Miner Teck preparing for possible strike at Canada's Westshore coal terminal (updated)

Westshore Terminals Investment

17/12/2020 20:42

(Adds Teck statement, byline)
    By Jeff Lewis
    TORONTO, Dec 17 (Reuters) - Miner Teck Resources  TECKb.TO 
on Thursday said it was preparing for the possible shutdown of a
key coal export terminal on Canada's West Coast, after a union
notice said strike action against terminal owner Westshore
Terminals Investment Corp  WTE.TO  could commence on Saturday.
    Westshore said Wednesday its Westshore Terminals Limited
Partnership received a 72-hour strike notice from ILWU Local
502, which represents workers at its coal export terminal at
Roberts Bank, British Columbia.  urn:newsml:reuters.com:*:nFWN2IW0Z3
    The company said it has been in negotiations with the union
for several months over a new collective agreement after a
previous agreement and two others expired Jan. 31. 
    While further talks are scheduled, the strike notice will
stop work on Dec. 19 resulting in the complete suspension of
operations, the company said.
    The terminal is key for Teck's coal volumes as upgrades to
the Canadian miner's own Neptune terminal are not expected to be
completed until the end of the first quarter next year,
Scotiabank analysts said Thursday in a note.
    Teck is assessing potential impacts and preparing mitigation
strategies, including the ability to ship additional capacity
through other terminals, should a strike proceed, spokesman
Chris Stannell said. 
    He cited the company's Neptune terminal and Ridley
Terminals, owned by Riverstone Holdings LLC, AMCI Group and the
Lax Kw’alaams and Metlakatla First Nations.
    "We are hopeful that a fair and reasonable settlement for
both parties will be reached as quickly as possible," Stannell
said.
    "We currently have inventory at port and are continuing to
load vessels as normal at this time."
    Westshore did not respond to a request for comment Thursday.
Union President Rob Ashton declined comment. 
    The terminal has throughput capacity of 33 million tonnes,
according to its website. 
    Teck has boosted shipments of steelmaking coal to China to
take advantage of curbs on Australian imports.  urn:newsml:reuters.com:*:nL1N2IH1Q1 

 (Reporting by Jeff Lewis; Editing by Alexander Smith and Lisa
Shumaker)
 ((Jeff.lewis@tr.com; +1 647 200 7236))