Quebrada Blanca Phase 2. April 2012

Transcription

1 Quebrada Blanca Phase 2 April 2012

2 Forward Looking Information Both these slides and the accompanying oral presentation 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) and comparable legislation in other provinces. Forward-looking statements can be identified by the use of words such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, 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 included in this presentation relate to the Quebrada Blanca Phase 2 project and all aspects of that project that are considered in the presentation. These matters include, but are not limited to, the status of the project, mine life projections, timelines of the various elements of the project and project schedule, strip ratios, production figures, facility locations and information related to the design of the project. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially. 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 prices of copper, the timing of receipt of regulatory and governmental approvals, Teck s costs of production and production and productivity levels, power prices, market competition, the accuracy of Teck s reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based, the resolution of environmental and other proceedings, our ongoing relations with our employees and partners and joint venturers, 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: unanticipated developments in business and economic conditions in the principal markets for Teck s products or in the supply, demand, and prices for metals and other commodities to be produced, changes in power prices, changes in interest or currency exchange rates, inaccurate geological or metallurgical assumptions (including with respect to the size, grade and recoverability of mineral or oil and gas reserves and resources), changes in taxation laws or tax authority assessing practices, 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), decisions made by our partners or co-venturers, political risk, social unrest, lack of available financing for Teck or its partners or co-venturers, and changes in general economic conditions or conditions in the financial markets. Certain of these risks are described in more detail in Teck s annual information form available at and in public filings with the SEC. Teck 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. 2

3 Agenda Background and History Project Summary Project Status Project Description 3

4 Teck in Chile Quebrada Blanca Relincho Carmen de Andacollo Exploration programs Two copper operations Two copper and molybdenum projects 4

5 Quebrada Blanca Current Operation Teck Quebrada Blanca S.A. is an open pit mine located in the Tarapaca Region, 240 km from Iquique at 4,090 to 4,400 m altitude Construction started in 1992 and SX-EW Operations started in 1994 Teck holds 76.5%, Inversiones Mineras 13.5% and the State of Chile, through ENAMI, 10% The Supergene is expected to be mined out by 2016 and cathode production is expected to end in

6 Project Summary Long life asset in stable jurisdiction Large Resource: 200 ktpa copper over 39 year mine life Risks well understood Using proven technology Extensive ore characterization work completed Strong existing community relationships Expansion potential considered in current design Near term possibility to increase production by over 50% Good probability of increased resource 6

7 Project Status Feasibility study completed April 2012 Results will be disclosed after review by the board Social and Environmental Impact Assessment (SEIA) will be submitted this quarter Negotiations for EPCM contract underway EPCM and Owners teams established Decision to proceed will depend on development of financing plan with partners 7

8 Location of facilities Mine and Concentrator Tailings Facility Port Facility Pipelines 8

9 Design Summary Long Mine Life Mine plan with 39 year life Improved grade in early years with stockpiling of low grade ore Key Design Elements 135,000 tpd concentrator (el. 4,300 m) using desalinated seawater for process Tailings facility (el. 2,300 m) with 2 Bt of capacity 165 km pipelines to/from coast for concentrate delivery and water supply New port facility, including concentrate filtration, storage and shipping facilities 9

10 Mine Site Plan View Mine Site 10 10

11 Quebrada Blanca Geology Log Waste Zone Leached Cap Waste (No Mineralization) Waste QB Leach Ore QB2 Mill Ore Oxide Minerals (malachite etc) Supergene Enrichment (chalcocite >chalcopyrite) Transition (chalcopyrite >chalcocite) Hypogene (chalcopyrite no visible chalcocite) Current Topo Final QB SX/EW Topo SX/EW Operation Ore QB2 Ore 0 Final QB2 Topo 11

12 Concentrator and Molybdenum Plant Using 100% desalinated water 60 x 113 Primary crusher 2-40 x 22 SAG Mills and 4-26 x 42 Ball Mills 12

13 13 Concentrator Video

14 Location of facilities Mine and Concentrator Tailings Facility Port Facility Pipelines 14

15 Tailings Facility at Choja Sur Sufficient capacity for LOM Reclaim water system Low environmental sensitivity Not near any communities 15

16 Tailings Transfer Launder Using proven technology - same as some other Chilean mines 45 km concrete channel from 4,300 m to 2,100 m One bridge, two tunnels and 54 cascades 16

17 Location of facilities Mine and Concentrator Tailings Facility Port Facility Pipelines 17

18 Patache Norte Area Proposed QB Port Site Existing industrial facilities 18

19 Port Facility at Punta Patache Existing marine terminal for Collahuasi 19

20 20 Port Facility at Escondida

21 Location of facilities Mine and Concentrator Tailings Facility Port Facility Pipelines 21

22 Pipeline Infrastructure 165 km Pipeline Corridor 36 water line from port area to mine site at 4300 m elevation 5 Pump Stations 8 gravity concentrate line to filter plant at port 60 km of 24 reclaim water line from tailings to mine 22

23 Power Supply Negotiations on-going with third party suppliers for electricity supply from new generation facility Electricity supply will be at one of the main substations on the Northern grid (Encuentro or Lagunas) All such generators have an approved Social and Environmental Impact Assessments for their projects 23

24 Execution Strategy Key to Minimizing Capital Cost Well developed execution strategy is key to minimizing the capital cost of the project. Major elements of the strategy are; Proven technology minimizes recovery, throughput and permitting risks; Desalinated water versus seawater results in no exotic materials of construction, quicker and less expensive to build and better metallurgical recoveries No new equipment or novel processes result in a quicker start up Conventional cyclone sand dam tailings disposal requires less up front construction of starter dams 24

25 Execution Strategy Key to Minimizing Capital Cost Selection of world-class and experienced engineering contractors minimizes schedule and execution risk Early procurement of long lead equipment accomplishes; Equipment price certainty Equipment delivery certainty Minimizes exposure to cost escalation Selection of competent qualified construction contractors who have access to the necessary supervision and field labor minimizes field execution risk Use of Direct Field Labor versus Sub-contractors allows for construction flexibility, which maximizes field labor productivity and reduces labor costs 25

26 Execution Strategy Key to Minimizing Capital Cost All of these elements are key to developing an execution strategy that is focused on delivery of both schedule and cost certainty for the QB Phase 2 Project. 26

27 Thank You Discussion 27