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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 355,000 0.33 222,200 0.24 577,200 0.29 97.5% 1,450
 
Antamina
Copper only ore 128,400 1.02 207,300 0.99 355,700 1.00 22.5% 700
Copper-zinc ore 63,400 1.08 199,700 0.83 263,000 0.89 22.5% 410
  191,800 1.04 407,000 0.91 598,700 0.95 22.5% 1,110
 
Quebrada Blanca                
Heap leach(2) 6,300 0.48 3,800 0.42 10,100 0.46 76.5% 30
Dump leach(2) 700 0.21 2,700 0.20 3,400 0.20 76.5%  
  7,000 0.45 6,500 0.33 13,500 0.39 76.5% 30
 
Quebrada Blanca - Mill 30,500 0.63 1,554,000 0.49 1,584,500 0.49 76.5% 5,360
 
Andacollo                
Heap leach(2) 300 0.37 1,000 0.27 1,200 0.29 90%  
 
Andacollo - Mill 140,400 0.36 276,600 0.33 417,000 0.34 90% 1,120
                 
Galore 69,000 0.61 459,100 0.58 528,000 0.59 50% 1,390
Relincho 435,300 0.38 803,800 0.37 1,239,100 0.37 50% 2,040
El Morro 321,800 0.55 277,200 0.43 599,100 0.49 50% 1,280
 
Molybdenum                
Highland Valley Copper 355,000 0.007 222,200 0.009 577,200 0.007 97.5% 30
Antamina 128,400 0.037 207,300 0.032 335,700 0.034 22.5% 20
Quebrada Blanca - Mill 30,500 0.011 1,554,000 0.019 1,584,500 0.019 76.5% 170
Relincho 435,300 0.016 803,800 0.018 1,239,100 0.017 50% 60
 
Zinc                
Red Dog     56,600 14.6 56,600 14.6 100% 6,560
Pend Oreille 1,300 7.9 1,500 6.5 2,800 7.1 100% 180
Antamina 63,400 2.1 199,700 2.0 263,000 2.0 22.5% 950
                 
 
Lead                
Red Dog     56,600 4.1 56,600 4.1 100% 1,220
Pend Oreille 1,300 1.2 1,500 1.0 2,800 1.1 100% 20
                 
 
  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 204,100   230,800   434,900   100% 434,900
Elkview 9,700   263,500   273,200   95% 259,500
Greenhills 21,200   180,100   201,300   80% 161,000
Line Creek 2,600   64,100   66,600   100% 66,600
Cardinal River 3,900   14,400   18,300   100% 18,300
Quintette (Mt Babcock) 32,700   5,400   38,100   100% 38,100
 
PCI Coal(3)                
Greenhills 700   4,300   5,000   80% 4,000
Coal Mountain 1,400   3,100   4,500   100% 4,500
Cardinal River 200   500   600   100% 600
                 
 
Thermal Coal (3)                
Fording River 1,200   3,800   5,000   100% 5,000
Greenhills 100   2,600   2,700   80% 2,200
Line Creek 1,300   9,700   11,100   100% 11,100
Quintette (Mt Babcock) 700   300   1,000   100% 1,000
 
  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) 140,400 0.12 276,600 0.12 417,000 0.12 90% 960
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 8.3 207,300 7.9 335,700 8.1 22.5% 15,590
Copper-zinc ore 63,400 17.1 199,700 13.0 263,000 14.0 22.5% 17,460
  191,800 11.2 407,000 10.4 598,700 10.7 22.5% 33,050
                 
Red Dog     56,600 73.8 56,600 73.8 100% 63,010
                 

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 412,100 0.34 709,200 0.23 341,900 0.22 97.5%
 
Antamina
Copper only ore 44,200 0.51 298,700 0.80 779,600 0.83 22.5%
Copper-zinc ore 19,600 0.76 135,600 1.10 493,300 1.02 22.5%
  63,800 0.59 434,300 0.89 1,272,900 0.91 22.5%
 
Quebrada Blanca              
Heap leach(2)         100 0.32 76.5%
Dump leach(2)         200 0.19 76.5%
          300 0.23 76.5%
 
Quebrada Blanca - Mill 5,300 0.44 838,500 0.40 2,216,900 0.36 76.5%
 
Andacollo              
Heap leach(2) 8,200 0.34 30,600 0.15 40 0.37 90.0%
Dump leach ore(2)             90.0%
  8,200 0.34 30,600 0.15 40 0.37 90.0%
               
