Teck Resources Down 4.5%, Hits New Yr Lows as CEO Favors Coal Mine Expansion as M+A Booms
Teck Resources Ltd. (TCK-B.TO), the world's second-largest exporter of coal used in steelmaking, has hit a new year low of $37.10 after saying it's focused on expanding Canadian operations even as the volume of coal industry mergers and acquisitions rises to the highest in at least 12 years.
"For us, it makes far more sense to build than to buy," Chief Executive Officer Don Lindsay said in Vancouver, according to a Bloomberg report. "It may be boring from an external point of view that there aren't lots of transactions, but it works."
Teck plans to step up the pace of extraction from the more than 5.5 billion metric tons of coal deposits it holds in Alberta and British Columbia. Lindsay said building capacity there is a cheaper way to add production than buying companies such as U.S. miner Walter Energy Inc. ( WLT ) or Australia's Macarthur Coal Ltd, Bloomberg reported.
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