Teck earmarks up to $3.9 billion to boost copper output

me-metals: Teck Resources (TSX: TECK.A, TECK.B)(NYSE: TECK), Canada’s largest diversified miner, plans to invest up to $3.9 billion over the next four years to increase its copper production to about 800,000 tonnes annually by the end of the decade.

According to me-metals cited from mining.com, The company seems to be on the right track. For 2024, it reported annual copper production of 446,000 tonnes, representing a 50% increase from the previous year. This growth was primarily driven by the ramp-up of its Quebrada Blanca (QB) copper mine in Chile. For the current year, Teck anticipates copper production to rise further, reaching between 490,000 and 565,000 tonnes.

The company has outlined a detailed strategy to its long-term production goals, focusing on low-complexity key projects across Chile, Canada, Peru, and Mexico.

Central to this growth plan is Quebrada Blanca, in which Teck has a 60% stake. The mine’s QB2 expansion reached its first production milestone by the end of March 2023, achieving design throughput rates by the end of 2024.

In the fourth quarter of 2024 alone, QB contributed 60,700 tonnes of copper to Teck’s record quarterly production of 122,100 tonnes, a 19% increase compared to the same period in 2023.

The Vancover-based company is already advancing the next phase of development at the mine, the Quebrada Blanca Mill Expansion (QBME). This project is expected to begin production in 2026 and could further increase the mine’s throughput by 15% to 25% by the end of the decade, with an estimated attributable capital cost ranging from $100 million to $200 million.

Canada’s largest copper mine to get bigger

In Canada, Teck is investing between $1.3 billion and $1.4 billion to extend the productive life of its Highland Valley Copper mine, the country’s largest copper operation. This initiative aims keep the mine running into the mid-2040s, with an average production forecast of 137,000 tonnes per year over its remaining lifespan.

Teck is also progressing its 80%-owned Zafranal project in Peru, in which it expects to make a final investment decision in the second half of this year. Once operational, the mine could produce 126,000 tonnes of copper annually during its first five years, with significant gold by-product credits.

Teck earmarks up to $3.9 billion to boost copper output

In Mexico, Teck is advancing the San Nicolás project in partnership with Agnico Eagle (TSX, NYSE: AEM). Teck has earmarked up to $500 million for the mine’s development, which is projected to deliver 63,000 tonnes of copper and 147,000 tonnes of zinc annually. A final investment decision is anticipated in second half of 2025.

Other commodities saw mixed results. Zinc-in-concentrate production dropped by 4% to 615,000 tonnes due to a shift towards copper-dominant ore at the Antamina mine in Peru. However, this decline was partially offset by a 3% increase in zinc production at the Red Dog mine in Alaska.

source: mining.com