Teck Resources gives green light to $2.4-billion B.C. mine extension

Globe and Mail

4 days ago

Teck Resources Ltd. TECK-B-T said on Thursday that it is going ahead with an extension of its Highland Valley Copper Mine development that could cost as much as $2.4-billion, making it the largest critical-minerals investment in B.C.'s history.
Teck said the project will extend the life of the mine from 2028 to 2046 to meet surging demand for copper for the electrification of the global economy.
The Vancouver-based company said it would start construction in August after garnering the required permits last month.
The project is expected to create about 2,900 jobs and generate $435-million in additional gross domestic product during the construction phase, it said. It will support 1,500 jobs over the life of the mine.
'This extension of Canada's largest copper mine, Highland Valley Copper, is foundational to our strategy to double copper production by the end of the decade,' Teck chief executive officer Jonathan Price said in a statement.
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Extending production at the site, about 75 kilometres southwest of Kamloops, will generate a 'robust' rate of return for the company and guarantee access to the metal for the next two decades, Mr. Price said. He added that Teck looks forward to collaborating with First Nations and local communities as it develops the project.
Production from the Highland Valley mine is expected to average 132,000 tonnes per year over its life, Teck said.
'The project will strengthen Canada's critical-minerals sector, generate new economic activity, and support the continuation of the jobs and community benefits that HVC generates for many more years to come,' he said.
The company has said that it expects demand for copper to double by the middle of the century as the world shifts to a low-carbon economy and population grows, especially in cities.
Engineering for the project is more than two-thirds complete and Teck said procurement and contracting are well under way. Based on Teck's most recent studies, it expects the extension will cost $2.1-billion to $2.4-billion.
The outlay will go toward development of infrastructure at the site, expansion of its mining-equipment fleet, grinding-circuit upgrades, increased capacity for tailings storage and improvements to power and water systems, Teck said.
The company said the new estimate reflects updated assumptions based on current construction-industry risks and potential opportunities for cost reductions during the work. It also takes into account the potential impact of tariffs on construction materials.
Federal Energy and Natural Resources Minister Tim Hodgson said the mine extension positions the country as a critical-minerals supplier of choice.
'Canada has the natural resources that the world wants – and it is projects like these that put us on the map,' he said in a statement.
Teck said it has updated its 2025 financial targets and its 2028 production outlook to reflect its decision to green-light the project.