Teck Resources Lowers 2024 Copper Production Forecast Amid Operational Challenges

Teck Resources

Canadian mining company Teck Resources has revised its 2024 copper production guidance downward by 7% at the midpoint, citing unplanned maintenance, labor shortages, and logistical upgrades. The updated forecast sets production at 420,000-455,000 metric tonnes (t), down from the previously expected 435,000-500,000t.

Key Factors Behind the Revision

• Highland Valley Copper Mine: Labor tightness and delays in implementing new haul truck systems contributed to the downgrade.
• Quebrada Blanca Mine: Maintenance issues in grinding and flotation circuits further impacted the forecast.

Refined zinc production guidance was also lowered to 240,000-250,000t, following a fire at Teck’s electrolytic zinc plant in September.

Operational Highlights

Despite the revised outlook, Teck’s third-quarter copper production surged to 115,000t, a 60% increase year-on-year.

• Quebrada Blanca: Produced 52,500t, up 184% from the same quarter in 2023 as ramp-up efforts continued. Full capacity is expected by the end of 2024.
• Highland Valley: Output increased 24% to 25,400t, thanks to higher mill throughput and ore production, although Lornex pit delays dampened progress.
• Antamina: Copper production grew 12% to 111,500t, supported by higher recoveries and copper-only ore treatment.
• Carmen de Andacollo: Production rose 24% to 11,500t, benefiting from improved mill throughput and recovery rates.

Zinc Production Updates

• Zinc in Concentrate: Increased 3% year-on-year to 158,000t, while sales fell 10% to 268,000t.
• Red Dog Mine: Output rose 14% to 142,500t, driven by improved mill availability.
• Trail Operations: Refined zinc production decreased 3% due to the fire and rail labor disruptions.

Financial Performance

Teck reported a C$792 million ($571 million) loss in the third quarter, a sharp contrast to the C$268 million profit recorded during the same period in 2023.

Strategic Moves and Long-Term Focus

Teck has sold its 77% stake in EVR, its steelmaking coal business, to Glencore, allowing the company to focus on ramping up copper production. Medium- and long-term projects include:

• Extending the Highland Valley mine life.
• Exploring Minas de San Nicolas and Zafranal for future mining operations.

All major projects are in the permitting phase, with decisions expected by mid-to-late 2025.