Winter Weather Slows Red Dog Zinc Output
By North of 60 Mining News Teck Resources Ltd. April 26 reported that severe snowstorms impacted first quarter zinc production and revenues from its Red Dog Mine in Northwest Alaska. During the first three months of this year, Red Dog produced 126,200 metric tons (278 million pounds) of zinc, which is 39 percent lower than the 131,600 metric tons (290.1 million pounds) produced during the same period of 2022 First quarter lead production at Red Dog was roughly 7 percent higher than during the first three months of 2022. The Red Dog mill processed 992,000 metric tons of ore averaging 15.4 percent zinc and 4.3 percent lead, compared to 1.03 million metric tons of ore averaging 15.2 percent zinc and 3.8 percent lead during the same period last year. Teck says the lower mill throughput is due to severe snowstorms that resulted in capacity constraints in the concentrate storage facility. The lower zinc output, along with weaker zinc prices and higher costs, impacted Red Dog’s first quarter revenues.
TEMSCO Teck says that production at Red Dog had returned to normal by the end of the quarter, and the company’s 2023 production guidance of 550,000 to 580,000 metric tons of zinc for the Northwest Alaska operation remains unchanged. Likewise, Teck’s profit from the Red Dog Mine was $78 million during the first quarter of this year, which is less than half the $173 million during the first three months of 2021. At the same time, Red Dog’s operating costs, before inventory changes, were $104 million during the first quarter, or $18 million higher than a year ago. Teck expected the higher costs that reflect the inflationary pressures of annual supplies and consumables delivered to the Northwest Alaska zinc operation during the summer 2022 shipping season. The increased costs, coupled with the lower zinc output and prices, resulted in Red Dog generating $194 million in revenues for Teck during the second quarter. This is nearly half the $384 million of revenue generated during the same period in 2021.
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