Teck Resources (TCK) will begin using liquefied natural gas (LNG) as a fuel source in six haul trucks to help achieve a long-term target to reduce annual greenhouse gas emissions by 450,000 tonnes by 2030. Since implementing initiatives in 2011, the company has reduced annual emissions by 170,000 tonnes.
By using LNG as fuel, Teck has the potential to reduce Co2 emissions by 35,000 tonnes and reduce fuel costs by more than $20 million annually.
The trucks are located at its Fording River steelmaking coal operation in Southeast British Columbia, making this the first use of liquefied natural gas as a fuel source at a Canadian mine site.
The pilot program is expected to run until mid-year 2016.
Shares of Teck are 4% higher at $3.64, near the low of its 52-week range of $3.49 to $16.40.