Mineral Resources as at 31 December 2020 ⁽¹⁾

	Measured		Indicated		Inferred
	Tonnes (000's)	Grade (%)	Tonnes (000's)	Grade (%)	Tonnes (000's)	Grade (%)	Teck Interest (%)
Copper
Highland Valley Copper	724,100	0.28	999,700	0.24	406,000	0.23	100.0
Antamina
Copper only ore OP	91,700	0.68	320,400	0.80	621,000	0.82	22.5
Copper-zinc ore OP	31,400	0.76	146,500	1.01	240,700	1.03	22.5
Copper only ore UG					241,500	1.31	22.5
Copper-zinc ore UG					168,200	1.20	22.5
Total	123,000	0.70	466,900	0.87	1,271,500	1.01	22.5
Quebrada Blanca
Quebrada Blanca - Mill	929,000	0.37	2,692,200	0.36	3,119,300	0.35	60.0
Andacollo
Andacollo - Heap	9,300	0.38	27,800	0.15			90.0
Andacollo - Mill	41,900	0.29	303,700	0.25	60,700	0.25	90.0
NuevaUnión
Relincho	319,000	0.19	463,000	0.26	724,700	0.36	50.0
La Fortuna	9,600	0.42	236,700	0.51	479,700	0.43	50.0
Total	328,600	0.19	699,700	0.34	1,204,300	0.39	50.0
Galore Creek	256,800	0.72	846,700	0.39	198,100	0.27	50.0
Schaft Creek	166,000	0.32	1,127,200	0.25	316,700	0.19	75.0
Mesaba	244,100	0.47	1,334,100	0.42	1,462,000	0.35	100.0
Zafranal	5,100	0.19	2,300	0.21	62,800	0.24	80.0
San Nicolás	500	1.35	6,100	1.17	4,900	0.94	100.0
Molybdenum
Highland Valley Copper	724,100	0.008	999,700	0.009	406,000	0.007	100.0
Antamina
Copper only ore OP	91,700	0.016	320,400	0.022	621,000	0.020	22.5
Copper only ore UG					241,500	0.011	22.5
Total	91,700	0.016	320,400	0.022	862,600	0.018	22.5
Quebrada Blanca
Quebrada Blanca - Mill	929,000	0.013	2,692,200	0.017	3,119,300	0.017	60.0
NuevaUnión
Relincho	319,000	0.006	463,000	0.009	724,700	0.012	50.0
Schaft Creek	166,000	0.021	1,127,200	0.016	316,700	0.019	75.0
Zinc
Antamina
Copper-zinc ore OP	31,400	1.4	146,500	1.6	240,700	1.5	22.5
Copper-zinc ore UG					168,200	1.4	22.5
Total	31,400	1.4	146,500	1.6	408,900	1.5	22.5
Red Dog
Red Dog Mine			8,500	7.7	9,100	12.5	100.0
Red Dog District					19,400	14.4	100.0
Pend Oreille	100	8.3	100	7.5	2,400	6.6	100.0
San Nicolás	500	0.4	6,100	0.7	4,900	0.6	100.0
Lead
Red Dog
Red Dog Mine			8,500	5.3	9,100	4.5	100.0
Red Dog District					19,400	4.2	100.0
Pend Oreille	100	2.0	100	1.0	2,400	1.4	100.0
Nickel
Mesaba	244,100	0.11	1,334,100	0.10	1,462,000	0.09	100.0
Cobalt
Mesaba	244,100	0.009	1,334,100	0.007	1,462,000	0.006	100.0

 

