July 2, 2010 / 10:21 PM / in 7 years

Teck surveys Greenhills coal mine damage

VANCOUVER (Reuters) - A preliminary survey indicates an explosion at Teck Resources Ltd Greenhills coal mine in British Columbia caused minimal structural damage, the company said on Friday.

But Teck said it will be several days until the damage from Monday’s incident in the mine’s drying unit is fully inspected, and it is still not known how long equipment will be out of order.

Metallurgical coal from the mine is being shipped to Teck’s nearby Fording River mine for processing, and the company said it is looking at other steps to maintain production while the dryer is repaired.

The cause of the explosion has not been determined. No workers were hurt in the incident.

Teck’s insurance is expected to be sufficient to cover losses resulting from the incident, subject to a deductible, the company said,

The Greenhills mine was expected to produce about 4.3 million tonnes of coal in 2010. It is 80 percent owned by Teck, with a minority interest held by a unit of South Korean steelmaker Posco.

Reporting Allan Dowd, editing by Peter Galloway

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