejectTeck.”While the project has the support of 14 affected Alberta First Nations and Metis communities, the project has faced some indigenous opposition as well. The Smith’s Landing First Nation, which is located in the Northwest Territories along a watershed that runs near Frontier, has called on the government of the territory to speak out against the project and is lobbying federal ministers to block it. The group would consider suing if the project is approved, Chief Gerry Cheezie said in an interview.“The government makes promises to us, then breaks them and expects us to act as good little Indians,” Cheezie said. “That’s going to stop.”Opposition to the project has been brewing since it was first proposed in 2011 and will continue even if it’s approved, said Eriel Deranger, a member of the Athabasca Chipewyan First Nation and executive director of Indigenous Climate Action.“The viability of this project is becoming weaker the longer the debate goes on because of the economic constraints, because of the trends in the oil and gas sector,” Deranger said in an interview. “All sorts of different things are creating more risk for this project.”(Updates with poll in 17th paragraph)To contact the reporter on this story: Kevin Orland in Calgary at korland@bloomberg.netTo contact the editors responsible for this story: Derek DeCloet at ddecloet@bloomberg.net, Carlos Caminada, Christine BuurmaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Should Value Investors Pick Teck Resources (TECK) Stock?
    Zacks

    Should Value Investors Pick Teck Resources (TECK) Stock?

    Teck Resources (TECK) stock may be a good choice for value-oriented investors right now from multiple angles.

  • GlobeNewswire

    Teck Announces Sheila Murray Appointed Board Chair

    VANCOUVER, British Columbia, Feb. 07, 2020 -- The Board of Directors of Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) announced today that Sheila Murray.

  • Alberta urges approval of Teck oil sands mine, rejects federal aid idea
    Reuters

    Alberta urges approval of Teck oil sands mine, rejects federal aid idea

    Officials from the energy-rich Canadian province of Alberta on Friday insisted the federal government approve a massive oil sands project, rejecting the idea that aid from Ottawa would soften the blow if it were to be quashed. Reuters reported on Thursday that Canada is preparing a financial package that would help dull the pain if it blocks Teck Resources Ltd's plan to build the C$20.6 billion ($15.7 billion) Frontier mine that has raised climate and wildlife concerns. "We're not looking for a handout from the federal government; we're looking for the federal government to get out of the way of our province," Alberta's Environment Minister Jason Nixon told reporters in Calgary.

  • GlobeNewswire

    Teck Provides Q1 2020 Steelmaking Coal Sales Update

    Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) announced today that steelmaking coal sales for the first quarter of 2020 are being affected by bad weather in British Columbia causing rail and terminal performance issues. The estimated impact on first quarter sales is expected to be approximately 1 million tonnes, resulting in sales in the quarter of 5.1 to 5.4 million tonnes. High mine site clean coal inventory levels are also expected to limit first quarter coal production if weather conditions do not improve.

  • Bloomberg

    Teck, Mulling New Oil-Sands Mine, Sets Carbon-Neutral Goal

    (Bloomberg) -- Teck Resources Ltd., which is proposing a new oil-sands mine in Canada, set a goal of becoming carbon neutral from its operations and activities by 2050.Reaching the goal will entail evaluating alternative ways of moving materials at mines, using cleaner power sources and improving efficiency, Vancouver-based Teck said Monday. The company said it already has implemented projects to reduce greenhouse gas emissions at its operations by 289,000 tons since 2011.Teck, which produces copper, coal, zinc and oil, is setting the target as the Canadian government weighs approval of its proposed Frontier oil-sands mine in Alberta. The project would cost C$20 billion ($15 billion) to build and produce 250,000 barrels of crude a day, more than the daily oil consumption of Norway.Oil-sands producers including Cenovus Energy Inc. have also set goals of becoming carbon neutral. Like the goal Teck announced on Monday, those targets include direct emissions from their operations and indirect emissions from the generation of energy they use, but not the emissions that come from burning the fuels they produce.Greenpeace Canada criticized Teck for announcing a plan to cut emissions from its operations while considering an oil-sands project that will help fuel cars with gasoline and diesel. Chris Stannell, a spokesman for Teck, said emissions intensity at Frontier would be approximately one half of the oil sands industry average. The crude produced there would also have a lower carbon intensity than about half of the oil currently refined in the U.S., he said.Teck hasn’t yet committed to building Frontier, even if it gets government approval. Chief Executive Officer Don Lindsay said last week that the company will need a partner to develop the project with, adequate pipeline capacity and strong enough oil prices before deciding to go ahead with it. Teck owns about 21% of the Fort Hills oil-sands mine, which opened in 2018.(Updates with company and Greenpeace comment in fifth paragraph)To contact the reporter on this story: Kevin Orland in Calgary at korland@bloomberg.netTo contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Carlos Caminada, Steven FrankFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Canada's Teck Resources targets to be carbon neutral by 2050
    Reuters

    Canada's Teck Resources targets to be carbon neutral by 2050

    Teck's target, which aligns with Canada's commitments to reduce greenhouse gas emissions to net zero by 2050, comes more than a month after the environment minister said the government will take into account the country's climate plan when it considers approval of the Frontier project. At full capacity, the C$20.6 billion ($15.55 billion) Frontier project could produce 260,000 barrels per day of bitumen in northern Alberta, making it one of the largest in the oil sands. All 14 First Nations and Metis communities that would be directly affected have signed agreements with Teck, supporting the project.

