Skip to main content

Anglo American PLC says low coal prices have forced it to make plans to temporarily halt production at its Trend mine in northeastern British Columbia.

Anglo American

Anglo American PLC says low coal prices have forced it to make plans to temporarily halt production at its Trend mine in northeastern British Columbia.

"This is a pause and not a withdraw from our long-term vision in British Columbia," Anglo American spokesman Federico Velasquez said in an interview Thursday from Tumbler Ridge, B.C.

More than 360 workers will be affected by the company's plans to suspend coal output in late 2014 at the Trend operation near Tumbler Ridge. Last year, the mine produced about 1.5 million tonnes of metallurgical (or coking) coal, a key ingredient in the production of steel.

Story continues below advertisement

Amid new supplies from Australia, metallurgical coal prices have tumbled to roughly $120 (U.S.) a tonne after hitting $300 in 2011.

London-based Anglo American recently expanded in B.C. in hopes of starting coal deliveries from its Roman property near Tumbler Ridge, but that site also won't be producing until coal prices rebound.

In April, Birmingham, Ala.-based Walter Energy Inc. suspended coal-mining operations and temporarily laid off almost 700 employees in northeastern British Columbia. While the region had been hoping for an economic revival, projects remain on the drawing board. Vancouver-based Teck Resources Ltd. decided earlier this year to suspend new spending on its Quintette coal property.

Anglo American coal leader Seamus French said the company has reduced operating costs, though not enough to offset the pain from plunging coal prices.

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter