Teck cuts 1,000 jobs, dividend to reduce costs (Canadian Press/Toronto Star – November 18, 2015)

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The reduction in spending will include $350 million of capital spending cuts and deferrals and $300 million of operating cost savings.

VANCOUVER — Mining company Teck Resources Ltd. 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 said the layoffs will include senior management and brings its total job cuts over the past 18 months to roughly 2,000 positions.

Teck Resources will also cut its dividend to be paid on Dec. 30 to five cents per share. That compares with an earlier semi-annual payment to shareholders of 15 cents.

The reduction in spending will include $350 million of capital spending cuts and deferrals and $300 million of operating cost savings.

Teck also said it will withdraw its Coal Mountain Phase 2 project from the environmental assessment process and suspend further work on the project in bid to save cash. The suspension of the project means that mining will end at the existing Coal Mountain operations in the fourth quarter of 2017.

The company says it will 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 the expansion project.

For the rest of this article, click here: http://www.thestar.com/business/2015/11/18/teck-cuts-1000-jobs-dividend-to-reduce-costs.html

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