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VANCOUVER _ Teck Resources Ltd. (TSX:TCK.B) said Monday it expects coal production in 2010 to be 23.5 million to 25 million tonnes and is planning for further production increases in 2011 and 2012.
The Vancouver-based miner is currently forecasting coal production of 20 million tonnes and sales of 19.5 to 20 million tonnes for 2009.
The company said production was at the lower end of its guidance as a result of shipping delays caused by high winds at the port in Vancouver which are expected to be made up in the first quarter of 2010, weather permitting.
"Our coal team is focused on near term expansion opportunities in light of the tight market that we expect for high quality hard coking coal," Teck President and CEO Don Lindsay said in a statement.
"We are fortunate to be able to add production with relatively small incremental capital."
Teck said it expects its overall capital spending for all businesses in 2010 to be in line with total capital spending in 2009.
Investment firm UBS suggested Monday that the prices for hard coking coal will rise more than 30 per cent in 2010 as Chinese steel output stays at elevated levels and traditional customers show modest demand increases.
"These demand factors, coupled with UBS's expectation of potential supply constraints, lead to a favourable view on coal," UBS analyst Chris Lichtenheldt wrote in a note to clients.
The firm's estimated price for 2009 calls for US$129 per tonne. UBS forecast a price of hard coking coal of US$170 per tonne in 2010 and US$175 per tonne in 2011.