	Measured		Indicated		Inferred		Teck Interest (%)
	Tonnes (000's)	Grade (g/t)(5)	Tonnes (000's)	Grade (g/t)(5)	Tonnes (000's)	Grade (g/t)(5)
Gold
Andacollo - Mill (4)	41,900	0.11	303,700	0.09	60,700	0.08	90.0
NuevaUnión
La Fortuna	9,600	0.47	236,700	0.59	479,700	0.40	50.0
Galore Creek	256,800	0.36	846,700	0.23	198,100	0.21	50.0
Schaft Creek	166,000	0.20	1,127,200	0.15	316,700	0.14	75.0
Mesaba	244,100	0.03	1,334,100	0.03	1,462,000	0.03	100.0
Zafranal (9)	5,100	0.04	2,300	0.05	62,800	0.10	80.0
San Nicolás	500	0.08	6,100	0.20	4,900	0.13	100.0
Silver
Antamina
Copper only ore OP (6)	91,700	7.4	320,400	8.9	621,000	7.8	22.5
Copper-zinc ore OP (6)	31,400	21.5	146,500	18.9	240,700	15.5	22.5
Copper only ore UG (6)					241,500	12.2	22.5
Copper-zinc ore UG (6)					168,200	16.7	22.5
Total (6)	123,000	11.0	466,900	12.0	1,271,500	11.3	22.5
Quebrada Blanca
Quebrada Blanca - Mill	929,000	1.1	2,692,200	1.1	3,119,300	1.1	60.0
NuevaUnión
Relincho	319,000	1.0	463,000	1.2	724,700	1.3	50.0
La Fortuna	9,600	0.9	236,700	1.1	479,700	1.0	50.0
Total	328,600	1.0	699,700	1.2	1,204,300	1.2	50.0
Red Dog
Red Dog Mine			8,500	92.0	9,100	88.3	100.0
Red Dog District					19,400	73.4	100.0
Galore Creek	256,800	5.8	846,700	3.7	198,100	2.6	50.0
Schaft Creek	166,000	1.5	1,127,200	1.2	316,700	1.1	75.0
Mesaba	244,100	1.2	1,334,100	1.0	1,462,000	0.7	100.0
San Nicolás	500	6.4	6,100	11.9	4,900	9.3	100.0
Platinum
Mesaba	244,100	0.04	1,334,100	0.03	1,462,000	0.04	100.0
Palladium
Mesaba	244,100	0.12	1,334,100	0.09	1,462,000	0.13	100.0

 

	Measured	Indicated	Inferred	Teck Interest (%)
	Tonnes (000's)	Tonnes (000's)	Tonnes (000's)
Metallurgical Coal (8)
Fording River	446,500	968,000	724,100	100.00
Elkview	287,700	157,500	244,000	95.00
Greenhills	158,600	225,400	170,700	80.00
Line Creek	331,800	416,300	426,800	100.00
Cardinal River	35,800	2,900	500	100.00
Quintette (Mt Babcock)	31,800	92,000	114,400	100.00
Mt Duke	24,300	102,400	122,600	92.68
Elco	25,100	115,300	112,300	75.00
CMO Phase II (Martin Wheeler)	102,200	71,700	7,900	100.00
PCI Coal (8)
Cardinal River	1,600	300		100.00
Coal Mountain	56,600	22,900	4,800	100.00
Thermal Coal (8)
Line Creek	5,300	3,600	2,200	100.00
Quintette (Mt Babcock)		200	200	100.00
Mt Duke	200	700	1,300	92.68
Elco	700	6,100	6,000	75.00
CMO Phase II (Martin Wheeler)	2,800	3,700	900	100.00

 

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) Recoverable Metal refers to the amount of metal contained in concentrate or cathode copper.

(3) For heap leach and dump leach operations, copper grades are 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.

(4) In 2015, an interest in future gold production from the Andacollo mine was sold.  Compañia Minera Teck Carmen de Andacollo has agreed to sell and deliver to the purchaser an amount of gold equal to 100% of the payable gold produced from the Carmen de Andacollo mine until 900,000 ounces have been delivered, and 50% thereafter.  Reserves and resources are stated without accounting for this production interest.

(5) g/t = grams per tonne.

(6) In 2015, Teck entered into an agreement with a purchaser to deliver silver equivalent to 22.5% of the payable silver sold by Compañia Minera Antamina S.A. until 86 million ounces of silver have been delivered, after which the amount of silver to be delivered will be reduced by one-third.  Reserves and resources are stated without accounting for this production interest.

(7) Coal reserves are reported as tonnes of clean coal.

(8) Coal resources are reported as tonnes of raw coal.

