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  Proven Probable Total Teck Interest
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Teck Ownership
(%)
Recoverable(7)Metal
(000 t)
Copper                
Highland Valley Copper 334,700 0.31 211,900 0.26 546,600 0.29 100% 1,400
 
Antamina
Copper only ore 115,100 1.03 190,200 1.02 305,400 1.02 22.5% 650
Copper-zinc ore 58,900 0.98 188,300 0.82 247,200 0.86 22.5% 370
  174,000 1.01 378,500 0.92 552,600 0.95 22.5% 1,020
 
Quebrada Blanca                
Heap leach(2) 3,800 0.53 1,900 0.47 5,800 0.51 76.5% 20
Dump leach(2) 700 0.18 1,900 0.17 2,600 0.17 76.5% 2
  4,500 0.47 3,800 0.32 8,400 0.40 76.5% 22
 
Quebrada Blanca - Mill 40,800 0.62 1,218,000 0.51 1,258,800 0.51 76.5% 4,470
 
Andacollo                
Heap leach(2) 500 0.42 4,000 0.17 4,500 0.20 90% 4
 
Andacollo - Mill 122,400 0.37 227,300 0.33 349,700 0.35 90% 950
                 
Galore 69,000 0.61 459,100 0.58 528,000 0.59 50% 1,390
NuevaUnion                
Relincho 435,300 0.38 803,800 0.37 1,239,100 0.37 50% 2,040
La Fortuna 321,800 0.55 277,200 0.43 599,100 0.49 50% 1,280
 
Molybdenum                
Highland Valley Copper 334,700 0.007 211,900 0.010 546,600 0.008 100% 30
Antamina 115,100 0.038 190,200 0.032 305,400 0.034 22.5% 20
Quebrada Blanca - Mill 40,800 0.010 1,218,000 0.019 1,258,800 0.019 76.5% 130
NuevaUnion                
Relincho 435,300 0.016 803,800 0.018 1,239,100 0.017 50% 60
 
Zinc                
Red Dog     50,900 15.0 50,900 15.0 100% 6,330
Pend Oreille     700 8.1 700 8.1 100% 50
Antamina 58,900 2.1 188,300 2.0 247,200 2.0 22.5% 920
                 
 
Lead                
Red Dog     50,900 4.2 50,900 4.2 100% 1,100
Pend Oreille     700 1.6 700 1.6 100% 10
                 
 
  Proven Probable Total Teck Interest
Tonnes
(000's)
  Tonnes
(000's)
  Tonnes
(000's)
  Teck
Ownership (%)
Clean Coal
(000 t)
Metallurgical Coal(3)                
Fording River 169,900   220,500   390,400   100% 390,400
Elkview 11,200   254,800   265,900   95% 252,600
Greenhills 25,400   147,900   173,300   80% 138,600
Line Creek 3,000   61,700   64,800   100% 64,800
Cardinal River 4,900   12,000   16,9000   100% 16,900
Quintette (Mt Babcock) 30,800   5,000   35,800   100% 35,800
 
PCI Coal(3)                
Coal Mountain 2,700       2,700   100% 2,700
Cardinal River 300   400   700   100% 700
                 
 
Thermal Coal (3)                
Line Creek 1,200   9,500   10,700   100% 10,700
Quintette (Mt Babcock) 900   300   1,200   100% 1,200
 
  Proven Probable Total Teck Interest
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Teck Interest Recoverable(7)Metal
(000 oz)
Gold                
Andacollo-Mill(6) 122,400 0.13 227,300 0.12 349,700 0.12 90% 840
Galore Creek 69,000 0.52 459,100 0.29 528,000 0.32 50% 2,040
El Morro 321,800 0.56 277,200 0.35 599,100 0.46 50% 3,000
                 
Silver(7)                
Antamina                
Copper only ore 128,400 7.8 190,200 8.2 305,400 8.0 22.5% 14,170
Copper-zinc ore 58,900 16.6 188,300 13.2 247,200 14.0 22.5% 16,060
  174,000 10.8 378,500 10.7 552,600 10.7 22.5% 30,230
                 
