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Relationships with Communities

Local community engagement, impact assessments, and development programs, grievance and feedback mechanisms, and community investment.

GRI Indicators
102-34, 201-103, 203-103, 203-1, 205-1, 413-103, 413-1, G4-MM6, G4-MM7

Relationships with Communities

As stakeholder demands intensify, maintaining social licence to operate remains a top risk for the mining industry and others.1 Businesses are increasingly being called upon to demonstrate how their activities benefit society.2 Strong relationships between companies and their communities of interest, where there are clear mutually defined benefits and mechanisms to resolve conflict, are therefore essential for business continuity and growth.

Mining may have varying positives and negative impacts on communities. In recognition of these impacts and opportunities, the International Council on Mining and Metals (ICMM) established stakeholder engagement as one of its 10 Principles. Members companies are expected to work to mitigate negative impacts and to maximize positive impacts. They often focus their efforts on local hiring, local procurement and community investment, which can help to stimulate local economies and empower local people.

Building and maintaining good relationships with our stakeholders continued to be a business priority across all of our sites in 2019. Engagement is one of our core social management areas and our Social Management and Responsibility at Teck (SMART) Framework is designed to take a people-centric approach to dialogue that focuses on relationships, rather than on issues. Throughout the year, we engaged communities in relation to the development of all of our projects and continued to advance relationships with communities near all of our sites.


1 Top 10 Business Risks Facing Mining and Metals. EY. September 2019. (https://www.ey.com/en_gl/mining-metals/10-business-risks-facing-mining-and-metals)

Our Approach to Relationships with Communities

The Board of Directors, through its Safety and Sustainability Committee, broadly oversees health, safety, environment and community policies, systems, performance and auditing, including implementation of our Health, Safety, Environment and Community (HSEC) Management Standards. The Community Investment Committee oversees our community investment program to ensure that contributions are made in a manner that benefits our communities of interest, and that contributions are aligned with our business objectives. It is chaired by the Senior Vice President, Sustainability and External Affairs.

The following senior leaders are involved in implementing the management of relationships with communities:

  • The Senior Vice President, Sustainability and External Affairs reports directly to our CEO and is responsible for sustainability, health and safety, environment, community, and Indigenous affairs
  • The Vice President, Community and Government Relations leads activities related to social management and responsibility, community engagement, community investment, and Indigenous affairs

Teck’s Code of Sustainable Conduct commits Teck to engaging with communities. Our Human Rights Policy, Indigenous Peoples Policy, Inclusion and Diversity Policy, Code of Ethics and Expectations for Suppliers and Contractors also provide guidance on building and managing relationships with communities.

We work with various local, national and international organizations and programs to support improvements in best practices for social management and responsibility across the industry, including, for example:

  • International Council on Mining and Metals (ICMM): A global industry association that represents leading international mining and metals companies who are required to implement the ICMM 10 Principles, including Principle 9 on social performance and Principle 3 on human rights.
  • Prospectors & Developers Association of Canada (PDAC): Represents the interests of the Canadian mineral exploration and development industry; we incorporated PDAC’s Environmental Excellence in Exploration framework into the development of our HSEC Management Standards and into the Social Management and Responsibility at Teck (SMART) Exploration Tool
  • Mining Association of Canada (MAC): Promotes the development of Canada's mining and mineral processing industry; through MAC, we are required to implement the Towards Sustainable Mining program, including the Aboriginal and Community Outreach protocol, which aids in improving industry performance
  • United Nations Global Compact (UNGC): Provides a framework for businesses committed to aligning their operations and strategies with 10 principles spanning human rights, labour, the environment and anti-corruption

We engage with communities and provide opportunities to participate in decisions that impact them while providing mutually defined benefits.