Andacollo - Mill 12,200 0.30 153,600 0.28 47,500 0.28 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%
Relincho 79,900 0.27 317,100 0.34 610,800 0.38 50%
El Morro 19,800 0.51 72,600 0.39 678,100 0.35 50%
               
 
Molybdenum              
Highland Valley Copper 412,100 0.008 709,200 0.010 341,900 0.008 97.5%
Antamina 44,200 0.025 298,700 0.023 779,600 0.022 22.5%
Quebrada Blanca - Mill 5,300 0.004 838,500 0.015 2,216,900 0.017 76.5%
Relincho 79,900 0.009 317,100 0.012 610,800 0.013 50%
 
Zinc              
Red Dog         200 11.5 100%
Pend Oreille         2,900 6.1 100%
Antamina 19,600 1.2 135,600 1.6 493,300 1.5 22.5%
San Nicolas     91,700 1.7 10,800 1.0 79%
               
 
Lead              
Red Dog         200 3.8 100%
Pend Oreille     50 0.4 2,800 1.4 100%
 
Metallurgical Coal(5)              
Fording River 406,500   916,300   787,200   100%
Elkview 428,000   152,100   224,600   95%
Greenhills 114,900   189,600   148,500   80%
Line Creek 396,000   360,100   414,500   100%
Cardinal River 46,300   5,400   1,000   100%
Quintette (Mt Babcock) 29,900   90,100   116,200   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)              
Greenhills 3,200   4,700   4,300   80%
Coal Mountain 55,300   23,100   4,700   100%
Cardinal River 600   200        
               
               
 
Thermal Coal (5)              
Fording River 5,700   7,700   7,500   100%
Greenhills 700   400   300   80%
Line Creek 17,000   2,300   3,100   100%
Quintette (Mt Babcock) 200   100   100   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 12,200 0.08 153,600 0.09 47,500 0.09 90%
Galore Creek 39,500 0.39 247,200 0.26 346,600 0.24 50%
El Morro 19,800 0.53 72,600 0.38 678,100 0.30 50%
               
Silver(7)              
Antamina              
Copper only ore 44,200 5.7 298,700 8.4 779,600 8.2 22.5%
Copper-zinc ore 19,600 14.1 135,600 17.8 493,300 15.5 22.5%
  63,800 8.3 434,300 11.4 1,272,900 11.0 22.5%
               
Red Dog         200 76.2 100%
               

 

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 

Oil and Gas Resources at December 31, 2015

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, 2015.  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 general assumptions regarding project costs and comparisons to other projects.  These GLJ estimated costs differ 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 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, 2015
(forecast prices and costs)

  Reserves
Reserves Category
 
Bitumen
Gross (MMbbl)

Net (MMbbl)*

Proved Reserves    
Developed Producing

0

0

Developed Nonproducing 0 0
Undeveloped 414 371
Total Proved Reserves 414 371
Probable Reserves 213 182
Total Proved plus Probably Reserves 6 553

 

*Column does not add due to rounding.

 

For additional information, please refer to page 54: 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 resources 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 using long-term metal prices of US$3.00/lb copper, US$11.00/lb molybdenum, US$18.00/oz silver and US$1,200/oz gold and an exchange rate of CAD$1.15 per US$1.00.  Resources and reserves are reported at a 0.11% copper equivalent cut-off.

Production depletion and higher operating costs in 2015 resulted in a net decrease to reserves of 30.8 million tonnes over 2015. An increased CDN$ to US$ exchange rate in 2015 was primarily responsible for the net gain of 151.9 million tonnes of resources compared to 2014. 

Antamina
Reserve and resource estimates were prepared using long-term metal prices of: US$2.96/lb copper, US$0.99/lb zinc, US$11.91/lb molybdenum and US$21.34/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 47.8 million tonnes to the year-end 2015 copper reserves compared to the end of 2014. 

Quebrada Blanca
Supergene (heap and dump leach materials) reserves were estimated using a short-term copper metal price of US$2.35/lb, given the short-term nature of the operation.  The life of mine plan on which the reserve estimate is based is expected to sustain heap and dump leach mining operations until 2017. 

Hypogene (concentrator) mineral reserves were estimated using a long-term copper price of US$3.00/lb. The life of mine plan for the hypogene shows a mine life of 38 years. There have been no changes to the hypogene reserves or resources at Quebrada Blanca in 2015.

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 2015 with adjustments to the geological interpretation and changes to the estimation parameters.  

Supergene mineral reserve estimates assume a 44.5% leach recovery for soluble copper, long-term copper price of US$3.00/lb and a soluble copper cut-off of 0.14%. Supergene reserves are estimated to sustain mining until 2016.