Red Dog     50.900 76.4 50,900 76.4 100% 78,100
                 

Notes to Mineral Reserves and Resources Tables

  1. Mineral reserves and resources are mine and property totals and are not limited to our proportionate interests.
  2. For heap leach and dump leach operations, copper grade is reported as % soluble copper rather than % total copper. Soluble copper is defined by an analytical methodology which uses acid and cyanide reagents to approximate the portion of copper recoverable in the heap and dump leach processes.
  3. Coal reserves are reported as tonnes of clean coal.
  4. g/t = grams per tonne.
  5. Coal resources are reported as tonnes of raw coal.
  6. In 2010, an interest in future gold production from the Andacollo mine was sold. The purchaser is entitled to payments based on 75% of the payable gold produced until total cumulative sales reach 910,000 ounces of gold, and 50% thereafter. Reserves and resources are stated without accounting for this production interest.
  7. Recoverable Metal refers to the amount of metal contained in concentrate or cathode copper.

Source: Annual Information Form

 
  Measured Indicated Inferred  
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Teck Interest
Copper              
Highland Valley Copper 517,400 0.31 953,700 0.23 501,200 0.24 100%
 
Antamina
Copper only ore 45,900 0.55 330,500 0.77 815,600 0.82 22.5%
Copper-zinc ore 19,100 0.85 138,100 1.06 431,000 0.98 22.5%
  63,500 0.64 468,600 0.86 1,246,600 0.87 22.5%
 
Quebrada Blanca              
Heap leach(2)         100 0.44 76.5%
Dump leach(2)         200 0.15 76.5%
          300 0.25 76.5%
 
Quebrada Blanca - Mill 15,500 0.41 1,308,900 0.39 2,140,800 0.37 76.5%
 
Andacollo              
Heap leach(2) 6,900 0.39 26,400 0.15     90.0%
Dump leach ore(2)             90.0%
  6,900 0.39 26,400 0.15     90.0%
               
Andacollo - Mill 13,100 0.30 89,400 0.29 7,900 0.27 90%
Galore Creek 39,500 0.25 247,200 0.34 346,600 0.42 50%
San Nicolas     91,700 1.24 10,800 1.24 79%
NeuvaUnión              
Relincho 79,900 0.27 317,100 0.34 610,800 0.38 50%
La Fortuna 19,800 0.51 72,600 0.39 678,100 0.35 50%
               
 
Molybdenum              
Highland Valley Copper 517,400 0.008 953,700 0.010 501,200 0.008 100%
Antamina 45,900 0.020 330,500 0.023 815,600 0.024 22.5%
Quebrada Blanca - Mill 15,500 0.006 1,308,900 0.015 2,140,800 0.018 76.5%
NeuvaUnión              
Relincho 79,900 0.009 317,100 0.012 610,800 0.013 50%
 
Zinc              
Red Dog              
Mine     16,400 7.7 6,600 12.0 100%
District         19,400 14.4 100%
Pend Oreille 200 7.8 1,000 6.3 2,700 6.5 100%
Antamina 19,100 1.3 138,100 1.5 431,000 1.5 22.5%
San Nicolas     91,700 1.7 10,800 1.0 79%
               
 
Lead              
Red Dog               
Mine     16,400 2.7 6,600 4.6 100%
District         19,400 4.2 100%
Pend Oreille 200 1.3 1,000 1.0 2,700 1.3 100%
 
Metallurgical Coal(5)              
Fording River 486,700   945,800   789,000   100%
Elkview 432,500   157,500   246,000   95%
Greenhills 220,100   269,500   182,600   80%
Line Creek 320,600   419,400   413,400   100%
Cardinal River 48,300   6,100   1,100   100%
Quintette (Mt Babcock) 32,200   92,000   114,400   100%
Mt Duke 24,300   102,400   122,600   92.68%
Elco 25,100   115,300   112,300   75%
Marten Wheeler (CMO2) 102,200   71,700   7,900   100%
 
PCI Coal(5)              
Coal Mountain 56,100   23,100   4,900   100%
Cardinal River 400   100   30   100%
               
               
 
Thermal Coal (5)              
Line Creek 4,800   4,000   2,700   100%
Quintette (Mt Babcock) 30   200   200   100%
Mt Duke 200   700   1,300   92.68%
Elco 700   6,100   6,000   75%
Marten Wheeler (CMO2) 2,800   3,700   900   100%
 