Social Management and Responsibility at Teck (SMART) Framework

Teck’s SMART Framework is our approach to improving our social performance across Teck’s sites while also recognizing the unique context and circumstances of each region. Based on a comprehensive and regular assessment of our social context and risk, we focus on four core social management areas that are essential for establishing and maintaining strong positive relationships:

  • Engagement: Engaging with people on what matters to them while identifying opportunities to maximize their input into decision-making
  • Impacts: Working to mitigate or minimize the negative impacts of our activities
  • Feedback and Incidents: Systematically addressing and learning from feedback received and incidents that occur
  • Benefits: Identifying opportunities to maximize the positive benefits of our activities

 

We have Communities teams at each of our operations who operationalize the SMART Framework to build and strengthen trust-based relationships with local communities and stakeholders. At our exploration and development projects, exploration geologists and project managers are responsible for implementing the SMART Framework with local communities through all stages of their activities. Teck’s corporate Community and Indigenous Affairs team provides site support and guidance to sites in implementing the SMART Framework, and in regularly reviewing their performance. The Communities team members are provided the training and skills necessary to fulfill their responsibilities in connection to the SMART Framework.

Teck’s SMART Framework

Assessing Social Risk

Teck is committed to proactively managing social risks. A social risk assessment is the process of identifying, evaluating and recommending an appropriate course of action to address these social risks.

Teck’s social risk assessments begin with evaluating the geographic range of impact of a site’s or project’s activities and developing a tailored social risk profile. We then systematically identify and evaluate risks and opportunities that Teck and our Communities of Interest can pose to one another. Examples of social risks include environmental concerns contributing to erosion of community trust, and disputes around land rights affecting local livelihoods or cultural practices.

 

Engagement with our Communities of Interest (COIs) and other stakeholders helps us to ensure we understand the positive and negative impacts of our business, as well as the risks and opportunities associated with those impacts. It enables us to manage impacts in a responsible and effective manner, and understand the effectiveness of our management actions.

We organize our engagement with COIs into three levels: information disclosure, dialogue and participation. Guided by our HSEC Management Standards and our SMART Framework, our operations, exploration sites, projects and closed properties identify and prioritize local and regional stakeholders, undertaking broad, inclusive and regular engagement activities.

Those responsible for engagement are trained to take a people-centred approach to dialogue that is focused on genuine relationships, rather than on issues management. This helps ensure that engagement is productive and constructive, and that it directly contributes to the building and maintenance of long-term, trust-based relationships.

Managing Impacts

Our sites and activities can have significant economic, social, environmental and cultural impacts on our COIs. Impacts are understood as an influence or an effect from our company’s activities on a community’s or stakeholder’s well-being. Wherever possible, Teck seeks to anticipate and avoid any negative impacts and maximize any positive impacts.

Where negative existing or potential impacts are identified, mitigation strategies are developed and their implementation is consistently monitored. Sites prioritize any impacts, real or perceived, that are identified as being of highest significance to COIs. Regular, effective COI mapping, engagement and operational feedback mechanisms also support impact management efforts, as well as helping the company identify any vulnerabilities and potential human rights risks related to our activities.

Operations equally seek to leverage existing opportunities for positive impact, identified through impact assessments, social baselines and annual social risk assessments. This includes ongoing efforts to maximize mining activities to contribute to the well-being of host communities and countries by generating economic and social value through tax and royalty payments, local hiring and procurement, and direct community investments.

Managing Community Feedback

Teck provides direct feedback mechanisms at every operation and project and in every exploration region to specifically ensure that those who want to provide feedback — whether it’s a comment, question, concern, complaint or compliment — are able to do so easily and, if they wish, anonymously.

Feedback mechanisms may include dedicated phone lines and in-person or online platforms. Feedback received is recorded using a database system called TrackLine and categorized by topic and severity. This system allows for the tracking of feedback management performance and trends over time, to support operational continuous improvement efforts. Negative feedback items, sometimes called grievances, are specific issues of concern to community members that require a response and potential further action from the company.

Grievances that result in significant disputes3 are tracked and reported on annually. Operations are required to follow up to evaluate any negative feedback, to identify and implement appropriate improvement actions as necessary, and to communicate this information in a timely manner back to the complainant. Significant negative feedback items may be subject to further analysis or investigation. Corporate guidance, tools and the sharing of best practices supports the feedback mechanism at each operation.

Through annual opinion surveys, community stakeholders are also able to provide feedback on Teck’s activities. This information is used as a check on our efforts to improve our social management activities while continuing to address our most significant social risks.

Managing Incidents

Teck defines an incident as an “undesirable event arising from company activities that is both unplanned and uncontrolled, regardless of the severity of consequences”. Company-wide criteria have been established for sites to identify, report and evaluate the severity of consequences, with respect to community incidents. Sites are expected to follow up on all incidents identified to understand the impacts and implement corrective actions wherever possible, with more significant incidents potentially subject to root cause investigation.