Supergene reserves have decreased by 28.9 million tonnes at the end of 2015, compared with the end of 2014. This was primarily due to 27.0 million tonnes of material being transferred into supergene resources due to mine plan changes and pending permit applications for further leaching of site stockpiles.

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$1,200/oz gold.  Current hypogene feeds are expected to sustain concentrator operations until 2036.

Hypogene 2015 reserves decreased by 23.4 million tonnes in comparison to 2014.  Hypogene resources increased to 213 million tonnes, a gain of 6.3% from 2014. The additions in resources are mainly attributable to reductions in operating costs and drilling and modeling changes; however, higher mining costs and changes in the mine plan resulted in a net decrease of the reserves.

Relincho
There were no updates to reserves and resources at Relincho in 2015.  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. 

The closing of the Project Corridor transaction in November 2015 reduced Teck’s interest in the Relincho deposit to 50%. However, the mineral reserves and mineral resources for Relincho continue to be presented on a 100% interest basis.

El Morro
As a result of the closing of the Project Corridor transaction in November 2015, Teck’s acquired a 50% interest in Goldcorp’s El Morro project. However, the mineral reserves and mineral resources for El Morro are presented on a 100% interest basis.

A pre-feasibilty study is expected to commence in 2016 in order to develop a combined life-of-mine plan for the El Morro and Relincho after which the reserves and resources for the projects will be reported for the combined entity.

Red Dog
The 2015 life-of-mine plan included a change to the economic objective for the operating cut-off from a maximum net-present-value to one where the net-present-value is ~2% below the maximum net-present-value. In addition, the operating cut-off units were changed from a $/tonne basis to a $/second basis.  The operating cut-off for the Aqqaluk and Qanaiyaq pits at Red Dog for 2015 reserves and resources determinations was $4.358/second compared with an operating cut-off of $102.00/tonne at the end of 2014. 

Low reactivity material below the operating cut-off, down to a $0/second cut-off, is being stockpiled as low-grade ore for milling at the end of the mine life.  This material is reported as reserves in 2015. 

Mineral reserve and resource estimates assume US$1.00/lb zinc and US$0.90/lead.  

Pend Oreille
Reserve and resource cut-off was estimated at 3.51% zinc based on short-term metal prices of US$1.00/lb zinc and US$1.00/lb lead.

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 reserve and resource estimate is based on a scoping study produced in 2012.  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 2014 by 184.2 million tonnes of clean coal.  Production removed 7.4 million tonnes. A transfer of 152 million tonnes of reserves from the south end of Swift Pit to Greenhills Operations was the largest change for the year. 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$1.15 per US$1.00. 

Elkview
Teck has a 95% interest in the Elkview mine.  Model revisions, geology interpretation and mine design changes increased reserves by 58 million tonnes net of mine production over 2014.  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$1.15 per US$1.00. 

Greenhills
Teck is an 80% member of the Greenhills joint venture, which operates in certain areas of the Greenhills Operations.  Normal mine depletion accounted for a 5.0 million tonnes reduction in clean coal reserves.  Reserves increased in 2015 partly due to the transfer of reserves from Fording River, discussed above. The reserve estimate assumes a long term selling price at the Port of Vancouver of US$130/tonnes for metallurgical coal at an exchange rate of CAD$1.15 per US$1.00.

Line Creek
Reserves of clean coal decreased marginally overall due to changes in coal recovery parameters, geology interpretation and mine design. 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$1.15 per US$1.00.

Coal Mountain
The Coal Mountain Operation primarily mines PCI coal from a highly folded and faulted deposit. The reserve estimate assumes a short term selling price of US$79/tonne for PCI coal at a short term exchange rate of CAD$1.25 per US$1.00.

Cardinal River
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$1.15 per US$1.00.

Quintette (Mt Babcock)
There were no changes to Quintette reserves between 2014 and 2015. 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$1.15 per US$1.00.  Quintette remained on care and maintenance status for 2015.

Other Coal Properties
Other properties include Mt Duke south of Tumbler Ridge BC, 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 assumed a long term selling price of US$130/tonne for metallurgical coal, US$87/tonne for clean PCI, US$75/tonne for clean thermal coal and an exchange rate of CAD$1.15 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”, “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, SME Registered Member, who is an employee of Compañía Minera Antamina S.A.  Messrs. Marinho 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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Teck is a diversified resource company committed to responsible mining and mineral development with business units focused on copper, zinc, steelmaking coal and energy.