Teck Resources Delays Expansion Plans to Resolve Output Challenges at Quebrada Blanca Mine in Chile
Teck Resources Cuts Copper Guidance as Quebrada Blanca Mine Faces Tailings Storage Issues
Teck Resources Ltd, Canada’s largest diversified miner, has put major expansion projects on hold while it addresses production challenges at its flagship Quebrada Blanca (QB) copper mine in northern Chile.
The massive overhaul of the high-altitude mine has faced cost overruns of $4 billion and years of delays.
In July, CEO Jonathan Price was forced to cut production guidance, citing ongoing problems with the mine’s tailings facility.
Teck launched a comprehensive operational review in August, which is set to conclude in October. The review will define a detailed action plan for QB, with much of the focus on the mine’s tailings storage, where slow sand drainage has restricted development and output since the expansion.
To address these challenges, Teck plans to:
Mechanically raise the dam wall.
Add new rock benches to increase crest height.
Accelerate drainage improvements.
The company also announced management changes. Shehzad Bharmal, Chief Operating Officer, has retired, and an industry veteran has been appointed as advisor to the senior leadership team.
Impact on Copper Output
QB is central to Teck’s long-term strategy of pivoting toward energy transition metals after divesting its coal business.
The mine underpins Teck’s goal of producing 800,000 tonnes of copper annually by 2030.
However, production forecasts have now been scaled back. Teck expects QB to produce 210,000–230,000 tonnes of copper in 2025, compared with earlier projections of 230,000–270,000 tonnes.
Company-wide, copper guidance of 490,000–565,000 tonnes for this year is under review, with revised figures to be released in third-quarter results.
In 2024, QB produced just over 200,000 tonnes of copper. Teck holds a 60% stake in the operation, alongside partners Sumitomo Corp. (30%) and Codelco (10%).
Teck is also exploring potential synergies with the nearby Collahuasi mine, jointly owned by Anglo American (LON: AAL) and Glencore (LON: GLEN), as part of its broader strategy to strengthen copper output in Chile.
By prioritizing operational stability at QB, Teck aims to secure its position as a leading supplier of critical metals essential for the global energy transition.