3 Significant disputes are those that cannot be resolved with a reasonable time frame, that are repeated or widespread, or that represent significant financial, legal or reputational consequences for the community or company.

Teck works to generate value from the extraction, processing and sale of mineral, steelmaking coal, oil and metal resources to ensure the long-term sustainability of our operations and their contribution to communities. Benefits may include training, employment and procurement opportunities, capital investments, payments to governments and Indigenous Peoples, and shareholder dividends. Our corporate office, operating sites, exploration teams, legacy properties and development projects engage with communities, governments and non-governmental organizations to align activities with local, regional, national and international development planning where appropriate.

Local Hiring and Procurement

Local hiring is a priority at Teck operations. To ensure local hires have the skills necessary for employment and advancement, we support access to relevant training opportunities at or near Teck’s sites. For example, our Carmen de Andacollo Operations in Chile contributed to the first mining training facility in the region and provided micro-grants as well as training to help businesses grow.

Whenever possible, our sites also utilize local suppliers, providing that they meet our health, safety, environmental and community requirements, and provide cost-competitive goods and services. Commitments regarding procurement and hiring practices are also often included in agreements between Teck and Indigenous communities.

Community Investment

Community investment is a key pillar of our company’s overall commitment to the communities where we live and work. Our internal community investment framework guides how we align business drivers with community priorities, and guides our approach to providing sustainable community benefits. Our enterprise-wide community investment approach ensures we consider local community development plans and objectives in the development of site-level strategies that support thriving communities and socio-economic development outcomes.

Our community investment program is guided by best practices from the International Finance Corporation and the London Benchmarking Group. We aim to contribute, at a minimum, 1% of our pre-tax earnings on a five-year rolling average basis to community investment. With our target tied to earnings, our success as a company directly impacts our ability to invest in the communities where we operate.

We focus our contributions on ensuring positive community development outcomes, consistent with the objectives of the UN Sustainable Development Goals. Our main areas of emphasis include SDG 3 on good health and well-being (including programs that use zinc and copper to advance global health outcomes), SDG 5 and SDG 8 on inclusion and sustainable livelihoods (including Science, Technology, Engineering, and Math [STEM] education and scholarships that enable local students to position themselves for mining employment opportunities), and SDG 6, 13 and 15 on environmental stewardship (including the conservation of lands and at-risk species in the broader regions near our operations).

See the Community Investment page on our website for further information.

Our Sustainability Strategy guides our long-term approach to relationships with communities across the organization. In 2019, we conducted broad engagement with employees and external stakeholders to identify and prioritize global trends and issues and set a new sustainability strategy, including new goals related to communities. 

Strategic Priority:

  • Collaborate with communities and Indigenous Peoples to generate economic benefits, advance reconciliation efforts and improve community well-being

Goals:

  • Increase local employment and procurement opportunities by 2025 to deliver direct economic benefits to communities
  • Achieve greater representation of Indigenous Peoples across our business by 2025 by increasing employment and procurement through business development, capacity-building, education and training opportunities
  • Deliver positive social, economic and environmental outcomes for communities and Indigenous Peoples by contributing $100 million to community organizations and global initiatives, including our Zinc & Health and Copper & Health programs, by 2025

Our focus in 2020 will be on making progress towards our new goals and concluding final steps on the 2020 communities goals within our previous sustainability strategy.

By the end of 2020, we will:

  • Refine our business policies and practices based on results of our social risk assessments, our work in human rights, and developments in the rights of Indigenous Peoples
  • Engage with communities to identify social, economic and environmental priorities and mutually define outcomes and measures of success
  • Work with Indigenous Peoples to identify and participate in initiatives to support the self-defined goals of Indigenous communities
  • Develop metrics for monitoring Indigenous training, employment and procurement to establish baselines and drive progress

For more information on our existing and new sustainability strategy goals, see the Sustainability Strategy section of our website.

