SÃO PAULO Teck Resources Ltd., one of the largest exporters of metallurgical coal in the global seaborne market, doesnt plan to start producing coal outside of Canada anytime soon.
"Tecks view at the moment is that we have lots of resources in Canada," vice president of coal marketing Réal Foley told delegates at the 6th Coaltrans Brazil and South America conference. "Right now, well concentrate on those assets."
Teck, one of the largest producers of metallurgical coal in North America, operates six mines in western Canada. Together, they produce about 80 percent of the countrys total metallurgical coal output.
Tecks proven and probable reserves currently allow for more than 30 years of coal production, Foley said at the conference.
The Vancouver, British Columbia-based companys coal output rose to 24.7 million tonnes last year from 22.8 million tonnes in 2011, and the company is now targeting a production rate of 28 million tonnes per year.
Teck also plans to reopen its Quintette metallurgical coal mine in British Columbia with an investment of Canadian $858 million ($848 million), Foley said.
The company expects permit approval to be granted by the end of the first half of this year and the first coal to be produced by the first half of 2014.
The mine is expected to produce 3.5 million tonnes per year of coal over the next 12 years, but mine life could be extended, he added.
Tecks potential areas for expansion in Canada include its Fording River and Elkview mines, Foley said.
Teck also produces copper and zinc, but more than half of its profits come from the coal business.
A version of this article was first published by AMM sister publication Steel First.