  Measured Indicated Inferred  
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Teck Interest
Gold              
Andacollo - Mill 13,100 0.09 89,400 0.10 7,900 0.10 90%
Galore Creek 39,500 0.39 247,200 0.26 346,600 0.24 50%
San Nicolas     91,700 0.46 10,800 0.26 79%
NeuvaUnión              
La Fortuna 19,800 0.53 72,600 0.38 678,100 0.30 50%
Silver(7)              
Antamina              
Copper only ore 45,900 6.4 330,500 8.6 815,600 8.1 22.5%
Copper-zinc ore 19,100 16.1 138,100 17.7 431,000 15.3 22.5%
  65,000 9.3 468,500 11.3 1,246,600 10.6 22.5%
San Nicolas     91,700 26.7 10,800 17.4 79%
Red Dog              
Mine     16,400 49.7 6,600 87.2 100%
District         19,400 73.4 100%

 

Notes to Mineral Reserves and Resources Tables

  1. Mineral reserves and resources are mine and property totals and are not limited to our proportionate interests.
  2. For heap leach and dump leach operations, copper grade is reported as % soluble copper rather than % total copper. Soluble copper is defined by an analytical methodology which uses acid and cyanide reagents to approximate the portion of copper recoverable in the heap and dump leach processes.
  3. Coal reserves are reported as tonnes of clean coal.
  4. g/t = grams per tonne.
  5. Coal resources are reported as tonnes of raw coal.
  6. In 2010, an interest in future gold production from the Andacollo mine was sold. The purchaser is entitled to payments based on 75% of the payable gold produced until total cumulative sales reach 910,000 ounces of gold, and 50% thereafter. Reserves and resources are stated without accounting for this production interest.
  7. Recoverable Metal refers to the amount of metal contained in concentrate or cathode copper.

 

Source: Annual Information Form 

Reserve Categories and Resources

Reserves

For oil and gas, reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on analysis of drilling, geological, geophysical and engineering data, the use of established
technology, and specified economic conditions, which are generally accepted as being reasonable. Reserves are classified into proved or probable according to the degree of certainty associated with the estimates.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. 

Each of the proved and probable reserves categories may be divided into developed and undeveloped categories. All of Teck’s reserves are currently categorized as Undeveloped reserves. Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g. construction of a primary extraction facility) is required and the necessary equipment is not yet installed to render them capable of production. Teck does not have any developed reserves at this time.

Fort Hills Project
The reserves data presented below summarizes our proved and probable reserves and the net present values of future net revenue for these reserves. The reserves data uses forecast prices and costs prior to provision for interest, general and administrative expenses, the impact of any hedging activities or the liability associated with abandonment and all well, lease, pipeline and facilities reclamation costs. These forecasts and other assumptions are taken from the GLJ evaluation report effective December 31, 2016. Future net revenues have been presented on a before and after tax basis in accordance with NI 51-101.

The future net revenue, development and operating cost, exchange rate, price and other assumptions set out in this “Description of the Business ― Oil and Gas Reserves and Resources―Fort Hills Project” section of this AIF are the estimates or assumptions of GLJ, our independent reserves evaluator. In order to estimate reserves and resources and future net revenues, GLJ makes a number of assumptions, including assumptions regarding inflation rates, currency exchange rates and prices for oil and other products. For planning, project economics, forecasts, accounting and other purposes our management makes assumptions regarding those same factors and our assumptions generally differ from those of GLJ. Different assumptions would lead to different present value and net revenue figures, and could affect reserve estimates.

GLJ estimates capital and operating costs associated with the Fort Hills project based on Suncor’s estimates, as operator, with consideration to those achieved by other oil sands mining projects. These GLJ estimated costs differ somewhat from those the Fort Hills partners use for construction planning and decision making for the project, which are based on detailed engineering studies. See “Description of the Business ― Energy―Fort Hills Project” for a further description of the project operator estimates regarding development costs.

All of our reserves are associated with our Fort Hills project. Bitumen is the only product type associated with our reserves. Reserves have been updated by GLJ to reflect scope changes to the project made to manage potential saline basal water ingress in the South Pit.

