Profit slumps on lower commodity prices
Teck Resources Ltd. lowered its annual production guidance for copper this year due to delays in construction and commissioning at its most significant copper property, the Quebrada Blanca 2 (QB2) project in Chile.
The Vancouver-based company now expects to produce about 80,000 to 100,000 tonnes of copper from QB2 as opposed to the previously announced 150,000 to 180,000 tonnes. As a result, its overall guidance for copper has been cut to 330,000 to 375,000 tonnes from 390,000 to 445,000 tonnes.
But chief executive Jonathan Price said in a statement that Teck continues to “explore a range of options to realize the full potential” of its metals business and to grow its copper pipeline. The statement added that the company expects QB2 to be operating at full production rates by the end of 2023.
Canada’s largest diversified miner has in recent years been looking to boost its copper production and lessen its dependence on steelmaking coal, which it still depends upon for most of its revenue and profit.
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