Spotlight: Teck's Quebrada Blanca II copper-molybdenum project

Teck Resources' Quebrada Blanca II (QB2) project in northern Chile’s Tarapacá region – aimed at reversing declining copper and molybdenum output – is on track to start operations this month.

Of the US$7.75bn construction costs, Teck will invest US$1.48bn this year to expand the Quebrada Blanca mill. The environmental impact statement was submitted to review agency SEA in January and outlined an overall initial investment of US$3bn.

The new processing line will help increase concentrator capacity by 50% and is key part of complementary works, Teck said in its annual report published Thursday.

Teck is eyeing copper output of 285,000-315,000t and 10-14Mlb of molybdenum in 2024-26. Guidance for this year is 150,000-180,000t and 4.5-6.8Mlb.

New production from the mill expansion is expected for 2026, while Teck will advance geotechnical drilling to test opportunities with existing resources, the report reads.

Quebrada Blanca copper cathode production dipped 1,900t to 9,600t last year. The decline partially resulted from a stoppage in extraction in 2018. Copper cathode production is expected to end this year.

Copper concentrate production at Carmen de Andacollo, in Chile’s Coquimbo region, decreased by around 5,000t last year, reaching 38,600t, while cathode production was 900t, down 400t.

Lower copper prices, higher operating costs and lower sales impacted both sites, Teck said.

In 4Q22, Teck completed a 1,000l/s desalination plant in the Punta Patache sector, 60km from Iquique, which will supply all QB2 processes. 

And to reduce emissions, Teck and AES Corporation signed an agreement under which all operations will run on renewable energy from 2025, avoiding 1.6Mt/y of greenhouse gas emissions.

QB2 has a 28-year lifespan with potential for further expansions.