Teck Resources provides update on Quebrada Blanca action plan

Teck Resources (TECK) provided an update on the progress of the Quebrada Blanca action plan and provided an updated operational outlook following the completion of the operations review. In addition, Teck provided third quarter 2025 production and sales volumes and positive settlement pricing adjustments. The company said, “Our Comprehensive Operations Review, launched in August, focused on improving performance through a detailed QB Action Plan, identifying opportunities to enhance operating practices and setting out plans that are reasonable and achievable. In parallel, through the third quarter, Teck completed a detailed assessment of all operating plans, with review and input from third-party technical experts, independent advisors, and oversight by the Safety, Operations and Projects Committee of our Board of Directors. This work focused on redefining ranges of outcomes for key inputs and value drivers and the reassessment and quantification of risks to establish production and cost ranges for each operation based on proven performance, as well as identifying improvement opportunities to preserve and enhance asset value. Specific to QB, updated production ranges capture impacts of the Tailings Management Facility to date and the ongoing QB Action Plan, noted below. The completion of this detailed review has resulted in revisions to our previously disclosed annual production guidance for QB and Highland Valley Copper for 2025-2028, Red Dog for 2026-2028, and Trail for 2026. Further, as a result of changes to our production guidance, we have updated our previously disclosed 2025 annual net cash unit cost1 guidance for QB and our copper segment and provided 2026 annual net cash unit cost1 guidance for our copper and zinc segments. Production at QB continues to be constrained by the pace of development of the TMF, requiring downtime in the concentrator to manage the rate of tailings rise. Teck’s priority remains enabling safe, unconstrained production by raising the crest height of the dam. This is being delivered through construction of additional rock benches while continuing to progress efforts to improve sand drainage to support construction of the sand dam. Ultimately, a sand wedge will be constructed using hydraulically placed sand, which will enable steady-state TMF operation. While sand currently being produced meets design specifications, slow drainage caused by the presence of ultra-fines has delayed progress in development of the sand wedge. As a result, the mechanical construction of rock benches continues to be required, which has led to additional downtime through 2025, particularly in Q3, and is expected to result in incremental downtime in 2026, as reflected in our updated 2026 annual production guidance for QB. It is currently expected that from 2027 onwards, the TMF development should no longer be a constraint on throughput levels that are able to be achieved. Significant work has been undertaken through 2025 to improve sand drainage times with some improvement realized to date. Further progress is needed to reach design targets, and two key initiatives were advanced in Q3 2025: Ultra-fines removal: Test work in collaboration with cyclone manufacturers and third-party experts has shown positive results in improving sand drainage through the removal of ultra-fines. As previously disclosed, we are modifying the cyclone facility this quarter to incorporate alternative technologies designed to remove ultra-fine material. Refinement of sand placement techniques: Improvements to paddock design, and sand placement and drying, are also being implemented to enhance drainage efficiency. To strengthen executive oversight of operational activities and drive operating performance across the business, the Senior Vice Presidents of Operations for Latin America and North America have been reporting directly to the President and CEO since the beginning of September.”