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Flooding in British Columbia disrupts Teck logistics

Image courtesy of Teck Resources

Canada’s largest diversified miner Teck Resources (TSX: TECK.A; TSX: TECK.B; NYSE: TECK) says the unprecedented rain and flooding in British Columbia has disrupted the supply chain between west coast terminals and its BC-based operations.

Two days of torrential rain across the province caused major flooding and shut rail routes operated by Canadian Pacific Rail (TSX: CP) and Canadian National Railway (TSX: CNR), Canada’s two biggest rail companies.

The once-in-a-century weather phenomenon caused widespread landslides, severing the Lower Mainland access routes from the interior, and killing at least one person.

Teck said in a statement it has implemented measures to mitigate the effect of the disruption, diverting some trains to Ridley Terminals in Prince Rupert.

CP and CN have started repairs but do not currently have estimated return to service dates.

“The overall impact and any potential effect on Q4 sales will be dependent on the duration of the logistics chain disruption,” Teck said in a media statement, adding that production at its operations has not been impacted.

Headquartered in Vancouver, Teck produces metallurgical coal for export, and copper and zinc in BC.