Teck sues Alaska over massive tax hike
Teck Resources has filed a complaint against the State of Alaska for a tax increase that could negatively affect the company's Red Dog Zinc Mine and put jobs at risk. — Photo courtesy Teck.com
Vancouver-based Teck Resources Ltd unit, Teck Alaska, has filed a complaint against the State of Alaska for a tax increase that could more than triple the company's annual payments for 2016, according to a report file by Reuters.
In December of 2015, Alaska Governor Bill Walker proposed higher taxes on a number sectors including the alcohol, tobacco, mining and fishing industries to aid in closing a multi-billion-dollar State budget shortfall driven by plunging oil prices and a steady decline in production.
The tax increase would negatively impact the competitiveness and longevity of Teck's Red Dog mine and put jobs at risk, Teck stated.
Teck Alaska operates the Red Dog mine—one of the world's largest zinc mines—located in the Northwest Arctic Borough.
The lawsuit was filed in the Superior Court for the State of Alaska. Red Dog Operations is an open-pit truck-and-loader operation, using conventional drill and blast mining methods. Our mineral processing facilities use conventional grinding and sulfide flotation methods to produce zinc and lead concentrates.
Product from the mine is shipped to customers in Asia and Europe.
Due to arctic weather conditions, the concentrate is stored in large buildings at our port facility 46 miles away on the Chuchki Sea and is typically shipped to customers between July and October each year.
Source: Reuters