(9) At Zafranal, gold in Oxide material is considered to be non-recoverable.

Source: Annual Information Form

The reserves information set out below for the Fort Hills mine is based upon evaluations conducted by GLJ, an independent qualified reserves evaluator.

The effective date of the reserves data and other oil and gas information below for Fort Hills is December 31, 2020. Estimates of reserves and projections of production were prepared by GLJ using information provided up to November 30, 2020. The reserves information set out below for Fort Hills is taken from a report prepared by GLJ; the preparation date of the information is January 22, 2021. All reserves information in this section is based on Teck’s 21.3049% interest in Fort Hills.

Classifications of oil and gas reserves as Proved or Probable are only attempts to define the degree of certainty associated with the estimates. There are numerous uncertainties inherent in estimating quantities of oil reserves. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast price and cost assumptions will be attained and variances could be material. The reserves estimates provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater or less than the estimates disclosed.

 

Reserve Categories and Resources

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 that 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 developed reserves since Fort Hills is now in operation. 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. 

 

 

Fort Hills Mine

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, and therefore do not take into account, interest, general and administrative expenses or the impact of any hedging activities. In addition, provisions for the abandonment and reclamation of the mines and associated facilities to which reserves have been assigned have been included; all other abandonment and reclamation costs have not been included. These forecasts and other assumptions are taken from the GLJ evaluation report with an effective date of December 31, 2020. Future net revenues have been presented on a before and after tax basis in accordance with National Instrument 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 ― Fort Hills Mine” section of this Annual Information Form are the estimates or assumptions of GLJ, our independent reserves evaluator. In order to estimate reserves 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 of capital and operating costs associated with Fort Hills are based on historical costs and Suncor’s estimates, as operator, of future costs, with consideration to those achieved by other oil sands mining projects. These GLJ-estimated costs differ somewhat from those that the Fort Hills partners use for planning and decision-making for the project, which are based on detailed engineering studies. See “Description of the Business ― Individual Operations ― Energy ― Fort Hills Mine” for a further description of Teck’s estimates regarding costs.

All of our reserves are associated with Fort Hills. 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 as at December 31, 2020 (21.3049%) share before deduction of royalties. “Net” in relation to Teck’s interest in reserves means Teck’s working interest as at December 31, 2020 (21.3049%) share after deduction of royalties.

 

 

Summary of Oil and Gas Reserves at December 31, 2020 (forecast prices and costs)
(in millions of barrels)	Reserves
Reserves Category	Bitumen
	Gross		Net
Proved Reserves
Developed Producing	340		323
Developed Nonproducing	0		0
Undeveloped	0		0
Total Proved Reserves	340		323
Probable Reserves	218		199
Total Proved plus Probable Reserves	558		523

Definitions for Mineral Reserves and Mineral Resources

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 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. 

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 Canadian Institute of Mining, Metallurgy and Petroleum 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 prefeasibility 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 prefeasibility 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 prefeasibility 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$9.40/lb. molybdenum, US$18.00/oz. silver and US$1,300/oz. gold and an exchange rate of CAD$1.25 per US$1.00.  Reserves and resources were calculated using a net smelter return of US$5.17 per tonne and a copper equivalent cut-off grade of 0.09% with a molybdenum factor of 1.9.

There was a net decrease of 82 million tonnes of Proven and Probable reserves due to depletion from mine production and changes in mine design for all three pits.  Resources increased by 445 million tonnes, primarily because of lower operating costs, partially offset by resource losses as a result of updates on the models for the Valley and Highmont pits. The resource estimate at Highland Valley Copper Operations is extremely sensitive to changes in economic assumptions.

Antamina
Open pit reserve estimates were prepared assuming long-term metal prices of US$3.08/lb. copper, US$1.08/lb. zinc, US$8.70/lb. molybdenum and US$17.39/oz. silver. Open pit and underground resource estimates were prepared assuming long-term metal prices of US$3.30/lb. copper, US$1.18/lb. zinc, US$10.54/lb. molybdenum and US$20.82/oz. silver.

