Teck Resources' Ambitious Expansion Plan to Boost Copper Production

With strategic projects across multiple countries, the company is well on track to achieving its long-term production goals and strengthening its position in the industry.

Teck Resources (TSX: TECK.A, TECK.B)(NYSE: TECK), Canada's largest diversified miner, has unveiled a significant investment plan to enhance its copper production capacity. Over the next four years, the company aims to invest up to $3.9 billion, targeting an annual copper output of approximately 800,000 tonnes by the end of the decade.

Strategic Growth and Production Milestones

Teck reported impressive copper production figures for 2024, achieving 446,000 tonnes—a remarkable 50% increase from the previous year. This surge was primarily driven by the successful ramp-up of its Quebrada Blanca (QB) mine in Chile. Looking ahead to 2025, the company projects copper production to reach between 490,000 and 565,000 tonnes.

To realize its long-term production goals, Teck has outlined a comprehensive strategy centered around low-complexity projects across Chile, Canada, Peru, and Mexico.

Quebrada Blanca: The Cornerstone of Teck's Growth

The Quebrada Blanca mine, where Teck holds a 60% stake, plays a pivotal role in the company's growth strategy. The QB2 expansion project achieved its first production milestone by March 2023 and is expected to reach full design throughput by the end of 2024.

In Q4 2024, QB contributed 60,700 tonnes of copper to Teck’s record quarterly output of 122,100 tonnes, marking a 19% increase year-over-year. Looking further, the company is advancing the next phase, the Quebrada Blanca Mill Expansion (QBME), which is slated to commence production in 2026. This initiative could boost the mine's throughput by 15% to 25%, with an estimated attributable capital cost of $100 million to $200 million.

Expanding Highland Valley Copper Mine in Canada

In Canada, Teck is committing between $1.3 billion and $1.4 billion to extend the productive lifespan of the Highland Valley Copper mine, the nation's largest copper operation. This investment will allow the mine to operate into the mid-2040s, with an expected annual production of 137,000 tonnes over its remaining years.

Zafranal and San Nicolás Projects: Expansion Beyond Borders

Teck is also making strides in Peru and Mexico. In Peru, the company is moving forward with its 80%-owned Zafranal project, with a final investment decision anticipated in the second half of 2025. Once operational, the mine is projected to produce 126,000 tonnes of copper annually in its initial five years, benefiting from substantial gold by-product credits.

Meanwhile, in Mexico, Teck is progressing with the San Nicolás project in collaboration with Agnico Eagle (TSX, NYSE: AEM). With an investment of up to $500 million, this project is expected to yield 63,000 tonnes of copper and 147,000 tonnes of zinc annually. A final investment decision is slated for the latter half of 2025.

Mixed Performance in Other Commodities

While copper production has seen significant growth, Teck reported mixed results across other commodities. Zinc-in-concentrate production decreased by 4% to 615,000 tonnes, attributed to a shift toward copper-rich ore at the Antamina mine in Peru. However, this was offset by a 3% rise in zinc production at the Red Dog mine in Alaska.