Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK) has secured board approval for a multi-billion-dollar life extension of its Highland Valley copper mine in British Columbia, setting the stage for a two-decade boost in copper output.
The Vancouver-based miner said Thursday (July 24) that construction on the Highland Valley Copper Mine Life Extension Project (HVC MLE) will begin in August, following receipt of environmental and permitting approvals in June.
The newly sanctioned Highland Valley project is expected to extend the mine’s life from 2028 through 2046, with average annual copper production of 132,000 metric tons.
The company further confirmed that engineering progress is nearly 70 percent complete.
Over its lifespan, the project is expected to maintain approximately 1,500 direct jobs and US$500 million in annual GDP from current operations. During the construction phase alone, Teck said that it anticipates roughly 2,900 jobs and US$435 million in additional GDP.
“This extension of Canada’s largest copper mine, Highland Valley, is foundational to our strategy to double copper production,” said CEO Jonathan Price in the company’s announcement.
“The project will strengthen Canada’s critical minerals sector, generate new economic activity, and support the continuation of the jobs and community benefits that HVC generates for many more years to come,” Price added.
The announcement comes as Teck posted better-than-expected earnings for the second quarter. The company reported an adjusted profit of C$0.38 per share, beating the average analyst estimate of C$0.27.
The outperformance was largely attributed to stronger profitability from the company’s Trail operations, a major zinc and lead smelting complex also located in British Columbia.
Teck produced 109,100 metric tons of copper in the quarter ending June 30 but lowered its full-year copper production guidance to a range of 470,000 to 525,000 metric tons, down from earlier estimates.
While London Metal Exchange (LME) copper prices dipped 2 percent year-over-year to an average of US$4.32 per pound during the quarter, Teck could benefit from recent geopolitical developments that may tighten global copper supply.
US President Donald Trump’s planned 50 percent copper import tariff, set to take effect August 1, could push prices higher despite Teck’s minimal exposure to the US market, as most of the company’s copper exports go to Asia and Europe.
The company said that it expects the project’s total ore throughput to average 50 million metric tons annually, while total material moved will vary significantly depending on the phase.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.