Don Lindsay, Teck Resources CEO
Teck Resources has a long and rich history, dating back to 1908 when the company was formed by some of Canada’s most prominent mining entrepreneurs. In the past few years, Teck Resources has been on a major growth path and is looking for continued success into the future.
Teck Resources is strategically building up its copper production. In January 2012, we announced a $3.5B investment to develop the world-class copper resources at our 100%-owned and operated Copper Mountain property, which includes the large-scale development of our flagship project – Copper Mountain. At full capacity, the Copper Mountain mine will be one of the largest and lowest cost primary source copper mines in North America, with anticipated average annual production (AAAP) of 400,000 tonnes per year (t/y) for more than 20 years.
According to a recent study by the Freeport-McMoRan Copper & Gold Inc. (FCX) (NYSE: FCX ), the Copper Mountain project will add $4 billion in total capital spend, which includes $1.5 billion in sustaining capital. In addition, another recent study by BC Assessment pegged the realized value of our mineral resources at $16 per share, and we anticipate further potential for future cash flow growth with about 20% annual returns on invested capital for the period from 2016 to 2027.
It’s clear that the Copper Mountain project will be a major driver of future growth for Teck. In addition to the direct costs associated with facility operation and maintenance, Teck is investing to create value in other areas. This is why we will continue to be extremely focused on increasing production volumes and the generation of value from our remaining undeveloped copper assets in the Americas jurisdictions of British Columbia, Ontario, Quebec, and Wyoming.