Teck Resources

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Teck Resources Limited
Public
Traded asTSXTECK.ATECK.B
S&P/TSX 60 component
IndustryMetals and Mining
Founded1906 Consolidated Mining and Smelting Company of Canada
Headquarters,
Key people
  • Norman B. Keevil, Chair
  • Donald R. Lindsay, Pres/CEO
  • Ronald A. Millos, CFO
ProductsCoal, Zinc, Copper
Revenue
  • Increase C$12.6 billion (2018)
  • Increase C$11.9 billion (2017)
  • Increase C$9.30 billion (2016)
  • Increase C$3.11 billion (2018)
  • Increase C$2.46 billion (2017)
  • Increase C$1.04 billion (2016)
Total assets
  • Increase C$39.6 billion (2018)
  • Increase C$37.0 billion (2017)
  • Increase C$35.6 billion (2016)
Total equity
  • Increase C$23.0 billion (2018)
  • Increase C$20.0 billion (2017)
  • Increase C$18.0 billion (2016)
Number of employees
10,700 (2018)
Divisions
  • Teck Metals Ltd. (Vancouver)
  • Teck Cominco Peru S.A (Lima)
  • Minera Torre de Oro, S.A. de C.V (Mexico)
Websitewww.teck.com
Footnotes / references
[1]:10,35,41(PDF 12,37,43)

Teck Resources Limited known as Teck Cominco until late 2008, is a Canadian metals and mining company. Canada's largest diversified resources company, it was formed from the amalgamation of Teck and Cominco in 2001.[2]

Teck's principal products at 2017 are coal, copper, and zinc, with secondary products including lead, silver, gold, molybdenum, germanium, indium, and cadmium.[3]

History[edit]

Cominco started in 1906 as The Consolidated Mining and Smelting Company of Canada, formed by the amalgamation of several units controlled by the Canadian Pacific Railway. CM&S, or "Smelters" as it was often called by investors, changed its name to Cominco in 1966. Cominco's core Sullivan Mine in Kimberley, British Columbia which began production of lead, zinc, silver and tin in 1909, would operate for more than 90 years until its ore reserves exhausted in 2001.

Teck began as Teck-Hughes Gold Mines Limited in 1913, to develop a gold discovery by prospectors Sandy McIntyre and James Hughes at Kirkland Lake, Ontario;[4] the Teck-Hughes Mine would produce for 50 years until 1965. The Beaverdell Mine, purchased by Teck in 1969, went back even further to 1898, and produced silver until 1991.

The association between Teck and Cominco began in 1986, when Teck and two industry partners acquired a shareholding from CP Limited, and culminated with the merging of the two companies in July 2001.

On May 8, 2006, Teck Cominco offered to purchase Inco for $16 billion, but CVRD eventually purchased it for $17 billion.

On July 29, 2008, Teck Cominco announced an agreement with Fording Canadian Coal Trust, which owned a 60% stake in the Elk Valley Coal Partnership, to purchase 100% of its assets. Teck Cominco had been the minority owner of the Elk Valley Coal Partnership, with a 40% stake; the facilities are located near Fernie, British Columbia. The purchase was closed on October 30, 2008, with a final cost of $14 billion USD. Elk Valley Coal Corporation was renamed Teck Coal Limited; the purchase resulted in Teck taking on $9.8 billion USD in debt; the company suspended dividends, cut spending, and sold some assets to save money.[5] On January 9, 2009, the company also announced a plan to cut 13% of their total workforce, amounting to 1,400 jobs, saving the company $85 million. Coal production targets were also lowered by 20% in response to declining worldwide demand for steel, in the midst of the global financial crisis.[6]

Teck Cominco logo before 2008 rebranding.