Reserves are presented on a gross and net basis. Gross in relation to Teck’s interest in reserves means Teck’s working interest share before deduction of royalties. Net in relation to Teck’s interest in reserves means Teck’s working interest share after deduction of royalties. 

 

Summary of Company Interest
Oil and Gas Reserves at December 31, 2016
(forecast prices and costs)

  Reserves
Reserves Category
 
Bitumen
Gross (MMbbl)

Net (MMbbl)*

Proved Reserves    
Developed Producing

0

0

Developed Nonproducing 0 0
Undeveloped 346 320
Total Proved Reserves 346 320
Probable Reserves 227 193
Total Proved plus Probably Reserves 573 513

*Column does not add due to rounding.

For additional information, please refer to page 57: Annual Information Form 

Definitions

Mineral Reserves and Mineral Resources: “Proven” and “probable” mineral reserves and “measured”, “indicated” and “inferred” mineral resources are estimated in accordance with the definitions of these terms adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) in November, 2010 updated in May 2014 and incorporated in National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”), by Canadian securities regulatory authorities.  Estimates of coal reserves and resources can be prepared and classified using guidance from Geologic Survey of Canada Paper 88-21, however, classification terminology must conform to CIM definitions incorporated into NI 43-101. 

Mineral resources are reported separately from, and do not include that portion of the mineral resources classified as mineral reserves.

Metallurgical coal: means the various grades of coal that are used to produce coke which is used in the steel making process.

PCI coal: means coal that is pulverized and injected into a blast furnace.  Those grades of coal used in the PCI process are generally non-coking.  PCI grade coal is used primarily as a heat source in the steel making process in partial replacement for high quality coking coals which are typically more expensive.

Thermal coal: means coal that is used primarily for its heating value.  Thermal coals tend not to have the carbonization properties possessed by metallurgical coals.  Most thermal coal is used to produce electricity in thermal power plants.

The CIM definitions for mineral resources and mineral reserves are as follows:

A “mineral resource” is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.  

An “inferred mineral resource” is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.  An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve.  It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. An inferred mineral resource is based on limited information and sampling gathered through appropriate sampling techniques from locations such as outcrops, trenches, pits, workings and drillholes.  Inferred mineral resources must not be included in the economic analysis, production schedules, or estimated mine life in publicly disclosed pre-feasibility or feasibility studies, or in the life of mine plans and cash flow models of developed mines.  Inferred mineral resources can only be used in economic studies as provided under NI 43-101.

An “indicated mineral resource” is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.  Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation.  An indicated mineral resource has a lower level of confidence than that applying to a measured mineral resource and may only be converted to a probable mineral reserve.  Mineralization may be classified as an indicated mineral resource by the qualified person when the nature, quality, quantity and distribution of data are such as to allow confident interpretation of the geological framework and to reasonably assume the continuity of mineralization.  An indicated mineral resource estimate is of sufficient quality to support a pre-feasibility study which can serve as the basis for major development decisions.

A “measured mineral resource” is that part of a mineral resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit.  Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation.  A measured mineral resource has a higher level of confidence than that applying to either an indicated mineral resource or an inferred mineral resource.  It may be converted to a proven mineral reserve or to a probable mineral reserve. Mineralization or other natural material of economic interest may be classified as a measured mineral resource when the nature, quality, quantity and distribution of data are such that the tonnage and grade or quality of the mineralization can be estimated to within close limits and that variation from the estimate would not significantly affect potential economic viability of the deposit.  This category requires a high level of confidence in, and understanding of, the geology and controls of the mineral deposit.

A “mineral reserve” is the economically mineable part of a measured and/or indicated mineral resource.  It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of modifying factors.  These studies demonstrate that, at the time of reporting, extraction could reasonably be justified. 

A “probable mineral reserve” is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource.  The confidence in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve. 

A “proven mineral reserve” is the economically mineable part of a measured mineral resource. A proven mineral reserve implies a high degree of confidence in the modifying factors.

Methodologies and Assumptions
Mineral reserve and mineral resource estimates are based on various assumptions relating to operating matters, including with respect to production costs, mining and processing recoveries, mining dilution, cut-off values or grades, as well as assumptions relating to long-term commodity prices and, in some cases, exchange rates.  Cost estimates are based on feasibility study estimates or operating history.

