(Adds comments, share price, changes dateline from Ottawa; figures in U.S. dollars unless noted)

By Cameron French

TORONTO, Jan 8 (Reuters) - Teck Cominco Ltd (TCKb.TO: Quote, Profile, Research) will cut about 1,400 jobs, or 13 percent of its staff, as part of a plan to lower costs and keep competitive following a sharp drop in commodity prices, the mining company said on Thursday.

Teck, which has been cutting costs to pay down nearly $10 billion in debt taken on to acquire Fording Canadian Coal Trust, expects to save about C$85 million ($71 million) annually with the job cuts.

It also said it plans to reduce 2009 coal output by around 13 percent to 20 million tonnes due to declining global demand from steel-making and other industries.

About 1,000 employee and 400 contractor positions will be eliminated by the end of 2009, largely in the first quarter, said Teck. It expects to take a $35 million charge for severance and related costs in the first quarter.

"Given continued economic uncertainty, a significant reduction in our workforce is needed to further reduce costs and position Teck for both short and long-term competitiveness," Chief Executive Don Lindsay said in a statement.

Teck's shares were down 3.9 percent at C$7.30 on the Toronto Stock Exchange following the news.

FORDING DEBT