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Teck Halts Antamina Mine Operations Amid Coronavirus Outbreak

Teck Resources Limited TECK has announced the temporary suspension of the Antamina mine operations in the wake of the coronavirus pandemic. The Antamina mine is one of the world’s largest Zinc and Copper mines. Teck owns 22.5% interest in the mine, along with BHP Group BHP and Glencore’s share of 33.7% each, while Mitsubishi Corporation holds 10%.

The Antamina mine so far has been operating under an exemption from the restrictions imposed by the Peruvian Government amid the virus outbreak. Teck has maintained its critical operations with lower workforce since the national state of emergency commenced four weeks ago. The Peruvian Government has now extended the current state of emergency till April 26, resulting which, the Antamina mine is temporarily suspending operations and demobilizing majority of its workforce. The company will implement precautionary measures to safeguard the health of workers and local communities during demobilization and subsequent remobilization. The mine site will be put into care and maintenance during this period to enable safe restart of operations.
 
Peru is a global mining powerhouse — ranking third in global copper production, second for silver and sixth for gold, and also owns significant reserves of zinc, lead, iron ore and tin. Following the declaration of national state of emergency, Newmont Corporation NEM, Freeport-McMoRan Inc. FCX, along with other miners, have halted their operations in the country.

Teck is a significant copper producer in the Americas, with four operating mines in Canada, Chile and Peru, and copper development projects in North and South America. Its main projects are Highland Valley Copper in Canada and Antamina, Quebrada Blanca and Carmen de Andacollo in South America. The company’s business units are focused on steelmaking coal, copper, zinc and energy.

On Mar 18, the company announced temporary suspension of construction activities at its major Quebrada Blanca Phase 2 (QB2) project in Chile for two weeks amid escalating coronavirus fears.

In fact, the company has revoked its current-year financial guidance on slowdown of production and workforce reductions. Total production at steelmaking coal operations and at Highland Valley Copper is anticipated to reduce during the initial two-week period of production suspension.

Teck currently carries a Zacks Rank #3 (Hold). The company’s shares have plunged 66.5% over the past year compared with the industry’s decline of 21.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



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BHP Group Limited (BHP) : Free Stock Analysis Report
 
Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
 
Newmont Corporation (NEM) : Free Stock Analysis Report
 
Teck Resources Ltd (TECK) : Free Stock Analysis Report
 
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