As the world moves towards a more sustainable future, companies across the world are balancing their role in developing operations that access vital resources such as metals that are fundamental to sustainable future development, for example, those used in renewable technologies, whilst also mitigating as much environmental damage in the process as possible. This is a tricky operation to manage, but one that Teck Resources Limited has long been passionate about as a leading Canadian resource company that is focused on the responsible production of metal resources that are essential for the global energy transition.
Teck’s copper mining spans the Americas, with 4 copper mines and a strong pipeline of development projects across both North and South America. A key mine is the Highland Valley Copper Mine which produces both copper and molybdenum in south-central British Columbia. Teck has a 100% interest in the mine, where autogenous and semi-autogenous grinding and flotation operations are carried out. Once mined, the copper concentrates are then exported overseas where the majority is sold under long-term sales contracts to smelters. The contracts with the smelters ensure that none of the resources produced are wasted and ensure that each ounce of mined resource is being delivered towards future development.
In Chile Teck has 2 copper mines; the Quebrada Blanca Mine in the Tarapacá Region of northern Chile and the Carmen de Andacollo mine located in the Coquimbo Region of Central Chile. Quebrada Balance is a newly expanded copper mine comprising an open-cut mine area, a concentrator plant, a tailing facility and various utilities and port facilities. Teck holds a 60% indirect interest in the mine, with Sumitomo Metal Mining Co., Ltd, and Sumitomo Corporation together having a collective 30% indirect interest in the mine. The final 10% interest is held by the Chilean state-owned, Coldelco, who have a non-funding interest.
The final copper operation for Teck in Chile is the Carmen de Andacollo, which mines both copper and gold. Teck has a 90% interest in the mine, and Empresa Nacional de Minería holds the remaining 10%. The operation is an open pit mine producing copper concentrates in the form of the hypogene portion of the orebody. The mine is served by personnel where the vast majority of them are from the town of Andacolla, or the nearby cities of Coquimbo and La Serena. With a vast majority of its workers being locals, the mine gives back to the local community through vital employment.
The other vital metal for Teck is zinc, as it is one of the world’s largest producers of mined zinc and its operations include one of the world’s largest fully integrated zinc and lead smelting and refining facilities. Zinc is a vital resource for global development as its primary role is for galvanizing steel, and so it is widely used across the industrial sector for the development of infrastructure. In addition, zinc is also a vital resource utilised in the development of various everyday technologies from electronics to batteries, and also plays a vital role in the agriculture market to help boost crop yield and crop quality. With such a vast role in the development of the world whether for infrastructure, technology or even agriculture, it’s no surprise that as a company passionate about building a more sustainable and greener future, zinc is a vital resource in its mining operations.
A vital zinc operation under Teck is the Antamina mine in Peru, which produces both zinc and copper. The mine is located in the Andes Mountain range, 270km north of Lima. Teck holds a 22.5% interest in the mine, with BHP plc and Glencore plc both having 33.75% interest each, with Mitsubishi Corporation holding the final 10% interest. Mined zinc from the open pit, truck and shovel operations is transported via a 302km slurry concentrate pipeline which takes the copper from the port to smelters and refiners worldwide. The mine has entered into a long-term copper and zinc concentrate off-take agreement with affiliated Antamina shareholders on market terms. This helps to ensure the mined ore reaches end markets and will be used for value. Teck itself sells its share of copper and zinc concentrates from the Antamina mine to major smelting and refining companies across the globe.
The other vital zinc operations under Teck are the Red Dog operations in Alaska, USA. The mine is one of the largest zinc mines in the world and is located 170km north of the Arctic Circle. The mine today facilitates open-pit truck and loader operations, which utilise conventional drill and blast mining methods. However, the entire operations have been developed in agreement with the NANA landowner, which is a regional Alaska Native corporation owned by the Iñupiat of northwest Alaska. By working with NANA, Teck is committed to ensuring its operations give back and support the Iñupiat people who own the land. Zinc concentrates produced at Red Dog are shipped to Teck’s Trail Operations in British Columbia, which are then delivered to customers across Asia and Europe.
Teck owns the Trail Operations project one of the world’s largest fully integrated zinc and lead smelting and refining complexes. The project is a fully integrated metallurgical operation which produces refined zinc and lead products. In addition to this, the operation also produces a variety of precious and speciality metals, chemicals and fertilizer products. Plus, the Waneta Dam provides low-cost, clean and renewable power to all of its metallurgical operations.
As Teck moves towards the future it announced in August that it was implementing a new business structure to support its continued growth. The new business structure will see Teck organised into two regional business units, with the North American business unit spanning the High Valley Copper, Red Dog and Trail Operations, as well as its Galore Creek, Schaft Creek and new range copper growth projects. The second business unit, the Latin American (LATAM) unit, includes the Carmen de Andacollo and Quebranda Balance operations, plus its interests in Antamina and the Zafranal San Nichola and NuevaUnión copper growth projects.
According to Jonathan Price, President and CEO of Teck, “The new structure will ensure Teck is optimally positioned to operate safely, efficiently, and responsibly while capitalizing on profitable growth opportunities and enhancing value for our shareholders and stakeholders”. Price’s comments here signify Teck’s mission to ensure its structure can meet the demands of each operation, by dividing its operations into two strategic units that can work cohesively across each division. This hopes to streamline operations and allow the company to focus on growing its copper and zinc operations more sustainably.
What can be seen across Teck’s operations is a commitment to deliver vital resources, and ensure they are refined or delivered to vital end markets where they can be utilised in the production of technology to help the future development of the planet. By delivering vital resources in a sustainable manner that respects the resources, people and places in which it operates, it’s no surprise Teck Resources Limited is now a leading metal resource company driving towards the future of global sustainable development.
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