Beginning October 1, 2008, Teck Cominco began rebranding itself as Teck;[7] the legal name of the company was changed to Teck Resources Ltd. on April 23, 2009, after being approved by shareholders the previous day.[8]

In 2008, Teck's $25 million donation to BC Children's Hospital Foundation earned its name attached to the Teck Acute Care Centre expected to complete construction in 2017.[9]

In July 2009, China Investment Corporation bought a 17% stake in Teck for C$1.74 billion.[10]

In 2012, the Company announced record earning, record profit and record production, thus ending the year 2011 with $4.4 billion in cash. Besides expanding into the energy sector, the company was also executing two major projects in Chile and planning a $600 million restart of its Quintette Mine near Tumbler Ridge, British Columbia.[11]

Operations[edit]

Teck's principal products are steel-making coal, copper, and zinc; as of 2016, 44% of revenue was from steel-making coal, 34% of revenue was from zinc, and the remaining 21% was from copper.[12] Teck also has interests in oil sands projects in Northern Alberta.

Coal[edit]

In 2016, Teck produced 27.6 million tonnes of coal from six mines in southeastern British Columbia and western Alberta, with most of it exported to countries in the Asia-Pacific region.[12] The coal is transported to ports and destinations in Eastern Canada through rail lines owned by Canadian Pacific. Teck's coal mines:

Zinc[edit]

In 2016, Teck produced 662,000 tonnes of zinc in concentrate, and 311,000 tonnes of refined zinc,[12] it was the world's third largest producer of mined zinc.[12] Almost all of its mined zinc comes from the Red Dog mine in Alaska, one of the largest zinc mines in the world, it also produces refined zinc at its smelting and refining complex in Trail, British Columbia. In addition to Zinc, the Trail complex produces other byproducts, including 99,000 tonnes of refined lead, and 24.2 million ounces of silver, as of 2016.

Copper[edit]

In 2016, Teck produced 324,200 tonnes of copper from mines in North and South America,[12] its largest mine is the Highland Valley Copper mine near Logan Lake, British Columbia, with 119,000 tonnes of copper and 3.4 million pounds of molybdenum in 2016.[12] Teck has a 22.5% interest in the Antamina mine in Peru, one of the largest copper/zinc mines in the world. Teck also runs the Carmen de Andacollo and Quebrada Blanca mines in Chile.

Environmental record[edit]

In the past, Teck Cominco has been criticized and sued for violating environmental laws and standards. Teck Resources, however, has made "best in class" environmental and social performance a priority, and is getting recognized for its efforts; awards for safety, reclamation and sustainable development are all available for public scrutiny on their website, as is their sustainability report.[13]

Cominco Tank Car

The company's smelter in Trail, British Columbia was blamed in 2003 for heavily contaminating the Columbia River.[14] Legal action taken by American citizens living in settlements downriver progressed to the U.S. Supreme Court and was recently denied certiorari, solidifying the Appellate Court's holding that Teck is subject to U.S. jurisdiction even though it is a Canadian company.[citation needed]

A refinery belonging to Teck in Trail, British Columbia, was the site of a lead spill into the Columbia River on May 28, 2008.[15]

The company's Red Dog mine operation in north-western Alaska has been ranked by the U.S. Environmental Protection Agency as one of the most polluting facilities in the United States based on output tonnage of toxic waste, largely (over 99%) in the form of blasted and moved, but otherwise unprocessed, waste rock from mining operations.[16][17] Residents living downstream from the mine launched a lawsuit against Teck Cominco, demanding that the Red Dog mine complies with its environmental obligations and that it pay fines for continuing to violate its water permit requirements. On November 30, 2007, the company released the final report of its six-year study, with the oversight of the Alaska Department of Environmental Conservation, of risks of dust escaping from traffic along the DeLong Mountain Regional Transportation System Road; the final report incorporates formal comments and input from a wide range of government agencies and stakeholders, including local village residents. The risk assessment concludes it is safe to consume subsistence foods in all areas without restrictions.[18]

