Member Spotlight: Teck Resources

Teck is the largest producer of steelmaking coal in North America, and the second-largest exporter of seaborne steelmaking coal in the world. 

Can you tell me about Teck’s business?

Teck is a diversified resource company committed to responsible mining and mineral development with business units focused on copper, steelmaking coal, zinc and energy.

We’re based in Vancouver, British Columbia, Canada, and we own or have an interest in 13 mines in Canada, the United States, Chile and Peru, as well as one large metallurgical complex and a wind power facility in Canada. 

The products that we produce, like steelmaking coal and copper, play an important role in improving the quality of life of people around the world and we anticipate sustained future demand as global urbanization continues to increase. 

Our long-term focus is to continue building a broadly diversified resource company, growing our production at existing operations and developing new projects in stable jurisdictions. 

Teck is a major supplier of copper, with five operating mines and large development projects in South America and Canada.

What are Teck’s activities in China? 

Teck established its China presence in 2006 with the opening of our Beijing office and expanded with an office in Shanghai in 2013. From China, we conduct our Asia regional activities including customer and marketing support, market and economic analysis and business promotion activity. 

In addition to having dedicated marketing support teams for our steelmaking coal and base metal products, the Office of Teck’s Chief Economist is based in China.

It’s also important to note that in 2009, China Investment Corporation invested US$1.5 billion in Teck, becoming our largest single shareholder.   

Asia is a very important market for the products Teck produces. It’s Teck’s largest market representing just under 60% of our revenues in 2013, including 26% from China. And as the middle class in China and other Asian countries continues to grow, we anticipate demand for our products will grow in tandem. 

Relationships in the region are very important to us and, in addition to our focus on customers and shareholders, we are partnering with China’s Ministry of Agriculture to promote the benefits of adding zinc to traditional fertilizers. We have also partnered with with the Central Party School to share our knowledge of sustainable mining practices. We support a number of community investments in the region and were the presenting sponsor for the first tour of Canada by the National Ballet of China in 2013.

Our regional activities are overseen by the Vice President, Asia who reports to our President and CEO in Vancouver.

Teck is one of the world’s largest zinc producers. Pictured here is Teck’s Red Dog operation in Alaska.

Can you tell us about your Energy Business unit?

With our significant energy assets, we’re building a new division for Teck that will create increased value and further diversification for our business.

These long-life assets, located in the Athabasca oil sands region of northeastern Alberta, Canada, include a 20% interest in the Fort Hills oil sands project, which is expected to produce 180,000 barrels per day (bpd) as early as Q4 2017 as well a 100% interest in the Frontier oil sands project. We also have interest in various other oil sands leases in the exploration phase.  

We are also a partner in the Wintering Hills Wind Power Facility in Alberta, which has the potential to generate enough clean electricity to power approximately 35,000 homes while displacing the equivalent of approximately 200,000 tonnes of carbon dioxide (CO2) per year..

As we advance our energy business unit, we’re focused on enhancing the sustainability of our projects and we’re working collaboratively with our partners to drive industry-wide sustainability advancements. 

Can you tell us more about the Frontier Project? 

The Frontier project is a proposed truck-and-shovel oil sands mine located about 110 kilometres north of Fort McMurray, in the Athabasca oil sands region of northeastern Alberta

We’re in the process of obtaining the necessary regulatory permits for the project, which is designed to produce up to with a total capacity of approximately 277,000 barrels per day of bitumen. 

The Fort Hills project, located in Alberta’s Athabasca region, is recognized as one of the best undeveloped oil sands mining assets in the region.

Can you tell us about your approach to sustainability?

Our focus on sustainability is embedded in how we do business. Since Teck began, we’ve been focused on responsibly developing mineral resources, working with communities and meeting environmental challenges. 

Our sustainability efforts are guided by a sustainability strategy that includes short- and long term goals in six areas that represent our greatest sustainability challenges and opportunities: Community, Our People, Water, Biodiversity, Energy, and Materials Stewardship. 

In 2013 we continued to advance our work in sustainability and we were proud to be recognized with awards and rankings including being named to the Dow Jones Sustainability World Index for the fourth year in a row, placing our sustainability performance in the top 10% of the world’s 2,500 largest public companies. We were also named for the second year in a row to the Global 100 Most Sustainable Corporations List and were the only mining company on the list.

While these achievements indicate we are on the right track, we know there is more work to be done and we continue assessing our progress and looking for ways to improve as we work towards achieving our sustainability goals  

How does that work on the ground? 

One example of our Sustainability Strategy commitments is our goal of having a net-positive impact on biodiversity. One example of our strategy in action is at our Cardinal River operation, where Rocky Mountain bighorn sheep are one of many wildlife species that have benefited from our reclamation efforts.  The sheep population is so healthy, over 400 have been transplanted to strengthen herds across North America.

And our recent purchase of 7.150 hectares of land in the East Kootenays of British Columbia represents one of the single biggest private sector investments in land conservation in province’s history. 

This land was purchased to ensure this key wildlife habitat, home to numerous wildlife and fish species, including grizzly bear, bighorn sheep and cutthroat trout, will be conserved as a legacy now and for the future. 

Land purchased by Teck for conservation purposes in the East Kootenays of British Columbia.