Teck Resources Ltd. (TSE: TECK.B) (TSE: TECK.A) (NYSE: TECK) will extend the life of Canada’s largest copper mine by nearly two decades, following board approval for an investment of up to USD$2.4 billion.
On Thursday, the company decided to push mine operations at the Highland Valley Copper Mine Life Extension project, located south of Kamloops, B.C. from 2028 to 2046. Teck aims to produce an average of 132,000 tonnes of copper annually during that period.
Teck is positioning the project as the largest critical minerals investment in B.C.’s history. It is also one of 18 projects the province pledged to fast-track earlier this year to reduce reliance on the United States.
Capital costs have increased from an earlier estimate of USD$1.8 billion to USD$2 billion. Additionally, Teck now expects the project to cost between USD$2.1 billion and USD$2.4 billion. The company attributed the jump to additional engineering, inflation, tariffs, and expedited equipment purchases.
“This is a lower-risk and lower-complexity brownfield project,” said Jonathan Price, Teck CEO. He described it as “foundational” to the company’s broader strategy to double copper production by 2030. Copper, he noted, is vital to the global energy transition.
Price said engineering is also now 70 per cent complete. Major permitting has finished, and construction will begin in the coming weeks. “We have operated Highland Valley for decades and have successfully executed several mine-life extensions there,” Price added.
Teck estimates the extension will create 2,900 jobs and generate USD$435 million in GDP during construction.
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Mining project receives widespread support
British Columbia Premier David Eby welcomed the investment. In a company news release, he called it “just one example of how British Columbia can drive our country’s economy forward even in challenging times.”
Federal Natural Resources Minister Tim Hodgson further echoed that sentiment.
“By extending the life of Canada’s largest copper mine, we are strengthening our critical minerals sector and becoming the international supplier of choice,” he said.
Local First Nations also weighed in. Chief Christine Walkem of the Cook’s Ferry Indian Band called the decision “a defining moment.” Walkem chairs the board of the Citxw Nlaka’pamux Assembly (CNA), which manages agreements between Teck and eight Indigenous bands.
Meanwhile, the mayor of Logan Lake, Robin Smith, welcomed the news. The mine pays three-quarters of the municipality’s taxes and serves as the region’s economic backbone.
“We obviously depend quite heavily on the mine,” Smith said. “The fact that they have approved the expansion is absolutely welcome news for us.”
joseph@mugglehead.com