Cut-off grades at Antamina are based on the net value before taxes that the relevant 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. 

Quebrada Blanca
Supergene reserves were fully depleted in 2018 and only mineral resources are being reported.  The Quebrada Blanca (hypogene) reserve and resource estimates were prepared assuming a long-term copper price of US$3.00/lb. and a long-term molybdenum price of US$9.40/lb.

The hypogene mineral reserves remain at 1.4 billion tonnes and are limited by the current tailings storage capacity. Ongoing infill and resource delineation drilling continues to improve confidence in resource categories and increase the resource base. Geological models were updated to include 2019 and 2020 drilling results; the current model reports a 25% increase in resources from 2019, totalling 3.62 billion tonnes of measured and indicated resources and another 3.12 billion tonnes of inferred resources.

Carmen de Andacollo
Our Carmen de Andacollo Operations include a heap leach copper operation and a copper-gold hypogene concentrator.  The year-end 2020 reserves and resources are supported by updated resource models that incorporate new drilling and improved economic assumptions related to operational costs.    

Hypogene reserve estimates assume long-term metal prices of US$3.00/lb. copper and US$1,300/oz. gold.  Mineral reserves show a small overall reduction from 2019 due to depletion from normal mining activities, partially offset by reserve increases due to improved costs and positive changes in the geological model from new drilling information.  Hypogene resources estimates decreased by a total of 10 million tonnes in comparison to 2019, mostly due to adjustments in cut-off calculations. 

NuevaUnión 
Teck has a 50% interest in NuevaUnión. Reserves and resources for NuevaUnión are in respect of two deposits, Relincho and La Fortuna.  Reserves at the deposits consider a bulk open-pit mining operation that will be developed in three production phases that will alternate mining operations between the two deposits. 

Relincho mineral reserves and mineral resources are reported using an average net smelter return cut-off of US$11.00/tonne and US$6.72/tonne, respectively, and assuming metal prices of US$ 3.00/lb. copper and US$10.00/lb. molybdenum and US$18.00/oz. silver. 

La Fortuna mineral reserves and open pit mineral resources are reported using an average net smelter return cut-off of US$10.55/tonne and US$9.12/tonne, respectively, and assuming metal prices of US$3.00/lb. copper and US$1,200/oz. gold. Mineral resources outside of the mineral reserve pit are defined using a conceptual underground mining envelope. This approach assumes the same recoveries, metal prices, processing, and general and administration costs as used for the open pits, but with mining costs and dilution assumptions that are more appropriate to bulk underground mining.  The resource model was updated in 2020 considering the inclusion of nine holes targeting the deep portion of La Fortuna, improved geological boundaries and updated grade estimation.

Red Dog 
Teck reports reserves and resources for Red Dog divided into two reporting groups based on the spatial proximity and the land ownership associated with the deposits in and around Red Dog. The names assigned to these groups are “Mine” and “District”.  

In the “Mine” group, Teck is currently operating two deposits accessible by open pit mining: Aqqaluk, and Qanaiyaq. The Aqqaluk deposit, with first ore milled in August 2010, has had its operations extended to 2032.  Mining of the Qanaiyaq deposit started with first ore milled in January 2017 and is planned to continue through 2028. The Red Dog Mine area also contains the undeveloped Paalaaq deposit, which is currently only defined to a resource level of confidence.

All reserve and resources were estimated assuming long-term metal prices: US$1.10/lb. zinc, US$0.90/lb. lead and US$18.00/oz. silver.  

The “District” group consists entirely of Inferred resources from the Anarraaq deposit, which lies approximately 11 kilometres northwest of the current Red Dog operations.  Inferred resources for this deposit are unchanged from 2017, at 19.4 million tonnes.

Pend Oreille
The operation is in care and maintenance and the remaining mineral reserves were reclassified back as resources. The 2020 reported resource estimate is unchanged from 2019.

The resources for Pend Oreille are estimated using a 4.5% zinc cut-off. Recovery is expected at 89.5% for zinc and 60% for lead. Commodity price assumptions were US$1.10/lb. zinc and US$0.90/lb. for lead.

