Teck Resources (TECK) has announced plans to proceed with a $2.4 billion extension of its Highland Valley Copper Mine in British Columbia, Canada.
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The extension is being billed as one of the largest private-sector critical-mineral investments in Canada’s history. Teck Resources said the project will extend the life of the mine from 2028 to 2046 and help meet surging demand for copper, which is a critical element used in electric vehicles and solar panels, among other uses.
The Vancouver-based company said it would start construction on the copper mine expansion this August after receiving the required permits. The project is expected to create 2,900 jobs and generate $435 million in economic benefits during the construction phase.
Growing Demand
Once completed, the mine will support 1,500 jobs over its life cycle through 2046. Teck Resources said its goal is to double its copper production by the end of the decade. Production from the expanded Highland Valley copper mine is expected to average 132,000 tonnes per year, the company added.
Teck Resources has said previously that it expects demand for copper to double by the middle of the century as the world shifts to a low-carbon economy. The $2.4 billion extension will involve new infrastructure at the mine site, expansion of mining equipment, circuit upgrades, increased capacity for tailings storage, and improvements to power and water systems.
TECK stock has declined 14% this year.
Is TECK Stock a Buy?
The stock of Teck Resources has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on 10 Buy and five Hold recommendations issued in the last three months. The average TECK price target of $48.53 implies 42.03% upside from current levels.
