Teck is a diversified resource company committed to responsible mining and mineral development. Headquartered in Vancouver, Canada, we are the second largest seaborne exporter of steelmaking coal, a top ten copper producer in the Americas and the third largest producer of zinc concentrate. We are also a producer of molybdenum and specialty metals.
Teck has interests in several oil sands development assets and an extensive portfolio of copper, zinc and gold exploration properties.
We own or have interests in 13 mines in Canada, the USA, Chile and Peru, as well as one metallurgical complex in Canada. Our expertise spans across the full range of mining activities including exploration, development, smelting, refining, safety, environmental protection, product stewardship, recycling and research.
We are actively exploring in countries throughout the Americas, Asia Pacific, Europe and Africa.
Our goal is to build a diversified mining company, active in low-risk jurisdictions, with a solid Canadian base. Our strategy is based on the belief that over the long-term, a diversified mining company is more highly valued than a single commodity company as we are able to pursue the best mining investment opportunities and not be constrained by commodity.
Our strategies in our current business sectors are:
Steelmaking Coal: Our coal business has traditionally generated around half of our gross profit. Teck is the largest producer of metallurgical or steelmaking coal in North America, and the world’s second largest exporter of seaborne steelmaking coal. We have six operating mines in Western Canada. In 2014, we had record production of 26.7 million tonnes of steelmaking coal. Our 2015 coal production is expected to be in the range of 26.5 to 27.5 million tonnes of coal.
Active Operations: Cardinal River, Coal Mountain, Elkview, Fording River, Greenhills, Line Creek
Development Projects: Quintette
Copper: Our copper business represented approximately 40% of our gross profit before depreciation and amortization in 2014. Teck is one of the top ten copper miners in the Americas. We have five operating mines and large development projects in Canada and South America. In 2014, we produced 333,000 tonnes of copper**. Our 2015 copper production is expected to be in the range of 340,000 to 360,000 tonnes.
Active Operations: Highland Valley Copper, Antamina, Quebrada Blanca, Carmen de Andacollo, Duck Pond
Development Projects: Quebrada Blanca Phase 2, Relincho, Galore Creek
Zinc: Our zinc business generates approximately 25% of our gross profit before depreciation and amortization in 2014, and it could grow to be a larger contributor over the next few years. Teck is the third largest zinc miner in the world. Our zinc assets include the Red Dog mine in Alaska, as well as a metallurgical complex in Trail, British Columbia. In 2014, record annual zinc production of 596,000 tonnes at our Red Dog mine, for a total zinc in concentrate production of 660,000 tonnes. We also produced 277,000 tonnes of refined zinc. Our 2015 production is expected to be in the range of 635,000 to 665,000 tonnes of zinc in concentrate and 280,000 to 290,000 tonnes of refined zinc.
Active Operations: Trail, Red Dog, Pend Oreille
Energy: We aim to create significant shareholder value through our emerging energy business unit, which has the potential to initially generate approximately 15% of our revenues and gross profit. Our energy assets include a 20% interest in the developing Fort Hills project, full ownership of the Frontier project, and a 50% interest in Lease 421, all located in the Athabasca oil sands in Alberta.
Development Projects: Fort Hills, Frontier, Lease 421
(*) Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to our future production and sales.
(**) We include 100% of production and sales from our Highland Valley Copper, Quebrada Blanca and Carmen de Andacollo mines in our production and sales volumes, even though we own 97.5%, 76.5% and 90%, respectively, of these operations, because we fully consolidate their results in our financial statements. We include 22.5% of production and sales from Antamina, representing our proportionate equity interest in Antamina.
Our balance sheet is strong. Focused leadership and prudent management have resulted in a debt capital structure comparable to the major diversified mining companies. Teck has an investment grade credit rating. Our debt maturity profile is well-balanced over a 30-year period with only US$300 million due through the end of 2016.
Teck announced a semi-annual dividend of C$0.15 per share for payment in July 2015, which is equivalent to an annualized dividend of C$0.30 per share.
With long life, low cost assets and significant reserves and resources, Teck is well positioned for future growth.