Teck Resources Approves $2.4 Billion Mine Life Extension
Canada’s Largest Copper Mine Set for Two Decades More Production
Teck Resources Ltd. has greenlit a significant investment of up to $2.4 billion to extend the operational life of Canada’s largest copper mine, the Highland Valley Copper Mine, by nearly twenty years.
Boosting Copper Output Through 2046
The Highland Valley Copper Mine Life Extension project, situated south of Kamloops, B.C., aims to boost average annual copper production to 132,000 tonnes. This initiative is projected to keep the mine running from its previously planned closure in 2028 until 2046.
Chief Executive Jonathan Price described the project as “lower risk and lower complexity,” being a brownfield development. Teck is touting this as the most substantial critical minerals investment in British Columbia’s history.
Increased Investment Reflects Optimization Efforts
The capital expenditure for the project is now estimated between $2.1 billion and $2.4 billion, an increase from the earlier projection of $1.8 billion to $2 billion. Teck attributed this escalation to further engineering work focused on optimizing the project.
“This now includes project-level contingencies, accounts for inflation, input cost escalation, and the impact of potential tariffs on construction materials and reflects the accelerated procurement of mobile equipment originally planned for later project phases.”
—Jonathan Price, Chief Executive Officer, Teck Resources Ltd.
With major permitting finalized and engineering seventy percent complete, construction is slated to commence in the coming weeks. Price added that Teck has a history of successful mine-life extensions at Highland Valley.
Foundation for Future Growth
This project is considered pivotal for Teck’s strategy to double its copper production by the end of the decade, underscoring copper’s importance as an “energy transition metal.” The expansion is expected to create approximately 2,900 jobs and contribute $435 million to the gross domestic product during the construction phase.
British Columbia Premier David Eby highlighted the investment as an example of the province driving economic progress, even during challenging times. Federal Natural Resources Minister Tim Hodgson stated that such projects bolster Canada’s critical minerals sector and its standing as a global supplier of essential metals.
Indigenous Partnership Emphasized
Chief Christine Walkem of the Cook’s Ferry Indian Band described the decision as a “defining moment” for both industry and the local communities involved in the Citxw Nlaka’pamux Assembly (CNA), which manages agreements between Teck and eight First Nations.
“Our communities are not bystanders to development — we are decision-makers. We are forging a new path with Industry and the Crown for how major projects unfold in our territory: grounded in respect, guided by our values and focused on long-term benefit for our people.”
—Chief Christine Walkem, Chair, Citxw Nlaka’pamux Assembly Board
“As the project enters construction, we remain firm in our expectations. Our voices must continue to be heard. Our laws must continue to guide the process. Our people must continue to share in the benefits — now, and for generations to come.”
—Chief Christine Walkem, Chair, Citxw Nlaka’pamux Assembly Board
Financial Performance Overview
In other news, Teck reported a profit from continuing operations attributable to shareholders of $206 million, or 41 cents per diluted share, for the quarter ending June 30. This compares to a profit of $21 million, or four cents per diluted share, in the same quarter last year.
On an adjusted basis, profit from continuing operations was 38 cents per diluted share, up from 12 cents a year prior. Revenue for the quarter reached $2.02 billion, an increase from $1.80 billion in the prior year’s quarter.
The company’s shares were trading down by nearly six percent on the TSX on Thursday afternoon, at $49.42.
