Teck Resources Ltd (TSX:TECK.B) announced that its board has approved the construction of the Highland Valley Copper Mine Life Extension Project in British Columbia, Canada, extending the project’s operational life from 2028 through to 2046.
Copper production is expected to average 132,000 tonnes annually over the extended mine life.
According to Teck, the project is well-positioned for successful execution, supported by a strong and experienced team, with all major permits secured, nearly 70% of engineering complete, and contracting and procurement well advanced.
The total capital investment marks the largest critical minerals investment in British Columbia’s history, the company added.
The extension will sustain approximately 1,500 direct jobs and contribute $500 million annually to the province’s GDP. Construction is projected to create around 2,900 jobs and generate an additional $435 million in GDP.
“This extension of Canada’s largest copper mine, Highland Valley Copper, is foundational to our strategy to double copper production by the end of the decade,” Teck CEO Jonathan Price said in a statement.
“Given the strong demand for copper as an energy transition metal, the Highland Valley Copper Mine Life Extension will generate a robust IRR and secure access to this critical mineral for the next two decades.”
Teck also reported its second quarter financial results on Wednesday evening.
Revenue rose to C$2.02 billion from C$1.8 billion a year earlier.
Adjusted profit from continuing operations attributable to shareholders was C$187 million, or C$0.38 per share, up from C$0.13 in the year-ago quarter.
Adjusted EBITDA was C$722 million, a slight increase from the same quarter last year, driven mainly by improved profitability at their Trail Operations, though partly offset by lower copper and zinc prices.
Copper production was 109,100 tons, in line with the same quarter last year, with Quebrada Blanca in Chile contributing 52,700 tonnes.
Teck’s US-listed shares fell 5.6% at about $36 on the updates, while its Canadian-listed stock was down 4.7% at C$50.