Lowering in the first column of 48-inch make-up water system pipeline at QB2 (December 2020).
Diversified major Teck Resources has made progress at the Quebrada Blanca Phase 2 (QB2) copper project, which it suspended in March and has started ramping up again since the third quarter.
At the end of 2020, the company has achieved its target of 40% overall completion of QB2, president and CEO Don Lindsay said on Wednesday, noting that at full capacity, the mine would double Teck’s total consolidated copper production.
QB2 is expected to produce 316 400 t/y of copper equivalent for the first five years of mine life.
First production from QB2, in which Japan’s Sumitomo is a 30% project partner and Chilean State miner Enami 10%, is expected in the second half of 2022, but Teck cautioned that the project timeline remained dependent on managing the impacts of Covid-19.
The construction suspension, including estimated ramp-up costs and costs associated with ongoing health and safety protocols for Covid-19, as well as extra camp space to comply with protocols, are costing Teck between $450-million and $500-million – about $50-million over its previous guidance.
However, Teck noted that the estimated capital cost for QB2 remained at $5.2-billion.
“Without question, 2020 was one of the most challenging years any of us have experienced, as we worked to manage through the global pandemic and its impacts on people, communities and the economy. The Teck team rose to meet that challenge, putting in place comprehensive measures to protect health and safety and ensure we could continue to operate responsibly and progress our strategy to grow copper production and optimise productivity and cost structures at our existing operations,” said Lindsay, announcing the group’s fourth-quarter and year-end results.
Despite Covid-19 challenges, all Teck’s business units achieved their second-half production and sales guidance. The copper business unit had a strong fourth quarter, supported by an increase in copper prices, which surged 26% to $3.42/lb. Copper production in the quarter was 78 100 t with net cash unit costs of $1.27/lb sold.
The major reported adjust profit of C$248-million, or C$0.47 a share, in the fourth quarter, which compares with C$223-million, or C$0.40 a share in the prior-year period. Adjusted profit for 2020 at C$561-million, or C$1.05 a share, was lower than that of 2019, when Teck reported adjusted profit of C$1.7-billion, or C$3.03 a share.