Methodologies used in reserve and resource estimates vary from property to property depending on the style of mineralization, geology and other factors.  Geostatistical methods, appropriate to the style of mineralization, have been used in the estimation of reserves at Teck’s material base metal properties.
Assumed metal prices vary from property to property for a number of reasons.  Teck has interests in a number of joint ventures for which assumed metal prices are a joint venture decision.  In certain cases, assumed metal prices are historical assumptions made at the time of the relevant reserve and resource estimates.  For operations with short remaining lives, assumed metal prices may reflect shorter-term commodity price forecasts.

Comments on Individual Operations

Highland Valley Copper
Reserve and resource estimates were prepared assuming long-term metal prices of US$3.00/lb copper, US$10.00/lb molybdenum, US$18.00/oz silver and US$1,175/oz gold and an exchange rate of CAD$1.20 per US$1.00.  Resources and reserves are reported at a 0.10% copper equivalent cut-off.

Reserves in 2016 were down by 30.6 million tonnes due to regular mining activities.  Resources are up 509.1 million tonnes compared to 2015 results, mostly due to a change in exchange rate assumptions and lower long term operating cost assumptions. The resource estimate at Highland Valley is extremely sensitive to changes in these assumptions.

Antamina
Reserve and resource estimates were prepared assuming long-term metal prices of: US$2.97/lb copper, US$1.03/lb zinc, US$10.70/lb molybdenum and US$18.72/oz silver.
The cut-off grades at Antamina are based on the net value before taxes that the material is expected to generate per hour of concentrator operation at assumed prices, and varies by year in an effort to maximize the net present value of the pit.

Production depletion is mostly responsible for a net decrease of 45.2 million tonnes in year-end 2016 copper reserves compared to the year-end 2015 estimate.

Quebrada Blanca
Supergene (heap and dump leach materials) reserves were estimated using a short-term copper metal price of US$2.30/lb, given the short-term nature of the operation.  The supergene life of mine plan is based is expected to sustain heap and dump leach mining operations until December 2017.  

An update to the Quebrada Blanca Phase 2 hypogene (concentrator) feasibility study has redefined the mine plan to a 25-year life span with a new location for tailings deposition, which resulted in a transfer of 325 million tonnes from reserves to resources this year.  The hypogene mineral reserves and mineral resources were estimated assuming a long-term copper price of US$3.00/lb and a long-term molybdenum price of US$10.00/lb.

Carmen de Andacollo
The Carmen de Andacollo operation includes a heap leach copper operation and a copper-gold hypogene concentrator.  The resource model was updated in 2016 with adjustments to the geological interpretation based on new drilling and surface mapping information.  

Supergene mineral reserve estimates assume a 49.7% leach recovery for soluble copper, a long-term copper price of US$3.00/lb and a soluble copper cut-off of 0.20%.  Supergene reserves are estimated to sustain mining until 2018.  Supergene reserves have increased by 3.27 million tonnes at the end of 2016, compared to 2015. The change is primarily due to conversion of a small portion of resource back into reserves.

The hypogene reserves are estimated using variable mill recovery values for copper and an average fixed mill recovery of 67.4% for gold.  Hypogene reserve estimates assume long-term prices of US$3.00/lb copper and US$1,175/oz gold.  Current hypogene feeds are expected to sustain concentrator operations until 2034.  The reduction in hypogene reserve tonnage by 67 million tonnes in comparison to the estimate at year-end 2015 is partially due to depletion due to regular mining operations and partially the result of updated operating cost assumptions and restrictions due to the proximity to the town of Andacollo.  Hypogene resources have been reduced to 110 million tonnes for similar reasons.

NuevaUnión 
As a result of the combination of our Relincho project with Goldcorp Inc.’s La Fortuna (formerly El Morro) project, forming NuevaUnión, the 2016 reserves and resource for Relincho and La Fortuna are reported under NuevaUnión.

The closing of the NuevaUnión transaction in November 2015 reduced Teck’s interest in the Relincho deposit to 50% and resulted in the acquisition by Teck of a 50% interest in the La Fortuna project.  However, the mineral reserves and mineral resources for Relincho and La Fortuna continue to be presented on a 100% interest basis and remain unchanged from 2015.