  • GlobeNewswire

    Teck Announces Goal of Carbon Neutrality by 2050

    As part of our commitment to climate action and responsible resource development, Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) today announced an objective to be carbon neutral across all operations and activities by 2050. It also aligns with commitments by Canada and Chile – which are home to the majority of Teck’s operations – to be carbon neutral by 2050.

  • GlobeNewswire

    Teck and AES Gener Announce Renewable Energy Agreement

    Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) and The AES Corporation (AES) announced today that their Chilean affiliates, Compañía Minera Teck Quebrada Blanca S.A. ("CMTQB") and AES Gener S.A (AES Gener), have entered into a long-term power purchase agreement for the Quebrada Blanca Phase 2 copper project ("QB2") in Chile, enabling the transition to renewable energy for approximately half the power required for operation of QB2.

  • Bloomberg

    Teck’s Proposed Oil-Sands Mine Gets Support From Rival Producers

    (Bloomberg) -- Teck Resources Ltd.’s proposed Frontier oil-sands mine won votes of confidence from the heads of two rival crude producers as Canada weighs a decision on the project.The mine in Alberta won the green light from a government panel last year, and Prime Minister Justin Trudeau’s cabinet may decide on the project’s fate by the end of next month. The mine would cost about C$20 billion ($15 billion) to build and produce 250,000 barrels a day after going into operation by 2026.Cenovus Energy Inc. Chief Executive Officer Alex Pourbaix, speaking at an event in Calgary, said the industry is seeking certainty that it can get projects approved if they meet regulators’ requirements and go through “tough, transparent and challenging” assessments.“You have a proponent that has been advancing this project for 10 years, and it looks to me like they’ve done everything right,” Pourbaix said in response to reporters’ questions. “They’ve received all the approvals and the positive reports, and if it were not to be approved, that would be a challenge.”Suncor Energy Inc. CEO Mark Little said in an interview with BNN Bloomberg Television that Canada should help meet rising global demand for crude and that new oil-sands facilities are using technology that puts their carbon intensity on par with the North American average, reducing their environmental impact. Suncor partnered with Vancouver-based Teck on the Fort Hills oil-sands operation that opened in 2018.Rejecting Frontier would be “a big hit on investor confidence in Canada,” Little said.Teck, for its part, hasn’t committed to building Frontier. CEO Don Lindsay said at investor conference on Wednesday that the company will need a partner to develop the project with, adequate pipeline capacity and strong enough oil prices before deciding to go ahead with it.To contact the reporter on this story: Kevin Orland in Calgary at korland@bloomberg.netTo contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Carlos Caminada, Joe CarrollFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Teck CEO Unloads on Shipper With Gripes About Costs and Cargo

    (Bloomberg) -- A rift between between Teck Resources Ltd. and the company it uses to export its coal widened as the Vancouver-based miner publicly accused the shipper of charging too much and contaminating some freight.The head of Teck, already shifting some steel-making coal freight away from Westshore Terminals Investment Corp., said on Wednesday that the export facility had contaminated “dozens” of shipments. Teck was forced to build its own terminal quickly, before a permit lapsed and its contract with Westshore expired, which drove up capital costs, according to Chief Executive Officer Don Lindsay.“We had a lot of trouble with Westshore,” Lindsay told analysts at an industry conference in Banff, Alberta. “We’re not happy that the capex doubled. We had to get away from a company that used monopolistic pricing practices.”Westshore, also based in Vancouver and operated by billionaire Jim Pattison, is the largest coal-loading facility on the west coast of the Americas. The company refuted Teck’s allegations.Because Westshore had a 10-year contract with Teck, employees were able to ship the company’s coal “when they liked,” which often was not when prices were high, Lindsay said. That practice cost Teck $200 million in earnings before interest, taxes, depreciation and amortization during one quarter in 2018, when a million tons of sales were lost at a time coal margins exceeded $200 per ton, he said.“We certainly disagree with the first two comments about not adhering to the contract and having tons of trouble with Westshore,” Nick Desmarais, Westshore’s corporate secretary, said by phone, referring to Teck’s allegations including the contamination of its coal. “And our rates are market rates.”“They were contaminating our coal with thermal coal,” Lindsay alleged. “We had dozens and dozens and dozens of incidents, including one incident where it was so severe that our largest customer stopped sending ships to them.”To contact the reporter on this story: Danielle Bochove in Toronto at dbochove1@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Joe RichterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Oilprice.com

    Is This The End Of Canada’s Oil Sands?

    Canada’s controversial oil sands are staring down the barrel of the gun, with a decision looming that could signal the end for the region’s production

  • Teck Resources says 'anyone's guess' if Canada will approve oil sands project
    Reuters

    Teck Resources says 'anyone's guess' if Canada will approve oil sands project

    The outcome of the Canadian government's pending decision on whether to approve Teck Resources Ltd's Frontier oil sands project is "anyone's guess," the company's chief executive, Don Lindsay, said on Wednesday. At full capacity, the C$20.6 billion ($15.67 billion) Frontier could produce 260,000 barrels per day of bitumen in northern Alberta, making it one of the largest in the oil sands. Canada has until the end of February to decide, although delay is an option, Environment Minister Jonathan Wilkinson said on Tuesday.