Teck coal sales expected to drop in Q1

Teck Resources is blaming cold winter weather and train derailments for lower coal sales in the first quarter of 2011.

The B.C.-based company expects Q1 coal sales to be between 4.6 and 4.9 million tonnes, compared to an average of 5.3 million tonnes of sales in the first quarter of each of the last six years.

“Sales have been affected by unusually difficult winter weather conditions, which have caused higher than normal rail delays due to avalanches, as well as an unusual number of locomotive power failures and train length restrictions due to cold weather,” the company stated on Monday.

Teck said rail transport was also affected by two recent non-weather-related train derailments and mechanical issues. Operations at Neptune Terminals and Westshore Terminals were impacted by high winds and mechanical failure, including a problem with a shiploader at Westshore Terminals in January.

The company said a strike at the Elkview mine in the East Kootenay region of the province has not contributed significantly to reduced sales, because coal is still being delivered from existing inventory. Mediation commenced on March 12 and is continuing.