Teck Hits Pause on Growth to Fix Chile Copper Mine

Operational Challenges at Quebrada Blanca Copper Mine:

Teck Resources, Canada’s largest diversified miner, faces operational setbacks at its flagship Quebrada Blanca (QB) copper mine in Chile. The mine’s expansion project ran $4 billion over budget and is behind schedule. The company launched a thorough review in August, focusing on tailings storage issues that have constrained production. Teck plans significant upgrades to the tailings dam, including raising the dam wall and accelerating drainage improvements to stabilize operations.

Impact on Production and Growth Plans:

The focus on resolving tailings challenges forces Teck to defer major growth projects until QB stabilizes. The miner revised its 2025 copper output guidance at QB down to 210,000–230,000 tonnes from earlier estimates of up to 270,000 tonnes. Overall 2025 copper production is now expected to be between 470,000 and 525,000 tonnes. While some projects like the $2.4 billion Highland Valley expansion will proceed, others such as San Nicolás and Zafranal remain unsanctioned, with timelines uncertain. Management changes signal a strategic refocus amid these operational challenges.

SuperMetalPrice Commentary:

Teck’s operational pause at Quebrada Blanca highlights the complexities of mining expansion in challenging environments. Tailings management remains a critical risk factor that can severely impact production forecasts and capital deployment. Despite setbacks, Teck’s focus on energy transition metals underpins its long-term growth strategy. The market should watch how effectively Teck manages tailings risks and project prioritization, as these will dictate its competitiveness in copper supply amid rising global demand.