Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) announced today that a major expansion at the Antamina mine in Peru is expected to increase ore throughput by approximately 38% to 130,000 tonnes per day, and annual production of copper and zinc by approximately 30% on completion in late 2011. Teck owns a 22.5% interest in Compania Minera Antamina ("CMA"), which owns the mine.
CMA will invest US$1,288 million to expand its mining and processing facilities. The expansion project cost will be funded out of cash flow and borrowings by CMA. Teck expects its share of CMA distributions to be reduced by no more than approximately US$100 million in total during 2010 and 2011 as construction progresses. Teck's share of operating profit after depreciation from Antamina for the last 12 months to September 30th, 2009 was C$231 million.
Ore reserves at Antamina were increased by approximately 75% in 2008. The mine life is now expected to continue until 2029.
Located in the Andes mountain range, 270 kilometres north of Lima Peru, Antamina is one of the world's largest copper – zinc mines.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information can be identified by the use of words such as "is expected", "potential" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur, or be achieved. Forward-looking statements include statements regarding Teck's expectations regarding ore throughput and copper and zinc production volumes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Factors that may cause actual results to vary include, but are not limited to, changes in conditions in the copper and zinc markets, changes in foreign exchange rates, unplanned disruptions in production or transportation, changes in general economic conditions or conditions in the markets for base metals, and other risk factors as detailed from time to time in Teck's reports filed with Canadian securities administrators and the U.S. Securities and Exchange Commission.
Certain of these risks are described in more detail in the annual information form of Teck and in its public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
About Teck
Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, metallurgical coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK. Further information about Teck can be found at www.teck.com.