Relincho reserves have been reported within the designed life of mine pits created during the 2013 feasibility study for the project, assuming US$2.80/lb copper and US$13.70/lb molybdenum and assumed metallurgical recoveries of 88.8% for copper and 47.2% for molybdenum. La Fortuna copper reserves and resources are estimated assuming US$2.80/copper and US$1,200/oz gold.

A pre-feasibility study commenced in 2016 in order to develop a combined life-of-mine plan for the La Fortuna and Relincho projects. 

Red Dog 
The 2016 reserves and resource for Red Dog are divided into two reporting groups based on the spatial proximity and the land ownership associated with the deposit in and around Red Dog. The names assigned to these groups are “Mine” and “District”.  Teck has assumed long-term prices of US$1.00/lb zinc and US$0.90/lb lead for estimating reserves and resources at Red Dog.

All reserves and resources reported in 2015 were from the Aqqaluk and Qanaiyaq deposits, updates to the reserves and resource for 2016 from these two deposits are now reported under the “Mine” group. In addition, indicated and inferred resources from the neighbouring Paalaaq deposit are included in this group.

The “District” group consists entirely of inferred resources from the Anarraaq deposit which lies approximately 11 km northwest of the current Red Dog operations. 
Red Dog Mine reserves decreased by 5.7 million tonnes in 2016, due to production depletion and transfer of low-grade mineralisation back to resources.  The low-grade resources are scheduled to be stockpiled and may be processed at the end of the mine life.  The operating cut-off for the Aqqaluk and Qanaiyaq pits was revised to an average of $3.80/second over the life of the mine compared to $4.358/second at the end of 2015. 

Red Dog Mine resources increased by 22.8 million tonnes primarily due to the inclusion of resources from the Paalaaq deposit, the transfer of low-grade mineralisation out of reserves and into resources and the implementation of a lower operating cut-off.

Red Dog District resources increased by 19.4 million tonnes due to the reporting of resources from the Anarraaq deposit.  There are currently no reserves for the Red Dog District.
Estimated resources for the Paalaaq and Anarraaq deposits are constrained within resource stope shapes evaluated assuming a US$100/tonne NSR cut-off.

Pend Oreille
During 2016, significant work to revise resource models and mine plans at Pend Oreille resulted in a net decrease of 2.1 million tonnes of reserves and an aggregate net increase of 1 million tonnes of measured and indicated.  Other changes included an increase to the cut-off grade used for reporting reserves and resources from 3.51% zinc to a 4.722% zinc-equivalent. 

Reserves at Pend Oreille assume prices of US$1.10/lb zinc and US$0.95/lb lead.  At the forecast production rate the remaining reserves will provide just over one year of mill feed.
Work is ongoing to review and identify the requirements to allow the conversion of a proportion of the reported resources to reserves. Additionally, Pend Oreille is executing a significant drilling program that aims to identify and delineate additional reserves and resources adjacent to the existing workings.

Galore Creek
Reserves and resource estimates assume US$2.50/lb copper, US$1,050/oz gold and US$16.85/oz silver.  The reserve and resource estimates are unchanged from 2011, when the estimates, including the metal price assumptions, were produced.    

San Nicolás
The resource estimate is based on a scoping study produced in 2012 and remains unchanged.  This study assumed US$2.75/lb copper, US$1.00/lb zinc, US$1,275/oz gold and US$22.50/oz silver. 

Fording River
Total reserves have decreased from year-end 2015 by 49.5 million tonnes of clean coal.  Production removed 7.3 million tonnes.  In addition, mine design work on the Swift Pit reduced reserves by 19.9 million tonnes and Eagle Pits by 25.8 million tonnes. These reserves were somewhat offset by increases through interpretation updates to the Fording River West model area. The reserve estimate assumes a long term selling price at the Port of Vancouver of US$130/tonne of metallurgical coal at an exchange rate of CAD$1.20 per US$1.00. 

Elkview
Teck has a 95% interest in the Elkview mine.  Mine production in 2016 removed 7.1 million tonnes of clean coal reserves.  Minor increases in mine design and model parameters were offset by reductions through geology interpretation updates, resulting in a net decrease of 7.3 million tonnes of reserves in 2016 as compared to 2015.  The reserve estimate assumes a long-term selling price at the Port of Vancouver of US$130/ tonne for metallurgical coal at an exchange rate of CAD$1.20 per US$1.00. 

