Courtesy of Teck ComincoTeck Cominco's Cardinal River coal mine, about 42 kilometres south of Hinton, Alberta.

Teck Cominco Ltd. said Thursday it will eliminate 1,400 jobs or roughly 13% of its worldwide workforce in the face of "persistently weak commodity prices."

The Vancouver-based mining giant said in a news release it expects annual savings of approximately $85-million as a result.

"Given continued economic uncertainty, a significant reduction in our workforce is needed to further reduce costs," said Don Lindsay, Teck chief executive, in a prepared statement.

Roughly 1,000 of the cuts will come from inside the company while the remaining 400 will be contractor positions. The majority of the reductions will be made in the first quarter, the company said.

Teck expects to take a $35-million charge.

The company, the largest diversified miner in Canada, said it also plans to scale back coal production to 20 million tonnes due to declining global steel demand.

The company has been under pressure to cut costs and raise capital to repay debt it used to acquire Fording Canadian Coal Trust for $13.5-billion last fall.

The acquisition of the metallurgical coal producer was part of Mr. Lindsey's plan to reduce the company's reliance on zinc.

Mr. Lindsey said at an investor conference in early December that commodity prices could remained depressed for the next 12 to 18 months as the world entered into recession.

Teck shares have fallen substantially since last August as commodity prices rapidly depreciated and its massive debt load, which includes a US$5.8-billion bridge loan due this year, made investors wary.

Teck (TCK.B/TSX) closed trading on the Toronto Stock Exchange at $7.60 on Wednesday, down more than 82% from the end of August.

In late November, the company unveiled a raft of cost-cutting measures including the elimination of its dividend, and divestiture of interests in two mining projects.