* No update on production guidance
July 15 (Reuters) - Teck Resources TCKb.TO said on Thursday that no conclusion had been reached on the cause of an explosion at its mine last month, and it did not have an update on production guidance.
On June 28, Teck reported an explosion in the coal dryer at its Greenhills coal mine in British Columbia, which is 80 percent owned by Teck and a unit of South Korea’s Posco owning the minority interest. [ID:nSGE65S08G]
After a mechanical inspection, it was concluded that most of the exhaust side of the dryer system would need to be replaced, Canada’s largest base-metals miner said.
Teck plans to activate the bypass system around the dryer allowing it to produce and ship wet coal for blending with dry coal from other mines, it said in a statement.
Shipping raw coal for processing to Fording — which was started on July 2 — from Greenhills and shipping wet coal from Greenhills would significantly reduce the impact on production, Teck said.
The mine was expected to produce about 4.3 million tonnes of metallurgical coal in 2010. But Teck said it would not be able to update that view till it was clear how much time the alternative measures would take to yield results.
Shares of Teck closed at $34.28 Thursday on the Toronto Stock Exchange. (Reporting by Savio D’Souza in Bangalore; Editing by Maju Samuel)