VANCOUVER - Mining company Teck Resources Ltd. (TSX:TCK.B) is cutting 1,000 jobs around the world through a combination of layoffs and attrition as part of a plan to reduce spending next year by $650 million.
The Vancouver-based company says the cuts will include senior management and brings its total job cuts over the past 18 months to roughly 2,000 positions.
The reduction in spending will include $350 million of capital spending reductions and deferrals and $300 million of operating cost savings
Teck also says it will withdraw its Coal Mountain Phase 2 project from the environmental assessment process and suspend further work on the project in a bid to save cash.
The suspension of the project will means that mining will end at the existing Coal Mountain operations in the fourth quarter of 2017.
The company says it look for options between now and the end of 2017 to potentially replace the 2.25 million tonnes of annual coal production that were planned from expansion project.
"We are implementing these additional measures to conserve capital, lower our operating costs and maintain financial flexibility in light of very difficult market conditions," Teck chief executive Don Lindsay said in a statement.
"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."