Greenhills
Teck has an 80% interest in the Greenhills joint venture, which operates in certain areas of the Greenhills Operations.  Normal mine depletion accounted for a 5.8 million tonnes reduction in clean coal reserves in 2016 as compared to 2015.  Reserves decreased by 35.7 million tonnes primarily due to mine design changes driven by optimization efforts to remove high strip ratio areas and improve economics.  There were also multiple changes to model parameters that resulted in a further reduction of 5.1 million tonnes of clean coal.  The reserve estimate assumes a long term selling price at the Port of Vancouver of US$130/tonne for metallurgical coal at an exchange rate of CAD$1.20 per US$1.00.

Line Creek
Reserves of clean coal decreased 2.3 million tonnes as compared to 2015 mainly due to changes in geology interpretation, mine design and mine production.  The reserve estimate assumes a long term selling price at the Port of Vancouver of US$130/tonne for metallurgical coal at an exchange rate of CAD$1.20 per US$1.00.

Coal Mountain
The reserve estimate assumes a short term selling price of US$79/tonne for PCI coal at a short-term exchange rate of CAD$1.30 per US$1.00.

Cardinal River
In 2016, Cardinal River’s net reduction in reserves was 1.3 million tonnes of clean coal as compared to 2015. The reserve estimate assumes a long term selling price at the Port of Vancouver of US$130/tonne for metallurgical coal at an exchange rate of CAD$1.20 per US$1.00.

Quintette (Mt Babcock)
Quintette reserves were reduced by 2.1 million tonnes between 2015 and 2016.  Most of the reduction came from the redesigned pit with a small reduction due to an adjustment in the yield calculation.  The resource estimates assume a long-term selling price of US$130/tonne for metallurgical coal with discounts to the premium product benchmark price to reflect the specific quality attributes of products.  The exchange rate was CAD$1.20 per US$1.00.  Quintette remained on care and maintenance status for 2016.

Other Coal Properties
Other properties include Mt Duke (92.683% interest) south of Tumbler Ridge B.C., Elco (75% interest) at the north end of the Elk Valley and the Coal Mountain Phase 2 (CMO2) property south of Elkview.  The resource estimates for these other coal properties assume a long term selling price of US$130/tonne for metallurgical coal, US$100/tonne for clean PCI, US$75/tonne for clean thermal coal and an exchange rate of CAD$1.20 per US$1.00.

Risks and Uncertainties
Mineral reserves and mineral resources are estimates of the size and grade of the deposits based on the assumptions and parameters currently available.  These assumptions and parameters are subject to a number of risks and uncertainties, including, but not limited to, future changes in metals prices and/or production costs, differences in size, grade, continuity, geometry or location of mineralization from that predicted by geological modeling, recovery rates being less than those expected and changes in project parameters due to changes in production plans. There are no known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other issues that are currently expected to materially affect the mineral reserves or resources. Certain operations will require further permits over the course of their operating lives in order to continue operating. Where management expects such permits to be issued in the ordinary course, material that may only be mined after such permits are issued is included in proven and probable reserves. Specific current permitting issues are described in the narrative concerning the relevant operation under the heading “Description of the Business” and “Safety and Environmental Protection” and under the headings “Risk Factors — We face risks associated with the issuance and renewal of environmental permits.”

Qualified Persons
Estimates of mineral reserves and resources for our material base metal properties have been prepared under the general supervision of Rodrigo Marinho, P.Geo., who is an employee of Teck Resources Limited.  Mineral reserve and resource estimates for Antamina have been prepared under the supervision of Luis Mamani and Lucio Canchis, who are both SME Registered Members and employees of Compañía Minera Antamina S.A.  Messrs. Marinho, Canchis and Mamani are the Qualified Persons for the purposes of National Instrument 43-101.  Reserve and resource estimates for coal properties were prepared under the general supervision of Don Mills P.Geo. and Eric Jensen P.Eng., employees of Teck Coal Limited, who are the Qualified Persons for the purposes of National Instrument 43–101.

Source: Annual Information Form 

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