Type Organization Items Reviewed
External Mining Association of Canada: Towards Sustainable Mining assurance
  • Community of Interest (COI) identification
  • Effective COI engagement and dialogue
  • COI response mechanism
  • Reporting 
External International Council on Mining and Metals: Sustainability Report assurance
  • Total number of significant disputes relating to land use and the customary rights of local communities and Indigenous Peoples
  • Principle 3: Respect human rights and the interests, cultures, customs and values of employees and communities affected by our activities
  • Principle 9: Pursue continual improvement in social performance and contribute to the social, economic and institutional development of host countries and communities

Following each of these types of assurance, applicable management teams use the results to inform future actions and Teck’s five-year planning process.

We report on our performance against these indicators and our progress towards our social management and responsibility goals on an annual basis in our sustainability report.

Our Performance in Relationships with Communities in 2019

Engagement on Actual or Potential Impacts

Guided by our Health, Safety, Environment and Community (HSEC) Management Standards and our SMART Framework, we require all 12 (100%) of our operations, all eight (100%) of our development projects, both (100%) of our joint ventures and all of our exploration teams to engage and consult with stakeholders and communities to address potential, current and emerging issues, and to maximize opportunities that provide strategic value, for both Teck and those communities.

Activities across the mining life cycle may result in a range of social, economic and environmental impacts, both positive and negative. These may include impacts that are relevant to human rights or indigenous rights. Examples of specific impacts experienced at our operations in 2019 and major engagements undertaken are discussed in Table 11.

Table 11: Selected Major Engagement Activities in 2019

Actual or Potential Impacts on Communities from Our Activities

Sites and Projects

Major Engagement Activities

Socio-Economic/Community: livelihoods, cultural use, employee rights

Cardinal River Operations

Engaged with community members, government and Indigenous Peoples near operations on planning for closure.

Environmental/Socio-Economic: livelihoods and community health

Carmen de Andacollo Operations

Engaged with community members and local government and to address concerns with respect to blasting, dust and vibration from mining activities.

Environmental/Community: livelihoods, cultural use, water quality and community health

Elk Valley Steelmaking Coal Operations

Engaged with community members, government agencies and Indigenous Peoples on implementation and advancement of the Elk Valley Water Quality Plan.

Socio-Economic/Community/ Environmental: livelihoods, cultural use, access to land and water

Highland Valley Copper Operations

Engaged with Indigenous Peoples near operations on advancement of environmental approvals to extend the life of existing mine, implementation of agreements and opportunities associated with UNDRIP and reconciliation.

Socio-Economic/Community: livelihoods, employee rights

Pend Oreille Operations

Engaged with community members and local government on planning for closure.

Socio-Economic/Community/ Environmental: livelihoods, cultural use, water quality

Quebrada Blanca Operations  

Engaged with local communities and Indigenous Peoples to advance joint water quality management and local agricultural development programs.

Socio-Economic/Community/ Environmental: livelihoods, cultural use and subsistence, community health

Red Dog Operations

Engaged with local Indigenous Peoples and government agencies on advancement of permitting approvals for exploration activities in the Northwest Arctic region.

Environmental/Community: community health, livelihoods

Trail Operations

Engaged with community members and government on Trail’s future strategic plan and community engagement programs.

Socio-Economic/Community: livelihoods, subsistence, community well-being

Quebrada Blanca Phase 2 project

Engaged with local Indigenous Peoples, communities and fishing unions to advance implementation of commitments through community development agreements, grievance management and information delivery related to project construction.

Environmental/Socio-Economic/Community: access to land and water, livelihoods, subsistence, community well-being

Frontier project

Engaged with local Indigenous Peoples and government agencies in responding to recommendations of the Joint Review Panel, joint review of draft federal conditions and advancement of impact benefit agreements.

Environmental/Socio-Economic/Community: access to land and water, livelihoods, subsistence, community well-being

NuevaUnión Project

Engaged with communities, local Indigenous Peoples and government agencies on land acquisition and access, water and air quality, community development and Indigenous participation.