The Colville Confederated Tribes filed a lawsuit against Teck Cominco in 2004, claiming the company had dumped 140,000 tons of slag directly into rivers adjacent to its Trail smelter between 1896 and 1995, polluting the surface water, ground water and sediment of the upper Columbia River and Lake Roosevelt, (in Washington state, U.S.) with hazardous metals including arsenic, cadmium, mercury, lead, copper and zinc.[19] Teck has admitted to the dumping.[needs update]

Indigenous rights[edit]

In 2016, Teck Alaska was ranked as the best of 92 oil, gas, and mining companies on upholding indigenous rights in the Arctic.[20]

See also[edit]

References[edit]

  1. ^ "Teck Annual Report 2018" (PDF). Teck. March 7, 2019. Retrieved September 23, 2019.
  2. ^ Weber, Terry (April 30, 2001). "Teck and Cominco to merge". The Globe and Mail. Retrieved September 22, 2019.
  3. ^ "Other Metals". Teck Resources. Retrieved September 22, 2019.
  4. ^ Pain, S.A. (1960). Three Miles of Gold: The Story of Kirkland Lake. Toronto: The Ryerson Press. p. 29.
  5. ^ Bouw, Brenda (November 21, 2008). "Teck Cominco cuts dividend, spending plan". Toronto Star. Retrieved September 23, 2019.
  6. ^ Koven, Peter (January 9, 2009). "Teck Cominco cuts 1,400 jobs". Financial Post.[dead link]
  7. ^ "Teck scraps Cominco brand". Toronto Star. October 1, 2008. Retrieved September 23, 2019.
  8. ^ "Teck Shareholders Approve Name Change to Teck Resources Limited". Teck. April 23, 2009. Archived from the original on January 4, 2010. Retrieved September 23, 2019.
  9. ^ "News Release: Teck Acute Care Centre Major Milestone" (PDF). Provincial Health Services Authority. April 12, 2016. Retrieved September 23, 2019.
  10. ^ "China Investment Corporation Announces Investment in Teck Resources Limited". marketwire.com. July 3, 2009. Archived from the original on December 7, 2013. Retrieved September 23, 2019.
  11. ^ Hamilton, Gordon (February 9, 2012). "Teck reports record earnings, record revenues, record production". The Vancouver Sun. Archived from the original on February 12, 2010. Retrieved September 22, 2019.
  12. ^ a b c d e f "Teck Annual Report 2016" (PDF). Teck. March 3, 2017. Retrieved September 23, 2019.
  13. ^ "Environmental, health, safety and social responsibility awards presented to Teck". Teck Cominco. 2007. Archived from the original on October 13, 2007. Retrieved September 23, 2019.
  14. ^ Brown, Chris (December 15, 2003). "A century of slag". CBC News. Archived from the original on June 11, 2004. Retrieved September 23, 2019.
  15. ^ Vancouver Sun (May 30, 2008). "Lead from Teck Cominco spilled into Columbia River". canada.com. Archived from the original on November 4, 2012. Retrieved September 23, 2019.
  16. ^ "Red Dog top toxic polluter". Siku News. March 31, 2007. Archived from the original on July 16, 2011. Retrieved September 23, 2019.CS1 maint: unfit url (link)
  17. ^ "Pollution Rankings: by Facility". Scorecard.org. 2002. Archived from the original on August 3, 2017. Retrieved September 23, 2019.
  18. ^ "Red Dog road study declares subsistence foods safe". The Arctic Sounder. December 27, 2007. Retrieved January 17, 2008.[dead link]
  19. ^ Howe, Marc (September 11, 2012). "Teck confesses to a century of US river pollution". mining.com. Retrieved September 23, 2019.
  20. ^ Overland, Indra (December 2016). "Ranking Oil, Gas and Mining Companies on Indigenous Rights in the Arctic". ResearchGate. Norway: Árran Lule Sami Centre. ISBN 9788279430599. Retrieved September 23, 2019.

External links[edit]