Teck Coal says the significant pressure event which occurred at Teck Elkview Operations on January 19 will cost between $5 to $10 million to fix.
Look back: Dryer incident at Elkview Operations
According to a statement released this morning, Teck estimates that the dryer will be out of commission for four to six weeks, resulting in a production loss of approximately 200,000 tonnes of clean coal. With the price of coal hovering around $100 per metric ton, this loss in production could cost the company upwards of $20 million.
In the interim, Elkview Operations will be producing higher moisture steelmaking coals at approximately 80 per cent of planned production levels.
“In order to manage the overall moisture level of our product we are coordinating production with our other operations in the Elk Valley, and blending the higher moisture coal with dry finished coal inventory and dry coal from other operations to the extent possible,” read the report by Teck.