Teck Resources Lowers 2024 Copper Production Forecast Amid Operational Challenges

Teck Resources

Canadian mining company Teck Resources has revised its 2024 copper production guidance downward by 7% at the midpoint, citing unplanned maintenance, labor shortages, and logistical upgrades. The updated forecast sets production at 420,000-455,000 metric tonnes (t), down from the previously expected 435,000-500,000t.

Key Factors Behind the Revision

• Highland Valley Copper Mine: Labor tightness and delays in implementing new haul truck systems contributed to the downgrade.
• Quebrada Blanca Mine: Maintenance issues in grinding and flotation circuits further impacted the forecast.

Refined zinc production guidance was also lowered to 240,000-250,000t, following a fire at Teck’s electrolytic zinc plant in September.

Operational Highlights

Despite the revised outlook, Teck’s third-quarter copper production surged to 115,000t, a 60% increase year-on-year.

• Quebrada Blanca: Produced 52,500t, up 184% from the same quarter in 2023 as ramp-up efforts continued. Full capacity is expected by the end of 2024.
• Highland Valley: Output increased 24% to 25,400t, thanks to higher mill throughput and ore production, although Lornex pit delays dampened progress.
• Antamina: Copper production grew 12% to 111,500t, supported by higher recoveries and copper-only ore treatment.
• Carmen de Andacollo: Production rose 24% to 11,500t, benefiting from improved mill throughput and recovery rates.

Zinc Production Updates

• Zinc in Concentrate: Increased 3% year-on-year to 158,000t, while sales fell 10% to 268,000t.
• Red Dog Mine: Output rose 14% to 142,500t, driven by improved mill availability.
• Trail Operations: Refined zinc production decreased 3% due to the fire and rail labor disruptions.

Financial Performance

Teck reported a C$792 million ($571 million) loss in the third quarter, a sharp contrast to the C$268 million profit recorded during the same period in 2023.

Strategic Moves and Long-Term Focus

Teck has sold its 77% stake in EVR, its steelmaking coal business, to Glencore, allowing the company to focus on ramping up copper production. Medium- and long-term projects include:

• Extending the Highland Valley mine life.
• Exploring Minas de San Nicolas and Zafranal for future mining operations.

All major projects are in the permitting phase, with decisions expected by mid-to-late 2025.

Low Zinc TCs Signal Persistent Pressure on Global Smelters

Teck Resources

Low zinc TCs are showing that zinc concentrate supply remains tight across the global market. Smelters are still competing for limited feedstock, keeping treatment charges far below levels that support strong processing margins.

The 2026 benchmark zinc smelter treatment charge between Korea Zinc and Teck Resources has been set at $85 per tonne. That is $5 per tonne higher than last year’s historic low, but it remains sharply below previous market levels.

The benchmark is still 48% lower than the 2024 level and 69% lower than the 2023 level. This means the modest year-on-year increase does not signal a real recovery in smelter economics.

Zinc Concentrate Supply Remains the Main Constraint

Zinc concentrate supply continues to define the market balance. The annual Korea Zinc and Teck Resources settlement is widely followed across the global zinc industry, with regional discounts or premiums applied by individual buyers and sellers.

Smelters remain exposed because the new benchmark does not provide attractive margins. High energy costs, delayed plant ramp-ups, and limited concentrate availability are keeping refined zinc output under pressure.

Producers with internal mine supply or strong recycled feed positions are better protected. Boliden, for example, expects to source most of its smelter feed internally, reducing its exposure to volatile third-party concentrate markets.

Chinese Spot TCs Show Ongoing Feedstock Competition

Chinese spot TCs also point to persistent tightness. Imported zinc concentrate spot treatment charges in China were recently assessed at $15–28 per dry metric tonne, far below quarterly guidance levels.

The gap between spot TCs and guidance reflects intense competition among Chinese smelters. Several suppliers have limited imported concentrate stocks, while winter shutdowns at mines in northern China have kept feed availability constrained.

China’s zinc concentrate imports rose 30% year on year to 2.58 million tonnes in 2025. Strong import demand, combined with surplus refined metal exports, has increased pressure on spot TCs as smelters fight for concentrate.

The emergence of negative treatment charges in late 2024 showed how severe the squeeze had become. In that market structure, smelters effectively paid mining companies to secure feedstock, highlighting the imbalance between smelting capacity and available concentrate.

The Metalnomist Commentary

Low zinc TCs show that zinc’s pressure point is not only demand, but feedstock control. Smelters with captive mines, recycled inputs, or flexible procurement will hold a structural advantage while concentrate remains scarce.

Teck Arizona Copper Spin-Out Preserves Optional Supply Upside

Kodiak Copper

Teck Arizona copper spin-out plans show how major miners are trying to retain long-term exposure to copper growth without committing near-term development capital. Teck Resources and junior explorer Kodiak Copper plan to place two lightly drilled Arizona copper projects into a new listed exploration company.

