Teck to Cut 600 Jobs Despite Positive First Quarter

Reuters reported that although Teck Resources Ltd.’s (TSX:TCK.B,NYSE:TCK) Q1 adjusted earnings were better than expected, the company still plans to cut about 600 jobs, or 5 percent of its global workforce.

On a brighter note, zinc’s positive outlook has prompted Teck to resume production at its Pend Oreille underground zinc mine, which has been idle since 2009.

As quoted in the market news:

The capital cost of restarting Pend Oreille is pegged at about $41 million. Teck expects it will take seven months to prepare for restart and another five to reach full capacity.

The mine can produce 44,000 tonnes of zinc in concentrate per year, at average production costs of about 80 cents per pound of zinc. It has about five years of mine life left.

Click here to read the full Reuters report.