This is a very exciting time for Teck, as we transition to a new phase of growth for our company, one that will generate new value for our employees, shareholders and the communities in which we operate.
In 2018, we saw solid operating results across the business and achieved key milestones on a number of important initiatives, some of which we’ve been working on for close to a decade. We received Board approval for full construction of Quebrada Blanca Phase 2 (QB2) in Chile, which is now underway. We also entered into a partnership with Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation, a transaction that confirmed QB2 as one of the world’s premier undeveloped copper projects, significantly de-risked our investment in it and improved the project economics for Teck. The production start-up at our Fort Hills mine exceeded nameplate capacity in December. And earlier in 2019, we received investment grade credit ratings from four rating agencies.
The exciting progress on QB2 brings us to this issue of Connect, “Building a Stronger Future,” with much of the focus on a project that, once complete, will transform our copper business and make Teck a major global copper producer.
To begin, I encourage you to start with “QB2: A Next Phase”, where the “who, what, where, when, why” of the project are highlighted, as well as other key aspects of the project’s construction phase, a phase that will take us to the second half of 2021, when we expect to see first production.
Until that time, tremendous effort is underway by a very talented and experienced team. As we know, it’s really our people who make it all possible, and in this issue of Connect, you’ll learn more about just a few of the many people making an impact on this project and others across Teck.
We’ve also seen huge momentum and energy building around technology and innovation, and at QB2, it will be a hallmark of how that operation is set up for future success. “QB2: Mine of the Future” examines how we are leveraging existing and new technologies that will make QB2 our most innovative and integrated operation.
Looking ahead at the remainder of 2019, in addition to focusing on meeting production and cost targets, making progress on the construction of QB2, and advancing studies associated with our various development projects, we’ll also take the next important step in our safety journey. And we’ll do that by rolling out a new program called Introduction to Hazard Identification across Teck.
Nothing is more important than the health and safety of our people, and it’s the first consideration in everything we do. And yet we continue to have incidents. To understand why, we reviewed our investigation outcomes and determined that hazard identification is an area in need of improvement. To address this, Introduction to Hazard Identification was developed to equip employees with a common understanding of hazards, hazard types, risk and control, as well as the skills necessary to identify hazards and manage risk in the workplace.
We can’t talk about our safety journey without remembering the fatal incidents that took place at Fording River and Elkview in 2018. We were deeply saddened by the loss of Pat Dwyer and Stefan James Falzon, and our thoughts remain with their loved ones. Investigations have been completed, and we are sharing lessons learned across our company and our industry.
Teck’s success relies on the innovative thinking and commitment to excellence of our people—those who, each day, drive our culture of safety, of sustainability and of innovation. As we enter into this exciting time of growth for Teck, and continue to build on the milestones we reached in 2018, we know that together, we are building a strong future for our company.