The Teck Arizona copper spin-out would combine Teck’s Copper Hill asset with Kodiak’s Mohave project under Kay Copper, a US-focused exploration vehicle. The new company would be positioned to drill and advance the assets, but any production would remain years away.

The Teck Arizona copper spin-out is modest compared with Teck’s larger strategic moves, including its planned merger with Anglo American. However, it fits a copper market increasingly focused on optional supply, future scarcity and the difficulty of bringing new mines into production.

The structure allows Teck to keep exposure to potential US copper upside while shifting exploration risk and funding needs to outside investors. For Kodiak, the transaction creates a clearer platform around Arizona copper exploration.

Kay Copper Gives Teck Exposure Without Near-Term Capital Pressure

Kay Copper would hold two early-stage Arizona copper projects that have not seen recent drilling. This means the assets are still far from any development decision, resource definition or mine construction timeline.

For Teck, that distance matters. The company can preserve future upside while focusing capital on larger, more advanced priorities. A spin-out also gives investors a dedicated vehicle for exploration risk that may not fit inside a larger producer’s near-term capital plan.

This is a practical response to the copper market. Demand from grids, electric vehicles, data centres and industrial electrification continues to strengthen the long-term case for copper.

At the same time, new copper supply remains difficult to build. Permitting delays, lower grades, higher capital intensity and community approval challenges have extended project timelines across the industry.

Arizona remains strategically relevant because the US wants more domestic copper supply. But early-stage projects still need drilling, studies, permitting, financing and infrastructure before they can become real tonnes.

The Kay Copper structure therefore does not solve near-term supply tightness. It creates an option on future US copper production in the 2030s.

Copper Market Rewards Optionality as New Supply Lags

The deal reflects a broader shift in copper strategy. Companies are increasingly trying to hold undeveloped assets because future supply is becoming more valuable.

Physical copper availability is already under closer scrutiny as demand rises from electrification and power infrastructure. The market is also becoming more policy-driven, especially in the US, where copper is increasingly linked to industrial security and domestic manufacturing.

In that environment, even early-stage assets can attract interest. They may not produce soon, but they offer exposure to a future market where permitted copper projects could carry a stronger strategic premium.

The transaction also shows how larger miners can use junior vehicles to advance non-core exploration assets. This allows capital markets to fund drilling while the major retains some upside.

For investors, the risk remains high. Copper Hill and Mohave are lightly drilled, and any production would not arrive until the 2030s at the earliest. Exploration success, permitting and project economics are still unproven.

For the copper sector, however, the message is clear. Companies do not want to lose optional copper positions in stable jurisdictions, even when those projects are not ready for development.

The Metalnomist Commentary

Teck’s Arizona spin-out is small in tonnage terms but meaningful in market psychology. In a copper market worried about future supply, even distant exploration assets can become strategic options.

Anglo Teck Group merger creates new critical minerals champion

Anglo Teck

The Anglo Teck Group merger marks a major consolidation in global copper, zinc and iron ore supply. Anglo American will combine its portfolio with Teck Resources, creating a diversified critical minerals producer headquartered in Canada. As a result, the Anglo Teck Group merger positions the new entity among the world’s top copper producers.

Deal terms and production scale

The transaction structure underscores Anglo’s strategic ambition in base metals growth. Anglo American will exchange each Teck share for 1.3301 Anglo shares and pay a pre-merger dividend. Meanwhile, the Anglo Teck Group merger will unite sizeable copper, zinc and iron ore pipelines under one balance sheet. Teck targets up to 525,000 tonnes of copper and 575,000 tonnes of zinc production in 2025. In parallel, Anglo American plans as much as 750,000 tonnes of copper and 61mn tonnes of iron ore.

Portfolio reshaping and decarbonisation tailwinds

The merger also accelerates Anglo’s portfolio shift toward future-facing commodities. Therefore, Anglo Teck will support the divestment of diamonds, coking coal and nickel assets over time. This strategy aligns with investor pressure for clearer exposure to energy transition metals and simpler asset mixes. However, the Anglo Teck Group merger still faces regulatory scrutiny and integration risks across multiple mining jurisdictions. Recent deal volatility, including Peabody’s cancelled coking coal purchase, shows how execution risk can derail portfolio plans.

The Metalnomist Commentary

The Anglo Teck Group merger signals a new phase in mining consolidation focused on copper and iron ore scale. For buyers and governments, a stronger Canada-based critical minerals champion could influence future supply security and contract terms. Market participants should track divestments and project approvals, which will determine how quickly the merged group rebalances its portfolio.

Teck Chilean Copper Operations Face Temporary Maintenance Shutdowns

Carmen de Andacollo mine

Teck Resources announced temporary halts affecting its Teck Chilean copper operations this week. The Carmen de Andacollo mine will shut for one month due to mill mechanical issues. Meanwhile, Teck Chilean copper operations at Quebrada Blanca require port facility repairs without production interruption.

