Name of the Project
Quebrada Blanca Phase 2 (QB2) copper project.

Location
Tarapacá region, northern Chile.

Project Owner/s
On March 29, 2019, Teck Resources concluded a transaction where SMM/SC subscribed to a 30% indirect interest in QBSA, which owns the QB2 copper development. SMM/SC contributed $966-billion to QBSA on closing the transaction and a further $336-million over the remainder of 2019, including $38-million for interest on the loan advances during 2019.

In the fourth quarter of 2019, Teck closed the $2.5-billion limited recourse project financing to fund the development of QB2.

Project Description
QB2 is one of the world’s biggest undeveloped copper resources.

The supergene orebody, a near-surface deposit, was mined during the initial phase of Quebrada Blanca. QB2 will develop the deeper sulphide resource underlying the existing operation. 

QB2 is expected to produce 316 400 t/y of copper equivalent for the first five years of mine life. The project is expected to have an initial 28-year mine life.

The project is expected to include the construction of a 140 000 t/d concentrator, tailings storage facility, concentrate pipeline, water supply pipeline, desalination plant, concentrate filtration plant and port to produce copper and molybdenum concentrates.

The project will include the first large-scale use of desalinated seawater at a mining operation in the Tarapacá region of Chile, instead of freshwater use. In addition, port facilities for loading mineral concentrate onto ships for transport to markets will be built.

Potential Job Creation
About 15 000 people are working on the QB2 project, with 2 000 ongoing direct and indirect jobs during operation.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Teck Resources increased the capital cost guidance for the QB2 copper growth project in November 2022 by at least $500-million, citing current foreign exchange assumptions and cost pressures pertaining to weather and subsurface conditions.

The capital expenditure (capex) guidance is now between $7.4-billion and $7.75-billion, compared with the prior guidance of between $6.9-billion and $7-billion in July 2022, and an earlier guidance of $4.7-billion.

The new Teck construction cost guidance is in line with the $7.5-billion estimate that Japanese partner Sumitomo (33.33% owner) reported in August 2022.

Planned Start/End Date
QB2 will start up in the second half of 2022, doubling Teck’s consolidated copper production by 2023.

Latest Developments
Teck Resources has said that QB2 will be fully powered by renewable energy, announcing a 17-year power purchase agreement with AES Andes for 1 069 GWh/y of energy from renewable sources on November 10.

The agreement follows the 2020 agreement with AES Gener, in terms of which it secured 50% of QB2’s total operating power needs from renewable-energy sources.

Teck has said that the use of 100% renewable energy for QB2, instead of energy from coal-fired generation, will avoid 1.6-million tonnes a year of greenhouse-gas (GHG) emissions.

“Reaching full renewable power for QB2 will enable us to achieve our goal of net-zero Scope 2 emissions by 2025 as we harness clean power to minimise the GHG footprint of our operations,” CEO Jonathan Price has said.

Teck’s ultimate goal is to be a net-zero operator by 2050.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Teck Resources senior communications specialist Chris Stannell, tel +1604699 4368 or email Chris.Stannell@teck.com.
Teck Resources investor relations, tel +1604699 4257 or email investors@teck.com.