Can you update us on the current status of the Quebrada Blanca Phase 2 (QB2) construction and ramp up, and what this project means for Teck Resources once in full production?

Certainly, we are currently laser-focused on the successful execution of our QB2 project in Chile as the first step in Teck’s copper growth strategy. This project will be transformational for our company. Construction of QB2 is on track, and we expect the project to start production in the second half of 2022. Once in production, QB2 will double our consolidated copper production by 2023 and significantly reweight our portfolio towards copper at a time when we see significant rising demand fueled by the transition to the low-carbon economy.

How has the company dealt with cost increases at QB2 related to COVID-19 and rising inflation?

We are continuing to actively manage costs, and we have put in place a variety of mitigation measures and incentives. Many of these measures are aimed at attracting talent, employee retention, and minimizing absenteeism. In addition, our focus continues to be on managing COVID-19 and the extensive protocols we have in place to protect the health and safety of our employees, partners, and communities.

Can you explain how Teck intends to use desalinated seawater in place of freshwater for its mining processes at QB2?

Yes, we are switching entirely to desalinated water for QB2 to protect local freshwater. It’s important to mention that Teck voluntarily committed to returning freshwater rights to the State of Chile as part of the QB2 environmental evaluation process. QB2 will have the first large-scale use of desalinated seawater for mining in Chile’s Tarapacá Region. Seawater will be pumped to the desalination plant, purified, then pumped by five booster stations up 4,400 meters of altitude to QB2’s concentrator plant, where it will be used for mining processes. The leftover concentrated saltwater will be pumped back into the Pacific Ocean at a depth of 40 meters (750 meters from the coast) to ensure there is enough dilution to be compatible with the ocean’s ecosystem.

Can you provide details of the Quebrada Blanca Mill Expansion (QBME) prefeasibility study and the potential for Phase 3 expansion?

Of course, our Quebrada Blanca Mill Expansion project, or QBME, would add another 150,000-plus t/y of copper equivalent production as early as 2026. This mill expansion would increase our throughput by at least 50% and leverage existing QB2 project infrastructure to the fullest. The pre-feasibility study is expected to be complete by the end of this year, and we will assess sanctioning following that. QB2 only uses around 18% of the 2021 reserve and resource tonnage, and the vast, long-life deposit is large enough to support multiple expansions, which we will be looking at moving forward.

What are your views on Chile as a mining jurisdiction in the context of constitutional reform, and what could changes to the royalty bill mean for Teck’s investments in the country?

We have operated in Chile for many years, and it is a great mining jurisdiction. We are committed to working closely with the new Chilean government to ensure we continue to benefit communities while operating responsibly. We support the efforts of the mining industry associations in the country that have publicly indicated that mining activities provide much more wealth than taxes paid, including jobs and social investment programs among other positive impacts.