Carmen de Andacollo Mill Repairs Trigger Production Pause

The Canadian miner identified critical mechanical problems requiring immediate mill maintenance attention. Teck will accelerate other planned maintenance activities during this unexpected shutdown period. Furthermore, the company maintains its annual copper production guidance despite disruptions. The one-month halt affects copper-gold output at this established Chilean operation.

Quebrada Blanca's shiploader also needs repairs lasting approximately one month. However, this port facility maintenance won't interrupt copper production activities. The mine continues operating while engineers address shiploader mechanical issues systematically.

Strategic Impact on Global Copper Supply

These maintenance challenges highlight operational complexities in Chilean copper mining operations. Chile produces nearly 25% of global copper supply, making disruptions market-sensitive. Therefore, Teck's ability to maintain guidance suggests robust operational flexibility exists. The company demonstrates effective crisis management through accelerated maintenance scheduling.

Teck Chilean copper operations remain crucial for North American supply chain security. Moreover, these temporary disruptions underscore aging infrastructure challenges across Chilean mining. As a result, miners must balance production targets with essential maintenance requirements. The global copper market watches Chilean operational updates closely for supply indicators.

The Metalnomist Commentary

Teck's maintenance challenges reflect broader Chilean copper sector infrastructure pressures as mines age and ore grades decline. The company's unchanged production guidance suggests built-in operational buffers, but simultaneous issues at two facilities raise questions about maintenance planning adequacy. With copper demand surging for energy transition applications, even minor disruptions gain outsized market attention.

Teck Lowers Annual Copper Guidance on Quebrada Blanca Constraints

Teck Resources

Teck lowers annual copper guidance after setbacks at Quebrada Blanca. The miner lowers annual copper guidance to 470,000–525,000t. As a result, Teck lowers annual copper guidance to reflect mill downtime and tailings repairs.

Guidance cut and quarterly production snapshot

Teck trims Quebrada Blanca guidance to 210,000–230,000t. The prior range was 230,000–270,000t. Repairs and tailings limits slowed the ramp-up. Meanwhile, group second-quarter copper output slipped to 109,000t. Antamina production fell about 45pc on the year. Three other copper assets increased output in the quarter. Copper sales eased 2pc to 102,000t.

Longer-term projects and financial mix

Teck extends Highland Valley Copper’s life to 2046. The approval supports long-term Canadian supply resilience. Zinc in concentrate rose 11pc to 169,000t. Refined zinc fell 22pc to 51,000t. Quarterly revenue increased 13pc to C$2bn. However, profit narrowed to C$101mn from C$385mn.

The Metalnomist Commentary

Teck’s reset looks prudent given Chilean constraints and Peru headwinds. Watch tailings upgrades and repair milestones for 2026 recovery signals.

Teck Shuts Down Section of Trail Zinc Plant After Fire

Teck

Canadian mining company Teck Resources has temporarily shut down one of four sections of its electrolytic zinc plant at the Trail Operations complex in British Columbia due to a localized fire on September 24. Despite the shutdown, production in the other three sections of the zinc plant remains operational, alongside the production of lead, specialty metals, and by-products, the company reported.

Teck’s zinc production at Trail Operations was already impacted in the second quarter, with a 4.5% drop in refined zinc output to 64,900 tons due to unplanned maintenance and issues with zinc quality. The company has maintained its refined zinc production guidance for the year, projecting output to fall between 275,000 and 290,000 tons.

Teck Faces Challenges Amid Production Setbacks

The Trail Operations facility is one of the largest zinc and lead smelting complexes in the world. Teck's commitment to stabilizing production in the face of setbacks underscores the complexity of running large-scale industrial operations. While the fire has led to a partial shutdown, the company is confident that its annual targets can still be met, barring further unforeseen disruptions.

Anglo American Copper Output Rises as Chile Offsets Quellaveco Grade Decline

Anglo American, Copper

Anglo American copper output rose slightly in the first quarter as stronger Chilean mine performance offset lower grades at Quellaveco in Peru. The global mining group produced 170,400t of copper during the quarter, up 1% from a year earlier.

Anglo American copper output was supported by higher throughput at Los Bronces and Collahuasi, along with improved recoveries at Collahuasi. Chilean copper production increased by 9% to 97,000t, while Peruvian output fell by 8% to 73,400t.

Anglo American copper output remains on track with unchanged 2026 guidance of 700,000-760,000t. The company had already lowered that target in February because of expected lower grades at Collahuasi.

The result confirms that copper remains Anglo’s strategic centre as the group continues reshaping its portfolio. Nickel is moving toward disposal, manganese is recovering from weather disruption, and copper is becoming the company’s clear lead business.