Environmental/Socio-Economic/Community: access to land and water, livelihoods Zafranal Project Engaged with local communities on potential impacts of project activities and socio-economic opportunities, on project water sources, and formalizing agreements with artisanal and small-scale miners.
Environmental/Socio-Economic/Community: cultural use, livelihoods, community well-being Galore Creek Project Engaged with local Indigenous communities to augment and build capacity within the framework of a comprehensive Participation Agreement and collaborative development of traditional land-use studies and a heritage assessment that will inform project design.
Socio-Economic/Community: cultural use, livelihoods San Nicolás Project Engaged with local communities, private landowners and communal land owners on the project stage to register their interests and concerns, advance land access for environmental and engineering studies, and acquire land for project development utilizing IFC guidelines.
Socio-Economic/Community: cultural use, livelihoods Mesaba Project Engaged with local communities and Tribal Bands on access road improvements to avoid land use impacts such as hunting.

 

Teck’s SMART Framework

In 2019, we completed a review of the SMART framework with an emphasis on refining critical requirements under the framework. We implemented updates to our SMART toolkit, including new or updated guidance on resettlement and influx management.4 We also developed a new feedback management effectiveness tool and continued our implementation of the new version of TrackLine, our data collection system.

We also continued to focus on providing support for our communities’ practitioners corporately and at sites. This included training in dialogue skills, hosting monthly virtual Community of Practice education sessions, and improved use of new technologies for continued engagement and sharing of best practice.


4 A mining project can generate significant opportunities for the local and regional economy. When not managed effectively, however, it can also lead to unwanted social and environmental changes. This is especially true in the case of project-induced in-migration (or influx), which is defined as the movement of people into an area in anticipation of, or response to, economic opportunities associated with the development and/or operation of a new project.

 

Understanding our Communities

In 2019, Teck conducted public opinion surveys with people living near our Elk Valley, Highland Valley, Red Dog, Trail and Cardinal River operations for the third consecutive year, to continue gathering insight on the issues that communities care about most. The data obtained helps us to measure and guide improvements in our performance, assess the impact of events, inform our planning processes and support our reporting. The surveys were conducted by an independent polling company. Surveys at our Chilean operations were deferred until 2020 in light of the social unrest in the country in fall 2019.

Feedback, Grievances and Disputes

All of our operations, major projects and most of our exploration projects have implemented feedback mechanisms, which help us to understand our impacts on communities and take steps to address them. Feedback received is recorded and categorized as either (i) a neutral request, (ii) positive feedback or (iii) negative feedback and is discerned from regular interactions with community members in that feedback specifically makes a request or seeks a response from a site. This is a new classification system introduced for the 2019 reporting period. Negative feedback or “grievances” are often specific issues of concern to community members that require a response and potential further action from the company.

Feedback

In 2019, Teck recorded approximately 7,000 interactions with external communities of interest as a result of our various engagement activities. Of that number, we received 559 instances of feedback through direct feedback mechanisms established across our sites, compared to 1,169 in 2018. Feedback levels will vary from year to year for several reasons, including the level of permitting or project activity. As efforts increase by our sites to improve the extent to which feedback mechanisms are used, we may see an increase in the overall amount of feedback received.

Figure 7: 2019 Feedback Received by Category(1)

 

Negative Feedback/Grievances

In 2019, of the total feedback received, 402 items were considered grievances. Grievances are reflective of perceived or actual events taking place as a result of company activities and therefore do not necessarily constitute an actual negative impact or non-conformance event. However, grievances may be seen as an indication of concerns from community members that, if repeated or unresolved, could escalate. Teck’s practice is that all feedback, which includes grievances, is acknowledged and assessed and a response is communicated to the complainant, with the goal of providing a satisfactory reply or resolution in a timely manner.

All of Teck’s operations have feedback policies that include a response time for acknowledging and working to resolve feedback. As adopters of the United Nations Guiding Principles, Teck demonstrates its corporate commitment to remedy through effective implementation of its site-based feedback mechanisms. In line with the Guiding Principles, Teck prohibits retaliation against individuals who submit grievances to the company and has received no reported incidences of retaliation.

While the specific conditions and circumstances of individual grievances may vary, Teck monitors grievance trends at sites to inform its response to reported impacts and inform its engagement strategies. Examples of noted trends and responses in 2019 included:

  • Carmen de Andacollo Operations: Negative feedback associated with the impact of dust, noise and odors on private property in specific neighborhoods as a result of blasting activity. As a response and remedy, the site has enacted rigorous blasting and dust management practices as well as community notification and information strategies to address these concerns.
  • Steelmaking Coal Operations in the Elk Valley: Negative feedback associated with the impact of dust and debris on private property, specifically in the District of Sparwood. We continue to undertake dust management actions at our sites, provide community information, and where appropriate, implement measures to address immediate impacts.
  • Red Dog Operations: Negative feedback associated with perceived lack of access to employment opportunities for local shareholders, impacts on regional subsistence activities (caribou hunting) and public health impacts specific to the Village of Kivalina. The site has enacted collective engagement processes with interested communities to identify opportunities to improve both local hiring and subsistence management practices, as well as specific initiatives jointly with Kivalina to address public health concerns.

