Teck Resources Limited announced Tuesday they will be removing 1,000 positions, through “a combination of layoffs and attrition,” as part of a plan to reduce costs.
The mining company will also be closing down operations at their Coal Mountain, B.C. facility, and attempting to reduce spending by $650 million in 2016. They hope to achieve this through budgetary changes, which accounts for $300 million, as well as a reduction in capital spending and deferrals to the tune of $350 million.
“We are implementing these additional measures to conserve capital, lower our operating costs and maintain financial flexibility in light of very difficult market conditions,” Don Lindsay, President and CEO of Teck Resources Limited said in a media release. “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.”
In August of 2015 Teck Resources joined forces with Goldcorp on a jointed facility in Chile known as “Project Corridor.” The project was said to be on track to create 4,000 jobs, with another 1,400 being created during operation.
In late October, Teck announced a quarterly loss due to a $2.2 billion asset impairment charge, and the company is currently trading at $6.30 (TSE:TCK.B). The company currently employs roughly 11,000 people.