Teck Resources to Invest $3.9 Billion in Copper and Zinc Expansion

Teck Resources, a Canadian mining company, has announced plans to invest up to $3.9 billion to expand its copper and zinc production. This move reflects Teck's strategic focus on energy transition metals following the sale of its steelmaking coal business to Glencore in 2024. The company aims to position itself as a major player in the global copper market, targeting an annual copper output of 800,000 tonnes by the end of the decade.

Central to Teck’s strategy are four near-term copper projects. Among them is the Quebrada Blanca (QB) optimisation and debottlenecking project in Chile, designed to increase throughput at Teck’s flagship mine by 15% to 25%. This low-capital-intensity initiative builds on the successful ramp-up of QB operations, which achieved design throughput rates by the end of 2024. In Q4 2024 alone, QB contributed 60,700 tonnes of copper, helping Teck achieve a record quarterly production of 122,100 tonnes, a 19% year-on-year increase.

In Canada, Teck is investing $1.3 billion to $1.4 billion in a life extension project at the Highland Valley Copper mine. This project is expected to extend the life of Canada’s largest copper mine into the mid-2040s, with an average annual production of 137,000 tonnes over its remaining life.

Teck’s Zafranal project in Peru is also progressing, with a final investment decision anticipated in the second half of 2025. The mine is expected to produce 126,000 tonnes of copper annually during its first five years, along with significant gold by-product credits.

In Mexico, Teck is advancing the San Nicolas project in partnership with Agnico Eagle. The company has allocated up to $500 million for the mine's development, which is projected to yield 63,000 tonnes of copper and 147,000 tonnes of zinc annually. A final investment decision is expected in late 2025.

Teck’s 2024 production highlights its growth trajectory. The company reported annual copper production of 446,000 tonnes, a 50% increase over the previous year, largely driven by the ramp-up of QB. However, zinc production faced challenges. Zinc-in-concentrate output declined by 4% to 615,000 tonnes due to a shift toward copper-only ore at the Antamina mine in Peru, offset partially by a 3% production increase at the Red Dog mine in Alaska. Refined zinc production dropped by 4% to 256,000 tonnes after a fire at the Trail electrolytic zinc plant in September 2024, which impacted Q4 operations.