Figure 8: 2019 Grievances Received by Category(1) 

(1) Our feedback system allows for multiple labels to be assigned to each grievance/feedback. For the purposes of these diagrams, we have chosen the primary label assigned by our community relations practitioners.

 

Disputes

Disputes represent conflicts between the company and the impacted community related to land use and the customary rights of local communities and Indigenous Peoples. Disputes are considered significant when they cannot be resolved jointly within a reasonable time frame, are repeated or widespread, or represent potentially significant or long-term financial, legal or reputational consequences for the community or company. In 2019, Teck sites experienced a total of three significant disputes.

Table 12: Significant Disputes(1)

 

2019

2018

2017

2016

# of significant disputes

3

0

0

4

(1)Total number of significant disputes relating to land use and the customary rights of local communities and Indigenous Peoples at Teck sites.

 

A brief description of the three significant disputes are as follows:

  1. Quebrada Blanca Operations: In late 2017, one of the unions representing operations employees filed a request for intervention and mediation by the Chilean National Contact Point (NCP) under the OECD Guidelines for Multinational Enterprises citing alleged human rights concerns with respect to environmental impacts and collective agreement negotiations. Following extended dialogue with the NCP as it evaluated the union request, in 2019 Teck formally entered into NCP-mediation on the issues raised. The dispute was resolved in September 2019, resulting in requirements for both parties to resume dialogue under the collective agreement and for Teck to undertake specific actions that will be regularly monitored through 2020.
  2. Quebrada Blanca Phase 2 Project: Following the regulatory approval of the Quebrada Blanca Phase 2 project, nine legal or administrative actions were filed in 2019 by Indigenous communities or individuals to governmental agencies claiming impacts were not adequately addressed during the Indigenous consultation process or seeking additional or expanded consultation. The Project has actively participated in responding to these legal or administrative processes, with six actions resolved in support of the Project’s permit during the year. The remaining actions continue to be evaluated by authorities with Project participation in 2020.
  3. Red Dog Operations: Representatives of the Village of Kivalina, an Indigenous community in Northwest Alaska, registered a complaint claiming Teck violated the Memorandum of Agreement signed with the Village establishing a joint working group to address specific claimed impacts of mining activity in the region. This complaint was escalated to formal third-party dispute resolution under the Memorandum and resolved in Teck’s favour.

Community Incidents

In 2019, we continued to utilize a community incident reporting system to ensure we are capturing and responding to all community concerns in addition to those raised through our usual feedback mechanisms. An incident is an occurrence where individuals or groups may cite real or perceived breaches of law or company policy and real or perceived impacts to human rights, livelihoods, the rights of Indigenous Peoples and/or community health and safety. These events may result in actions taken by communities that have the potential for financial, legal, relationships and reputational consequences to the company.

Teck had no significant community incidents; however, we did experience the following less severe incidents:

  • Frontier Project: Following the report of the federal Joint Review Panel in mid-2019 that found the Frontier Project to be in the public interest, protest action by advocacy groups against the project occurred in late 2019. These actions were short in duration with no impact on operations, but did generate some media attention. Teck withdrew the application for the Frontier Project from the regulatory review progress in late February 2020.
  • Carmen de Andacollo Operations: On October 14, the union representing workers at the operation commenced strike action resulting in a suspension of all non-essential operational activities. This action included several public protests in the community of Andavollo. A new three-year agreement was reached and ratified on December 12 (effective December 5).
  • Red Dog Operations: An incident was reported related to a caribou jumping directly in front of a pickup truck and being killed. The operation took immediate mitigating actions by modifying haulage and traffic on the Port Road and port site. Due to the significance of caribou to the Iñupiat people, an investigation was completed with an Iñupiat representative in attendance and corrective actions are being monitored.
  • Carmen de Andacollo Operations: Due to a water pipeline overflow, the shallow wells of three families located downstream of the operation were muddied and could no longer be used. The well water was used for drinking water and for farm animals. A new well has been built in response to this incident and in coordination with the families to resolve and remedy the issue.
  • Steelmaking Coal Operations in the Elk Valley: Elevated selenium levels were reported as part of Teck’s ongoing water quality monitoring in the well water of Whispering Winds Mobile Home Park. Elevated selenium levels are to be expected during low river flow. In November 2019, residents were notified and provided with bottled water until selenium levels returned to below British Columbia Drinking Water Quality Guidelines.

