Can you provide an update on Quebrada Blanca Phase 2 (QB2)?

We announced first copper at QB2 in March 2023, and are continuing to advance commissioning and ramp-up to full production through 2023. QB2 is the flagship of our copper growth strategy and will double our consolidated copper production when it reaches full capacity with the operation targeted to achieve 285,000 – 315,000 t/y copper production in 2024 - 2026. What is also very exciting is that QB2 uses only approximately 18% of the 2022 reserves and resource tonnage, so there is significant potential for future expansion.

What updates do you have on operations at Carmen de Andacollo?

The operation produced 38,600 t of copper in 2022, while overcoming some weather-related challenges. We expect 2023 production expected to be in the range of 40,000–50,000 t, increasing to 50,000–60,000 t/y for 2024 to 2026.

What is Teck’s strategy for continued growth?

Teck is well positioned to help meet the growing demand for copper with an unrivalled suite of growth projects that could add more than 1.5 million t/y to our current copper equivalent production. This is anchored by our QB2 project, alongside other projects that are in various phases of development in Peru, Mexico, Canada, the US, and elsewhere in Chile.

This includes our Quebrada Blanca Mill Expansion (QBME) project which will entail an increase in concentrator throughput of approximately 50%, with the addition of one identical, semi-autogenous grinding line. The feasibility study for QBME, that was initiated in mid-2022, is expected to be completed in the second half of 2023. A permit application was submitted to the Chilean regulator in early 2023 and accepted for review. QBME is expected to be a significant contributor to our near-term copper growth portfolio with potential first production as early as 2026.

How is Teck utilizing desalinated water?

QB2 includes the first large-scale use of desalinated water at a mining operation in the Tarapacá region of Chile. A major challenge which our talented team has addressed is distance – the water must be pumped from the sea to the QB2 site, 164 kilometers away, and 4,300 meters in height.

How does Teck utilize advanced technologies?

Teck’s business transformation program is delivering significant value by renewing our technology infrastructure, looking at opportunities for automation and robotics, connecting our data systems to enable broad application of advanced analytics and artificial intelligence, and empowering our employees. Last year, we announced that technology initiatives we have implemented are expected to generate approximately US$1.1 billion in recurring, annualized benefits. There are a number of examples across our operations – I’ll highlight two here.

At our Carmen de Andacollo and Quebrada Blanca (QB) sites in Chile, our teams are developing and implementing a Digital Tailings Management System (DTMS) to support the use of digitally connected surveillance technologies to help monitor our tailings storage facilities. It will allow the use of data analytics for tailings facilities management aspects including geotechnical monitoring, construction and operations. And at QB2, our team is creating a full, ultra-realistic and detailed digital recreation of our operations in a digital environment. That way, we can test productive scenarios and gain experience and learning before putting them into practice in the real world.

What is the socioeconomic impact of Teck’s mining portfolio in the region?

In 2021, for example, our operations created or sustained approximately 82,360 jobs across Chile, and made payments totalling US$2.2 billion to Chilean suppliers. We also generated US$680 million in taxes and government revenues to national, regional, and municipal governments across Chile. In total, Teck’s global operations contributed US$3.0 billion to Chile’s GDP.

One example of putting our work in Chile is our long-standing partnership with the UN Women Originarias programme. In 2022, we extended our partnership by investing an additional US$5 million to empower more Indigenous women in northern Chile.

What are Teck’s priorities for the next years?

We are well-positioned to capitalize on the strong demand for copper generated by the accelerating transition to a low-carbon economy. The foundation of our portfolio is our high-quality, low-cost and long-life operations, which are located in well-established mining jurisdictions.