TORONTO, Aug 22 (Reuters) - Rio Tinto and Teck
Resources said on Thursday the labor dispute between
Canada's two biggest railway companies and their workers would
likely disrupt their operations and the miners were taking steps
to mitigate the damage.
A Rio Tinto spokesperson said the company's contingency
plans to minimize the impact included trucking certain materials
and products and increasing use of its own rail network.
Teck said it was looking to use alternative transportation,
without specifying. A spokesperson added that the interruption
of rail service is negative for its partners and customers in
the critical minerals supply chain.
Canada's top two railroads, Canadian National Railway ( CNI )
and Canadian Pacific Kansas City ( CP ) locked out
more than 9,000 unionized workers on Thursday, triggering an
unprecedented rail stoppage that threatens to cause billions of
dollars worth of economic damage and disrupt North American
supply chains.
Rio Tinto's Canadian operations include production of iron
ore, aluminum and diamonds. Canadian operations contributed $800
million to the company's total revenue of $26.8 billion in the
first half of 2024.
The lockout will be mostly felt in the iron ore and aluminum
businesses, Rio Tinto said. It owns around 100 kilometres (62
miles) of railway for its aluminum operations and 400 kilometres
of rail network for iron ore.
Teck's Canadian operations include copper and molybdenum
production at its Highland Valley, British Columbia mine, as
well as zinc and lead smelting and refining at Trail, British
Columbia.