Economic Value Generated and Distributed

We contribute to the wealth and prosperity of the countries, regions and communities where we operate by generating economic value that includes tax and royalty payments, local hiring and procurement and community investments. We work to improve efficiency of our activities and reduce our operating costs to maximize the economic value generated.

In 2019, we had a profit attributable to shareholders of $339 million or $0.61 per share. This compares with a profit attributable to shareholders of $3.1 billion or $5.41 per share in 2018. See our 2019 Annual Report for more detailed information on our financial performance.

Table 13: 2019 Breakdown of Economic Value Generated and Distributed (millions)

 

Economic Value Generated

Economic Value Distributed

Economic Value Retained

 

Revenues(1)

Payment to Suppliers(2)

Employee Wages and Benefits(3)

Payments to providers of capital(4)

Income and Resource Taxes(5)

Community Investments(6)

Total

 
 

 

Operating Costs

Capital Expenditures

Operating Costs

Capital Expenditures

USA

        1,952

       1,063

          191

       169

              5

             -

       58

               1

1,487

   465

Canada

        9,060

    5,072

       1,119

    1,270

             14

       1,149

        316

7

 8,947

    113

Chile

           564

     344

          1,264

       92

             34

            -

          65

5

1,804

     (1,240)

Peru

        877

       281

          129

       113

                -

            -

      156

2

681

196

Other

               -

           8

32

5

                -

            -

          -

4

      49

       (49)

Inter-segment elimination(2)

        (519)

     (519)

            -

      -

-

-

-

-

(519)

           -

Total

 11,934

     6,249

       2,735

   1,649

            53 

    1,149

  595 

19

12, 449

(515)

(1) Revenues are presented based on an accrual basis. Internal cross-border sales are eliminated as shown.
(2) Operating costs include operating expenses at our mining and processing operations and our general and administration, exploration and research, and development expenses and costs relating to production stripping. Operating costs excludes depreciation, and employee wages and benefits, which are specified separately. Capital expenditures are payments for purchases of property, plant and equipment, excluding the component relating to capitalized wages and benefits, which is specified separately.
(3) Wages and Benefits reflects total amounts paid to employees relating to wages and benefits, including payroll taxes.
(4) Payments to providers of capital include dividends paid to shareholders, interest paid to debtholders, and payments for share repurchases less issuance of shares.
(5) Income and resource taxes include amounts paid in the year.
(6) Community investments include voluntary donations paid during the year.

 

Local Hiring and Procurement

We track the number of local employees and the value of local procurement as reflected in Table 14, with the latter being influenced primarily by the extent of site-level construction and maintenance activity as well as by the availability of suitable suppliers in the local area. We continue to focus on hiring people locally, as it helps to share the economic benefits of our industry with the communities in which we operate. In 2019, our overall average of local employees was 72% of our operational workforce, compared to 71% in 2018.

Table 14: Local Employment in 2019(1),(2)

Operation

Local Employees

Senior Management Roles Filled by Locals

Cardinal River

280

12

Carmen de Andacollo

340

18

Coal Mountain

16

2

Elkview

681

29

Fording River

763

29

Greenhills

442

21

Highland Valley Copper

1,300

37

Line Creek

427

22

Pend Oreille

11

7

Quebrada Blanca

176

14

Red Dog

415

30

Trail Operations

1,429

103

Total

6,280

406

(1) Data is not directly comparable between operations, as there are differences in how each operation defines “local” and how each operation tracks data.
(2) “Local” is generally defined as persons or groups of persons living and/or working in any areas that are economically, socially or environmentally impacted (positively or negatively) by an organization’s operations. The community can range from persons living adjacent to operations to isolated settlements at a distance from operations, but individuals are still likely to be affected by these operations.

