Teck Resources To Spend Up To US$3.9 Billion Over Next Four Years On Copper Strategy
Teck Resources (TSX: TECK.B) is focusing its efforts on building out its copper production. The firm this morning indicated it intends to grow copper production to 800,000 tonnes per year by 2030.
The Canadian miner intends to spend between US$3.2 and US$3.9 billion over the next four years as it works to develop four global projects to achieve that production target. As of the end of 2023, Teck boasted copper production of 297,000 tonnes, which is guided to grow to between 420,000 and 455,000 tonnes in 2024.
The bulk of that spending target is to be divided between the Highland Valley Copper Mine in Canada, where an extension project is underway, as well as the 80%-owned Zafranal Project in Peru, which is currently in the development stage. Highland Valley is expected to have capital expenditures between US$1.3 to US$1.4 billion, which will extend the life of the mine to the mid-2040’s, with life of mine production post-2024 of 137,000 tonnes per year. Zafranel, which is a low complexity copper-gold project, is pending a sanction decision in the second half of 2025. With estimated costing between US$1.5 and US$1.8 billion, the project once operational is expected to produce 126,000 tonnes of copper per year for the first five years, with “substantial” additional gold credits.
On the lower end of costing is the 60% owned San Nicolas Project in Mexico, which is estimated to have a funding requirement between US$0.3 and US$0.5 billion. With a possible sanction decision in the second half of 2025, the mine is expected to produce 63,000 tonnes of copper and 147,000 tonnes of zinc per year for the first five years.
Also on the low end of costing is the 60% owned Quebrada Blanca project in Chile, which has the opportunity to increase production by 15% to 25% at a cost of between US$0.1 and US$0.2 billion.
Teck at the same time indicated it has a net cash position of $1.8 billion, following $2.3 billion in debt reduction year to date, and $0.9 billion in share buybacks this year.
Teck Resources Class B shares last traded at $65.31 on the TSX.
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