Zinc Business Unit. Rob Scott Senior Vice President, Zinc

Transcription

1 Zinc Business Unit Rob Scott Senior Vice President, Zinc

2 Forward Looking Information These slides contain certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario). Forward-looking statements can be identified by the use of words such as anticipated, targeted and expect or variation of such words and phrases or state that certain actions, events or results may, could, should, would, might or will be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include, but are not limited to, estimates, forecasts, and statements as to management s expectations with respect to Red Dog s future zinc production, restart of the Pend Oreille Mine, expansion at Antamina and timing and cost of the Trail acid plant replacement. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions, interest rates, the supply and demand for, inventories of, and the level and volatility of price of zinc, the timing of receipt of regulatory and governmental approvals for the expansion and development projects discussed in the slides, and the future operational and financial performance of the company generally. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to differ materially. Factors that may cause actual results to vary include, but are not limited to: adverse developments in business and economic conditions in the principal markets for zinc and Teck s other principal products, in credit markets, or in the supply, demand, and prices for metals and other commodities to be produced, changes in interest and currency exchange rates, legal disputes or unanticipated outcomes of legal proceedings, unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of permits or government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), and changes in general economic conditions or conditions in the financial markets. Certain of these risks are described in more detail in the annual information form of the company available at and in public filings with the Securities and Exchange Commission. The company does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

3 Making a difference with Zinc & Health Two billion people do not get enough zinc in their diets. Every year 450,000 children die from complications arising from zinc deficiency. Our Zinc Alliance For Child Health partnership with CIDA and Micronutrient Initiative, our involvement with UNICEF through the IZA and our partnership with BASF are gaining wide recognition. 1

4 Growing The Market Zinc Nutrient Initiative International Zinc Association (IZA) global campaign to increase: Awareness of zinc fertilizer Use of zinc fertilizer to enhance crop productivity and nutritional value Zinc Fertilizer Developments: Zinc was included in three separate National Fertilizer Recommendations from the Chinese Ministry of Agriculture. Zinc was included in India s 2011 national fertilizer subsidy system. 2

5 3 Red Dog Mine A World Class Zinc Mine

6 Red Dog Mine A Low Quartile Operating Cost Mine Key price assumptions: Zinc 90.6 /lb Lead 95.4 /lb Aqqaluk/Qanaiyaq reserves average 20% combined lead/zinc grade. Contained zinc production more than 475,000 tonnes annually through to 2018 Installed additional fine grinding capacity to increase throughput and partially offset lower grades. 4

7 Red Dog District Significant Exploration Potential 350 km 2 of highly prospective NANA and State lands with identified exploration targets 100% Teck owned Alaska State claims NANA Mine & Exploration Leases Ongoing drilling programs to enhance resource certainty and define future developments Su-Lik Anarraaq Paalaaq Aqqaluk Main Qanaiyaq 5

8 Red Dog Discharge Permit Appeals against the renewal of Red Dog s main water discharge permit have been favourably resolved Working with regulators toward issuance of the renewal permit timing still uncertain Awarded the Robert O. Anderson Sustainable Arctic Award for outstanding contributions toward sustainable development 6

9 7 Pend Oreille Mine Strategic Location

10 Pend Oreille Mine 100km from the Trail Smelter High quality zinc and lead concentrate/competitive distribution costs Key price assumptions: Zinc 90.6 /lb Lead 95.4 /lb Strong community relations Significant upside/operating cost leverage above US$0.70/lb zinc 8

11 Pend Oreille Mine Preparing for Restart Subject to Market Conditions Resource upside potential in historic mining district. Ongoing drilling programs to define additional reserves for a potential restart. Same style of drilling graph and land position map as Red Dog get drilling information from Dave R. and map from geology. CANADA USA Pend Oreille 9

12 10 Antamina A Polymetallic Deposit

13 Antamina A Significant Zinc Producer 700, ,000 Payable Metal Sale (100% basis) Antamina is a polymetallic deposit and a significant source of zinc metal production averaging about 240,000 tonnes/year. Payable Metal Sales 500, , , , ,000 0 Cu Zn Expansion to 135 tpd from 95 tpd will equally impact zinc production as well as copper. Very low cost producer with copper, zinc and molybdenum metal production. 11

14 Antamina Second Quartile Zinc Costs Normal costing positions Antamina in second quartile of the zinc operating cost curve. However, zinc provides a material byproduct credit to copper unit costs. Antamina s high quality social programs are key elements in managing community relations. Key price assumptions: Zinc 90.6 /lb 12

15 13 Trail Operations Competitive Power and Byproduct Advantage

16 Trail Operations First Quartile Margins due to low cost power 450 MW Waneta hydro-electric generating facility is 2/3 owned and provides all of Trail s power requirements at $6/MWh. Trail uniquely integrated lead/zinc smelter provides for high metal recoveries. Key price assumptions: Zinc 90.6 /lb Lead 95.4 /lb Silver $30.5/oz Byproducts such as silver, indium and germanium provide a diversified source of revenue. 14

17 Trail Operations Diversification and Renewal Additional slag fuming and settling furnace to treat additional E-waste and recover 12,000t copper annually. Project deferred pending longer term global economic certainty - $210 million capital cost. Acid plant replacement $125 million capital cost on plan for commissioning in November

18 16 Questions?