 
Table 15: Percentage of Total Spend with Local Suppliers
(1)

Operation

2019

2018

2017

2016

Cardinal River

14%

14%

12%

9%

Carmen de Andacollo

16%

14%

13%

18%

Steelmaking coal operations in the Elk Valley

36%

41%

26%

41%

Highland Valley Copper

28%

32%

37%

30%

Pend Oreille

18%

14%

14%

20%

Quebrada Blanca

17%

5%

12%

33%

Red Dog

71%

75%

41%

59%

Trail Operations

38%

29%

29%

27%

Total

36%

33%

26%

30%

(1) “Local” is generally defined as persons or groups of persons living and/or working in any areas that are economically, socially or environmentally impacted (positively or negatively) by an organization’s operations. The community can range from persons living adjacent to operations to isolated settlements at a distance from operations, but where individuals are still likely to be affected by operations.

 

Community Investment

In 2019, we exceeded our target of donating at least 1% of our earnings before interest and taxes on a five-year rolling average basis. Our community investment expenditures in 2019 were $19 million. Information on our community investment reporting framework is available on our website.

Table 16: Community Investment by Site(1)

Operation

2019

2018

2017

2016

Corporate Offices and Projects(2)

$12,098,000

$13,387,000

$8,956,000

$6,844,000

Carmen de Andacollo

$2,569,000

$2,264,000

$1,773,000

$1,929,000

Steelmaking coal operations(3)

$1,038,000

$2,134,000

$675,000

$679,000

Duck Pond(4)

$4,000

$12,000

$180,000

$263,000

Highland Valley Copper

$501,000

$713,000

$391,000

$410,000

Pend Oreille

$87,000

$20,000

$16,000

$25,000

Quebrada Blanca

$1,241,000

$1,857,000

$256,000

$368,000

Red Dog

$707,000

$686,000

$541,000

$948,000

Trail Operations

$947,000

$326,000

$338,000

$339,000

Exploration

$91,000

$146,000

$80,000

$35,000

Total

$19,283,000

$21,545,000

$13,206,000

$11,840,000

(1) The numbers represent Teck’s portion of ownership during 2018 (Carmen de Andacollo 90%, Quebrada Blanca 90% and Galore Creek 50%).
(2) Includes Calgary, Santiago, Spokane, Toronto and Vancouver offices as well as resource development projects (Frontier, Galore Creek, Quebrada Blanca 2 and Quintette).
(3) Steelmaking coal operations include Cardinal River, Elkview, Greenhills, Fording River and Line Creek operations.
(4) Legacy property.

 

Team Teck

The Team Teck Community Giving program offers our employees the opportunity to amplify their donations to causes that they care about through donation matching from Teck. In 2019, employees across Teck supported several initiatives such as local food banks, the Red Cross and the Canadian Cancer Society, with a total of $87,000 provided by Teck in matching funding.


Outlook for Relationships with Communities

In 2020, we will continue to work to maintain and strengthen relationships with communities at our operations and as we advance major projects. We will work to improve our management of community feedback and incidents to continuously build on our relationships with communities. In particular, we will focus on continual implementation and improvement of community engagement and social practice across our sites to address social and environmental impacts and share the benefits that mining creates with nearby communities. In terms of economic contributions, we will continue to advance corporate and site-led strategies to maximize the impact of our community investments and the value generated through local employment and procurement.

Moving forward, we will work towards our strategic priority of collaborating with communities and Indigenous Peoples to generate economic benefits, advance reconciliation efforts and improve community well-being. We have set new goals related to communities, which includes increasing local employment and procurement opportunities by 2025 to deliver direct economic benefits to communities. We will also deliver positive social, economic and environmental outcomes for communities and Indigenous Peoples by contributing $100 million to community organizations and global initiatives, including our Zinc & Health and Copper & Health programs by 2025. Our focus in 2020 will be on concluding the final steps of our 2020 goals within our previous sustainability strategy, and on making progress towards achieving our new goals.

 


Teck

Teck is a diversified resource company committed to responsible mining and mineral development with business units focused on copper, zinc, steelmaking coal and energy.