San Nicolás
2020 estimates for San Nicolás include maiden reserves reported for the deposit. The estimates assume different net smelter return cut-offs for low zinc/copper ores and high zinc/copper ores, respectively, of US$9.71 per tonne and US$13.15/tonne net smelter return based on an estimate of the marginal cost of production for the relevant ore.  Net smelter return calculations assume US$3.00/lb. copper, US$1.10/lb. zinc, US$1,300/oz. gold and US$20/oz. silver and scaled costs from previous studies.  

Galore Creek
Teck has a 50% interest in Galore Creek. 2020 reported resources are unchanged from 2019 reported resources, and are estimated assuming US$3.00/lb. copper, US$1,200/oz. gold and US$20.00/oz. silver and a US$8.84/tonne net smelter return cut-off.

Schaft Creek
2020 reported resources are unchanged from 2019.  Open pit mineral resources are reported at a net smelter return cut-off of US$4.31/tonne and constrained by a conceptual open pit shape.  

Mesaba
2020 reported resources are unchanged from 2019 reported resources. The estimates are based at a cut-off of 0.2% copper, equivalent to a net smelter return cut-off of US$5.24/ton, and assume US$3.00/lb. copper, U$7.60/lb. nickel, US$20.00/oz. silver, US$23.00 cobalt, US$1,250/oz. gold, US$1,200/oz. platinum and US$900/oz. palladium.

Zafranal
2020 reported reserves and resources are unchanged from 2019 reported reserves and resources. 

Resource and reserves estimates at Zafranal were prepared assuming US$3.00/lb. copper and US$1,200/oz. gold.  The total contained metal used in the reserves table are based on variable metallurgical recoveries of up to 89.5% for copper and up to 56% for gold.  Open pit mineral reserves are reported using a variable net smelter return cut-off of US$6.10 to $6.35/tonne averaging US$6.11/tonne. 

Fording River 
The reserve estimates assume a long-term selling price at the Port of Vancouver of US$140/tonne for metallurgical coal at an exchange rate of CAD$1.25 per US$1.00.

Elkview
Teck has a 95% interest in the Elkview mine.  The reserve estimates assume a long-term selling price at the Port of Vancouver of US$140/tonne for metallurgical coal at an exchange rate of CAD$1.25 per US$1.00.

Greenhills
Teck is an 80% partner in the Greenhills joint venture.  The reserve estimates assume a long-term selling price at the Port of Vancouver of US$140/tonne for metallurgical coal at an exchange rate of CAD$1.25 per US$1.00.

Line Creek
The reserve estimates assume a long term selling price at the Port of Vancouver of US$140/tonne for metallurgical coal and US$105/tonne for PCI coal at an exchange rate of CAD$1.25 per US$1.00.

Quintette (Mt. Babcock)
The reserve estimates assume a long-term selling price of US$140/tonne for metallurgical coal and US$75 for oxide coal at an exchange rate of CAD$1.25 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 modelling, recovery rates being less than those expected and changes in project parameters due to changes in production plans.  Except as expressly described elsewhere in this Annual Information Form, 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 headings “Description of the Business” and “Health, Safety, Community and Environmental Protection” and “Risk Factors — We face risks associated with the issuance and renewal of permits.” 

 

 

Qualified Persons

Estimates of mineral reserves and resources for our base metal properties have been prepared under the general supervision of Rodrigo Marinho, P.Geo., who is an employee of Teck Resources Limited and the Qualified Person for the purposes of NI 43-101 for our base metal properties (other than Antamina).  Mineral reserve and resource estimates for Antamina have been prepared under the supervision of Fernando Angeles P.Eng. and Lucio Canchis, who is an SME Registered Member, and who are both employees of Compañía Minera Antamina S.A.  Messrs. Canchis and Angeles are the Qualified Persons for the purposes of NI 43-101 in respect of Antamina.  Reserve and resource estimates for coal properties were prepared under the general supervision of Jo-Anna Singleton, P.Geo. and Robin Gold, P.Eng., employees of Teck Coal Limited, who are the Qualified Persons for coal properties for the purposes of NI 43–101.