Los Bronces and Collahuasi Support Chilean Copper Performance

Los Bronces output rose by 12% to 48,500t after the restart of its second plant. The restart improved throughput and gave Anglo a stronger base in Chile during the quarter.

Collahuasi also delivered a stronger result. Anglo’s attributable share of production rose by 10% to 38,800t, supported by higher throughput and improved recoveries.

These gains helped offset weaker output from Quellaveco. The Peruvian mine faced expected lower grades, reducing copper production despite its importance as one of Anglo’s major growth assets.

The first-quarter result shows how copper production increasingly depends on ore grade, plant availability and recovery performance. Higher throughput can support output, but grade decline remains a major constraint across the industry.

Anglo’s growth is still weighted toward the second half of the year. Market attention will focus on Collahuasi’s return to higher-grade ore, the ramp-up of desalination capacity and the continued benefit from Los Bronces’ second plant restart.

The proposed merger with Teck Resources also remains important. Anglo said the deal is still on track for completion between September 2026 and March 2027. South Korean approval has been secured, leaving Chinese anti-monopoly clearance as the final major regulatory hurdle.

If completed, the merger would deepen Anglo’s copper exposure and reinforce the industry trend toward scale in high-quality copper assets.

Nickel Falls as Manganese Rebounds From Weather-Hit Base

Anglo’s nickel production fell by 7% year on year to 9,100t because of maintenance at Barro Alto and Codemin in Brazil. Barro Alto output declined by 7% to 7,500t, while Codemin fell by 6% to 1,600t.

The company expects nickel production to improve gradually from the second quarter. However, nickel is no longer central to Anglo’s long-term portfolio strategy.

Anglo is still working through the European Commission’s anti-monopoly review of the agreed sale of its nickel assets to MMG Singapore Resources. The deal is worth up to $500mn.

Manganese ore output rose sharply from a weak base. Anglo’s 40% attributable production jumped by 118% to just over 759,000t after operations recovered from the disruption caused by tropical cyclone Megan in early 2025.

Sales volumes rose even more strongly, increasing by 217% to 946,000t. However, weather still affected the business, with second-quarter output down 16% from the fourth quarter of 2025 because of adverse weather and cyclone Narelle.

The portfolio direction is now clearer. Anglo is prioritising copper and iron ore while continuing sale processes for steelmaking coal and De Beers. Nickel is becoming a disposal asset, and manganese remains a recovery story after weather-related disruption.

For copper markets, Anglo’s modest first-quarter increase is less important than its second-half execution. The company needs stronger grades, stable plant performance and project discipline to support its full-year copper target.

The Metalnomist Commentary

Anglo American’s first quarter shows that copper growth is increasingly a quality-of-ore and processing-efficiency story. The strategic focus now shifts to whether Collahuasi, Los Bronces and the Teck merger can turn Anglo into a more copper-led mining company.

Glencore Reverses Course, Retains Coal Assets Amid Strong Profit Potential

In a surprising turn of events, Glencore, the world’s largest producer of seaborne thermal coal, announced it will retain its thermal and carbon steel materials business, abandoning a proposed demerger that was first suggested in November last year. This decision comes after extensive consultations with shareholders, who ultimately recognized the value these assets bring to Glencore’s portfolio.

In its January-June report, Glencore highlighted the cash-generative capacity of its coal and carbon steel materials business, noting that it significantly enhances the quality and diversity of the company’s portfolio across both commodities and geographies. The firm emphasized that these assets would also broaden its ability to fund copper growth projects and accelerate shareholder returns.

Glencore remains the last major coal producer holding onto thermal coal assets, as other industry giants like Rio Tinto, BHP, Anglo American, and Vale have all divested or spun off their coal operations in recent years. Despite environmental opposition, Glencore is keen to underline the profitability of coal.

While the company plans to gradually wind down its thermal coal operations, it indicated that its transition away from steelmaking coal will proceed at a slower pace. Glencore's decision to retain these assets means it will keep its majority stake in Elk Valley Resources, the coking coal division of Canada’s Teck Resources, which it acquired last month.

This move suggests that Glencore and its shareholders see continued value in investing in coking coal, even as broader industry investment has slowed due to pressure from environmental groups and financial institutions. Nonetheless, the elevated coal prices in recent years have enabled key producers to self-fund growth and new projects through reinvested profits.

Glencore also reported that it sold 30 million tonnes of thermal coal in the first half of 2024, a 17% decrease from the previous year, attributed to weak European demand and high gas inventories. Additionally, thermal coal production fell by 2.8 million tonnes to 45.8 million tonnes in the same period, reflecting reduced output in Australia and South Africa.

Overall, Glencore’s coal production, including coking and semi-soft coals from Australia, Colombia, and South Africa, declined by 7% year-on-year to 50.6 million tonnes in the first half of 2024.