Teck Resources Ltd has provided an update on the progress of the Quebrada Blanca (QB) Action Plan and provided an updated operational outlook following the completion of a previously announced Comprehensive Operations Review.
It says production at QB continues to be constrained by the pace of development of the TMF, requiring downtime in the concentrator to manage the rate of tailings rise. Teck says its priority remains enabling safe, unconstrained production by raising the crest height of the dam. This is being delivered through construction of additional rock benches while continuing to progress efforts to improve sand drainage to support construction of the sand dam.
Ultimately, a sand wedge will be constructed using hydraulically placed sand, which will enable steady-state TMF operation. While sand currently being produced meets design specifications, slow drainage caused by the presence of ultra-fines has delayed progress in development of the sand wedge. “As a result, the mechanical construction of rock benches continues to be required, which has led to additional downtime through 2025, particularly in Q3, and is expected to result in incremental downtime in 2026, as reflected in our updated 2026 annual production guidance for QB. It is currently expected that from 2027 onwards, the TMF development should no longer be a constraint on throughput levels that are able to be achieved.”
Significant work has been undertaken through 2025 to improve sand drainage times with some improvement realised to date. Further progress is needed to reach design targets, and two key initiatives were advanced in Q3 2025. First, test work in collaboration with cyclone manufacturers and third-party experts has shown positive results in improving sand drainage through the removal of ultra-fines. Teck is modifying the cyclone facility this quarter to incorporate alternative technologies designed to remove ultra-fine material. Improvements to paddock design, and sand placement and drying, are also being implemented to enhance drainage efficiency.
Teck adds that it has previously demonstrated that the QB operation is capable of operating at design levels when TMF development is not a constraint on production. “Despite the changes to guidance, the underlying potential of QB remains intact, and the design, construction and operational capability of the plant is robust. Further, the underlying synergies between QB and the adjacent Collahuasi operation, which we propose to realise through our announced merger of equals combination with Anglo American plc, have the potential to unlock value in a capital efficient manner.”
There are several workstreams underway to enhance near-term performance and to ensure the operation can deliver its full potential, which is no longer fully reflected within the current guidance period. This work is focused on four key areas.
Firstly, Teck continues to believe that design recovery rates of 86-92% remain achievable, compared to the approximately 82-85% currently assumed in the guidance period. Further geo-metallurgical work is ongoing to support the achievement of this target.
Secondly, it is reviewing opportunities to incorporate higher-grade material in the guidance period through optimisation of the revised mining sequence, aligned with the new throughput profile. In any case, it expects grades to increase in years following 2028.
Thirdly, under the revised plan, the 5-10% of throughput optimisation previously targeted is no longer fully achieved within the guidance period. However, Teck remains confident in delivering this improvement over time. Finally, it intends to review a range of measures to optimise operating costs in light of the revised production profile.
Production in 2026 will continue to be constrained by TMF development. As noted above, pending further work in achieving design rates, recoveries have also been reduced throughout the guidance period consistent with levels achieved to date. On this basis, Teck’s annual 2026 copper production guidance for QB has been updated to 200,000 to 235,000 t, compared to previously disclosed guidance of 280,000 to 310,000 t. Annual 2026 molybdenum production guidance for QB has been updated to 2,800 to 3,400 t, compared to our previously disclosed guidance of 6,400 to 7,600 t.
In relation to the planned merger with Anglo American to create Anglo Teck; Anglo American stated on the operational review update: “Anglo American conducted significant due diligence on Teck ahead of the merger agreement announced on 9 September 2025, which included site visits and extensive
engagement on technical, legal, financial and other matters. While the specific outcome of the operational review that Teck has announced today was not known at the time, the outcome presented by Teck is broadly consistent with Anglo American’s independent due diligence and analysis. On this basis, the overall strategic rationale for the merger and all synergy values and their timing, as outlined in the 9 September merger announcement, remain unchanged.”
Anglo American adds that it is fully supportive of Teck’s more measured approach to the ramp up
of Teck’s Quebrada Blanca operation over the next few years, with Anglo American’s technical and project delivery teams having successfully resolved similar issues at Quellaveco during its ramp-up phase. Teck’s revised approach is designed to establish a tailings facility for the long term, which is critical to realise the very significant inherent value of QB over its life of mine. Based on its integration discussions with Teck, “Anglo American shares Teck’s view about the full potential of QB and believes Anglo Teck will have the opportunity to unlock material additional value with the Collahuasi
adjacency.”
