Spotlight: Teck's LatAm copper growth plans

As part of Teck Resources' new focus on energy transition minerals and a goal to become a top global copper producer, the Canada-based miner has divided its business into Latin American and North American units, sold its steelmaking coal line to Glencore and is preparing a 30% production increase by 2028.

The change also involved restructuring the executive team and streamlining the regional agenda, CEO Jonathan Price said in a statement.

In Chile, Teck operates the Quebrada Blanca and Carmen de Andacollo copper mines and shares the NuevaUnión initiative equally with Newmont. 

In Peru, it controls Zafranal and has a stake in the Antamina copper-zinc mine, and in Mexico it has a JV with Agnico Eagle for the San Nicolás mine.

After investing US$8.2bn in Quebrada Blanca phase II (QB2), which started last year, Teck eyes overall copper production of around 600,000t/y. The Zafranal and San Nicolás greenfield projects are expected to contribute from 2028 and bring total output to 800,000t/y.

Teck is optimistic about copper demand and prices. As imports from China have been falling, the London Metal Exchange estimates a price of over US$9,000/t in the next six months.

"Copper projects in Latin America need to take advantage of the opportunity by being neutral in terms of demand and prioritizing customer diversification," Marcos Lima, mining expert at consultancy CIS, told BNamericas in a conversation about Chinese market dominance and the role of producers.

BNamericas takes a look at Teck's main projects in Latin America.

Quebrada Blanca

QB2 in Tarapacá region helped increase Q2 production to 51,300t from 43,300t in the previous quarter.

While this year's guidance has been lowered to 200,000t-235,000t from 230,000t-275,000t, due to, among other reasons, lower ore grades, Teck is still eyeing 280,000t/y-310,000t/y over the next three years. 

Teck is also drawing up an optimization plan to remedy bottlenecks.

Quebrada Blanca is 60% owned by Teck, 30% by Japan's Sumitomo and 10% by Chilean state company Enami.

Carmen de Andacollo

This operation in Chile's Coquimbo region produced 39,500t of copper in concentrate last year. An operational continuity project to extend its useful life until 2031 is underway.

Production is expected to reach 38,000t-45,000t this year and 50,000t/y-60,000t/y in both 2025 and 2026, according to the company's annual report.

The asset is 90% owned by Teck and 10% by Enami.

NuevaUnión

A 50:50 initiative with Newmont, NuevaUnión in Atacama region will combine the Relincho and El Morro projects, which are 40km apart.

Teck is evaluating profitability and mine planning, although preliminary estimates indicate production of 224,000t/y of copper from 2034, according to BNamericas data.

Zafranal

This project in Peru's Arequipa region is managed by a JV with Mitsubishi Materials. The environmental certification service for sustainable investments, Senace, granted the license in May 2023, and detailed engineering is underway.

A mining plan should be adopted in the second half of 2025, including copper production of 76,000t/y over 19 years.

Antamina

Teck owns 22.5% of this operation in Áncash region, BHP 33.75%, Glencore 33.75% and Mitsubishi 10%. The environmental impact study to extend mine life from 2028 to 2036 was approved this year.

Teck's attributable production is expected to be between 85,000t and 95,000t in 2024, 80,000t-90,000t in 2025 and 90,000t-100,000t in 2026, the miner said in its annual report.

San Nicolás

The result of a Teck-Agnico Eagle Mines alliance, San Nicolás in Mexico's Zacatecas state is expected to produce around 63,000t/y of copper in the first five years, starting 2026.

Useful life is currently 15 years, environmental permitting is underway and a feasibility study advancing, with detailed engineering planned to start in the first half of 2025.